Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 30 June 2020
FBI Undercover Operation Leads to Federal Charges for 14 Men Attempting to Meet Minors for SexRead the Press Release
Fairview Heights, Ill. – U.S. Attorney Steven D. Weinhoeft and FBI Special Agent in Charge Sean M.
Cox announced today that 14 men have been federally charged for attempting to engage in sexual
activity with minors. The cases are the result of an FBI led operation involving multiple federal
and state law enforcement agencies that targeted online predators attempting to meet minors for
sex. Over 50 law enforcement agents were involved in the operation.U.S. Attorney Steven Weinhoeft said, “Instead of lurking on playgrounds, modern predators hide
behind electronic devices using social media and texting apps to access young children.” Weinhoeft
continued, “Serious dangers are no further away than a child’s cell phone or tablet, and we
strongly urge parents to monitor their children’s online activity, be aware of who their children
are talking with, and have conversations about how to stay safe online.”SAC Cox echoed those remarks: “Over this past weekend, FBI Agents from Springfield and St. Louis
partnered with law enforcement to conduct an operation to identify child predators. These are some
of the most difficult, and yet the most important, investigations we work with our partners to make
a positive impact in our communities and protect our children. In today’s world, children have a
much larger presence on social media platforms than they had in the past, which places them at far
greater risk of becoming a victim to online sexual predators. These arrests should serve as a
reminder to parents everywhere of the importance of monitoring the computer usage of their children
and staying active in their lives.”During the two-day operation, undercover agents pretended to be minors in a variety of online
texting, social media and message board platforms and apps. All of the defendants contacted these
profiles online, engaged in sexually explicit discussions with the undercover agents and arrived at
a residence with the intent to engage in sexual acts with minors. Some of the defendants also
propositioned the undercover agents to send them pornographic photos, traveled across state lines
for the purpose of illicit sexual activity with a minor, and/or offered to pay money to engage in
sexual activity with a minor. All of the defendants were arrested after arriving at the undercover
residence. Several defendants arrived with items intended for the fictitious minors, including
alcohol, sex toys, lubricant, condoms, methamphetamine, and in one case, a dog leash and a dog
collar with the name of the undercover profile engraved on it. No actual minors were harmed.All of the defendants were charged by criminal complaint between June 28-29, 2020. U.S. Attorney
Weinhoeft said, “Sex trafficking and child exploitation continue to impact our communities, and we
will aggressively enforce the law against those who would prey upon children.”The identities of the 14 men who were charged in the East St. Louis Division of the United States
Name Age City Charges Brett Brimberry 28 Glen Carbon, IL Attempted Enticement of a Minor Richard L. Britt 38 Granite City, IL Attempted Enticement of a Minor; Interstate
District Court for the Southern District of Illinois, as well as their charges, are set out in the
table below:
Travel to Engage in Illicit Sexual Conduct Urich Gaines 32 Belleville, IL Attempted Enticement of a Minor Kayln E. Hoggat 27 Bridgeport, ILAttempted Enticement of a Minor; Attempted
Kevin Kamler 30 O'Fallon, MO Attempted Enticement of a Minor Brian Lotz 56 Collinsville, IL Attempted Enticement of a Minor Anthony Parrish 33 Swansea, IL Attempted Enticement of a Minor Philip M. Reis 55 O'Fallon, IL Attempted Enticement of a Minor Gerald S. Sewell 56 Belleville, IL Attempted Enticement of a Minor: Interstate
Production of Child Pornography
Travel to Engage in Illicit Sexual Conduct James R. Sears 35 Bridgeport, IL Attempted Enticement of a Minor Travis Shubert 29 Granite City, IL Attempted Enticement of a Minor Preston Thomas 57 St. Louis, MO Attempted Enticement of a Minor Nicholas Wright 35 O'Fallon, MO Attempted Enticement of a Minor; Interstate
Travel to Engage in Illicit Sexual Conduct;
Attempted Sex Trafficking of a Child Vallie F. Zeller 43 St. Louis, MO Attempted Enticement of a Minor; Interstate
Travel to Engage in Illicit Sexual Conduct;
Attempted Production of Child Pornography
Between June 29-July 1, 2020, all 14 defendants will have an initial appearance in front of United
States Magistrate Judges Mark Beatty or Gilbert Sison at the federal courthouse in East St. Louis.
Each of the offenses is alleged to have occurred in Madison County, Illinois. If convicted, the
defendants each face a minimum penalty of 10 years imprisonment and could receive as much as life
behind bars. The offenses also carry a possible lifetime term of supervised release and fines of up
to $250,000.Pending trial, all 14 defendants will be held without bond or released on electronic
monitoring and other strict conditions mandated by the Adam Walsh Act.A complaint is merely a charge against a defendant. Under the law, a defendant is presumed to be
innocent of the charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.These cases fall under the umbrella of Project Safe Childhood, a nationwide initiative launched in
2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and
abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation
and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to
locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and
rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on
the tab “resources.”The investigation was led by the FBI-Springfield Division, with the assistance of the FBI- St.
Louis Division, U.S. Air Force Office of Special Investigations, the Belleville Police Department,
the Collinsville Police Department, the Edwardsville Police Department, the Franklin County
Sheriff’s Office, the Illinois State Police, the Southern Illinois University-Edwardsville Police
Department, the St. Louis County Police Department, the Swansea Police Department, and the United
States Secret Service. Additional assistance was provided by the United States Marshals Service,
the Alton Jail, the Monroe County Jail, and the St. Clair County Jail. The 14 defendants’ cases
will be prosecuted by Assistant Unite States Attorneys Chris Hoell, Ali Burns, Karelia
Rajagopal, and Laura Reppert.Ex-Husband of ‘Real Housewives of New Jersey’ Star and Lucchese Crime Family Soldier Indicted for Assault and Other CrimesRead the Press Release
NEWARK, N.J. – The ex-husband of one of the stars of the Bravo television show “The Real Housewives of New Jersey,” and an organized crime soldier were arrested today on charges of planning and carrying out an assault of the Bravo star’s current husband in exchange for a lavish wedding reception, U.S. Attorney Craig Carpenito announced.
Thomas Manzo, 55, of Franklin Lakes, New Jersey, and John Perna, 43, of Cedar Grove, New Jersey, are each charged by indictment with committing a violent crime in aid of racketeering activity and conspiracy to commit a violent crime in aid of racketeering activity. The indictment also charges Perna – identified in the indictment as a soldier in the Lucchese Crime Family – with conspiracy to commit wire and mail fraud related to the submission of a false car insurance claim, and Manzo with falsifying and concealing records related to the federal investigation of the violent crime. Both defendants will make their initial appearances today by videoconference before U.S. Magistrate Judge Cathy L. Waldor.
According to the documents filed in this case and statements made in court:
In the spring of 2015, Manzo, one of the owners of the Brownstone Restaurant in Paterson, New Jersey, allegedly hired Perna to assault his ex-wife’s then-boyfriend in exchange for a deeply discounted wedding reception for Perna held at the upscale venue. Perna, who is a “made man” in the Lucchese Crime Family with his own crew, worked with his associates to plan and carry out the assault, which took place in July of 2015. In exchange for committing the assault, Perna held a lavish wedding reception at Manzo’s restaurant for a fraction of the price, which was paid by another Lucchese associate and close friend of Manzo’s. The wedding and reception, held in August 2015, were attended by approximately 330 people, and included many members of the Lucchese Crime Family.
Separately, prior to the date that Perna was scheduled to begin serving a state prison sentence in January 2016, he falsely reported that his Mercedes Benz was stolen and destroyed. Perna filed an insurance claim for the destruction of the Mercedes Benz in order for the balance due on the Mercedes Benz. However, Perna had staged the vehicle theft and arson with other members of the Lucchese Crime Family.
The charge against Manzo for allegedly falsifying and concealing records related to the federal investigation of the July 2015 assault relates to federal grand jury subpoenas that were sent to the Brownstone Restaurant seeking documents related to the August 2015 Perna wedding reception. Manzo failed to turn over relevant documents in response to those subpoenas and deliberately submitted a false document regarding the reception to the government, along with a false certification. In November 2019, agents with the FBI executed a search warrant at the Brownstone Restaurant and seized invoices for the August 2015 Perna wedding reception and other relevant documents that were not previously turned over.
The violent crime in aid of racketeering activity count against both defendants carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The conspiracy to commit the violent crime in aid of racketeering activity count against both defendants carries a maximum potential penalty of three years in prison and a $250,000 fine. The conspiracy to commit mail and wire fraud count against Perna carries a maximum potential penalty of 20 years of in prison and a $250,000 fine. The falsifying and concealing records related to a federal investigation count against Manzo carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigation leading to the charges and arrest.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Eleventh Circuit Court of Appeals Upholds Convictions of Doctor on Twenty Counts of Healthcare FraudRead the Press Release
Tampa, Florida — United States Attorney Maria Chapa Lopez announces that the United States Court of Appeals for the Eleventh Circuit has upheld the convictions of Dr. David M. Pon on 20 counts of healthcare fraud. The Eleventh Circuit also rejected Pon’s challenges to his 121-month sentence.
According to evidence presented at his trial, Pon, an ophthalmologist, intentionally and fraudulently misdiagnosed hundreds of Medicare beneficiaries as suffering from wet macular degeneration, a degenerative and incurable eye disease. Pon then used his false diagnoses to bill the Medicare program for unnecessary diagnostic testing and unwarranted laser treatments. Several of the misdiagnosed patients testified and explained the significant emotional impact the false diagnosis had on their lives, including the fear of going blind as a result of the disease they supposedly had.
On appeal, Pon did not challenge the sufficiency of the evidence against him. He instead challenged the district court’s evidentiary rulings at trial. He argued that the district court should have allowed his expert to testify about a theoretical treatment method for wet macular degeneration. He also argued that the United States should not have been allowed to present rebuttal evidence showing that Pon had billed Medicare for performing services on a patient’s blind left eye, or, at a minimum, should have allowed him to respond more extensively to that evidence in surrebuttal.
The Court of Appeals upheld the district court’s ruling that Pon’s expert’s theory was unreliable, noting that even Pon’s expert recognized that his theory had not been scientifically tested and he had “not seen … clinical data” about it.
The Court of Appeals also ruled that the district court did not abuse its discretion in allowing the United States to present rebuttal evidence and that any error in limiting Pon’s surrebuttal was harmless beyond a reasonable doubt given the “overwhelming proof of Pon’s guilt.” (One judge dissented on this issue, disagreeing with the Court’s assessment that any error was harmless.) The Court observed that the United States had “presented the testimony of not one, but a dozen doctors about the patients listed in the indictment,” and the doctors “collectively had more than 330 years of experience.” The majority observed that “[n]one of those doctors could find any evidence that any of the eleven patients identified in the indictment had [wet macular degeneration] when Pon diagnosed them with it, and they all concluded that the patients did not have the telltale scars associated with the laser photocoagulation treatment that Pon had billed Medicare for performing on each patient.” The Court also noted the “strong evidence” that Pon had “incorrectly diagnosed and improperly ‘treated’ not just the eleven patients listed in the indictment but also hundreds of other patients.”
The Court of Appeals also rejected Pon’s challenges to his 121-month sentence. Specifically, the Court found that the district court’s finding that Pon’s crimes had caused a loss of almost $7 million was based on “reliable and specific evidence,” including a spreadsheet showing how much Medicare had paid Pon for thousands of claims and the “extensive testimony” of a Medicare-fraud investigator.
This case was investigated by United States Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorneys Michelle Thresher Taylor and David Rhodes represented the United States on appeal.
Dominican National Charged with Unlawful ReentryRead the Press Release
BOSTON – A Dominican national was charged yesterday with unlawfully reentering the United States after being deported.
Pedro Wilson Hernandez-Castillo, 49, who resided in Worcester, was charged in a criminal complaint with one count of unlawful reentry of a deported alien.
According to the charging documents, Hernandez-Castillo unlawfully re-entered the United States after being deported in August 2018. On June 16, 2020, Hernandez-Castillo was stopped by law enforcement while driving. When asked for identification, Hernandez-Castillo provided the driver’s license and Social Security card of another individual. After determining that Hernandez-Castillo provided false information, the state trooper arrested Hernandez-Castillo. Following his arrest, it was determined that Hernandez-Castillo’s fingerprints biometrically matched the fingerprints in his alien file.
According to charging documents, Hernandez-Castillo was previously removed from the United States in August 2011, July 2000 and January 1999.
