Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 26 June 2020
Greensboro Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
A Greensboro, North Carolina, business owner was sentenced to 18 months in prison yesterday for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Elizabeth Wood, 40, and her mother Rebecca Adams, 57, operated a temporary staffing businesses in Greensboro under the names A & R Staffing Solutions, Inc., Wood Executive Services Inc., and Adams Staffing Enterprises Inc. Wood and her mother withheld federal and state taxes from employees’ paychecks but did not pay those taxes over to the IRS or the State of North Carolina. In 2015, Wood pleaded guilty to embezzling employee state tax withholdings and was sentenced to prison. After her release, Wood resumed her role at the staffing business where she continued to withhold federal taxes from employees’ paychecks, but again did not pay those taxes over to the IRS. She also did not file with the IRS the required quarterly payroll tax return.
On Feb. 5, 2020, Wood and her mother, Adams, pleaded guilty to failing to pay over employment taxes. Adams is scheduled to be sentenced on July 9, 2020.
In addition to the term of imprisonment, U.S. Senior District Judge N. Carlton Tilley Jr., ordered Wood to serve three years of supervised release and to pay approximately $2,338,766 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Frank Chut, who are prosecuting the case.
Four face federal charges related to fatal carjacking in Loving, New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Stetson Shane Barnes, 28, of Loving, New Mexico, Donald Alfred Busch, 32, of Carlsbad, New Mexico, Jehra Lynn Hedgecock, 31, of Carlsbad, New Mexico, and Tyson Lee Terrell, 36, of Carlsbad, New Mexico, appeared in federal court in Las Cruces, New Mexico during the course of this week for preliminary and detention hearings on a criminal complaint charging them with conspiracy to commit carjacking. A U.S. magistrate judge ordered them to remain in custody pending trial.
According to public court documents, Barnes, Busch, Hedgecock, and Terrell allegedly went to a home in Loving, New Mexico on May 28, 2019, to steal a motorcycle. Hedgecock allegedly drove the four defendants to the location in her truck and knocked on the front door while Busch and Terrell attempted to jumpstart motorcycles parked at the residence. Barnes, Busch, and Hedgecock allegedly pointed their guns at a man who came outside during the attempted theft.
Hedgecock allegedly drove Terrell and Barnes away from the home in her truck while Busch pushed one of the motorcycles off the property. Multiple rounds of ammunition were allegedly fired from the truck and into the residence as they drove away. One of those rounds struck and killed the same man who Barnes, Busch, and Hedgecock previously confronted at gunpoint.
Hedgecock stopped a short distance away from the home where Barnes and Terrell assisted Busch in loading the stolen motorcycle into the bed of the truck. All four defendants then left the scene together. Police later found Hedgecock’s truck burning in a ravine near Carlsbad, New Mexico. Law enforcement later recovered the stolen motorcycle from a property shared by Barnes and Terrell.
A criminal complaint is only an accusation. All defendants are presumed innocent until proven guilty.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case in conjunction with the New Mexico State Police, Eddy County Sheriff’s Office, and the Loving Police Department. Assistant U.S. Attorneys Maria Armijo and Ry Ellison are prosecuting the case.
Former postal employee sentenced to prison for drug trafficking, mail theftRead the Press Release
COLUMBUS, Ohio – Laquise O. Johnson, 31, of Columbus was sentenced to 36 months in prison for receiving shipments of marijuana and methamphetamine from California at a post office box he rented where he worked and for stealing items from the mail.
According to court documents, Postal Inspectors began investigating reports of drug trafficking between Ohio and California in 2017. They determined that Johnson, a processing clerk, had rented a post office box to facilitate the drug trafficking. They seized one parcel containing 1,438 grams of methamphetamine and seized another parcel with 493 grams of marijuana from Johnson after he retrieved it from the post office box at the Oakland Park post office.
Johnson also admitted that he had stolen mail containing a Bluetooth speaker and art supplies.
Johnson pleaded guilty on June 5, 2019 to one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and one count of theft of mail.
David M. DeVillers, United States Attorney for the Southern District of Ohio; and James Giehl, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division announced the sentence imposed today by Senior U.S. District Court Judge James L Graham. Special Agents with the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, also participated in this investigation. Assistant United States Attorney Jonathan J.C. Grey represented the United States in this case.
# # #
Former U.S. Marine and Registered Sex Offender to Serve 29 Years in Prison for Child Sex OffensesRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Joshua Eugene Burton (34, Arnold, Missouri) to 25 years in federal prison for enticing and coercing a minor to engage in sexually explicit activity, and for being a registered sex offender who committed another sex offense involving a minor. Burton is currently serving a 10 year federal prison sentence for related charges stemming from the Eastern District of Missouri. Today, the court ordered that part of Burton’s 25 year sentence run consecutive to his Missouri conviction; thereby effectively ordering Burton to serve at least 29 years in federal prison.
Burton had pleaded guilty on March 3, 2020.
According to court documents, in September and October 2016, Burton portrayed himself as a teenage girl from California and engaged in sexually explicit online conversations with a 14-year-old child ("Victim 1"). During his conversations, Burton persuaded, induced, enticed, and coerced Victim 1 to produce and distribute sexually explicit images and videos of herself. Burton also coerced Victim 1 into performing oral sex on a 16-year-old child ("Victim 2") by threatening to publicly post to the internet the photos and sexually explicit videos Victim 1 had previously sent to Burton, if Victim 1 did not produce the sexually explicit material and send it to him. In order to add more credibility to his threat, Burton specifically referenced the schools that Victim 1 and Victim 2 attended. Victim 1 sent Burton approximately 10 sexually explicit videos depicting Victims 1 and 2, and over 20 sexually explicit photographs to Burton.
The FBI obtained a search warrant for Burton’s residence in Arnold, Missouri. Upon their arrival, Burton refused to open the door and announced that he was armed with a firearm. Burton then barricaded himself inside his bedroom and engaged in a 12-hour armed standoff with law enforcement officers. Eventually, the FBI took Burton into custody. During a search of his residence, agents located and seized multiple electronic devices. A forensic analysis of his devices revealed that Burton had been in possession of child pornography and had deleted evidence of his communications with Victim 1 from his device. Burton pleaded guilty to being a felon in possession of a firearm and possession of child pornography in the Eastern District of Missouri and was sentenced to 10 years in federal prison.
Burton is a former U.S. Marine who was convicted of distribution and possession of child pornography in 2008 during the time he served in the United States Marine Corps. As part of his conviction, Burton was required to register as a sex offender and was dishonorably discharged from the Marine Corps.
“The facts of this case are despicable and heart wrenching,” said Michael McPherson, Special Agent in Charge, FBI-Tampa Field Division. “Mr. Burton threatened and blackmailed his young victim into committing the unthinkable. These investigations are tough to work and I am proud of the dedicated special agents who do the job so that we have a safer community in which to raise our children.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Candace Garcia Rich.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Milwaukee County Register of Deeds Charged with Wire FraudRead the Press Release
United States Attorney Matthew D. Krueger announced that, on June 25, 2020, he issued a one-count information charging John La Fave (age: 70) with wire fraud in violation of Title 18, United States Code, Section 1343, and that La Fave has entered into an agreement to plead guilty to the charge.
According to the information, La Fave, who was the Milwaukee County Register of Deeds, devised and executed a scheme to defraud Milwaukee County and to obtain money by means of materially false and fraudulent pretenses and representations. The scheme concerned La Fave’s dealings with “Individual A,” who worked for “Business A,” a company that provided redacting and document indexing services for Milwaukee County. The essence of the scheme was that La Fave directed Individual A to create fraudulent invoices that made it appear that Business A had done specified work for the Milwaukee County Register of Deeds Office when, as La Fave knew, Business A had not actually performed that work. As alleged, Business A would hold the money “on account” for La Fave to direct to be paid to other, third-party vendors who actually performed the work. Most of those third-party vendors were not authorized to be paid through the Milwaukee County accounts payable process, and some were employees of the Milwaukee County Register of Deeds Office.
United States Attorney Krueger commented, “My office will not hesitate to prosecute public officials who abuse their positions of trust.”
If convicted, La Fave faces a maximum of 20 years of imprisonment, a maximum fine of $250,000, and up to three years of supervised release.
The Federal Bureau of Investigation, the Milwaukee County District Attorney’s Office, and the Office of the Comptroller-Milwaukee County Audit Services Division investigated the case. It will be prosecuted by Assistant United States Attorneys Greg Haanstad and William Lipscomb.
An information is only a charging document, and is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
# # # #
Former Lawyer and CPA Charged with Defrauding Elderly InvestorsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Phillip Roy Wasserman (63, Sarasota) and Kenneth Murry Rossman (62, Bradenton) with conspiracy to commit wire fraud and mail fraud, as well as substantive counts of wire fraud and mail fraud. If convicted on all counts, Wasserman and Rossman each face a maximum penalty of 20 years on each of the six counts charged in the indictment. The indictment also notifies the defendants that the United States is seeking a money judgment of at least $6.3 million, the proceeds of the charged criminal conduct.
According to the
indictment , Wasserman, a former lawyer and licensed insurance agent, and Rossman, a Florida certified public accountant and licensed insurance agent, made false and fraudulent misrepresentations and concealed material information in order to convince elderly victim-investors to put their money into Wasserman’s new insurance venture, “FastLife.” Some victims were persuaded to liquidate traditional investments, such as annuities, and/or to borrow funds against existing life insurance policies to generate cash to invest in the venture. These victims were not told about surrender fees and other costs associated with the liquidations and, Rossman prepared income tax returns for victim-investors in a manner designed to conceal negative personal tax consequences that resulted from the liquidations from both the victim-investors and the Internal Revenue Service. Wasserman paid Rossman a percentage of the victim-investors’ money as compensation for his role in the conspiracy. Wasserman also used victim-investors’ money to make payments to earlier victim-investors in the FastLife venture, as well to as victim-investors in his earlier hedge fund and real estate fund ventures. Wasserman spent a significant amount of the victim-investors’ money to finance a lavish lifestyle that included luxury residences, high-end vehicles, jet skis, jewelry, entertainment, gambling, retail shopping, home improvements, personal insurance, and many other expenses for his personal benefit and the benefit of family members.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Florida Office of Financial Regulation. It will be prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Florida Man Sentenced to 60 Months in Prison Following Federal Drug and Gun ConvictionsRead the Press Release
Montgomery, Alabama – On Thursday, June 25, 2020, Bobby Turner, a 64-year-old man from Navarre, Florida, was sentenced to 60 months in prison after pleading guilty to federal drug and gun charges, announced United States Attorney Louis V. Franklin, Sr. Following his prison sentence, Turner will be on supervised release for two years. There is no parole in the federal system.
According to court documents, the River Falls Police Department and numerous other law enforcement agencies were conducting a road-safety checkpoint on the evening of March 16, 2018 due to increased beach traffic through the area. Turner was traveling from Florida when he encountered the checkpoint on Alabama Highway 55 North in Covington County. When an officer approached his vehicle to check Turner’s license, registration, and insurance documents, he detected the smell of marijuana. While searching the vehicle, law enforcement found nearly ten pounds of marijuana and two handguns. On April 17, 2019, Turner was indicted by a federal grand jury for possession of marijuana with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. He pleaded guilty to both charges on March 18, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the River Falls Police Department, the Covington County Sheriff’s Office, and the Alabama Law Enforcement Agency (ALEA) investigated this case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorney Kevin Davidson prosecuted the case.
Five convicted for conspiring to transport stolen firearmsRead the Press Release
BRUNSWICK, GA: Five Floridians are each facing substantial federal prison sentences after admitting they brought stolen firearms into south Georgia.
Cleveland Williams Jr., 58; Demetris Williams, 26, Julius Williams, 31, Isaiah Hicks, 65, and Megan Robinson, 27, all of Leesburg, Florida, each pled guilty in U.S. District Court to Conspiracy to Transport Stolen Firearms, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a penalty of up to five years in prison, followed by a period of supervised release.
There is no parole in the federal system.
“Citizens of the Southern District rightfully deserve law enforcement to cooperatively target violent offenders through state, local, and federal partnerships,” said U.S. Attorney Christine. “I commend our state and local agencies and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their tremendous efforts to make our district safer.”
According to evidence presented, on the afternoon of June 16, 2018, the co-conspirators shared an unlawful plan to obtain and possess multiple stolen firearms, including a Bersa Thunder .380-caliber semi-automatic pistol and a Mossberg Model 930 12-guage shotgun. The group then brought the firearms from Lakeland County, Florida, to Wayne, Brantley, and Charlton counties in Georgia.
The case is one of many developed through the Prosecutor-to-Prosecutor Program (P3) established by U.S. Attorney Christine. P3’s mission is to create a mechanism by which state and federal prosecutors share case information to determine if federal prosecution is appropriate due to complex or novel issues.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Jesup Police Department, the Folkston Police Department, the Charlton County Sheriff’s Department and the Georgia State Patrol. The case is being prosecuted for the United States by Assistant United States Attorneys John Harper and Joshua Bearden.
Five Bay Area Residents Indicted for Burglarizing Vacaville Gun Store to Steal Guns During the Height of Recent Civil UnrestRead the Press Release
SACRAMENTO, Calif. — Five individuals were indicted Thursday for the burglary of a Vacaville gun shop, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 1, police responded to reports of suspicious activity at Guns, Fishing and Other Stuff, a two-story gun and outdoor recreation store in Vacaville. Guns, Fishing and Other Stuff is a federally licensed firearms dealer. When officers responded, four vehicles fled the scene. After a high-speed chase on Interstate 80 during which vehicles reached over 100 miles per hour, one vehicle, a rented minivan, was stopped, and its five passengers were arrested after a foot pursuit. In total, the gun store reported that over 70 firearms had been stolen.
According to the criminal complaint, inside the minivan were bolt cutters, a power saw, and 13 handguns with price tags from Guns, Fishing and Other Stuff still attached. Donte Marcel Anderson, 31, of Antioch; Desteny Estrella Leilani Salazar, 22, of San Francisco; Donley Thompson, 27, of Pinole; Tracy Whitfield, 31, of Pittsburg; and Adrian Oscar Duran, 23, of San Francisco, were arrested. They are charged with possession of a stolen firearm and burglary of a federally licensed firearms dealer.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Vacaville Police Department, Fairfield Police Department, Antioch Police Department, Vallejo Police Department, and California Department of Justice – Bureau of Firearms. Assistant U.S. Attorneys Justin L. Lee and Brian A. Fogerty are prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for both counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Felon Who Discharged a Shotgun Receives More than Two Years in PrisonRead the Press Release
A man who discharged a shotgun during a dispute was sentenced today to more than two years in federal prison.
Timothy Rabineau, age 45, from Oxford Junction, Iowa, received the prison term after an October 25, 2019 guilty plea to possession of a firearm by a felon.
Evidence during the case showed that Rabineau was involved in a dispute with another individual. That individual drove by Rabineau’s home in Oxford Junction to continue the argument. When the individual drove by, Rabineau got a shotgun from his home and discharged it once in the air as the individual drove by. Rabineau was a felon, having previously been convicted of possession of stolen property in 2001 and third degree burglary in 2001.
Rabineau was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rabineau was sentenced to 28 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: [list partners here]. For more information about Project Guardian, please see /media/1122011/dl?inline.
Rabineau is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Jones County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0102.
Follow us on Twitter @USAO_NDIA.
Federal, State, and Local Law Enforcement Officials Will Hold News Conference Today at 10:30 A.M. to Announce Charges in Significant Gang InvestigationRead the Press Release
U.S. Attorney John R. Lausch, Jr., Chicago Police Superintendent David Brown, ATF Chicago Special Agent-in-Charge Kristen deTineo, DEA Chicago Special Agent-in-Charge Robert J. Bell, IRS-CI Special Agent-in-Charge Kathy A. Enstrom, and Chicago HIDTA Executive Director Nicholas Roti will hold a news conference today to announce charges in a significant gang investigation.
The news conference will begin at 10:30 a.m. It will be held outdoors at Quincy Plaza, the east courtyard of the Dirksen Federal Building, 219 S. Dearborn Street, Chicago IL 60604. Media members will enter the building on Dearborn, proceed through security, and enter the enclosed courtyard.
Media credentials and masks will be required to access the news conference. Social distancing will be required during the conference
WHO: John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, Kristen deTineo, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration; Kathy A. Enstrom, Special Agent in Charge of the Internal Revenue Service Criminal Investigation; David Brown, Superintendent of the Chicago Police Department, and Nicholas Roti, Executive Director of Chicago HIDTA.
WHAT: The officials will announce charges against multiple defendants in a joint federal, state, and local gang investigation.
WHERE: Quincy Plaza, 219 S. Dearborn Street, Chicago IL 60604
Media credentials and masks will be required to access the news conference.
WHEN: Friday, June 26, 2020, 10:30 A.M.
CONTACT: U.S. Attorney’s Office - Public Information Office
Email: [email protected]
Phone: (312) 371-3191
Federal Inmate Indicted on Charges of Attempting to Make Threats Against Federal AgentsRead the Press Release
BOSTON – An inmate at the Federal Medical Center (FMC) Devens was indicted yesterday in connection with attempting to make threats against federal agents and to cause an explosion at a federal courthouse.
Nathan Danforth, 34, was indicted on one count of making threats to murder federal law enforcement officers and one count of threats to damage or destroy a building using fire or explosive. Danforth will appear in federal court in Worcester at a later date.
According to the charging documents, in July 2019, Danforth allegedly attempted to mail a letter from FMC Devens to a federal court in Florida, threatening to kill the agents who previously investigated him and to cause an explosion at the courthouse. In February 2020, Danforth allegedly sent an email to the Department of Justice Office of Inspector General threatening that the President would die and federal buildings would be “blown up.”
Each charge provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. FMC Devens Special Investigation Section provided valuable assistance to the investigation. Assistant U.S. Attorney Kristen Noto 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.
Ensley Man Sentenced for Carjacking and Firearm ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced an Ensley man today for carjacking and possession of a firearm during a crime of violence that occurred in Birmingham, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco and Firearms Acting Special Agent in Charge Frank Haera.
U.S. District Judge Corey Maze sentenced Darise Cortez Austin, 29, of Ensley, to 144 months in prison for carjacking and possession of a firearm during of a crime of violence. Austin pled guilty in February.
“This sentence is another great example of our office and law enforcement partners working together to remove another violent criminal from our communities,” Town said. “Violent criminals who plague our streets will continue to be targets for federal prosecution where the debt to society is full price. No discounts. No parole.”
ATF Acting Special Agent in Charge, Frank Haera stated, “Removing the criminal element that uses a firearm to facilitate violent crimes such as carjacking is a priority of ATF. This joint collaboration of our local, state and federal partners as part of DOJ’s national strategy “Project Guardian” aided in one less gun on the streets. This focused investigation will have a lasting impact within this community.”
According to the plea agreement, Austin, while armed with a firearm, approached a Birmingham victim outside of the victim’s apartment. While pointing the firearm at the victim, Austin took the victim’s keys, wallet, and a Taurus .357 caliber pistol. Austin then stole the victim’s 2007 Nissan Altima and left the residence. Austin used the victim’s debit card at several different places, then attempted to elude an Alabama State Trooper in Lawrence County, Alabama. While eluding the Alabama State Trooper at 102 mph, Austin wrecked the vehicle and law enforcement detained and arrested him.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
ATF investigated the case along with the Birmingham Police Department, and ALEA. Assistant U.S Attorney Kristy Peoples prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Edmond Man Pleads Guilty to Smuggling Firearms to the Middle EastRead the Press Release
OKLAHOMA CITY – RANDY LEW WILLIAMS, 57, of Edmond, Oklahoma, entered a guilty plea to illegally shipping firearms to the Middle East and two other firearms violations, announced U.S. Attorney Timothy J. Downing.