The charging statute provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement. The Massachusetts State Police provided valuable assistance. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Warns of Inaccurate Flyers and Postings Regarding the Use of Face Masks and the ADARead the Press Release
WASHINGTON – Assistant Attorney General for the Civil Rights Division Eric Dreiband reiterated today that cards and other documents bearing the Department of Justice seal and claiming that individuals are exempt from face mask requirements are fraudulent.
Inaccurate flyers or other postings have been circulating on the web and via social media channels regarding the use of face masks and the Americans with Disabilities Act (ADA) due to the COVID-19 pandemic. Many of these notices included use of the Department of Justice seal and ADA phone number.
As the Department has stated in a previous alert, the Department did not issue and does not endorse them in any way. The public should not rely on the information contained in these postings.
The ADA does not provide a blanket exemption to people with disabilities from complying with legitimate safety requirements necessary for safe operations.
The public can visit ADA.gov or call the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY) for more information.
###
Department of Justice and Federal Trade Commission Issue New Vertical Merger GuidelinesRead the Press Release
The Department of Justice and Federal Trade Commission issued today new Vertical Merger Guidelines that outline how the federal antitrust agencies evaluate the likely competitive impact of mergers and whether those mergers comply with U.S. antitrust law. These new Vertical Merger Guidelines mark the first time the Department and the FTC have issued joint guidelines on vertical mergers, and represent the first major revision to guidance on vertical mergers since the Department’s 1984 Non-Horizontal Merger Guidelines, which the Department withdrew in January of this year.
In March 2019, Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division announced that a draft of new vertical merger guidelines was underway, following an FTC workshop in Fall 2018 on whether new vertical merger guidelines should be issued.
“As a joint effort of DOJ and the FTC, the new vertical merger guidelines will provide greater transparency and predictability to the marketplace when businesses combine at different levels of the supply chain," said Deputy Attorney General Jeff Rosen.
“These new Vertical Merger Guidelines provide transparency in the important area of vertical merger analysis,” said Assistant Attorney General Delrahim. “They explain our investigative practices as we apply them today and have applied them in recent years. The guidelines will give greater predictability and clarity to the business community, the bar, and enforcers. I am grateful for the commitment, thoroughness, and dedication with which staff from both agencies worked on this project. This has been a successful process because of our robust public engagement and our excellent collaborative relationship with the FTC.”
“These new Vertical Merger Guidelines are an important step forward in maintaining vigorous antitrust enforcement, and reaffirm our commitment to challenge vertical mergers that are anticompetitive and would harm American consumers,” said FTC Chairman Joe Simons. “The new guidelines reflect our current enforcement approach and, through increased transparency, will help businesses and practitioners understand how we evaluate vertical transactions. The new Guidelines also reflect our strong collaboration with the Department of Justice, and the substantial input that we received from the public.”
Vertical mergers combine two or more companies that operate at different levels in the same supply chain. A primary goal of the new Vertical Merger Guidelines is to help the agencies identify and challenge competitively harmful mergers while avoiding unnecessary interference with mergers that either are competitively beneficial or likely will have no competitive impact on the marketplace. To accomplish this, the guidelines detail the techniques and main types of evidence the agencies typically use to predict whether vertical mergers may substantially lessen competition. The Guidelines will help businesses, antitrust practitioners and other interested persons by increasing transparency into the agencies’ principal analytical techniques, practices, and enforcement policies for evaluating vertical transactions.
The new Vertical Merger Guidelines reflect the agencies’ analysis of vertical mergers. The revised guidelines:
- Explain that mergers often present both horizontal and vertical elements, and the agencies may apply both the Horizontal Merger Guidelines and the Vertical Merger Guidelines in their evaluation of a transaction, as part of a fact-specific process that involves a variety of tools to determine whether a merger may substantially lessen competition.
- Clarify that its analytical techniques, practices, and enforcement policies apply to a range of non-horizontal transactions, including strictly vertical mergers, “diagonal” mergers, and vertical issues that can arise in mergers of complement.
- Clarify that when the agencies identify a potential competitive concern in a relevant market, they will also specify one or more related products. A related product is a product or service that is supplied or controlled by the merged firm and is positioned vertically or is complementary to the products and services in the relevant market.
- Provide detailed discussions, including multiple diverse examples, of the “raising rivals’ costs” and “foreclosure” theories of harm. In recent decades, these theories of harm have been the principle theories investigated in merger reviews.
- Identify conditions under which a vertical merger would not require an extensive investigation, because the merger does not create or enhance the merged firm’s incentive or ability to harm rivals.
- Emphasize that analyzing efficiencies is an important part of reviewing vertical mergers.
- Explain in detail the analysis of the elimination of double marginalization (“EDM”), which economists emphasize is a frequent procompetitive result of vertical transactions.
The new guidelines are the culmination of a process that dates back to the start of the FTC’s Hearings on Competition and Consumer Protection in the 21st Century in June 2018. In June 2018, and then again in the October 2018, the Commission sought comment on the legal and economic analysis of vertical mergers, and whether new Vertical Merger Guidelines should be issued by the antitrust agencies. In November 2018, the Commission held a public hearing to discuss the proper scope of new guidelines. In the spring of 2019, both agencies began working on revisions to the 1984 Non-Horizontal Merger Guidelines, and began sharing drafts of proposed new guidelines in the summer of 2019. On January 10, 2020, the agencies jointly released a draft version of the Vertical Merger Guidelines; the agencies received 74 substantive comments on the draft. A public workshop to discuss the draft was held on March 11, 2020 during which staff from both agencies moderated debate and discussion on the draft Vertical Merger Guidelines. The guidelines released today modify the draft released in January to incorporate comments from the public.
Convicted felon pleads guilty to illegal possession of a firearmRead the Press Release
COLUMBUS, Ohio – A convicted felon who was stopped for a traffic violation by Dublin, Ohio Police officers pleaded guilty in U.S. District Court to illegal possession of a firearm after officers found a loaded gun in his car.
Waymond C. Gordon, 33, of Columbus entered the plea on June 29.
According to court documents, on March 12, 2019, Dublin police stopped Gordon for a traffic violation. A records check found that Gordon was driving with a suspended license and had outstanding arrest warrants. Officers searched his car and found a loaded .22 caliber revolver between the driver’s seat and the center console.
Gordon had been convicted in Franklin County Common Pleas Court in 2009 of robbery. Federal law prohibits convicted felons from possessing or controlling firearms or ammunition.
Possession of a firearm by a convicted felon is punishable by up to ten years in prison. A judge will set a date for Gordon’s sentencing.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Dublin Police Chief Justin Paez announced the plea entered before U.S. Magistrate Judge Elizabeth Preston Deavers. Deputy Assistant Criminal Chief Gary Spartis is representing the United States in this case.
# # #
California man charged with possessing drugs for distributionRead the Press Release
GREAT FALLS -- The U.S. Attorney’s Office today announced that Mitchell Joseph Wright. 40, of Los Angeles, CA, appeared on Monday on a criminal complaint charging him with possession with intent to distribute controlled substances.
If convicted of the most serious crime, Wright faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. The charging documents are merely accusations and Wright is presumed innocent until proven guilty.
U.S. Magistrate Judge John T. Johnston presided and continued Wright's detention pending further proceedings.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Postal Service, Russell Country Drug Task Force, Cascade County Sheriff's Office and Great Falls Police Department investigated the case.
XXX
Burlington Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa - United States Attorney Marc Krickbaum announced on June 29, 2020, Johnathan Keith Sneed, age 34, of Burlington, was sentenced by United States District Court Chief Judge John A. Jarvey for a felon in possession of a firearm charge. Sneed was sentenced to 80 months in prison to be followed by a term of supervised release of three years. Sneed was ordered to pay $100 to the Crime Victims’ Fund.
Sneed pleaded guilty on February 18, 2020, and admitted on September 13, 2018, he possessed a loaded .380 caliber Hi-Point pistol. Prior to possessing the weapon, Sneed had been convicted of a felony and was prohibited from possessing a gun.
This case is part of Project Guardian and Project Safe Neighborhoods, programs bringing together all levels of law enforcement and the communities they serve to reduce gun crime and make our neighborhoods safer for everyone. This case was investigated by the Burlington, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Buffalo Man Pleads Guilty to Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kevin Miller, 30, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to distribute, and distribution of, controlled substances. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Joseph M. Tripi and Meghan E. Leydecker, who are handling the case, stated that between March 2016, and September 25, 2018, the defendant sold cocaine, crack cocaine, marijuana, and heroin in the City of Buffalo and surrounding suburbs. During that time, Miller utilized residences at 45 Easton Avenue and 507 E. Ferry Street in Buffalo to store and distribute the drugs. Also during the same time period, the defendant possessed various firearms, including semi-automatic pistols he posed with online using social media.
On March 31, 2016, New York State parole officers conducted a search at Miller's parole residence after receiving evidence that the defendant violated his curfew. During the search, parole officers located and seized three digital scales with residue; two bags of ammunition; a quantity of crack cocaine; and a cell phone. Buffalo Police were called and Miller was arrested.
On September 25, 2018, the ATF and Buffalo Police Department executed federal search warrants at 45 Easton Avenue, and on a vehicle used by the defendant. As investigators prepared to enter the residence, they observed an object that was thrown from an upper window at the rear of the house. The object thrown from the window was loaded revolver. During a search of the upper apartment, three vials of marijuana, $411 cash, a large number of empty glass vials, 17 cellular telephones, and four scales were seized. The clothing Miller was wearing in the August 17, 2018, social media video depicting him with a firearm was also located inside the apartment. In addition, a scale and a loaded semi-automatic firearm were found in the basement.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci.
Sentencing is scheduled for October 8, 2020, at 12:30 p.m. before Judge Arcara.
# # # #
Buffalo Man Going to Prison for Selling Heroin and FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jose Lao, 25, of Buffalo, NY, who was convicted of distributing heroin and fentanyl, was sentenced to serve 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Justin G. Bish, who handled the case, stated that on six occasions between May 3 and June 23, 2017, the defendant sold a mixture containing heroin and fentanyl during an undercover drug operation led by the Drug Enforcement Administration.
The sentencing is a result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
# # # #
Beckley Woman Who Faked Death to Avoid Sentencing Will Serve 42 Months in Federal Prison for Health Care FraudRead the Press Release
CHARLESTON, W.Va. – Julie M. Wheeler, 43, of Beckley, was sentenced by Senior United States District Judge John T. Copenhaver, Jr. to 42 months in federal prison for federal health care fraud, announced United States Attorney Mike Stuart. After serving her prison sentence, she will be placed on supervised release for three years. She was further ordered to pay restitution in the amount of $289,055.07, an amount calculated by the Veterans Administration (VA) and approved by the court.
In imposing a sentencing enhancement for obstruction, Judge Copenhaver found that Wheeler attempted to obstruct and impede the administration of justice by staging an “elaborate hoax” to fake her own death to avoid federal sentencing. On May 31, 2020, Wheeler and other family members staged her fall from the Grandview State Park overlook. Wheeler’s family members then falsely reported to law enforcement her fall off of Grandview Ledges at the New River Gorge. This report led to an extensive search effort in the New River Gorge by state, federal and local authorities, assisted by numerous volunteers. The West Virginia State Police eventually located Wheeler at her own home, hiding in a closet. Wheeler and her husband are presently charged in Raleigh County Magistrate Court for numerous felony and misdemeanor offenses relating to the false reporting of an emergency. The court found that this scheme contributed to Wheeler’s failure to accept responsibility for her criminal conduct and enhanced her federal sentence accordingly.
“Absolutely despicable. Wheeler’s egregious fraud scheme denied much needed spina bifida care for her own sister while she fleeced the Veteran’s Administration of almost $300,000,” said United States Attorney Mike Stuart. “Then she faked her own disappearance to evade sentencing, risking the lives and resources of first responders and emergency personnel. Outrageous. Terribly tragic case all around.”
Wheeler pled guilty on February 11, 2020, and admitted that she submitted fraudulent applications to the VA Spina Bifida Health Care Benefits Program where she overbilled for providing spina bifida care for a family member, K.L. Wheeler was the owner of a homecare services company, JRW Homecare Support Services. Wheeler was hired to provide services to K.L. due to K.L.’s spina bifida condition at the VA approved rate of $736 a day to provide eight hours of daily services. Wheeler’s care was supposed to include bathing, grooming, changing K.L.’s clothes and other issues associated with K.L.’s hygiene, food intake and lifestyle.