On June 1, 2020, an Information was filed that charged Williams with violating the Arms Export Control Act, making a false statement to a firearms dealer, and possession of an unregistered firearm. According to an affidavit filed in support of a criminal complaint filed on March 3, 2020, the Federal Bureau of Investigation (FBI) Legal Attaché in Abu Dhabi, United Arab Emirates (UAE) notified the FBI Oklahoma City Field Office that a FedEx shipment had been seized in Dubai, UAE, on December 19, 2018. The shipment contained multiple Glock pistols and firearms parts, and shipment records indicated the shipment was sent from Williams, at an address in Oklahoma City. Records also indicated the shipment contained tools and that the intended recipient was located in Sulaymaniyah, Iraq. FBI authorities later learned that between January 2018 and October 2018, Williams received approximately $12,761.00 in wire transfers from Sweden. Williams did not have a Federal Firearms License (FFL) from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) or authority from the Department of Defense to export defense articles (i.e., weapons) outside the United States.
Williams was also charged with knowingly making a false and fictitious statement to a firearms dealer in connection to his acquisition of three Glock pistols and two Glock pistol frames and was in possession of a 5.56 caliber rifle that had a barrel of less than 16 inches.
Today, Williams pleaded guilty to all three counts charged in the Information. At sentencing, Williams faces up to twenty years in prison for the Arms Export Control Act violation and up to ten years in prison on each of the other two counts. Sentencing will take place in approximately ninety days.
This case is a result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives Dallas Field Division, and the U.S. Department of Homeland Security Investigations, with assistance from the U.S. Customs and Border Patrol, the U.S. Department of State, the U.S. Postal Inspection Service, the Oklahoma City Police Department, and the Edmond Police Department. Assistant U.S. Attorneys Matt Dillon and Mark Stoneman prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Eastern Iowa Nurse Sentenced to Federal Prison for Stealing Patient’s Pain MedicationRead the Press Release
An intensive care unit nurse who stole fentanyl and morphine, both pain medications, from an unconscious patient by withdrawing the drugs from his IV line while he was in the hospital’s intensive care unit in December 2018 was sentenced today to more than @ years in federal prison.
Kelly Kristin Postel, age 43, from Anamosa, Iowa, received the prison term after a February 4, 2020 guilty plea to two counts of acquiring morphine and fentanyl on multiple occasions from October 2018 through December 2018.
In a plea agreement, Postel admitted that between October 2018 and December 2018, she obtained fentanyl and morphine by getting an excess amount of those pain meds from the hospital pharmacy and administering only the prescribed amount of medication to patients. She then used the rest of the pain medication while she was still working as a registered nurse caring for patients in the hospital. Postel also admitted that, on December 10, 2018, she was caring for patients in the intensive care unit at a Cedar Rapids, Iowa, hospital. On that day she went into an unconscious patient’s room, used a syringe to remove fentanyl and another drug from the patient’s IV line, and then used the substances in the employee restroom at the hospital while she was still on duty. Postel admitted she was impaired in her judgment and in being able to do routine nursing tasks after taking the pain medications, even though she was still caring for patients.
Postel was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Postel was sentenced to 4 months’ imprisonment and fined $5500. She was ordered to pay restitution for the drugs she stole, costs of prosecution and forfeit her nursing license. She must also serve a 1-year term of supervised release after the prison term. There is no parole in the federal system.
“Health care providers who steal drugs from the patients they care for place those patients and the medical system at risk. This office always stands ready to protect those who are unlawfully exploited by others,” said United States Attorney Peter E. Deegan, Jr. “We especially thank the Food and Drug Administration Office of Criminal Investigations and the Iowa Medicaid Fraud Control Unit for their outstanding work investigating this case.”
“Health care professionals who steal needed medications from patients put patients at increased risk of harm and disrupt the legal drug supply chain,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
Postel was released on the conditions previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by the Medicaid Fraud Control Unit of the Iowa Department of Inspections and Appeals and the United States Food and Drug Administration Office of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00132.
Follow us on Twitter @USAO_NDIA.
East Stroudsburg Man Sentenced for Heroin TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Robert D. Mariani sentenced Raheem Marrow, age 48, of East Stroudsburg, Pennsylvania, to 75 months’ imprisonment and a six-year term of supervised release for heroin trafficking.
According to United States Attorney David J. Freed, Marrow pleaded guilty to distributing and possessing with the intent to distribute heroin within 1,000 feet of a protected location. Marrow sold heroin to an informant on four occasions between June 2016 and March 2017 within 1,000 feet of a school or playground. A warranted search of Marrow’s residence yielded heroin, packaging materials, and a .22 caliber handgun. Marrow took responsibility for the heroin and firearm, and admitted to his criminal conduct.
The case was investigated by the U.S. Federal Bureau of Investigation (FBI) and the Stroud Regional Police Department, and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #
Department of Justice Applauds Congressional Passage of Reauthorization of the Antitrust Criminal Penalty Enhancement and Reform ActRead the Press Release
On June 25, the U.S. House of Representatives and Senate passed identical bills, H.R. 7036 and S. 3377, to repeal the sunset provision of the Antitrust Criminal Penalty Enhancement and Reform Act (ACPERA).
“We applaud both Houses of Congress for their bipartisan action and recognition of ACPERA’s importance in the fight to safeguard our free markets and protect American consumers from collusion,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division wholeheartedly agrees with Congress’s findings that ‘[c]onspiracies among competitors to fix prices, rig bids, and allocate markets are categorically and irredeemably anticompetitive and contravene the competition policy of the United States.’”
“The Division is firmly committed to the Leniency Program, which has been our most important prosecutorial tool for the last 26 years, particularly when it comes to international cartels,” said Antitrust Division Deputy Assistant Attorney General for Criminal Enforcement Richard A. Powers. “Because of yesterday’s reauthorization, ACPERA’s incentives to self-report, seek leniency, and cooperate with our investigations will continue to assist the Division’s mission of deterring, detecting, and prosecuting cartel offenses.”
Congress enacted ACPERA in 2004 in part to provide greater incentives for corporations to self-report and cooperate pursuant to the Antitrust Division’s Corporate Leniency Policy. Since 2004, ACPERA’s provisions have substantially strengthened the Antitrust Division’s ability to detect and prosecute anticompetitive cartel activity through the Leniency Program.
From Fiscal Year 2010 to 2019, the Antitrust Division’s criminal prosecutions have resulted in over $9 billion in criminal fines and penalties, along with jail terms for more than 250 individuals. Since the fall of 2019 alone, the Division obtained three criminal fines and penalties at or above the Sherman Act’s $100 million statutory maximum, and prosecuted antitrust violations affecting generic drugs, cancer patients, grocery store staples, financial markets.
If the legislation is signed by the President, ACPERA will continue to mitigate a successful leniency applicant’s civil damages exposure from treble damages to actual damages if the company provides civil plaintiffs with timely and satisfactory cooperation. While treble damages liability can be an important deterrent for engaging in anti-competitive behavior, civil exposure also can deter self-reporting of criminal wrongdoing. Therefore, the Department supports the reauthorization of ACPERA and the repeal of its sunset provision.
Denison, Iowa Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced on June 25, 2020, to more than 10 years in federal prison.
Juan Lopez-Zuniga, 50, from Denison, Iowa, was convicted by a jury on February 7, 2020, after a 3 day trial in federal court, of conspiracy to distribute methamphetamine. The verdict was returned following about 3 hours of jury deliberations.
The evidence at trial showed that Lopez-Zuniga was involved in a conspiracy that distributed more than 500 grams of methamphetamine from October 2015 through September 2016, from the Denison, Iowa, area. Evidence showed that Lopez-Zuniga conducted runs from Denison, Iowa, to Worthington, Minnesota, delivering half-pound quantities of methamphetamine to a co-conspirator for further re-distribution in Iowa, Minnesota and South Dakota. Lopez-Zuniga would then return to Denison with the proceeds of drug sales.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Lopez-Zuniga was sentenced to 127 months’ imprisonment. He must also serve a 5 year term of supervised release following the imprisonment. There is no parole in the federal system. Lopez-Zuniga is being held in the custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration; Iowa Department of Narcotics Enforcement; Minnesota Bureau of Criminal Apprehension; South Dakota Division of Criminal Investigation; Buffalo Ridge Task Force (Worthington/ Nobles County, Minnesota); and the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4009. Follow us on Twitter @USAO_NDIA.
Convicted Felon in Possession of Firearm Sentenced to Federal PrisonRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Deonte Turner, 28, Fitchburg, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 37 months in prison for unlawfully possessing a loaded firearm as a felon. Turner pleaded guilty to this charge on December 27, 2019.
Turner was arrested in possession of a loaded Glock .45 caliber handgun on August 19, 2019. Turner was outside of a local hotel with a drug dealer, whom police were looking to arrest. Turner’s gun was in his duffle bag. In 2014, Turner was convicted of felony armed robbery. In 2017, he was convicted of felony bail jumping. Finally, in 2018, he was convicted of felony possession of THC (2nd + offense).
Based on Turner’s criminal history and his offense conduct, the federal sentencing guidelines recommended a range of imprisonment of 37 to 46 months. All of Turner’s felony convictions were in Dane County, and the longest sentence he has previously served was 10 months. As a result, Turner requested a sentence of 12 months and 1 day.
Judge Peterson rejected Turner’s request, recognizing that Madison and surrounding communities are experiencing an uptick in gun violence and that possession of a loaded firearm presents “a very real danger.” Judge Peterson also stated that a loaded gun is “like a bomb waiting to go off.”
The charge against Turner was the result of an investigation conducted by the Dane County Narcotics Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Convicted Felon Sentenced to 63 Months in Prison for Possessing Stolen FirearmRead the Press Release
St. Louis, Missouri – Altonio Steeples, 37, of St. Louis, Missouri, was sentenced to 63 months in prison for being a felon in possession of a firearm. He appeared in federal court today before U.S. District Judge Stephen R. Clark.