Wheeler did not provide K.L. the care for and during the time period described. Wheeler submitted claims to the VA stating that she provided care for K.L. eight hours a day, seven days a week, from October 2016 to April 2018 at the full daily rate of $736 a day. Wheeler gave a statement to the VA and the FBI admitting that she greatly inflated the rate and quality of the care that she provided to K.L. This was corroborated by other witnesses who provided statements that Wheeler did not provide eight hours of daily care. Wheeler further admitted that her conduct defrauded the VA of hundreds of thousands of dollars and deprived the victim of services. The victim of the spina bifida diagnosis, K.L., has since passed away.
Assistant United States Attorney Erik S. Goes handled the prosecution.
Stuart praised the work of the Veterans Affairs - Office of Inspector General (VA-OIG), the Federal Bureau of Investigation, the Office of Veterans Affairs (VA), and the United States Department of Health and Human Services - Office of Inspector General (HHS-OIG) for the investigation of the underlying fraud, and the National Park Service and the West Virginia State Police for their work in locating Wheeler.
The fraud investigation was conducted by members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid (ARPO) Strike Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Attorney General William P. Barr's Statement on the Supreme Court's Ruling in Espinoza v. Montana Department of RevenueRead the Press Release
Attorney General William P. Barr has released the following statement:
“We are pleased with the Supreme Court’s decision today in Espinoza v. Montana Department of Revenue. Montana’s Blaine Amendment excluded religious schools from state scholarship programs that are open to other educational institutions. It thus prevented parents who send their children to religious schools from receiving scholarship funds that are available to the rest of the community.
The Supreme Court concluded today that Montana’s Blaine Amendment violates the Free Exercise Clause of the First Amendment. The Court recognized that the Free Exercise Clause “condemns discrimination against religious schools and the families whose children attend them.” As a result of the Court’s decision, a state may no longer disqualify religious schools from scholarships or other programs “solely because they are religious.”
The Court’s decision represents an important victory for religious liberty and religious equality in the United States. As the Court explained, religious people are “members of the community too,” and their exclusion from public programs because of their religion is “odious to our Constitution” and “cannot stand.” We were pleased to see the Court agree with the Trump Administration that such blatant discrimination against religion has no place in our constitutional system.”
Armed Career Criminal Sentenced to Fifteen Years in Prison for Selling FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Ryan Perrin (34, Palm Harbor) to 15 years in federal prison for possessing firearms and ammunition as a convicted felon. Perrin’s criminal history—including prior state felony convictions for selling cocaine and aggravated assault—qualified him for sentencing as an Armed Career Criminal. Perrin had pleaded guilty on October 31, 2019.
According to court documents, in April 2017, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Perrin, a convicted felon, was trafficking in firearms in Pinellas County. An undercover ATF special agent arranged to meet with Perrin, and purchased firearms and ammunition from him on two occasions. In total, Perrin sold 7 firearms and 87 rounds of ammunition to the undercover agent.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Arizona Man Sentenced for Illegally Manufacturing Ammunition Without A LicenseRead the Press Release
LAS VEGAS, Nev. – Douglas Haig, 57, of Mesa, Arizona, was sentenced today to 13 months in federal prison for manufacturing ammunition without a license, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.
This case arose out of the investigation into the October 1, 2017 mass shooting at the Route 91 Harvest music festival in Las Vegas. In the hotel room from which the shooter staged his attack, investigators located a box with a shipping label setting forth Haig’s name and address.
According to court documents, from July 2016 to October 2017, Haig illegally manufactured various types of ammunition. Haig had operated “Specialized Military Ammunition,” an Internet business selling armor piercing (AP) ammunition, armor piercing incendiary (API), and high explosive armor piercing incendiary (HEAPI) ammunition. Business records showed that Haig sold such ammunition throughout the United States, including Nevada, Texas, Virginia, Wyoming, and South Carolina.
Beginning on October 2, 2017, agents from the FBI and ATF began a series of interviews with Haig, who admitted to meeting the October 1 shooter and selling him ammunition. Haig also admitted to traveling to gun shows to sell ammunition. Even though Haig’s website promoted his ability to “fabricate” and “manufacture” military style “mil spec” ammunition, including AP ammunition, API, and HEAPI ammunition, Haig told a witness to lie to the FBI and ATF agents about whether he sold the ammunition that he manufactured. Because Haig did not possess a federal firearms license, he was not authorized to manufacture ammunition.
On October 24, 2017, agents seized hundreds of pounds of ammunition and ammunition components when they executed a search warrant at Haig’s residence. Haig had ammunition or firearms-related equipment in nearly every room, and a workshop had been converted into a manufacturing operation for ammunition that he was in the process of automating.
A fingerprint examination established that Haig’s fingerprints were on two pieces of armor piercing ammunition removed from a magazine located in the October 1 shooter’s hotel room. A forensic firearms examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.
Haig was indicted by a grand jury on August 22, 2018, and pleaded guilty to the illegally manufacturing ammunition charge on November 19, 2019. U.S. District Judge James Mahan ordered Haig to self-surrender to the Bureau of Prisons by October 2, 2020.
The investigation was conducted by the FBI with assistance from ATF and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Tony Lopez and former Assistant U.S. Attorney Patrick Burns prosecuted the case.
###
Albany Felon Admits Unlawful Firearm PossessionRead the Press Release
ALBANY, NEW YORK – Luis Rivera, age 34, of Albany, pled guilty last week to unlawfully possessing a firearm as a felon. The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The guilty plea took place on June 25. Rivera, who has three prior felony convictions, admitted that on January 31, 2019, he possessed a Taurus PT 738 .380 caliber pistol.
Rivera faces up to 10 years in prison and a post-imprisonment supervised release term of up to 3 years, when he is sentenced by United States District Judge Mae A. D’Agostino on October 26, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Acting Manhattan U.S. Attorney Announces Consent Decree with Chestnut Petroleum Distributors, Inc., and Affiliates Resolving Violations of the Resource Conservation and Recovery ActRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has entered into a Consent Decree settling a civil lawsuit against Chestnut Petroleum Distributors, Inc., and its affiliates CPD Energy Corp., CPD NY Energy Corp., Chestnut Mart of Gardiner, Inc., Chestnut Marts, Inc., Greenburgh Food Mart, Inc., Middletown Food Mart, Inc., and NJ Energy Corp. (collectively, “Defendants”), for violating the Resource Conservation and Recovery Act (“RCRA”) in connection with their ownership or operation of underground storage tanks at 20 separate gas stations within the Southern District of New York and adjoining districts.
Acting U.S. Attorney Audrey Strauss said: “Today’s settlement holds Chestnut Petroleum Distributors, Inc., and its affiliates accountable for repeatedly failing to comply with regulations designed to prevent gasoline leaks from injuring public health and the environment, and ensures ongoing oversight of the defendants’ operations to protect the public in the future.”
EPA Regional Administrator Peter D. Lopez said: “Failure to regularly monitor underground storage tanks and address possible leaks risks contaminating groundwater, which is one of our most valuable natural resources. This settlement requires the companies to follow laws in place to mitigate safety threats and protect the environment.”
Petroleum products such as gasoline contain chemical compounds that pose substantial threats to human health. Service stations typically store gasoline in underground storage tanks. When operated conscientiously and monitored closely, underground storage tanks are a safe and effective means to store gasoline. But when those tanks are not subjected to basic operational safeguards, they can endanger the public and the environment, for example by leaking petroleum into the water supply, discharging toxic vapors into the air, or even triggering fires or explosions. EPA’s regulations under RCRA are designed to protect the public by requiring underground storage tank operators to reduce the likelihood of leaks, monitor for leaks so they can promptly be addressed, and maintain adequate insurance to conduct corrective action and compensate injured third parties should a leak occur.
The Consent Decree, which is subject to public comment and approval by the district court, resolves a lawsuit filed by the United States in May 2019, which alleges that Defendants repeatedly violated RCRA and related regulations at various times between 2011 and 2014 with respect to their ownership and/or operation of underground storage tanks at 20 gas stations.
* * *
In the Consent Decree filed today, Defendants admit, acknowledge, and accept responsibility for failing to perform required actions at one or more facilities on various specified dates between 2011 and 2014. This includes:
- failing to perform release (i.e., leak or spill) detection;
- failing to maintain and provide records of release detection monitoring;
- failing to operate corrosion protection systems (including inspecting and testing) for steel underground storage tank systems and failing to maintain and provide records of corrosion protection monitoring;
- failing to cap and secure underground storage tanks that were temporarily closed;
- failing to perform release detection for underground storage tanks that were temporarily closed;
- failing to report suspected releases or unusual operating conditions for underground storage tanks;
- failing to conduct release investigations and confirm suspected releases or unusual operating conditions; and
- failing to maintain insurance policies sufficient to take corrective action and compensate third parties for bodily injury and property damage caused by accidental releases arising from the operation of the underground storage tanks.
Pursuant to the Consent Decree, Defendants are required to comply with the regulations applicable to underground storage tanks for all underground storage tanks at the facilities at issue, and to take various measures to ensure such compliance, including undertaking inspections, maintaining and operating an electronic environmental management system providing centralized electronic monitoring of release detection at all underground storage tanks at the facilities, monitoring the under-dispenser containment systems at all underground storage tanks at the facilities, and providing semi-annual reports to EPA. Defendants also agree to undertake certain measures with respect to newly acquired facilities containing underground storage tanks, including providing notice to EPA of the planned acquisition, conducting a pre-acquisition assessment, and ensuring that all underground storage tanks at newly acquired facilities are promptly brought into compliance with all applicable regulations.
In addition to this injunctive relief, Defendants will pay a civil penalty of $187,500. Defendants will also be subject to substantial penalties if they fail to comply with the terms of the Consent Decree.
The Consent Decree will be lodged with the District Court for a period of at least 30 days, and notice of the Consent Decree will be published in the Federal Register before the Consent Decree is submitted for the Court’s approval. This will afford members of the public the opportunity to submit comments on the Consent Decree to the Department of Justice.
Acting U.S. Attorney Strauss thanked EPA’s attorneys and staff for their critical work on this matter.
This case is being handled by the Office’s Environmental Protection Unit. Assistant United States Attorneys Christopher Connolly, Rachael Doud, and Jennifer C. Simon are in charge of the case.3 Men Indicted for Carjacking and Using a Firearm During a Crime of ViolenceRead the Press Release
MEMPHIS, TN– Elden Collins, 25, KolonjiWarren, 24, and Kristopher Harris, 23, have been indicted for the federal offenses of carjacking and using a firearm during and in relation to a crime of violence. D. Michael Dunavant, U.S. Attorney announced the indictment today.
According to the indictment, on July 17, 2019, the victim was seated inside his vehicle at the Pump and Munch gas station on East Shelby Drive in Memphis, TN. Collins and his two accomplices drove a tan Jeep SUV to the gas station, and pulled alongside the victim's vehicle.
Harris, pointed a semi-automatic handgun at the victim, firing one shot into the front passenger-side window of the vehicle. After the victim fled, Warren entered the victim's vehicle and drove away. One shell casing left at the scene was collected as evidence.
Part of the carjacking incident was captured on video surveillance, which confirmed the suspect’s vehicle in the area and showed Warren enter the gas station prior to the carjacking. During the course of the investigation the defendants were all positively identified.
If convicted of the carjacking offense, the defendants each face sentences of up to 15 years imprisonment; a $250,000 fine and 3 years supervised release. If convicted of using a firearm during a crime of violence offense, the defendants each face an additional mandatory minimum consecutive sentence of 10 years imprisonment; a $250,000 fine and 5 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Under our Carjacking Initiative, the U.S. Attorney’s Office is continuing to coordinate with our federal and local law enforcement partners to prioritize and target carjacking cases for aggressive federal prosecution. This indictment demonstrates our resolve to incapacitate the most violent offenders, uphold the rule of law, deter criminal conduct with a strong message of significant consequences, and make our community safer."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Wendy K. Cornejo is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
###
23 Defendants Arrested, Three at Large, on Federal Drug Conspiracy and Firearms Charges in Horry County in Operation Broken BranchRead the Press Release
Conway, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that a joint team of more than 200 federal, state, and local law enforcement officers arrested 23 individuals who have all been charged in federal court for their roles in a drug trafficking organization that operated out of the Cedar Branch area of Horry County, South Carolina. Three additional defendants remain at large.
The arrests mark the first in Operation Broken Branch, the latest iteration in a series of joint federal, state, and local investigations targeting violent crime in Myrtle Beach and throughout Horry County.
According to court records, the Federal Bureau of Investigation (FBI), through its Pee Dee Safe Streets Gang Task Force, began this multi-year investigation in conjunction with the 15th Circuit Solicitor’s Office Drug Enforcement Unit (DEU) and Horry County Sheriff’s Office. The operation specifically targeted alleged members of the drug trafficking organization based on the organization’s distribution of dangerous drugs, such as heroin and fentanyl, and its members’ use of firearms in furtherance of the drug trafficking crimes.
“Pandemic or not, there is no safe harbor for criminals in South Carolina,” said U.S. Attorney McCoy. “I want to commend the exceptional efforts of the law enforcement officers who put themselves in harm’s way for this morning’s operation. With today’s arrests, in the last six weeks alone this office has charged more than 50 individuals for major drug trafficking crimes or serious firearms offenses. We can only do this work through close relationships with our federal, state, and local partners. Arrests like these help take down entire criminal organizations, allowing us to protect the people of South Carolina and help ensure they have safe neighborhoods to call home.”
“These complaints and arrests demonstrate drug trafficking organizations will be investigated and dismantled, no matter what corner of South Carolina they are found,” said Jody Norris, Special Agent in Charge of the FBI. “All our law enforcement partners, especially the FBI’s Pee Dee Safe Streets Gang Task Force, the Drug Enforcement Unit of the Fifteenth Circuit, and the Horry County Sheriff’s Office, should be commended for their tremendous work in eliminating an organization that is alleged to have peddled dangerous drugs and violence in multiple states.”
The following defendants have been arrested on criminal complaints under various charges related to their alleged roles in the drug trafficking organization:
DARRELL LAMONT JACKSON, 46, of Myrtle Beach, is charged in the conspiracy with five kilograms or more of cocaine. This charge carries a potential penalty of 10 years to Life imprisonment.
MARK TYREISE JACKSON, a/k/a “Ty,” 24, of Loris, is charged in the conspiracy with 500 grams or more of cocaine. This charge carries a potential penalty of five to 40 years imprisonment.
TERAINE LAVANCE GREEN, a/k/a “Juice,” 28, of Loris, is charged in the conspiracy with a quantity of cocaine base and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
WINFERD JUNIOR SHERMAN, a/k/a “Dunk,” 22, of Loris, is charged in the conspiracy with a quantity of cocaine base and a quantity of heroin. This charge carries a potential penalty of up to 20 years imprisonment.
TREMAYNE TYRONE GREEN, a/k/a “Plies,” a/k/a “P,” 24, of Loris, is charged in the conspiracy with a quantity of heroin and a quantity of fentanyl. This charge carries a potential penalty of up to 20 years imprisonment.
PHILLIP JAMAL JOHNSON, a/k/a “Foo,” 28, of Loris, is charged in the conspiracy with a quantity of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment. He is also charged with possession of a firearm in furtherance of a drug trafficking crime, which carries a potential penalty of at least five years consecutive to any other penalty imposed.
ANTRA TRUMAINE GORE, a/k/a “Priest,” 37, of Loris, is charged in the conspiracy with a quantity of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment. He is also charged with unlawful possession of a firearm by a prohibited individual, which carries a potential penalty of up to 10 years imprisonment.
ANGELO TARAY JACKSON, a/k/a “Che Che,” 23, of Loris, is charged in the conspiracy with a quantity of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
ANTHONY LAMONT NEALEY, a/k/a “Esse,” 40, of Longs, is charged in the conspiracy with 28 grams or more of cocaine base and a quantity of cocaine. This charge carries a potential penalty of five to 40 years imprisonment.
JAMES GOMILOUS RIGGINS, a/k/a “Scooby,” 43, of Tabor City, North Carolina, is charged in the conspiracy with 500 grams or more of cocaine. This charge carries a potential penalty of five to 40 years imprisonment.
LATEICE LANEICE GRIFFIN, a/k/a “Teice,” a/k/a “Thugbunny1120,” 28, of Longwood, North Carolina, is charged in the conspiracy with a quantity of cocaine base and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
LEON DALE GREEN, a/k/a “Young,” 31, of Loris, is charged in the conspiracy with 500 grams or more of cocaine and a quantity of heroin. This charge carries a potential penalty of five to 40 years imprisonment.
TEONTRIC SAQIWINA JACKSON, a/k/a “T,” 28, of Loris, is charged is charged in the conspiracy with 28 grams or more of cocaine base, 100 grams or more of heroin, 500 grams or more of cocaine, a quantity of methamphetamine, and a quantity of fentanyl. This charge carries a potential penalty of five to 40 years imprisonment. He is also charged with possession of a firearm in furtherance of a drug trafficking crime, which carries a potential penalty of at least five years consecutive to any other penalty imposed.
JAMES MYERS, III, a/k/a “Brix,” 31, of Loris, is charged in the conspiracy with a quantity of fentanyl, a quantity of cocaine, and a quantity of oxycodone. This charge carries a potential penalty of up to 20 years imprisonment. He is also charged with unlawful possession of firearm by a prohibited individual, which carries a potential penalty of up to 10 years imprisonment; and possession of a firearm in furtherance of a drug trafficking crime, which carries a potential penalty of at least five years consecutive to any other penalty imposed.
DEVANTE JAQUAN SQUIRES, a/k/a “Buddy Ro,” 25, of Loris, is charged in the conspiracy with a quantity of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
SHAQUAN TAEREEK HEMINGWAY, a/k/a “Obe,” 22, of Loris, is charged in the conspiracy with a quantity of heroin and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
TYRUSS KENDREZ HEMINGWAY, a/k/a “OT,” a/k/a “Macc,” 19, of Loris, is charged in the conspiracy with a quantity of heroin and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
ALFREDO GORE, a/k/a “AG,” 41, of Loris, is charged in the conspiracy with 100 grams or more of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of five to 40 years imprisonment.
MONTEL LASAUL HYPPOLITE, a/k/a “Pooh,” 21, of Conway, is charged in the conspiracy with a quantity of heroin and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
BILLIE LEE GREEN, a/k/a “Old School,” 59, of Longs, is charged in the conspiracy with a quantity of heroin and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
BYRON JAMES JACKSON, a/k/a “B,” 27, of Loris, is charged in the conspiracy with 100 grams or more of heroin, 500 grams or more of cocaine, and a quantity of cocaine base. This charge carries a potential penalty of five to 40 years imprisonment.
ROBERT JERMAINE ATTAWAY, a/k/a “Ant,” 26, of Myrtle Beach, is charged in the conspiracy with a quantity of heroin. This charge carries a potential penalty of up to 20 years imprisonment.
CARL LEE GREEN, 43, of Longs, is charged in the conspiracy with 500 grams or more of cocaine, 28 grams of cocaine base, and a quantity of heroin. This charge carries a potential penalty of five to 40 years imprisonment.
The following defendants are still at large:
TYSHON LAMONT CLIFTON, a/k/a “Rondo,” 20, of Loris, is charged in the conspiracy with a quantity of heroin. This charge carries a potential penalty of up to 20 years imprisonment.
BRADLEY CHRISTOPHER GRIFFIN, JR., 34, of Longwood, North Carolina, is charged in the conspiracy with a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
TIMOTHY MONDALE LONG, a/k/a “Black,” 38, of Loris, is charged in the conspiracy with 280 grams or more of cocaine base and 100 grams or more of heroin. This charge carries a potential penalty of 10 years to Life imprisonment. He is also charged with possession of a firearm in furtherance of a drug trafficking crime, which carries a potential penalty of at least five years consecutive to any other penalty imposed.
Operation Broken Branch is at least the third investigation targeting violent crime in the area. In 2017, Operation Silver Sunset targeted 29 associates of the Billy Bloods street gang, a subset of the United Blood Nation. In 2018, Operation Rise and Shine targeted 34 associates of G-Shine/SMG, another subset of the Bloods. Today’s arrests mark the latest, but not the last, investigation targeting violent crime in Horry County and surrounding areas.
During the course of this investigation, agents seized substantial quantities of heroin, fentanyl, cocaine, crack cocaine, and methamphetamine. Agents also seized more than a dozen firearms, bulk ammunition, and more than $180,000 in suspected drug proceeds.
The case was investigated by the FBI, 15th Circuit Solicitor’s Office DEU, Horry County Sheriff’s Office, 15th Circuit Solicitor’s Office, South Carolina Law Enforcement Division (SLED), Myrtle Beach Police Department, Horry County Police Department, Coastal Carolina University Police Department, Loris Police Department, Conway Police Department, North Myrtle Beach Department of Public Safety, Brunswick County Sheriff’s Office in North Carolina, Columbus County Sheriff’s Office in North Carolina, South Carolina Highway Patrol, and City of Georgetown Police Department.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Everett McMillian is prosecuting the case, alongside Special Assistant U.S. Attorney Scott Hixson, who also serves as Deputy Solicitor for 15th Circuit Solicitor’s Office, and Special Assistant U.S. Attorney David Caraker.
The United States Attorney stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Monday 29 June 2020
‘Secretary’ to Mexican Mafia Member, who Ferried Orders from Imprisoned Gang Leader, Sentenced to over 12½ Years in PrisonRead the Press Release
LOS ANGELES – A Whittier woman who was convicted earlier this year on several charges related to her role as a “secretary” to an imprisoned Mexican Mafia member who controlled a street gang was sentenced today to 151 months in federal prison.
Sylvia Olivas, 73, was sentenced by United States District Judge Dale S. Fischer for playing an active role in the affairs of the Canta Ranas street gang.
Following a 2½-week trial in February, a federal jury found Olivas guilty of participating in three separate conspiracies – one to violate the Racketeer Influenced and Corrupt Organization (RICO) Act, a second involving the trafficking of methamphetamine and heroin, and a third centered on money laundering.
For at least a decade, Olivas served as the secretary to her brother, David Gavaldon, a long-time member of the Canta Ranas street gang who was not charged in this case as he is serving a life-without-parole sentence in Pelican Bay State Prison. From prison, Gavaldon exerted control over Canta Ranas and other gangs, and he received compensation in the form of “rent” or “taxes” generated by drug trafficking and other offenses committed in gang territory.
Olivas regularly visited Gavaldon to discuss gang business and obtain orders that she brought back to the gang.
Olivas “was a Mexican Mafia secretary in a large-scale racketeering enterprise – a powerful and highly respected role within this criminal organization,” prosecutors wrote in a sentencing memorandum. “Despite her false and misleading statements in trial to cover up her involvement in the CRO [Canta Ranas Organization], the evidence overwhelmingly showed that defendant knew exactly what happened in the CRO and participated in it by passing messages from Mexican Mafia leader David Gavaldon to two generations of shotcallers, delivering edicts on extortionate taxes, secretly meeting with CRO members to collect taxes and launder them through her accounts to distribute them to David Gavaldon and his chosen recipients, and using code and other measures to cover her criminal activity from law enforcement.”
When she imposed the sentence this morning, Judge Fischer disputed Olivas’ contention that she should receive leniency because she had no prior criminal convictions. “She has been in trouble every day of her life helping the CRO, she was just never caught,” the judge said.
Olivas was among 51 defendants charged in a 2016 federal grand jury indictment targeting Canta Ranas members and associates. Nearly all of those defendants have been convicted, including Jose Loza, the “shotcaller” of the Santa Fe Springs and Whittier-based Canta Ranas gang, who was sentenced in March to life plus an additional 30 years in federal prison.
The RICO indictment targeting the Canta Ranas gang was the result of Operation Frog Legs, which was an investigation by the Southern California Drug Task Force, which is led by the Drug Enforcement Administration as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. The Task Force members that participated in Operation Frog Legs were Homeland Security Investigations, the Whittier Police Department, the Los Angeles County Sheriff’s Department, IRS Criminal Investigation, and the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit. The investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
The case against Olivas was prosecuted by Assistant United States Attorneys Chelsea Norell, MiRi Song and Jehan Pernas of the International Narcotics, Money Laundering, and Racketeering Section.
Wood County Parolee Sentenced for Federal Drug OffenseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced a Wood County man was sentenced to 90 months in federal prison for possession with intent to distribute methamphetamine. Joshua Michael Conger, 41, of Parkersburg, also will serve five years on supervised release.
“Conger was given a second chance when state court gave him parole. But what did he do? He went right back to drugs and guns. Not this time - there’s no parole in the federal system,” said United States Attorney Mike Stuart.
Conger pled guilty in January 2020 admitting that he possessed 388 grams of methamphetamine and two handguns in his vehicle when it was parked at his Gihon Road residence. Conger had previously been convicted in Wood County Circuit Court of operating a methamphetamine laboratory in 2012 and possession with intent to distribute a controlled substance in 2016. He was on parole at the time of his arrest in June 2018.