According to the plea agreement, on June 23, 2019, St. Louis Metropolitan Police Department Officers responded to a reported disturbance in the 5800 block of Lotus. When Officers arrived, they observed Steeples and an unidentified male standing outside of a Nissan sedan. Upon seeing the marked police vehicle, Steeples and the unidentified male left the Nissan engine running, ran to a nearby porch and began knocking on the door. As Officers exited their patrol car to approach the two men on the porch, both men ran from Officers down a gangway.
While Steeples was running, a chasing Officer observed him reach into his waistband and remove a firearm. The Officer commanded Steeples to drop the firearm. Steeples then threw the firearm down in the gangway and continued to run. The Officer eventually took Steeples into custody and recovered the loaded Springfield Armory .45 caliber semiautomatic firearm Steeples had thrown while fleeing. The Springfield Armory firearm had been reported stolen, and Steeples was serving a term of supervised release for a prior federal felony conviction at the time of arrest.
The St. Louis Metropolitan Police Department investigated this case.
Collin County Man Indicted for Theft of Covid Economic Impact PaymentsRead the Press Release
SHERMAN, Texas – A 50-year-old Plano, Texas man has been indicted and charged with federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
James Mwanza was indicted by a federal grand jury on June 18, 2020 and charged with wire fraud, theft of government money, and aggravated identity theft. Mwanza went before U.S. Magistrate Judge Christine A. Nowak today for an initial appearance.
According to information presented in court, from at least January 2020 through April 2020, Mwanza, claiming to be a tax preparer, allegedly prepared and filed fraudulent income tax returns with the IRS. To do so, he unlawfully obtained the personal identification information of other individuals, including names, birth dates, and Social Security numbers. Mwanza used Electronic Filing Numbers assigned to other tax preparation firms who were not affiliated with him, to file the returns and claim false tax refunds. The filing of the false returns also triggered payment of Economic Impact Payments (EIPs) provided for under the CARES Act.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for Economic Impact Payments (EIPs).
Under the CARES Act, qualifying individuals may receive up to $1,200 in EIPs per adult, up to $2,400 for married couples filing jointly, and $500 per child under 17 years old. Individuals with income exceeding $99,000 or joint filers whose income exceeds $198,000 do not qualify for any payment.
“Fraudsters engaged in identity theft to steal taxpayer refunds have now turned their attention to stealing Economic Impact Payments,” said U.S. Attorney Stephen J. Cox. “The Eastern District of Texas is working with our law enforcement partners to utilize all available tools to ensure that government payments get to the taxpayers who need this economic relief.”
“The Treasury Inspector General for Tax Administration remains committed to investigating and pursuing attempts to corruptly interfere with Federal tax administration, including tax preparer misconduct involving the theft of tax refunds and Economic Impact Payments,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the hard work of our law enforcement partners in this investigation.”
“IRS Criminal Investigation has seen a variety of Economic Impact Payment scams and other financial schemes looking to take advantage of unsuspecting taxpayers,” said IRS Criminal Investigation Special Agent in Charge Tamera Cantu of the Dallas Field Office. “IRS Criminal Investigation is dedicated to working with our law enforcement partners and the U.S. Attorney’s Office to combat fraud schemes that harm innocent taxpayers.”
If convicted, Mwanza faces up to 20 years in federal prison. A grand jury indictment is not evidence of guilt.
This case is being investigated by the Treasury Inspector General for Tax Administration (TIGTA) and the Internal Revenue Service-Criminal Investigations and prosecuted by Assistant U.S. Attorney Frank Coan.
Chinese Citizen Convicted of Economic Espionage, Theft of Trade Secrets, and ConspiracyRead the Press Release
Hao Zhang, 41, of China, was found guilty of economic espionage, theft of trade secrets, and conspiring to commit both offenses today, announced the Department of Justice. The ruling was handed down by the Honorable Edward J. Davila, U.S. District Judge, following a four-day bench trial.
Evidence submitted during the course of the trial demonstrated that from 2010 to 2015, Zhang conspired to and did steal trade secrets from two companies: Avago, a designer, developer, and global supplier of a broad range of analog, digital, mixed signal and optoelectronics components and subsystems with a focus in semiconductor design and processing, headquartered in San Jose, California, and Singapore; and Skyworks, an innovator of high performance analog semiconductors headquartered in Woburn, Massachusetts. Judge Davila found that Zhang intended to steal the trade secrets for the benefit of the People’s Republic of China
“The defendant plotted with Tianjin University to take trade secrets from two U.S. companies, including his own employer, to China for the benefit of the Chinese Government,” said Assistant Attorney General for National Security John C. Demers. “Today’s guilty verdict on all counts is an important step in holding accountable an individual who robbed his U.S. employer of trade secrets and sought to replicate the company’s technology and replace its market share. The Department of Justice’s commitment to prosecuting these cases should serve as a cautionary tale to anyone considering doing the same.”
“A free nation is naturally innovative. No nation is more innovative than the United States. Countries without freedom cannot match our innovation, and inevitably must resort to theft. Theft is not innovation. By combatting theft, we protect innovation and freedom,” said U.S. Attorney David L. Anderson for the Northern District of California.
“Economic Espionage is a pervasive threat throughout the United States, particularly to the San Francisco Bay Area and Silicon Valley which is the center of innovation and technology,” said FBI Special Agent in Charge John F. Bennett. “While this case exemplifies how easily a few motivated employees can conspire to misappropriate intellectual property for the benefit of the People’s Republic of China, Zhang’s conviction should serve as a warning to our adversaries that the FBI and our partners remain committed to aggressively investigating and prosecuting these crimes.”
According evidence presented during the bench trial, Zhang stole trade secrets relating the performance of wireless devices. Specifically, Surface Acoustic Wave (SAW) and Bulk Acoustic Wave (BAW) filters are used in wireless devices to eliminate interference and improve other aspects of device performance. Film Bulk Acoustic Resonators (FBAR) are one type of BAW filter. The most common and most profitable application of FBAR technology is as a radio frequency (RF) filter for mobile phones and other wireless devices. Technological advances in FBARs have played a substantial role in creating smaller, more efficient wireless devices for both consumer and military applications. Avago, one of the victims of Zhang’s theft, was the leading company in the United States manufacturing and selling FBARs. Zhang’s other victim, Skyworks, was developing its own BAW technology.
Evidence at trial further showed that in October 2006, Zhang and his co-conspirators started a business in China to compete with Avago and Skyworks. One of Zhang’s co-conspirators, Wei Pang, started working at Avago at the same time. Zhang and Pang illicitly shared trade secrets with each other and with co-conspirators in China while they worked for the U.S. companies. Zhang and Pang then connected their venture to Tianjin University (TJU) in China, an instrumentality of the Chinese government. By 2009, they left their work in the United States to relocate to China, following a plan laid out by TJU officials to form another company, Novana, in the Cayman Islands. Along the way, Zhang obtained patents in his own name using trade secret information he knew was stolen from Avago. Zhang also worked with stolen trade secrets in a lab he founded at TJU while developing his new FBAR business. The FBAR processes that Zhang and his co-conspirators stole took Avago over twenty years of research and development to build. Additional evidence during the bench trial demonstrated that Zhang engaged in economic espionage to help TJU and Zhang’s Chinese company unfairly compete in the multi-billion dollar global market for cell phone RF filters.
Zhang was charged in a superseding indictment returned by a federal grand jury on April 1, 2015.
Zhang is currently released on a $500,000 secured bond.
Zhang’s sentencing hearing is scheduled for Aug. 31, 2020, before Judge Davila in San San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1831 is 15 years in custody and a fine of $250,000, plus restitution if appropriate. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1832 is 10 years in custody and a fine of $250,000, plus restitution if appropriate. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Michelle J. Kane and Susan Knight are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rebecca Shelton, Susan Kreider, and Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Chinese Citizen Convicted of Economic Espionage, Theft of Trade Secrets, and ConspiracyRead the Press Release
SAN JOSE – Hao Zhang, 41, of China, was found guilty of economic espionage, theft of trade secrets, and conspiring to commit both offenses today, announced the Department of Justice. The ruling was handed down by the Honorable Edward J. Davila, U.S. District Judge, following a four-day bench trial.
Evidence submitted during the course of the trial demonstrated that from 2010 to 2015, Zhang conspired to and did steal trade secrets from two companies: Avago, a designer, developer, and global supplier of a broad range of analog, digital, mixed signal and optoelectronics components and subsystems with a focus in semiconductor design and processing, headquartered in San Jose, California, and Singapore; and Skyworks, an innovator of high performance analog semiconductors headquartered in Woburn, Massachusetts. Judge Davila found that Zhang intended to steal the trade secrets for the benefit of the People’s Republic of China
“A free nation is naturally innovative. No nation is more innovative than the United States. Countries without freedom cannot match our innovation, and inevitably must resort to theft. Theft is not innovation. By combatting theft, we protect innovation and freedom,” said U.S. Attorney David L. Anderson for the Northern District of California.
“The defendant plotted with Tianjin University to take trade secrets from two U.S. companies, including his own employer, to China for the benefit of the Chinese Government,” said Assistant Attorney General for National Security John C. Demers. “Today’s guilty verdict on all counts is an important step in holding accountable an individual who robbed his U.S. employer of trade secrets and sought to replicate the company’s technology and replace its market share. The Department of Justice’s commitment to prosecuting these cases should serve as a cautionary tale to anyone considering doing the same.”
“Economic Espionage is a pervasive threat throughout the United States, particularly to the San Francisco Bay Area and Silicon Valley which is the center of innovation and technology,” said FBI Special Agent in Charge John F. Bennett. “While this case exemplifies how easily a few motivated employees can conspire to misappropriate intellectual property for the benefit of the People’s Republic of China, Zhang’s conviction should serve as a warning to our adversaries that the FBI and our partners remain committed to aggressively investigating and prosecuting these crimes.”