The Parkersburg Narcotics Task Force and the Federal Bureau of Investigation (FBI) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Joshua Hanks handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Westmoreland County Man Charged with Possessing FentanylRead the Press Release
PITTSBURGH,- A resident of Adamsburg, PA, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on June 23, named Chad Caye, age 22, as the sole defendant.
According to the Indictment, on February 12, 2020, Caye was found to be in possession of 40 grams or more of fentanyl.
The law provides for a maximum total sentence of not less than 5 years and not more than 40 years in prison, a fine not to exceed $5,000,000, a period of supervised release of at least 4 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Schupansky is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office to Join Federal, State, and Local Law Enforcement Officers for a Press Conference Tomorrow, June 30, in Conway at 3:00 p.m.Read the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that a press conference will be held tomorrow, June 30, 2020, at 3 p.m., outside the Horry County Government Center, 1301 2nd Avenue, Conway, South Carolina 29526.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina and the following law enforcement agencies: Federal Bureau of Investigation (FBI); 15th Circuit Solicitor’s Office; 15th Circuit Drug Enforcement Unit; Horry County Sheriff's Office; South Carolina Law Enforcement Division (SLED); Myrtle Beach Police Department; Horry County Police Department; Coastal Carolina University Police Department; Loris Police Department; Conway Police Department; North Myrtle Beach Department of Public Safety; Brunswick County Sheriff’s Office, NC; South Carolina Highway Patrol; and City of Georgetown Police Department.
WHEN: Tuesday, June 30, 2020, at 3 p.m.
WHERE: Outside the Horry County Government Center
1301 2nd Avenue
Conway, South Carolina 29526
NOTE: Press inquiries regarding logistics should be directed to Derek A. Shoemake, 843-813-0982. Members of the media wishing to attend the remarks should gather outside the Horry County Government Center at 2:30 p.m., 30 minutes in advance.
#####
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 Warns Public About Fraudulent Face Mask DocumentsRead the Press Release
United States Attorney Brandon J. Fremin today advised the public that fraudulent cards and other documents bearing the Department of Justice seal are being distributed around the country with written advisories that persons are exempt from COVID-19-related face mask requirements.
There have been reports of individuals handing out cards claiming that the bearer is exempt from face mask requirements under the Americans with Disabilities Act (ADA). The Department of Justice also is aware of postings or flyers on the Internet making similar claims. Many of these documents include the Department’s seal. The following is an example of one such card that has been distributed in another state:
These documents were not issued by the Department, and the Department does not endorse them. The Department also has not granted permission for the use of its seal for this purpose. Misuse of the Department seal is a federal crime.
The Department urges the public not to rely on the information contained in these documents and to visit https://www.ada.gov/ for ADA information issued by the Department.
For more information and technical assistance about the ADA, please contact the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY).
U.S. Attorney Appoints First Missing and Murdered Indigenous Persons CoordinatorRead the Press Release
EUGENE, Ore.—U.S. Attorney Billy J. Williams announced today the appointment of Cedar Wilkie Gillette to serve as the Missing and Murdered Indigenous Persons (MMIP) Coordinator for the District of Oregon.
As the District of Oregon’s first MMIP coordinator, Ms. Wilkie Gillette will gather reliable data to identify MMIP cases connected to Oregon; conduct outreach with tribal communities to assist in the creation and implementation of community action plans; coordinate with tribal, local, state, and federal law enforcement in the development of protocols and procedures for responding to and addressing MMIP cases; and promote improved data collection and analyses throughout Oregon.
Working in the U.S. Attorney’s Office in Eugene, Ms. Wilkie Gillette will serve tribal communities and victims throughout Oregon.
“We are very excited to welcome Ms. Wilkie Gillette into this important new position designed to serve native crime victims and their families. For generations, American Indians and Alaskan Natives have suffered from disproportionately high levels of violence. This is unacceptable,” said U.S. Attorney Williams. “Ms. Wilkie Gillette is eminently qualified for this role and will join a long history of District of Oregon staff committed to reducing violent crime in tribal communities.”
Prior to joining the U.S. Attorney’s Office, Ms. Wilkie Gillette served as a law fellow for Earthjustice, a nonprofit environmental law organization. She has a juris doctorate from the Vermont Law School and a bachelor’s degree in applied social justice and human rights activism from the University of Minnesota. Ms. Wilkie Gillette is an enrolled member of the Mandan, Hidatsa, and Arikara Nation and a direct descendant of the Turtle Mountain Band of Chippewa. She has conducted extensive research on indigenous human rights and environmental justice issues.
On November 22, 2019, Attorney General William Barr launched a national strategy to address missing and murdered Native Americans. When establishing the MMIP Initiative, the Department of Justice made an initial investment of $1.5 million to hire MMIP coordinators to serve with U.S. Attorney’s Offices in 11 states, including Oregon.
The strategy also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts.
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 New Yorkers Charged with Fraud Conspiracy to Commit Passport Fraud and Bank Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that THIERNO O. BAH, age 29, and MANUELA GONZALEZ-BOOKMAN, age 73, both residents of New York, New York, were charged on June 26, 2020 in an indictment with charges related to their arrest by Jefferson Parish Sheriff’s deputies on February 19, 2020 in Metairie, Louisiana.
According to court documents, BAH and GONZALEZ-BOOKMAN flew from Newark Liberty International Airport to Louis Armstrong International Airport on February 18, 2020. They rented a car, and the following day GONZALEZ-BOOKMAN entered a Capital One bank branch while BAH waited in the car outside. GONZALEZ-BOOKMAN then attempted to cash a stolen check while using a false passport card in the name of another person.
The grand jury returned an indictment charging BAH and GONZALEZ-BOOKMAN with three counts. They were charged with one count of conspiracy to use a false passport, which carries a maximum sentence of 5 years in prison and a $250,000.00 fine. The indictment also charged BAH and GONZALEZ-BOOKMAN with conspiracy to commit bank fraud, which carries a maximum 30 years in prison and a maximum $1,000,000.00 fine. Finally, they were charged with one count of aggravated identity theft, which carries a mandatory two years in prison consecutive to any other sentence and a $250,000.00 fine.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The investigation is being handled by the U.S.Department of State's Diplomatic Security Service and Homeland Security Investigations. U.S. Attorney Strasser extended his thanks to the Jefferson Parish Sheriff’s Office and the Jefferson Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
* * *
Two Local Leaders of MS-13 Gang Sentenced to over 25 Years in Prison for Racketeering, Extortion, and MurderRead the Press Release
SAN JOSE – Tomas Rivera, a/k/a Jonas Portillo Escobar, a/k/a Profugo, a/k/a Caballo, and Alexander Martinez-Flores, a/k/a Pocar, were sentenced to prison for their respective roles in Santa Cruz-based MS-13 gang-related crimes, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. Rivera was sentenced today to 27 years in prison for conspiring to engage in racketeering, extortion by force, and murder in aid of racketeering. Flores was sentenced on June 18, 2020, to 30 years in prison for using a firearm to cause murder, conspiracy to commit murder and extortion, and racketeering conspiracy. The sentences were handed down by the Hon. Edward J. Davila, U.S. District Judge.
On January 23, 2020, Rivera, 27, of El Salvador, pleaded guilty to all the charges pending against him and on March 16, 2020, Martinez-Flores, 29, of Santa Cruz, Calif., pleaded guilty to three of the six counts then pending against him. Both defendants admitted being a member of the transnational street gang La Mara Salvatrucha, also known as MS-13. MS-13 has local chapters, or “cliques,” throughout the world, including El Salvador, Honduras, Mexico, and the United States. Members and associates of the gang engage in crimes such as murder, narcotics trafficking, extortion, and obstruction of justice. MS-13 members enforce gang rules and protect gang territory with violence, including murder. The Santa Cruz Salvatrucha Locos (SCSL) is an MS-13 clique that operates in and around Santa Cruz, Calif.
In his plea agreement, Rivera admitted he arrived in Santa Cruz in April of 2016, where he quickly stepped in as second-in-command of the SCSL clique of the MS-13 gang. Rivera admitted he played a key role in a murder committed by SCSL gang members. Specifically, Rivera admitted that in April 2016, he discussed seeking approval from gang members in El Salvador to kill a suspected rival gang member. Then, after the murder was committed by Martinez-Flores and other SCSL members on September 22, 2016, Rivera collected the murder weapons. Rivera, Martinez-Flores and other SCSL members then celebrated the murder. Rivera’s plea agreement also provides details of addition crimes he has committed as part of the gang including the following:
-
At a meeting on October 2016, Rivera took charge of organizing the day-to-day efforts of SCSL members to kill additional rivals.
-
Rivera destroyed evidence of another murder by MS-13 members. Specifically, the agreement described Rivera’s involvement in burning clothing and a car that played a role in the murder.
-
From April 2016 through January 2017, Rivera engaged in drug trafficking and extortion with other SCSL members.
-
Rivera coordinated with MS-13 members in El Salvador and other places to carry out the directives of the gang’s leadership in and around Santa Cruz. Rivera acknowledged that he pushed for strict adherence to MS-13 rules, including the rule that required all people who wanted to join the gang to commit a murder to qualify for membership.
-
Rivera was involved in patrolling the area over which SCSL gang members asserted their control. Rivera admitted in the plea agreement that on one occasion he and other SCSL members beat up a suspected rival gang member they found in their territory. On another occasion, Rivera and other MS-13 members were in a car when they spotted people they suspected of being rival gang members. One of the MS-13 members shot at and attempted to kill a member of the group.
As for Martinez-Flores, he admitted that he was one of the shooters in the September 22, 2016, murder committed by SCSL gang members. Martinez-Flores admitted that in April 2016, the gang discussed seeking approval from El Salvador to kill a suspected rival gang member and after the murder was approved, Martinez-Flores was one of the gang members tasked with killing the victim. Martinez-Flores was one of the gang members who celebrated the murder after it was completed. Martinez-Flores’s plea agreement also describes how Martinez-Flores collected an extortion payment—the “monthly fee due to SCSL”—from a local drug dealer.
A federal grand jury returned a second superseding indictment against Rivera, Martinez-Flores and others on August 16, 2018. The indictment charged Rivera with one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit extortion by force, in violation of 18 U.S.C. § 1951(a); and one count of conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5). Rivera pleaded guilty to all three counts against him. Martinez-Flores was charged in multiple counts in the same second superseding indictment, and pleaded guilty to the racketeering conspiracy, conspiracies to commit extortion and murder, and use of a firearm causing murder counts. The remaining counts against him were dismissed at sentencing.
In addition to the prison terms, Judge Davila sentenced both defendants to a 5-year period of supervised release. The defendants have been in continuous federal custody since their arrests, and they will be transferred to the custody of the Bureau of Prisons to serve the remainder of their sentences.
In addition to Rivera and Martinez-Flores, eight additional defendants in this case have pleaded guilty for their respective roles in the SCSL and MS-13 criminal enterprise. Seven such defendants have been sentenced as reflected in the following chart:
Name
Charges
Sentence
Ismael Alvarenga-Rivera, a/k/a Casper
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 23, 2019, to 90 months in prison
Willfredo Ayala-Garcia, a/k/a Chino
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 17, 2019, to 80 months in prison
Jose David Abrego-Galdamez, a/k/a Largo
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 16, 2019, to 36 months in prison, consecutive to his sentence in CR 17-567 BLF
Gerber Morales, a/k/a Choco
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on September 17, 2019, to 72 months in prison
Emilio Escobar-Albarnga, a/k/a Diablo
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on January 20, 2020, to 60 months in prison
Josue Alcedis Escobar Cerritos, a/k/a Penguino
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on July 30, 2019, to 72 months in prison
Melvin Lopez, a/k/a Sharky
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a); Conspiracy to Commit Murder, 18 U.S.C. § 1959(a)(5)
Sentenced on January 27, 2020, to 120 months in prison
Velarmino Escobar-Ayala, a/k/a Meduza
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a); Conspiracy to Commit Murder, 18 U.S.C. § 1959(a)(5)
Scheduled to be sentenced on July 6, 2020
The United States Attorney’s Office’s Organized Crime Strike Force is prosecuting the case. This prosecution is the result of an investigation conducted by HSI with the assistance of the Santa Cruz Police Department.
-
Three men sentenced to federal prisonRead the Press Release
SAVANNAH, GA: Three men were sentenced to federal prison in separate cases adjudicated today (June 29, 2020) in the Southern District of Georgia.
In sessions in U.S. District Court in Savannah and Augusta, each of the defendants who previously pled guilty to felony charges received sentences including federal prison terms followed by periods of supervised release, said, Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Those sentenced Monday include:
- Rashad Stanford, 37, of Savannah, sentenced to 92 months in prison followed by three years of supervised release by U.S. District Court Judge Lisa Godbey Wood. Stanford, with five previous felony convictions for entering automobiles, pled guilty to Possession of a Firearm by a Convicted Felon. He was arrested by Savannah Police in January 2019 after brandishing a firearm – later determined to have been stolen in a previous vehicle break-in – when a victim found Stanford rummaging through his car.
- Vodie Nathaniel Bell Jr., 30, of Savannah, sentenced to 27 months in prison followed by three years of supervised release by Judge Wood. Bell, who has three prior felony convictions, pled guilty to Possession of a Firearm by a Convicted Felon. Bell was carrying a pistol in his pocket when he was arrested by Savannah Police in May 2018 on an outstanding warrant for aggravated assault.
- John Russell Dixon, 40, of Waynesboro, sentenced to 80 months in prison followed by four years of supervised release by U.S. District Court Chief Judge J. Randal Hall. Dixon pled guilty to Possession of Methamphetamine and Marijuana with Intent to Distribute, and Possession of a Firearm by an Illegal Drug User. Dixon was arrested by Burke County and Richmond County sheriff’s deputies after an October 2018 traffic stop in which significant amounts of drugs, cash and two firearms were found in his vehicle.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Savannah Police Department, the Richmond County Sheriff’s Office and the Burke County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Joshua S. Bearden, Henry W. Syms Jr., Joseph McCool and Special Assistant U.S. Attorney Katelyn Semales.
The Department of Justice Files Sexual Harassment Lawsuit Against the Owner and Manager of Rental Properties in Davenport, IowaRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that the owner and manager of rental properties in Davenport, Iowa violated the Fair Housing Act by subjecting a female tenant to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Southern District of Iowa, alleges that Juan Goitia, the manager of multiple residential rental units in Davenport, sexually harassed a female tenant from March 2018 until August 2018. According to the complaint, Goitia made repeated and unwelcome sexual comments, touched the tenant’s body without her consent on multiple occasions, and retaliated against the tenant for filing a fair housing complaint. The United States also named 908 Bridge Cooperative, the corporate owner of the rental property where the harassment occurred, as a defendant in the lawsuit.
“No woman should have to endure sexual harassment to keep her home,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct.”
“Women have a hard enough time finding a decent affordable place to live without having to be subjected to unwanted sexual advances,” said Assistant Secretary Anna Maria Farias of the U.S. Department of Housing and Urban Development’s (HUD) Fair Housing and Equal Opportunity Office. “HUD applauds the action the Justice Department is taking in this matter and remains committed to working together to protect the housing rights of women when those rights are violated.”
The lawsuit arose from a complaint about Goitia’s conduct that the former tenant filed with the Davenport Commission on Civil Rights (DCRC) and HUD. After DCRC and HUD investigated the complaints, HUD issued a charge of discrimination and the matter was referred to the Department of Justice.
Today’s lawsuit seeks monetary damages to compensate the victim and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Department of Justice to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. 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. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the Department of Justice has filed 16 lawsuits alleging sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Juan Goitia or 908 Bridge Cooperative, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number 91 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by visiting civilrights.justice.gov.
Ten Defendants Charged in $1.4 Billion Rural Hospital Pass-Through Billing SchemeRead the Press Release
UPDATE
On March 21, 2023, a federal jury acquitted defendants Aaron Durall, Christian Fletcher, Neisha Zaffuto, and Aaron Alonzo of the charges alleged in the indictment described in the press release below.
Ten individuals, including hospital managers, laboratory owners, billers and recruiters, were charged in an indictment unsealed today for their participation in an elaborate pass-through billing scheme using rural hospitals in several states as billing shells to submit fraudulent claims for laboratory testing. The indictment alleges that from approximately November 2015 through February 2018, the conspirators billed private insurance companies approximately $1.4 billion for laboratory testing claims as part of this fraudulent scheme, and were paid approximately $400 million.
Jorge Perez, 60, of Miami-Dade County, Florida; Seth Guterman, 54, of Chicago, Illinois; Ricardo Perez, 57, of Miami-Dade County, Florida; Aaron Durall, 48, and Neisha Zaffuto, 44, each of Broward County, Florida; Christian Fletcher, 34, of Atlanta, Georgia; James Porter Jr., 49, of Marion County, Florida; Sean Porter, 52, of Citrus County, Florida; Aaron Alonzo, 44, and Nestor Rojas, 45, each of Miami-Dade County, Florida, were charged in an indictment filed in the Middle District of Florida.
All defendants (except Sean Porter) were charged with one count of conspiracy to commit health care fraud and wire fraud. In addition, Jorge Perez, Guterman, Ricardo Perez and Durall were each charged with five counts of substantive health care fraud; Durall and Zaffuto were charged with two counts of conspiracy to commit money laundering; Jorge Perez, Guterman, Ricardo Perez, Fletcher, James Porter and Sean Porter were charged with one count of conspiracy to commit money laundering and the following defendants were charged with substantive money laundering: Durall (three counts); Zaffuto (one count); Jorge Perez (seven counts); Guterman (one count); Ricardo Perez (five counts); Fletcher (two counts); James Porter (12 counts) and Sean Porter (two counts).
Jorge Perez, Ricardo Perez, and Durall appeared this afternoon before U.S. Magistrate Judge Joel B. Toomey of the Middle District of Florida. Initial appearances for Zaffuto, Fletcher, James Porter Jr., Sean Porter, Aaron Alonzo, and Nestor Rojas are scheduled before Magistrate Judge Toomey on June 30 and July 1.
“This was allegedly a massive, multi-state scheme to use small, rural hospitals as a hub for millions of dollars in fraudulent billings of private insurers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The charges announced today make clear that the department is committed to dismantling fraud schemes that target our health care system, however complex or elaborate.”
“Trust and integrity undergird the confidence and reliability in our healthcare system,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Fraudulent and deceptive business practices undermine those values and erode the public’s trust in that system. We will continue to pursue those who set these tenets aside and compromise the care and safety of our citizens for profit.”
“The FBI views health care fraud as a severe crime problem that impacts every American,” said Special Agent in Charge Rachel L. Rojas of the FBI’s Jacksonville Field Office. “Fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for everyone. The FBI and our law enforcement partners will continue to investigate these crimes and prosecute all those who are intent in defrauding the American public.”
“OPM OIG remains committed to investigating those who seek to defraud the federal health care system for their own personal gain,” said Deputy Assistant Inspector General Thomas W. South of the U.S. Office of Personnel Management Office of Inspector General (OPM OIG). “Schemes that exploit rural hospitals are particularly egregious as they can undermine access to care in underserved communities. We are extremely proud of our criminal investigators and law enforcement partners for their hard work uncovering this complex criminal fraud scheme.”
“An important mission of the Office of Inspector General is to investigate allegations of health care fraud in union benefit plans,” said Special Agent in Charge Rafiq Ahmad of the U.S. Department of Labor Office of Inspector General (DOL OIG) Atlanta Region. “We will continue to work with our law enforcement partners to protect the integrity of labor unions and their benefit plans.”
“Our office, in partnership with our fellow investigative agencies, will continue to comprehensively investigate and bring to justice the people who perpetrate health care fraud,” said Kevin Winters, Amtrak’s Inspector General. “Preventing health care fraud is particularly important to Amtrak because, as a self-insured company, the fraud adversely impacts its operating budget, which is dedicated to multiple critical requirements such as passenger safety.”
The indictment alleges that the conspirators would take over small, rural hospitals, often in financial trouble, using management companies they owned and operated. The conspirators would then bill private insurance companies through those rural hospitals for millions of dollars of expensive urinalysis drug tests and blood tests, conducted mostly at outside laboratories they often controlled or were affiliated with, using billing companies that they also controlled. While outside laboratories did most of these laboratory tests, the conspirators allegedly billed private insurance companies as if these laboratory tests were done at the rural hospitals.
According to the indictment, these rural hospitals had negotiated contractual rates with private insurers that provided for higher reimbursement than if the tests were billed through an outside laboratory. Accordingly, the scheme used the hospitals as a shell to fraudulently bill for such tests. Further, the indictment alleges that the lab tests were often not even medically necessary. The conspirators allegedly would obtain urine specimens and other samples for testing through kickbacks paid to recruiters and health care providers, often sober homes and substance abuse treatment centers. The indictment also alleges that the conspirators engaged in sophisticated money laundering to promote the scheme and to distribute the fraudulent proceeds.
The rural hospitals involved in this case are: Cambellton-Graceville Hospital (CGH), a 25-bed rural hospital located in Graceville, Florida; Regional General Hospital of Williston, a 40-bed facility located in Williston, Florida; Chestatee Regional Hospital, a 49-bed rural hospital located in Dahlonega, Georgia; and Putnam County Memorial Hospital, a 25-bed rural hospital located in Unionville, Missouri.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s Jacksonville Field Office, OPM OIG, DOL OIG and Amtrak OIG. Trial Attorneys Gary A. Winters and James V. Hayes of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tysen Duva of the Middle District of Florida are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Syracuse Man Sentenced to 102 Months Following Drug Trafficking ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Daitwaun Fair, age 33, of Syracuse, was sentenced today to serve 102 months (eight and one-half years) in prison in connection with his convictions for conspiracy to distribute and possess with intent to distribute cocaine and cocaine base (“crack cocaine”), possession with intent to distribute cocaine, and maintaining a drug involved premises, announced United States Attorney Grant C. Jaquith; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); New York State Police Superintendent Keith Corlett; Sheriff Eugene Conway, Onondaga County Sheriff’s Office; and William J. Fitzpatrick, Onondaga County District Attorney.
The defendant was also ordered to serve a four-year term of supervised release following his release from prison, and ordered to forfeit $112,500.00 in proceeds from his drug trafficking activity.
In imposing sentence, the Court found that Fair and his coconspirators were responsible for distributing between 3.5 and 5 kilograms of cocaine in the Syracuse area from July to September 2018. The Court also found that Fair was the organizer of the drug trafficking operation, which included 12 other coconspirators, all of whom have previously pled guilty.
This case was investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the New York State Police, the Onondaga County Sheriff’s Office, and the Onondaga County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Seth Morgan Sentenced to Time Served for Mail TheftRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Seth Morgan, 38, of Sheldon, Vermont was sentenced today to time served following his guilty plea to the lead count of a five count indictment charging him with mail theft. The thefts occurred at the Sheldon Springs Post Office in Sheldon, Vermont between April 2, 2018 and May 4, 2018. United States District Judge William K. Sessions III also ordered Morgan to serve a 2-year term of supervised release and to pay a $100 special assessment.
The lead investigator on the case was United States Postal Inspector Kristin Miller. Morgan was represented by Assistant Federal Public Defender David L. McColgin. Assistant United States Attorney Nikolas Kerest handled the prosecution for the United States.
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.
Roanoke Man Pleads Guilty to Distributing HeroinRead the Press Release
ROANOKE, VIRGINIA – James Robert Banks, a Roanoke man responsible for distributing between one and three kilograms of heroin throughout the Roanoke area in 2019, pleaded guilty today in U.S. District Court to federal drug distribution charges. United States Attorney Thomas T. Cullen announced the guilty plea this afternoon.
Criminal charges against Banks arose from his sale of heroin on specific dates in August and November 2019. According to court documents, law enforcement agents arranged for the controlled purchase of approximately $6,000 worth of heroin from Banks on two occasions. In both instances, Banks sold the heroin from a commercial auto repair facility on Centre Avenue in Roanoke, owned by his father. In connection with his guilty plea to distribution charges, Banks has acknowledged distributing between one and three kilograms of heroin in the Roanoke area in 2019.
Investigation of this case was conducted by the Drug Enforcement Administration and member agencies of the High Intensity Drug Trafficking Area Task Force (HIDTA), including the City of Roanoke Police Department, Virginia State Police, Roanoke County Police Department, and Salem Police Department. Additional support was provided by the Federal Bureau of Investigation. Assistant United States Attorneys Kari Munro and Dan Bubar prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of law enforcement groups use evidence-based techniques to identify and address violent and related crime in local communities with the aim of focusing law enforcement efforts on the most violent offenders. As part of this strategy, the PSN initiative involves partnerships with locally-based prevention and reentry programs for lasting reductions in crime.