According evidence presented during the bench trial, Zhang stole trade secrets relating the performance of wireless devices. Specifically, Surface Acoustic Wave (SAW) and Bulk Acoustic Wave (BAW) filters are used in wireless devices to eliminate interference and improve other aspects of device performance. Film Bulk Acoustic Resonators (FBAR) are one type of BAW filter. The most common and most profitable application of FBAR technology is as a radio frequency (RF) filter for mobile phones and other wireless devices. Technological advances in FBARs have played a substantial role in creating smaller, more efficient wireless devices for both consumer and military applications. Avago, one of the victims of Zhang’s theft, was the leading company in the United States manufacturing and selling FBARs. Zhang’s other victim, Skyworks, was developing its own BAW technology.
Evidence at trial further showed that in October 2006, Zhang and his co-conspirators started a business in China to compete with Avago and Skyworks. One of Zhang’s co-conspirators, Wei Pang, started working at Avago at the same time. Zhang and Pang illicitly shared trade secrets with each other and with co-conspirators in China while they worked for the U.S. companies. Zhang and Pang then connected their venture to Tianjin University (TJU) in China, an instrumentality of the Chinese government. By 2009, they left their work in the United States to relocate to China, following a plan laid out by TJU officials to form another company, Novana, in the Cayman Islands. Along the way, Zhang obtained patents in his own name using trade secret information he knew was stolen from Avago. Zhang also worked with stolen trade secrets in a lab he founded at TJU while developing his new FBAR business.
The FBAR processes that Zhang and his co-conspirators stole took Avago over twenty years of research and development to build. Additional evidence during the bench trial demonstrated that Zhang engaged in economic espionage to help TJU and Zhang’s Chinese company unfairly compete in the multi-billion dollar global market for cell phone RF filters.
Zhang was charged in a superseding indictment returned by a federal grand jury on April 1, 2015.
Zhang is currently released on a $500,000 secured bond.
Zhang’s sentencing hearing is scheduled for Aug. 31, 2020, before Judge Davila in San San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1831 is 15 years in custody and a fine of $250,000, plus restitution if appropriate. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1832 is 10 years in custody and a fine of $250,000, plus restitution if appropriate. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Michelle J. Kane and Susan Knight are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rebecca Shelton, Susan Kreider, and Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Chinese Businesswoman Sentenced to 37 Months in Federal Prison for Conspiracy to Commit Visa FraudRead the Press Release
CHICAGO — A Chinese businesswoman was sentenced today to 37 months in federal prison for conspiracy to commit visa fraud.
WEIYUN HUANG, also known as “Kelly Huang,” 30, of Beijing, China, provided false verifications of employment for foreign nationals seeking to stay in the United States on F-1 or H-1B visas. Huang previously pleaded guilty to one count of conspiracy to commit visa fraud. U.S. District Court Judge Thomas M. Durkin on Friday imposed the prison sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and James M. Gibbons, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The government is represented by Assistant U.S. Attorney Shoba Pillay.
An F-1 visa permitted a foreign national to study in the United States at a university or other academic institution. An F-1 visa-holder could extend the visa by participating in a program that required the student to obtain temporary employment in their area of study. An H-1B visa permitted U.S.-based employers to temporarily employ foreign nationals in specialty occupations. Foreign nationals with an H-1B visa were permitted to stay in the U.S. for three years, with the possibility of extending their stay to six years.
Huang admitted in a plea agreement that she founded two companies – FINDREAM LLC and SINOCONTECH LLC – for the purported purpose of employing foreign nationals in the United States. Huang advertised fraudulent visa-related employment with Findream on websites. In reality, in exchange for a fee, Huang and the companies provided false offer letters and verification of employment letters as purported evidence of employment, knowing the customers did not work at Findream or Sinocontech. Huang also completed, signed, and certified immigration forms detailing the customers’ purported work at the companies. For customers who sought proof of payroll, the customer had to provide the payroll funds to Huang, and Huang then caused direct deposits, falsely purporting to be payroll payments, from Findream’s bank accounts to be deposited in the customers’ bank accounts, and issued Form 1099-MISC tax forms documenting the purported salary.
The fraud scheme allowed at least approximately 2,693 customers to list Findream or Sinocontech as their employer in order to stay in the U.S. on the visas, Huang further admitted in a plea agreement. Huang and her two companies received at least approximately $1.5 million from customers for whom they agreed to falsely certify employment.
“Immediately upon graduating from a United States-based university, defendant manufactured a scheme to defraud the United States for her own financial benefit and in direct violation of the United States immigration and criminal laws,” Assistant U.S. Attorney Shoba Pillay argued in the government’s sentencing memorandum. “Defendant took her deep understanding of the United States visa system to exploit that system for her own benefit, while creating a significant risk to the United States.”
Findream, which was incorporated in California, and Sinocontech, which was incorporated in Delaware, previously pleaded guilty to conspiracy to commit visa fraud.
Huang plea agreementCanadian woman sentenced to prison for illegally exporting American industrial pipeline & oil refinement equipmet from United States to IranRead the Press Release
COLUMBUS, Ohio – Angelica O. Preti, 45, of Ontario, Canada, was sentenced in U.S. District Court here today to 18 months in prison for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally exporting gas turbine engine parts from the United States to Iran.
According to court documents, Preti worked as the export operations manager at a Canadian forwarding and customs brokerage service provider that had significant business in the United States, including in the Southern District of Ohio.
Preti helped facilitate the shipment of U.S.-origin gas turbine engine parts and valve assemblies and connectors used for industrial pipelines in the gas and petrochemical (oil refinement) industry to Iran in deliberate violation of a U.S. embargo and trade sanctions. Iran has been subject to United States embargo sanctions since 1979.
“Preti made a calculated decision to harm the United States by supplying enemies abroad,” U.S. Attorney David M. DeVillers said. “Preti also attempted to cover up her crimes by directing the filing of false electronic export information, and attesting that the final destination of goods was not Iran. Preti also employed a number of additional methods to obscure the fact that Iran was the end-user for the shipments.”
“The U.S. is engaged in a maximum-pressure campaign to curb Iran’s malign influence in the Middle East, and we will not tolerate illegal exports to Iran that seek to undermine that effort” said Commerce Department Special Agent in Charge Nasir Khan. “We will work with our law enforcement partners and the Department of Justice to vigorously investigate and pursue prosecution of violators.”
In addition to the charged conduct, during her time as export operations manager at UE Canada Inc., the company was involved with 47 shipments exported from the United States. Of these shipments, 23 were ultimately traced as destined to Iran.
Preti is the second person charged as a result of the investigation into illegal shipment of industrial equipment of Iran. Behrooz Behroozian, who owned and operated Comtech International in Dublin, Ohio, was sentenced in October 2019 to serve 20 months in prison for his crimes.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General of the Department of Justice’s National Security Division; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by Senior U.S. District Court Judge James L Graham. Assistant United States Attorneys Douglas W. Squires and S. Courter Shimeall, as well as Senior Trial Attorney William Mackie with the Department of Justice’s National Security Division Counterintelligence and Export Control Section are representing the United States in this case.
# # #
Brevard County Man Sentenced to Eighteen Years in Federal Prison for Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Gregory Clive Burke (57, Mims) to 18 years in federal prison for enticement of a minor to engage in sexual activity. Burke, a registered sex offender who was on state probation after a previous conviction for possession of child pornography, was indicted by a grand jury on December 20, 2018. He had pleaded guilty on November 21, 2019.
According to court documents and evidence presented at the sentencing hearing, Burke initially came to the attention of law enforcement when his state probation officer found that he was in possession of a cellphone with internet access, which was a violation of the terms of his probation. A forensic review of Burke’s cellphone revealed that he was posing as a 10-year-old girl, “Emma Dixon,” and had posted a profile on Snapchat and YouTube. In addition, the forensic review revealed that “Emma Dixon” was communicating with several 12 to 13-year-old boys and girls online.
One of the children that Burke had been communicating with was a 12-year-old boy who lived in another state. During the communications, the child sent Burke images and videos of himself, including videos of his genitalia, and videos depicting him masturbating.
“This investigation is another example of the FBI’s efforts in safeguarding children from sexual predators,” said Michael McPherson, Special Agent in Charge of the FBI-Tampa Field Office. “We share this commitment with our federal, state and local law enforcement partners so that together we can identify and rescue victims and ensure their abusers are brought to justice.”
Sheriff Wayne Ivey stated, "I applaud this partnership and the agencies involved who are devoted to protecting children from these very dangerous sexual predators. Through their outstanding efforts, an individual who actively participated in the exploitation of our children has been removed from our communities.”
This case was investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shawn P. Napier and Ilianys Rivera Miranda.
Boise Man Sentenced to 78 Months in Federal Prison for Possession of Child PornographyRead the Press Release
BOISE – Jonathan Schmidt, 41, of Boise, was sentenced in U.S. District Court to 78 months in federal prison for possession of child pornography, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Schmidt to pay a $2,000 fine and serve 20 years of supervised release following his prison sentence. Schmidt pleaded guilty to the charge on February 21, 2020.
According to court records, between January 22 and January 26, 2019, a detective with the Idaho Internet Crimes Against Children (ICAC) Task Force downloaded several files depicting computer-generated child pornography that were made available by Schmidt’s computer via a peer-to-peer network. A federal magistrate judge issued a search warrant for Schmidt’s Boise residence. ICAC Task Force members executed the search warrant and seized a hard drive and several CDs from Schmidt’s residence. A forensic examination of these items revealed approximately 120 videos and 11 images depicting child pornography and over 500 images depicting computer-generated child pornography. Schmidt admitted to detectives that he had been viewing child pornography on and off for a couple of years and that he had child pornography on his devices. Schmidt admitted to using a peer-to-peer network to download files of child pornography and to knowing that files he downloaded from the network would be available for other users on the network to download.
Chief Judge Nye also ordered Schmidt to pay $3,000 in restitution to a victim in the images he possessed and to pay a $5,100 special assessment. As a result of his conviction, Schmidt will be required to register as a sex offender.
This case was investigated by the Idaho Internet Crimes Against Children Task Force, with assistance from the Federal Bureau of Investigation, United States Postal Inspection Service, and Boise Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.”