Ralston Man Sentenced for Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Paul Zuroske, 62, of Ralston, Nebraska, was sentenced in federal court for receiving child pornography. Senior United States District Judge Laurie Smith Camp sentenced Zuroske to 60 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release and will be required to register as a sex offender. Judge Smith Camp also imposed a $5,000 special assessment.
On April 4, 2019, a search warrant was executed on Zuroske’s home in Ralston. CyberTips from the National Center for Missing and Exploited Children indicated that an IP address at the home was uploading images of child pornography. Forensic review of Zuroske’s computer devices revealed more than 8,900 images of child pornography. Some of the images depicted children, some as young as 2 years old, 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 Bellevue Police Department and Homeland Security Investigations.
Pinellas County Man Sentenced for Selling OpioidsRead the Press Release
Tampa, Florida – U.S. District Judge John Antoon II has sentenced Jeffrey Saylor (48, St. Petersburg) to 30 months in federal prison for the unlawful distribution of a controlled substance. Saylor had pleaded guilty on February 11, 2020.
According to court documents, Saylor acquired oxycodone prescriptions at a local pain management clinic, filled the prescriptions at a pharmacy, and then sold the oxycodone tablets to an undercover law enforcement officer.
This case was investigated by the Drug Enforcement Administration and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. It was prosecuted by Assistant United States Attorney Greg Pizzo.
Pain Clinic Owner Extradicted from ItalyRead the Press Release
KNOXVILLE, Tenn. On June 26, the United States successfully completed the extradition process of Luca Sartini, 60, from Italy, with the United States Marshals Service effectuating the transportation of Sartini from Rome to Knoxville. Sartini is a co-defendant of Sylvia Hofstetter. Hofstetter and three medical providers were convicted of numerous charges related to "pill mill" operations in Florida and Tennessee following a four-month trial earlier this year. Extradition procedures are continuing in Italy for the last co-defendant in the case, Luigi "Jimmy" Palma.
Sartini contested his extradition from Italy for approximately two years. The charges against Sartini are varied, and reflect his alleged role in owning and operating pain clinics in South Florida and the Knoxville area over the course of several years. Included in the charges are a Racketeer Influenced and Corrupt Organization (RICO) conspiracy and a conspiracy to distribute oxycodone, oxymorphone, and morphine outside the scope of professional practice and not for a legitimate medical purpose.
Sartini appeared before the Honorable Debra C. Poplin, U. S. Magistrate Judge, on June 26, 2020, and plead not guilty to all charges. Sartini waived his immediate right to a detention hearing and remains in custody of the United States Marshal. The trial has been set for September 1, 2020, before the Honorable Thomas A. Varlan, U. S. District Judge. If convicted, Sartini faces an imprisonment of up to 20 years on each of the charges and fines up to $1,000,000.
Members of the public are reminded that Sartini is presumed innocent until his guilt has been proven beyond a reasonable doubt.
This sweeping prosecution, which has resulted in approximately 140 convictions so far, is the result of an investigation by the U. S. Attorney’s Office for the Eastern District of Tennessee, the Organized Crime and Gang Section, U.S. Department of Justice, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and the Clinton Police Department. Other agencies provided invaluable assistance, including the Rome attaché of the Office of International Affairs, the U.S. Department of Justice, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the U. S. Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group. The Rome attaché and FBI’s liaison in Rome were particularly instrumental in effectuating Sartini’s extradition, as were Italian law enforcement agencies and prosecutors. The United States is particularly appreciative of their assistance.
The extradition of Sartini was made possible by provisions of a treaty between the United States and Italy. The United States is grateful to the Italian government for its robust cooperation in this matter.
Assistant U.S. Attorney Tracy L. Stone, and Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot, Organized Crime and Gang Section, U.S. Department of Justice, represent the United States in the prosecution of this case.
###
Orange County Man Sentenced to 2½ Years in Federal Prison for Embezzling $1.8 Million from Commercial Real Estate CompanyRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 30 months in federal prison for embezzling more than $1.8 million from his employer, a commercial real estate management company and developer.
Duy Duc Nguyen, 38, of Garden Grove, was sentenced by United States District Judge James V. Selna, who ordered him to pay $1,812,331 to the victim, Anaheim-based Milan Capital Management.
On January 17, Nguyen pleaded guilty to one count of wire fraud.
Milan Capital employed Nguyen as an accounts payable clerk in its accounting department from July 2014 to December 2017. Beginning in January 2015 and continuing until March 2018, Nguyen stole the password of Milan Capital’s treasurer, then used it without permission to alter the bank account and routing information listed in certain vendor accounts in the company’s accounting system, replacing them with his own bank account and routing numbers. As a result, Nguyen fraudulently caused Milan Capital to make payments directly into his bank account while seemingly paying the actual invoices of legitimate vendors.
Nguyen also altered company records and lied to company executives when they asked about vendors’ complaints of non-payment of various invoices. The company ultimately paid the actual vendors in what amounted to a duplicate payment.
After Milan Capital terminated Nguyen in December 2017, he continued to steal money from the company until his scheme to defraud was discovered in March 2018. During this period, Nguyen unlawfully gained entry into Milan Capital’s office by using an improperly retained key and by misusing one or more passwords to gain access to the company’s accounting system and fraudulently cause the company to transmit more money into his bank account.
In total, Nguyen stole $1,812,331 from the victim and used the funds for his own personal expenses.
The FBI investigated this matter.
This case was prosecuted by Assistant United States Attorney Robert J. Keenan of the Santa Ana Branch Office.
Omaha Man Sentenced for Methamphetamine TraffickingRead the Press Release
United States Attorney Joe Kelly announced that Anthony Robb, 44, of Omaha, Nebraska, was sentenced by United States District Judge Robert F. Rossiter, Jr. on June 26, 2020 for Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine. Robb received a sentence of 120 months with a five-year term of supervised release to follow. There is no parole in the federal system.
On January 22, 2019, law enforcement conducted a traffic stop on Anthony Robb, who was in possession of 1.1 grams of methamphetamine. Robb admitted to meth possession and consented to a search of his home. At his home, officers located 41.56 grams of methamphetamine.
Ultimately, Robb admitted to involvement in a methamphetamine trafficking conspiracy beginning as early as July 1, 2018 and continuing until January 22, 2019, in which Robb obtained methamphetamine from suppliers and redistributed it. Robb admitted that he is responsible for distribution of 2.37 kilograms of methamphetamine in addition to that which was seized from him.
This case was investigated by Omaha Police Department.
Nottingham Man Pleads Guilty to Child Pornography CrimeRead the Press Release
CONCORD - Clifford A. Bullock, 71, of Nottingham, pleaded guilty in federal court on Friday to transportation of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in April of 2019, law enforcement officers learned that Microsoft had detected potential child exploitation materials on a Microsoft OneDrive account with an IP address that resolved to Bullock’s address. Law enforcement officers executed a search warrant at Bullock’s residence on August 5, 2019. Pursuant to the search warrant, officers seized a computer, cellular phones and numerous items of digital media that contained a large collection of child pornography. Bullock admitted to using the internet to view and save child pornography involving girls. He further admitted to uploading and storing files on OneDrive, including child pornography images.
Bullock is scheduled to be sentenced on October 5, 2020.
“Protecting children from exploitation is a high priority for the U.S. Attorney’s Office,” said U.S. Attorney Murray. “Child pornography crimes are serious offenses with significant and long term consequences. We will continue to work with our law enforcement partners to investigate and prosecute those who produce, possess or transport child pornography.”
“With the recent overall increase in internet activity among the public, HSI special agents are more committed than ever to pursuing those who download and distribute child exploitation images online,” said Michael Shea, acting Special Agent In Charge, Homeland Security Investigations (HSI), Boston. “It is through the support and hard work of our partners in the New Hampshire Internet Crimes Against Children Task Force, the Nottingham Police Department, the Exeter Police Department, and the U.S. Attorney for New Hampshire that Bullock has been brought to justice.”
“The dedicated law enforcement professionals from the NH ICAC Task Force and HSI will not stop searching for those predators who are producing, trading and collecting this graphic material, many of whom are also sexually assaulting children and causing them irreparable harm,” said Lieutenant John W. Peracchi, Commander of the New Hampshire Internet Crimes Against Children Task Force.
This matter was investigated by the New Hampshire Internet Crimes Against Children Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with assistance from the Nottingham Police Department and Exeter Police Department. The case is being prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
New Haven Teen Charged with Obstructing JusticeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIAVION HUTCHINGS, also known as “Avi,” 19, of New Haven, pleaded guilty today before U.S. District Judge Janet C. Hall to obstruction of justice.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in February 2019, the New Haven Police Department conducted a video-recorded interview with an individual who had just been arrested. During the interview, the individual provided information that led to the state arrest of Hutchings’ significant other (“L.W.”). A copy of the interview video was provided to L.W.’s lawyer.
In April 2019, a federal grand jury returned an indictment against the individual whose interview was video recorded.
On April 24, 2019, Hutchings viewed the interview video at the office of L.W.’s lawyer, and recorded at least 15 separate portions of the interview using her iPhone. Hutchings transmitted portions of the recordings that she made of the interview video to others via text message and through the use of Facebook Live. In those transmissions, Hutchings communicated threats of harm toward the individual who provided information about L.W.
Hutchings was arrested on a federal criminal complaint on June 3, 2019.
Judge Hall scheduled sentencing for September 23, 2020, at which time Hutchings faces a maximum term of imprisonment of 10 years.
Hutchings is released on a $10,000 bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez and Sarah P. Karwan.
Nearly 3,800 Fraudulently Filed Unemployment Insurance Claims Blocked by the U. S. Department of LaborRead the Press Release
The U.S. Department of Labor Office of Inspector General (DOL-OIG) in collaboration with the Oklahoma Employment Security Commission (OESC) this month stopped payment on nearly 3,800 fraudulently filed unemployment insurance claims, including 1,300 filed from a range of IP addresses located in London, England, announced Trent Shores, U.S. Attorney for the Northern District of Oklahoma; Steven Grell, Special Agent-in-Charge, Dallas Region, U.S. Department of Labor Office of Inspector General; and Mike Hunter, Oklahoma Attorney General.
The DOL-OIG and OESC took action that saved the State of Oklahoma and tax payers more than $15.9 million.
“Where there is crisis, criminals see opportunity. Fraudsters won’t hesitate to fill their pockets with money intended for hard working Oklahomans who have lost their jobs during this current health crisis,” said U.S. Attorney Trent Shores. “My Coronavirus Anti-Fraud Team will continue to partner with the Oklahoma Attorney General’s Office, the U.S. Department of Labor, and local, state, tribal and federal law enforcement to investigate and shut down these unscrupulous networks.”
“The Office of Inspector General is committed to safeguarding the Unemployment Insurance program on behalf of taxpayers and vulnerable Americans in need of assistance. We will continue to work vigorously alongside our law enforcement and state workforce agency partners to pursue criminals who seek to exploit the Unemployment Insurance program for personal gain,” said Steven Grell, Special Agent-in-Charge, Dallas Region, U.S. Department of Labor Office of Inspector General.
“I am proud of the efficiency at which the task force has worked since being formed,” said Attorney General Mike Hunter. “Although we have accomplished a lot in a short period of time, there is much more to be done, which includes finding those responsible and holding them accountable. I look forward to continuing this important work with the other agencies involved as we remain focused on the best interests of Oklahomans.”
The Department took action to block the London IP addresses and several other foreign IP addresses from accessing and fraudulently filing claims through the OESC. Additionally, investigators located businesses regularly named by fraudsters when filing the fraudulent claims. For example, 2,450 unemployment claims were filed naming one Oklahoma business as the employer, but in actuality, the business employs fewer than 10 employees. The business along with multiple individuals whose names were fraudulently used to file the claims reside in the Northern District of Oklahoma.
In order to stop these fraudsters, U.S. Attorney Shores and Attorney General Hunter encourage Oklahomans to report any unemployment notices they receive from the OESC that were filed fraudulently in their names.
If you or a family member receive a notice about unemployment insurance benefits from the OESC and/or a prepaid MasterCard debit card for Oklahoma unemployment insurance benefits, and it is related to a fraudulent application, please do the following:
1. Scan and save the documents containing the OESC notice and the debit card, if you receive a card.
2. Complete an electronic complaint form and upload required documents at: https://my.ok.gov/Forms/Report%20Unemployment%20Fraud
3. Order a free credit report from www.annualcreditreport.com and consider freezing your credit.
The U.S. Attorney’s Office, DOL-OIG, U.S. Secret Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Oklahoma Attorney General’s Office, Oklahoma State Bureau of Investigation, and OESC continue their ongoing collaborative efforts to address online fraud schemes in order to prevent the loss of taxpayer dollars.