# # #
Boise Man Sentenced to 6 Years for Distributing MethamphetamineRead the Press Release
BOISE - Benjamin Michael Elgethun, 34, of Boise, was sentenced in U.S. District Court to 72 months in prison for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Elgethun to serve five years of supervised release following his prison sentence. Elgethun pleaded guilty to the charge on January 29, 2020.
According to court records, Elgethun was a methamphetamine dealer in the Boise area between March and June 2019. Law enforcement used a confidential informant to purchase methamphetamine from Elgethun on multiple occasions. A federal grand jury indicted Elgethun on June 13, 2019. A search warrant was later executed on Elgethun’s residence where officers found more drugs and a stolen firearm. Elgethun has a lengthy criminal history including a prior conviction for aggravated battery and trafficking in cocaine. At the time he committed this federal offense, Elgethun was on parole.
This case was investigated by the Meridian Police Department, Ada County Sheriff’s Office, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This indictment was the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. 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. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
# # #
Baxley pharmacist sentenced to four years in federal prison for conspiracy involving healthcare fraud, opioidsRead the Press Release
BRUNSWICK, GA: A pharmacist who owned and operated Fulghum Pharmacy in Baxley, Ga. was sentenced today to 48 months in federal prison after pleading guilty to a conspiracy that involved health care fraud and illegal distribution of opioids.
Ray Ashley Dixon, R.Ph., 42, of Baxley, Ga., was sentenced by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to conspiracy, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. In addition, Dixon will be on supervised release for three years following completion of his prison term.
There is no parole in the federal system.
“Pharmacists are entrusted with significant responsibility in our healthcare system,” said U.S. Attorney Christine. “Illegally distributing drugs is a major violation of that trust, and pharmacists who do so will find, like Ray Dixon, that there is no tolerance for such crimes in the Southern District.”
According to court documents and information presented during the sentencing hearing, Dixon distributed opioids, including oxycodone and hydrocodone, to several individuals without a legitimate prescription issued by a physician in the usual course of professional practice. Upon inspection by agents from the Drug Enforcement Administration, Fulghum Pharmacy could not account for more than 10,000 units controlled substances. Dixon, through his pharmacy, also was a major source of opioids for patients of notorious convicted pill-mill operator Dr. Frank Bynes, Jr., distributing in excess of 110,000 units of opioids and other controlled substances during a 15-month period.
In addition to his drug distribution, Dixon created fake prescriptions for expensive medications and then billed insurance programs, including Medicare Part D plans and Medicaid, for those medications, despite the fact that the medications were neither prescribed nor dispensed. According to information presented during the sentencing hearing, Ray Dixon’s fraud amounted to more than $1.8 million over four years, which he will be required to pay back as restitution. Ray Dixon also agreed to forfeit cash, vehicles, and investment accounts as part of his agreement with the government.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “This pharmacist spun a web of deception by illegally distributing prescriptions opioids and other controlled substances. Such careless behavior allows for substances to be diverted and sold on the black market with no true measure of accountability. This sentencing will discourage other negligent healthcare providers from engaging in unlawful criminal behavior.”
“Creating fake prescriptions for expensive medications and then fraudulently billing them to Medicare and Medicaid is an appalling act,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Today’s sentencing should act as a fair warning to anyone who might be contemplating similarly illegal conduct.”
“A primary means of addressing opioid-addiction in this country is to ensure that only those with legitimate medical needs receive such drugs in the first place,” said Georgia Attorney General Chris Carr. “Mr. Dixon ignored his important gatekeeping function and did so for his own benefit. We commend U.S. Attorney Christine’s Office and believe that the sentence Mr. Dixon received sends a strong message that this will not be tolerated.”
“Like so many other communities, Appling County has been overcome with the struggles associated with drug abuse,” said Appling County Sheriff Mark Melton. “Specifically, the illicit pill market has hit us hard, causing many of our citizens to follow a path of destruction in which they will never return. In the law enforcement arena, we expect to deal with these problems from the corrupt drug cartels and their networks. However, we never expect it to come from our professional providers such as Mr. Dixon, who became greedy and took advantage of the system and caused many to be affected and destroyed by his unacceptable behavior.”
Patients can be the first line of defense in stopping health care fraud. If you receive an Explanation of Benefits (EOB) with medications or services that you did not receive, please contact the healthcare fraud hotline maintained by the Department of Health and Human Services at 1-800-HHS-TIPS or oig.hhs.gov/fraud/report-fraud/.
Ray Dixon was investigated by a team comprised of federal, state, and local law enforcement. U.S. Attorney Christine lauded the cooperation by the investigative team, which was comprised of the Drug Enforcement Administration, the Department of Health and Human Services Office of Inspector General, the Georgia Attorney General’s Medicaid Fraud Control Unit, and the Appling County Sheriff’s Office.
Assistant U.S. Attorneys Jonathan A. Porter and J. Thomas Clarkson prosecuted Dixon, with significant assistance by Assistant U.S. Attorney Xavier A. Cunningham on asset recovery issues and Georgia Assistant Attorney General Jim Mooney on Medicaid fraud issues.
Authorities warn of fraudulent images and false information regarding face mask usageRead the Press Release
HOUSTON – The Department of Justice (DOJ) has not issued any notice or other public information regarding the use of face masks and the Americans with Disabilities Act (ADA), announced U.S. Attorney Ryan K. Patrick.
Inaccurate flyers or other postings have been circulating on the web and via social media channels regarding the use of face masks and the ADA due to the COVID-19 pandemic. Many of these notices include use of the DOJ seal and ADA phone number.
However, DOJ 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 that relieves people with disabilities from complying with legitimate health and safety rules.
DOJ previously issued an alert regarding the fraudulent flyers. 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.
Aurora Man Arrested on Federal Civil Disorder Charge for Allegedly Throwing an Explosive Device at A Naperville Police VehicleRead the Press Release
CHICAGO — An Aurora man was arrested today on a federal civil disorder charge for allegedly throwing an explosive or incendiary device at a Naperville Police Department vehicle during a protest earlier this month.
CHRISTIAN REA threw the explosive device in the proximity of the police vehicle, and the officers that were standing near the vehicle, which subsequently detonated causing an explosion, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Panic ensued in the crowd of protesters, with people running in all directions, the complaint states.
The complaint charges Rea, 19, with one count of civil unrest. Federal authorities arrested Rea Thursday morning. An initial federal court appearance was held on June 25, 2020, before U.S. Magistrate Judge Beth Jantz.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. Valuable assistance was provided by the Naperville Police Department, the Aurora Police Department, and the FBI Joint Terrorism Task Force. The government is represented by Assistant U.S. Attorney Barry Jonas.
“Federal law enforcement will use all tools available to hold accountable individuals who interfere with law enforcement officers performing their duties during a civil disorder,” said U.S. Attorney Lausch. “We will continue to work with our federal, state, and local partners to apprehend and charge individuals engaging in violent crime.”
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of 5 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Atlantic County Tax Preparer Charged with Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, tax preparer was arrested today for allegedly using false information to increase her clients’ tax refunds and filing her own false tax returns, U.S. Attorney Craig Carpenito announced.
Michele Griffin, 40, of Galloway, New Jersey, is charged by indictment with 19 counts of aiding and assisting in the preparation and filing of false tax returns. Griffin is also charged with three counts of filing her own false tax returns. Griffin will be arraigned today by video conference before U.S. Magistrate Judge Joel Schneider.
According to the indictment:
Griffin allegedly prepared multiple fraudulent tax returns on behalf of her clients by falsifying their education expenses, dependent care expenses, business income, dependent information, and unemployment income. As a result, her clients’ returns requested higher tax credits and higher refunds than the clients were entitled to receive. Griffin received substantial income by preparing tax returns for others that she failed to report on her own tax returns. Griffin also included false education expenses on her own tax returns, which led her to request higher education credits and a higher refund than she was entitled to receive.
Griffin allegedly prepared 19 false tax returns on behalf of six clients for tax years 2013 through 2016 and filed three false tax returns for herself for tax years 2013 through 2015.
Each count carries a maximum penalty of three years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Assistant Chief of Cumberland Police Indicted for Civil Rights ViolationRead the Press Release
LONDON, Ky. - A federal grand jury has indicted, Kenny Ray Raleigh, 42, of Partridge, Ky., on one count of unreasonable force by a police officer acting under color of law and one count of obstruction of justice.
Count One of the indictment alleges that while acting as an Assistant Chief of Police for the Cumberland Police Department, Raleigh willfully deprived an arrestee of the right to be free from unreasonable seizures, which includes the right to be free from the use of unreasonable force by a police officer. Specifically, the indictment alleges that Raleigh assaulted the arrestee, striking him several times, resulting in bodily injury.
Count Two of the indictment alleges that Raleigh attempted to persuade a fellow police officer, with the intent to hinder, delay, and prevent the communication of information, from providing information to a federal law enforcement officer and judge regarding the offense. Specifically, the indictment alleges that Raleigh directed a fellow officer to charge the arrestee with resisting arrest in a citation, in an attempt to prevent communication of information about the unjustified use of force against the arrestee.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation (FBI).
Raleigh’s next appearance before the United States District Court in London will be a jury trial scheduled for August 25, 2020. As charged in the indictment, Count One carries a maximum penalty of 10 years in prison and Count Two carries a maximum penalty of 20 years.
Any indictment is an accusation only. A defendant is presumed innocent, and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
— END —
Arlington Doctor Charged with Drug Distribution Conspiracy, FraudRead the Press Release
A federal grand jury has indicted three Arlington healthcare professionals for drug crimes and fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Clinton Battle, an Arlington physician, and Donna Green, his nurse practitioner, have been charged with conspiracy to distribute controlled substances. Dr. Battle and his medical assistant, Yajaira Lopez, have also been charged with conspiracy to commit mail fraud. His current practice, “Arlington Occupational & Medical Clinic,” is located on East Abram Street in Arlington.
According to the indictment, Dr. Battle, 67, routinely issued prescriptions for controlled substances – including hydrocodone, codeine, tramadol, Xanax, phentermine, and other controlled substances – allegedly without conducting a proper medical examination of his patients, knowing that the drugs would likely be diverted for illicit distribution. At times, Dr. Battle allegedly issued prescriptions for controlled substances without conducting any medical examination at all, sometimes telling office staff to issue prescriptions for whichever controlled substance the patient wanted.
In return for these phony prescriptions, Dr. Battle allegedly received multiple forms of remuneration – including illicit drugs.
Dr. Battle also allegedly allowed Ms. Green to use his DEA registration number and medical credentials to issue prescriptions for controlled substances, knowing that Ms. Green was not legally authorized to issue such prescriptions.
Meanwhile, Dr. Battle and Ms. Lopez allegedly worked together to submit falsified claims to health insurers, including the Texas Workers’ Compensation system. For example, they allegedly “up-coded” claims for medical procedures, billing for higher reimbursement levels than were authorized based on the medical service provided.
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent until proven guilty in a court of law.
If convicted, Dr. Battle faces up to 15 years in federal prison. Ms. Green and Ms. Lopez face up to 10 and 5 years, respectively.
The Drug Enforcement Administration’s Dallas Field Division, the U.S. Department of Labor, the U.S. Postal Service, the IRS, and the Texas Department of Insurance conducted the investigation. Assistant U.S. Attorney Matthew Weybrecht is prosecuting the case.
Amarillo-Area Child Predator Sentenced to LifeRead the Press Release
A former sheriff’s deputy who preyed on children at his church has been sentenced to life in federal prison, announced U.S. Attorney Erin Nealy Cox.
Davin Seth Waters, 26, a former deputy with Parmer County, Texas Sheriff’s Office, was convicted in November 2019 for transportation of minors with intent to engage in criminal sexual activity.
“This life sentence confirms the important message that exploiting children in any form will not be tolerated,” said U.S. Attorney Nealy Cox. “While this sentence will not repair the pain and damage done to the victims, it will ensure that Mr. Waters will never have the opportunity to prey upon children of our community again.”
"Today's life sentence demonstrates the FBI's commitment to holding sexual predators accountable for their crimes and removes a dangerous threat from our community," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "We will continue working with our partners to ensure that children are protected from abuse and exploitation."
During a two hour sentencing on Thursday, the court heard how Mr. Waters lured minor victims into engaging in sex acts by leveraging positions of power and trust as a sheriff’s deputy, childcare volunteer, and Tae Kwon Do instructor. Many of Mr. Waters’ victims that he sexually abused were “afraid” of him because he was “big” and thought he might “hurt” them, according to court documents.
Authorities began investigating Mr. Waters following a report from a church member at Frist Baptist Church Texico, New Mexico that a fellow member, identified as Mr. Waters, had sexually abused a child. Mr. Waters who served in the children’s ministry as a volunteer, admitted to unlawfully touching a minor 8-year-old child on multiple occasions while in his capacity as a volunteer at the church.
Mr. Waters resided in Farwell, Texas and owned Tae Kwon Do (TKD) Studio in Bovina, Texas where he instructed many young students. Mr. Waters admitted that he engaged in illicit sexual conduct at his studio with a 13-year-old minor and a TKD student between the ages of 9 and 10-years-old.
According to court documents, Mr. Waters also drove two minors from New Mexico to the Farwell, Texas to spend the night. At his home, Mr. Waters preformed sexual acts on the 11-year-old and 10-year-old while also after giving the 10-year-old pills to induce unconsciousness.
Through the course of the investigation, agents determined that Mr. Waters sexually exploited and abused seven children in the greater Amarillo-area.
The FBI's Dallas Field Office, the Texas Rangers, and Curry County, New Mexico Sheriff’s Office conducted the investigation. Assistant United States Attorney Sean Taylor prosecuted the case. United States District Judge Matthew J. Kacsmaryk handed down the sentence.
This case was brought as part of Project Safe Childhood, a Justice Department initiative designed to combat the growing epidemic of child sexual exploitation and abuse nationwide. The initiative organizes 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.
Acting U.S. Attorney Announces Extradition of Belgian Man Charged in $8 Million Aircraft Part Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that STEFAN GILLIER, a/k/a “Stephan Gillier,” a/k/a “Stefan R.R. Gillier,” a/k/a “Roland Gillier,” a/k/a “Roland Van Gorp,” a Belgian citizen, was extradited today from Italy to the United States. GILLIER was arrested on May 26, 2019, for engaging in a scheme in which he and a co-conspirator fraudulently obtained millions of dollars’ worth of aircraft parts through two aircraft part dealerships that they operated, RTF International, Inc. (“RTF”), and UN Air Service, Inc. (“UAS”). GILLIER is expected be presented this afternoon in Manhattan federal court before Chief U.S. Magistrate Judge Gabriel W. Gorenstein. GILLIER’s case is assigned to U.S. District Judge Richard M. Berman.
Acting U.S. Attorney Audrey Strauss said: “As alleged, from 2004 until 2010, Stefan Gillier conspired to defraud manufacturers and distributors of aircraft parts out of millions of dollars’ worth of aircraft parts. Gillier and his co-conspirator allegedly effectuated the scheme through fraudulent companies, phony references, stop orders on checks after they had received valuable parts, lucrative resales, and transferring criminal proceeds from corporate bank accounts to personal bank accounts once a victim company got wise to the fraud. Thanks to our partner agencies here and abroad, Gillier now faces justice in an American court.”
According to the allegations in the Complaint and in the Indictment unsealed today:[1]
GILLIER and his co-conspirator (“CC-1”) were co-presidents of RTF, a Delaware corporation that was registered to do business in New York, which dealt in aircraft parts.[2] GILLIER ran the day-to-day business activities of RTF and was a signatory on RTF’s bank accounts. RTF began obtaining aircraft parts from Honeywell International, Inc. (“Honeywell”), in June 2004. Starting in 2005, RTF began increasing the number of parts it ordered from Honeywell, paying for them by check. RTF paid with checks written for amounts well above the cost of the parts, which created an apparent credit balance in RTF’s favor. RTF wrote approximately $16.6 million worth of checks to Honeywell, but stopped payment on approximately $15.8 million worth of them. As a result, RTF was able to obtain approximately $8 million worth of aircraft parts without paying for them, and RTF turned a profit when reselling those fraudulently obtained parts to customers for less than the price that Honeywell had charged RTF.
To execute the scheme, GILLIER signed checks to Honeywell on behalf of RTF, but repeatedly caused stop payment orders to be placed after Honeywell shipped the parts to RTF. When questioned by Honeywell’s employees about these stop payment orders, GILLIER, using an alias, falsely represented that the stop payment orders were the result of a misunderstanding with the bank and that he would check with RTF’s finance department. In fact, as GILLIER knew, he had issued the stop payment orders, and RTF did not have a finance department. In June 2006, when Honeywell began seeking civil relief against RTF, GILLIER caused various large transfers of fraud proceeds into other bank accounts – accounts that, by way of example, belonged either to GILLIER, his relative, or CC-1’s relatives.
After Honeywell discovered that it was being victimized by RTF, GILLIER and CC-1 continued their fraud scheme through a new corporate entity, UAS. (Despite its name, “UN Air Service, Inc.” had no relation to the United Nations.) CC-1 was the president and owner of UAS, a Delaware corporation that dealt in aircraft parts, which CC-1 ran out of an apartment in Manhattan. GILLIER helped CC-1 obtain the Manhattan apartment that was used to continue the fraud scheme by providing a reference for CC-1 (using an alias) and by paying CC-1’s initial rental fees. In 2006, UAS began obtaining aircraft parts from Pratt & Whitney Component Solutions, Inc. (“Pratt & Whitney”). Like RTF, UAS began stopping payment on checks it had written to Pratt & Whitney for the aircraft parts; like RTF, UAS sold those aircraft parts to third parties for less than the price that Pratt & Whitney had charged UAS.
GILLIER, 47, a citizen of Belgium, is charged with eight counts: (1) one count of conspiracy to commit mail fraud, wire fraud, interstate transportation of stolen property, and money laundering, which carries a maximum potential penalty of five years in prison; (2) one count of mail fraud, which carries a maximum potential penalty of 20 years in prison; (3) one count of wire fraud, which carries a maximum potential penalty of 20 years in prison; (4) one count of interstate transportation of stolen property, which carries a maximum potential penalty of 10 years in prison; and (5) and four counts of money laundering, each of which carries a maximum potential penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Homeland Security Investigations and the U.S. Department of Defense, Defense Criminal Investigative Service. She also thanked the Federal Bureau of Investigation, the U.S. Marshals Service, the U.S. Department of Commerce, law enforcement and prosecutorial authorities in Italy, including the Italian Ministry of Justice and Interpol Rome, Honeywell, and Pratt & Whitney for their assistance in this case. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Italy.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment, and the descriptions of them set forth below, constitute only allegations, and every fact described should be treated as an allegation. The defendant is presumed innocent unless and until proven guilty.
[2] CC-1 died in March 2010, a few weeks after being arrested in this case and released on bail.
24 Defendants Charged in Joint Federal and State Investigation of Two Violent Street Gangs on the West Side of ChicagoRead the Press Release
CHICAGO — Twenty-four individuals are facing federal charges following an investigation targeting two street gangs responsible for firearms offenses, narcotics trafficking, and violence on the West Side of Chicago.
During the investigation, dubbed “Operation Full Circle,” federal, state, and local law enforcement officers worked together to seize 34 firearms, more than 6.7 kilograms of heroin, more than 17 kilograms of cocaine, more than a kilogram of fentanyl, approximately 50 grams of crack cocaine, 200 pounds of marijuana, and more than $1.3 million in cash and jewelry allegedly purchased with narcotics trafficking proceeds. Much of the alleged firearms offenses, drug trafficking, and violence occurred in the Austin neighborhood on the West Side of Chicago.
The investigation was jointly conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High Intensity Drug Trafficking Task Force (HIDTA). The task forces are comprised of federal, state and local law enforcement agencies who work together to identify, disrupt and dismantle the most serious drug trafficking organizations.