For more information about COVID-19 fraud, visit the Justice Department’s website at https://www.justice.gov/coronavirus or the Oklahoma Attorney General’s website at http://www.oag.ok.gov/coronavirus-fraud-resources.
Nashville Man Facing Federal Firearms Charge After Pointing Gun at Police OfficersRead the Press Release
NASHVILLE, Tenn. – June 29, 2020 – Jotez Anderson, 27, of Nashville, has been charged with being a convicted felon in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint obtained Friday, alleges that on June 3, 2020, two officers with the Metropolitan Nashville Police Department responded to a call on 18th Avenue, North, regarding a person with a gun. When the officers arrived, they saw Anderson and another individual outside the home and in a heated argument. The officers heard someone yell “he’s got a gun,” and then saw Anderson run toward the rear of the house. While the officers were pursuing Anderson, they noticed a firearm in his hand. During this encounter and on two separate occasions, Anderson pointed the firearm at each officer, before being fired upon by both officers.
Anderson continued to evade the officers until a K-9 arrived and after being deployed, Anderson surrendered and was found to have a gunshot wound to the hand. A bloody, Smith & Wesson .40 caliber pistol with an extended magazine was recovered from the house where Anderson fled.
Anderson had previously been convicted of the offense of attempted first degree murder in Davidson County Criminal Court and received a sentence of 15 years. He was on parole at the time of this incident.
If convicted, Anderson faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department investigated this Case. Assistant U.S. Attorney Robert McGuire is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
# # # # #
Michigan Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Southfield, Michigan man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Donta Cole, 24, entered a guilty plea to an indictment charging him with possession with the intent to distribute crack cocaine.
“Another out-of-state drug dealer nabbed in Huntington stands convicted for peddling deadly poisons,” said United States Attorney Mike Stuart. “Our efforts in Huntington are unprecedented. The streets are safer. Our families are safer. And Huntington is able to focus on growing its economy rather than dedicating critical, limited resources to stopping drug dealers and violent offenders. Our team and our focus is making a big difference.”
Cole admitted that on April 26, 2019, he was a passenger in a vehicle that was pulled over by the West Virginia State Police. The officer found approximately 12 grams of crack cocaine hidden in Cole’s groin area. Cole admitted that he intended to sell the crack cocaine.
Cole faces up to 20 years in federal prison when he is sentenced on September 28, 2020.
The West Virginia State Police conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Mexican man sentenced for importing meth stuffed inside door panelsRead the Press Release
LAREDO, Texas – A 48-year-old Matamoros, Mexico, resident has been ordered to federal prison following his conviction of conspiracy to import 10.2 kilograms of meth into the country, announced U.S. Attorney Ryan K. Patrick.
J. Guadalupe Martinez-Montelongo pleaded guilty March 3.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Martinez-Montelongo to serve a total of 63 months in prison. Not a U.S. citizen, he is expected to face deportation proceedings following his incarceration.
On Dec. 10, 2019 Martinez-Montelongo applied for entry into the United States at the Lincoln Juarez Bridge. Authorities conducted an investigation of the SUV he was driving, at which time a K-9 alerted to the presence of narcotics in the vehicle’s doors. An x-ray scan further revealed bundles of narcotics stuffed behind the door panels which field tested positive for meth.
The bundles weighed approximately 23 pounds and had a street value of approximately $73,000.
Martinez-Montelongo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul Harrison prosecuted the case.
Maryland man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gary Thorton, of Baltimore, Maryland, was sentenced today to 33 months incarceration for heroin distribution, U.S. Attorney Bill Powell announced.
Thorton, age 29, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base” in February 2020. Thorton admitted to working with another to distribute heroin and cocaine from April to July 2015 in Berkeley County.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Martinsburg man sentenced for failure to register as a sex offenderRead the Press Release
MARTINSBURG, WEST VIRGINIA – Andrew Reed Cumbie, of Martinsburg, West Virginia, was sentenced today to 24 months incarceration for a failure to register charge, U.S. Attorney Bill Powell announced.
Cumbie, age 38, pled guilty to one count of “Failure to Register” in February 2020. Cumbie, having been convicted of a sex offense in the Circuit Court of Melheur County, Oregon, admitted to traveling interstate commerce and not registering and updating his registration as a sex offender. The crime occurred in Berkeley County from November 16 to December 11, 2017.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The case was investigated by the United States Marshal Service.
Chief U.S. District Judge Gina M. Groh presided.Marion County man sentenced for firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA –Oneil Wayne South, of Fairmont, West Virginia, was sentenced today to 24 months incarceration for firearms charges, U.S. Attorney Bill Powell announced.
After a two-day trial in March 2020, the jury found South, age 45, guilty of one count of “Unlawful Possession of a Firearm as Drug User.” South is prohibited from having a firearm because of drug use, and has a 9mm pistol in March 2019 in Marion County.
South pled guilty to one count of “Reckless Flight from a Law Enforcement Officer” in February 2020. South admitted to fleeing from law enforcement after being asked to stop when on the property of the FBI Criminal Justice Information Services Division in Harrison County in March 2019.
Assistant U.S. Attorneys Andrew R. Cogar and Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, and the Fairmont Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.Marijuana User Sentenced to a Year in Federal Prison for Unlawfully Possessing GunsRead the Press Release
An illegal user of controlled substances who unlawfully possessed multiple guns was sentenced today to a year in federal prison.
Henry Charles Haas, III, age 42, from Dubuque, Iowa, received the prison term after a guilty plea to being an unlawful user of controlled substances in possession of a firearm.
Information at sentencing showed that law enforcement searched Haas’s home in Dubuque. During the search, officers found seven guns that Haas later admitted he possessed. The guns included an AK-47 rifle that was capable of accepting a high-capacity magazine, multiple shotguns, and multiple handguns. Officers also found hundreds of shotgun shells and handgun magazines in Haas’s bedroom. Haas was an unlawful user of marijuana at the time he possessed the guns.
Haas was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Haas was sentenced to 12 months’ and one day in prison. He was ordered to pay a $2,000 fine. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated the Federal Bureau of Investigation, the Dubuque Police Department, and the Dubuque County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-1023.
Follow us on Twitter @USAO_NDIA.
Manager of Mobile West Michigan Urological Practice Sentenced to Prison for Role in Healthcare Fraud SchemeRead the Press Release
Office Manager Mark J. Sabor Sentenced Today for Conspiracy to Commit Healthcare Fraud and Agrees to Pay Share of Civil Settlement Totaling $1.26 Million
GRAND RAPIDS,MICHIGAN — U.S. Attorney Andrew B. Birge announced today that U.S. District Judge Janet T. Neff sentenced Mark J. Sabor to two years of incarceration for his involvement in a conspiracy to commit healthcare fraud. Mr. Sabor was the manager of Urological Solutions of Michigan ("USM"), a mobile medical practice providing urological services to patients in their homes and assisted living facilities in the greater Traverse City, Grand Rapids, and Kalamazoo areas.
Judge Neff found that Mr. Sabor was complicit in several fraud schemes committed by USM, resulting in approximately $914,000 in false claims submitted by USM and paid by Medicare. These schemes included billing pelvic muscle rehabilitation ("PMR) therapy using improper—and more lucrative—diagnostic codes, billing for evaluation and management ("E&M") services that did not occur, upcoding ultrasound services, and billing for the services of an unlicensed nurse assistant. Judge Neff applied an enhancement to Mr. Sabor’s sentencing guidelines based on the fact that an administrative law judge in 2011 ruled that USM should not bill Medicare for the PMR therapy using the diagnostic codes. In imposing the prison sentence, Judge Neff emphasized the need to deter other healthcare practitioners and practice managers from cheating important government programs and to promote respect for the law.
Mr. Sabor’s conviction was part of a larger investigation of USM’s owner, Roger D. Beyer, M.D., and his wife, Susan E. Wright, N.P., J.D. Dr. Beyer was the owner of USM and Women’s Health Care Specialists, P.C. ("WHCS"), an obstetrics-gynecology practice in Kalamazoo. Ms. Wright was an employee of WHCS.
On May 15, 2020, Dr. Beyer pleaded guilty in the U.S. District Court for the Western District of Michigan to conspiracy to commit healthcare fraud and adulteration of a medical device. That same day, Ms. Wright pleaded guilty to misprision of healthcare fraud and the adulteration of a medical device. Specifically, Ms. Wright admitted that she knew that USM fraudulently billed Medicare for E&M services to patients on the same date of service as the PMR therapy, but she never informed authorities. Both Dr. Beyer and Ms. Wright are scheduled to be sentenced before Judge Neff on September 9, 2020.
In addition to their convictions, all defendants entered into civil settlements with the United States to resolve their civil liability under the False Claims Act. In total, the defendants, including the now-closed USM and WHCS practices, paid $1,260,000 for submitting or causing the submission of false claims for reimbursement to Medicare as part of numerous alleged healthcare fraud schemes. For his role in the alleged misconduct, Mr. Sabor agreed to pay a civil settlement of $150,000.
"Mr. Sabor’s misconduct in these healthcare fraud schemes was particularly egregious because USM continued to improperly bill Medicare even after it had been warned not to do so by an administrative law judge," stated U.S. Attorney Birge. "Instead of following the rules, Mr. Sabor and USM found new ways to exploit the Medicare Program of hundreds of thousands of dollars. As the Government emphasized in its sentencing memorandum, ‘If you bill the government, learn the rules; if you are audited and found to be doing something wrong, rectify your practices; if a judge tells you to stop billing improperly, stop it. And if you don’t, expect to pay back the ill-gotten gains and anticipate a prison sentence.’"
"The defendant’s conduct in this case was clearly motivated by greed," said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region ("HHS-OIG"). "Billing for services not rendered, up-coding the actual services provided, billing for unlicensed personnel; these actions demonstrate a complete disregard for the law and resulted in a criminal conviction. The OIG will continue to work with our prosecutorial and law enforcement partners to ensure that those who commit these criminal acts are held accountable."
"Today’s sentence is the result of the dedicated efforts of multiple investigative agencies and prosecutors who collaborated to protect the integrity of the Medicare program," said Steven M. D’Antuono, Special Agent in Charge of the Federal Bureau of Investigation ("FBI") in Michigan. "Health care fraud costs our country billions of dollars a year and drives up the cost of care for every single taxpayer, but especially for the disabled and elderly citizens who are entitled to the benefits this program provides."
This case was the result of a joint investigation by HHS-OIG, FBI, and the Food & Drug Administration’s Office of Criminal Investigations, in coordination with the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Raymond E. Beckering III prosecuted the criminal case, and Assistant U.S. Attorney Andrew J. Hull represented the United States in the civil case.
###
Man who threatened law enforcement officers sentencedRead the Press Release
COLUMBUS, Ohio – Joseph Michael Bragg, 41, of Columbus, was sentenced in U.S. District Court today to serve 22 months in prison, followed by three years of supervised release for sending more than a dozen threats to an Oklahoma sheriff and threatening the Columbus FBI agent who came to his house to interview him.
According to court documents, between June and July 2018, Bragg transmitted at least a dozen communications electronically, many of them through the Oologah, Oklahoma public website, threatening to violently injure Rogers County, Oklahoma Sheriff Scott Walton along with police officers and their families.
On July 20, 2018, at the request of the FBI office in Oklahoma, an FBI agent in Columbus went to Bragg’s residence. Bragg came to the door, shouted profanities at the agent and told the agent “you have no authority here” before going back inside. Bragg came back to the door threatening to shoot and decapitate the agent. The agent drew his weapon in defense. Authorities came back with a search warrant and later arrested Bragg, who has been in custody since his arrest.
Bragg pleaded guilty in July 2019 to one count of transmitting a threat in interstate commerce and one count of influencing a federal official by threat. The 22-month sentence amounts to time-served. While on supervised release, Bragg must also undergo substance abuse testing, counseling and treatment as directed by the U.S. Probation office. Bragg must also participate in a mental health assessment, counseling and treatment program including medication management. The court ordered Bragg to have no content with his victims and ordered him to allow Probation access to his social media accounts if there is a reasonable suspicion that he violated any conditions of his supervision.
David M. DeVillers, United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Chief Thomas Quinlan announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant U.S. Attorney Jessica Knight represented the United States in the case which was investigated by the FBI Joint Terrorism Task Force.
# # #