“Operation Wicked Stones,” part of “Operation Full Circle,” focused on activities by alleged high-ranking members of both the Wicked Town faction of the Traveling Vice Lords and the Black P-Stone Nation street gangs. The indictments and a criminal complaint unsealed in U.S. District Court in Chicago allege federal firearms, narcotics, and money laundering offenses. The investigation also resulted in previously filed federal charges against three defendants for their alleged role in a murder-for-hire conspiracy. Many of the federal defendants were arrested Thursday, and detention hearings will be held next week in federal court in Chicago.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration; Kathy A. Enstrom, Special Agent in Charge of the Internal Revenue Service Criminal Investigation; Nicholas Roti, Executive Director of Chicago HIDTA; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office and the Cook County Sheriff’s Office. The government is represented by Assistant U.S. Attorneys John D. Mitchell and Grayson S. Walker and Special Assistant U.S. Attorney Maureen B. McCurry.
Seven federal defendants are charged in United States v. Harris, et al (20 CR 308). The complaint describes a drug trafficking organization in which the defendants worked together to distribute wholesale quantities of heroin and cocaine on the West Side of Chicago, and two of the seven defendants are also charged with firearms offenses. The defendants are: JAMES HARRIS, 51, of Berkley, PATRICK TURNER, 52, of Bellwood, GREGORY HOPKINS, 50, of Chicago, LARNELL PILLOW, 51, of Chicago, RICKEY GRIFFIN, 51, of South Holland, ERIC BERGER, 53, of Chicago, and REGINALD RICHMOND, 29, of Sunrise Terrace. According to the Complaint, in April 2020, HARRIS, wearing his Chicago Transit Authority work uniform, met with TURNER to acquire 322 grams of heroin. Federal and state law enforcement officers seized the heroin from HARRIS outside of TURNER’s residence, the complaint alleges. The complaint also alleges that during April 2020, law enforcement officers seized a firearm from GRIFFIN, who could not lawfully possess a firearm because of prior felony convictions.
As part of the investigation, three federal defendants were previously charged in United States v. Morgan et al. (19 CR 641). In that case, DESHAWN MORGAN, 37, of Chicago, DARIUS MURPHY, 20, of Chicago, and DEMOND BROWN, 26, of Chicago were charged by indictment for their alleged role in a murder-for-hire conspiracy in 2018 that resulted in the murder of an individual. All three defendants are in federal custody awaiting trial.
DONALD LEE, 47, of Chicago, is charged in three indictments unsealed in the U.S. District Court in Chicago. LEE and two other individuals—JAMAR SPENCER, 34, of Chicago, and TERRENCE JENKINS, 52, of Chicago—are charged with firearms offenses in United States v. Lee, et al. (20 CR 311). LEE and CREAVON CURRY, 25, of Chicago, are charged with firearms offenses in United States v. Lee, et al. (20 CR 310). LEE is also charged with firearms and narcotics offenses in United States v. Lee (20 CR 312).
Two other federal defendants and SPENCER are charged by indictment in United States v. Jones, et al. (20 CR 309). That indictment charges LARRY JONES, 39, of Broadview, MARSHA FOUNTAIN, 48, of Plainfield, and SPENCER with conspiracy to distribute heroin.
ENRIQUE FUENTES-ORTIZ, 45, of Chicago, is charged with firearms and narcotics offenses in United States v. Fuentes-Ortiz (20 CR 288).
As part of the investigation, three other federal defendants are charged in separate indictments with firearms offenses: DESHON GEORGE, 26, of Chicago (20 CR 289); DANTE DOCKETT, 42, of Chicago (18 CR 710); and DERRIUS BURNS, 27, of Chicago (19 CR 758).
DANIEL CERPA, 41, of Elmhurst, and WILFREDO GOMEZ, 48, of Chicago are charged in a fentanyl and heroin trafficking conspiracy in United States v. Cerpa, et al. (20 CR 295).
MARSHAW RANSON, 40, of Chicago, is charged with fentanyl trafficking, as well as money laundering offenses in United States v. Ranson (20 CR 309).
JESSE OCHOA, 38, of Chicago, is charged with narcotics offenses in United States v. Ochoa (20 CR 297).
The firearms, narcotics, and money laundering charges in the indictments and complaint carry maximum penalties of between 10 years and life imprisonment. The murder-for-hire charges carry a mandatory sentence of life in prison, while a sentence of death is also possible. Only the Attorney General of the United States has the authority to seek the death penalty. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Holding drug dealers and illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategies. Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district.
Thursday 25 June 2020
“Compound King” and Wife Sentenced in $21 Million Health Care Fraud Scheme; Fugitive SoughtRead the Press Release
A Houston pharmacist and his wife were sentenced today for their roles in an approximately $21.8 million Department of Labor (DOL) - Office of Workers Compensation Programs and Federal Employees Compensation Act fraud scheme.
George Philip Tompkins, 75, of Houston, Texas, the self-proclaimed “Compound King” and former owner of Piney Point Pharmacy, was sentenced to 10 years in prison. Marene Kathryn Tompkins, 68, also of Houston, the former vice president of Piney Point Pharmacy, was sentenced to 30 days of home confinement and three years of supervised release. Both were sentenced by U.S. District Judge Sim Lake of the Southern District of Texas, who presided over the trial of George Thompkins and the guilty plea of Marene Tompkins. Judge Lake also ordered George Tompkins to pay $12,300,381.36 in restitution (and forfeiture) and Marene Tompkins to pay $950,745.10 in restitution (and forfeiture).
On March 10, 2020, after a six-day trial, George Tompkins was convicted by a jury of conspiracy to pay and receive kickbacks, conspiracy to commit health care fraud, conspiracy to commit money laundering, 11 counts of health care fraud, and three counts of wire fraud. Kathryn Tompkins pleaded guilty on Jan. 3, 2020, to one count of conspiracy to pay kickbacks.
According to the evidence at trial, George Tompkins and others billed the DOL approximately $21.8 million for medically unnecessary compound gels and creams that were predicated on illegal kickback payments. George Tompkins and Anoop Chaturvedi, 48, a legal permanent resident from India who remains a fugitive on related charges, created the scheme to generate compounded pain cream prescriptions and bill health care programs for injured state and federal employees. George Tompkins and Chaturvedi used separate entities—including George Tompkins’s company, Wellington Advisors—to receive and launder the proceeds of their crimes. Further evidence presented at trial showed that George Tompkins sought to disguise illicit kickback payments as legitimate “marketing” expenses and continued to ship patients compound gels and creams even after patients repeatedly complained they did not want them.
Marene Tompkins pleaded guilty before trial. As part of her guilty plea, she admitted that she conspired with her husband and others to pay illegal kickbacks as part of the scheme.
George and Marene Tompkins were charged in a superseding indictment in November 2018 along with Chaturvedi. Chaturvedi is considered a fugitive and a warrant remains outstanding for his arrest in connection with the charges. Anyone with information about his whereabouts is asked to contact the U.S. Postal Service - Office of Inspector General (USPS-OIG) at 1-888-877-7644.
A federal criminal indictment is merely an accusation. Chaturvedi is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
USPS-OIG, DOL-OIG, IRS-Criminal Investigation, U.S. Department of Homeland Security-OIG, and Department of Veterans Affairs-OIG, conducted the investigation. Assistant U.S. Attorney Julie Redlinger charged the case and, with Trial Attorneys Leslie Garthwaite and Devon Helfmeyer of the Criminal Division’s Fraud Section, provided substantial assistance in its prosecution. Trial Attorneys Drew Pennebaker and Sara Clingan of the Fraud Section tried the case and continue to prosecute it.
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 Health and Human Services (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.
Yacht Owner Is Sentenced to 35 Years for Secretly Recording Nude Videos of MinorsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that William Richard Hilliard, Jr., 51, a former resident of Cleveland County and Cherryville, N.C., currently residing in Gastonia, was sentenced to 35 years in prison for secretly recording nude videos of underage females aboard his yacht. In addition to the prison term imposed, Chief U.S. District Judge Martin Reidinger also ordered Hilliard to serve a lifetime of supervised release and to register as a sex offender upon his release from prison. Hilliard was also ordered to pay $88,476 as restitution to five victims and a $5,000 special assessment fee.
According to information contained in filed court documents and statements made in court, Hilliard was arrested on June 11, 2018, by Myrtle Beach, South Carolina law enforcement officers on charges of video voyeurism. Hilliard was the owner of a yacht called “Yachts O’ Trouble,” and he had been discovered secretly recording nude videos of unsuspecting females aboard his yacht, including minor and adult guests. Court records show that as a result of the events surrounding his arrest, the FBI coordinated an extensive multi-state and multi-agency investigation.
As Hilliard admitted in court documents, law enforcement discovered that, over the course of eight to ten years, Hilliard had secretly produced multiple secret recordings of at least 16 child victims at various locations in North Carolina, South Carolina, and Alabama, including aboard his yacht, in his homes, in various hotel rooms, and elsewhere. Court records also show that, at times, Hilliard produced secret recordings of victims he had hired as babysitters for his young children, and used multiple hidden devices to record his victims from different angles while they were using the shower and changing clothes. Some of the victims were as young as five years old. According to court records, also Hilliard engaged in sexual acts with one of the minor victims, which he secretly recorded.
On April 22, 2019, Hilliard pleaded guilty to sexual exploitation of a minor and possession of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray thanked the FBI’s Charlotte Division, the Myrtle Beach Police Department, the Horry County Police Department, and the Cleveland County Sheriff’s Office for their investigation of this case with assistance from FBI Knoxville, FBI Birmingham, Homeland Security Investigations, the Cherryville Police Department and the Gastonia Police Department. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Woman Indicted After Flying from Hawaii and Attempting to Smuggle Heroin into High Desert State PrisonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against a Honolulu woman, charging her with conspiracy to distribute heroin, and two counts of possessing heroin with intent to distribute heroin, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Oct. 24, 2019, and Nov. 16, 2019, Arlene‑Alena Keko Olani, 29, conspired with an inmate at High Desert State Prison to fly from Honolulu to Sacramento, rent a car, obtain heroin, and then try to surreptitiously pass the drugs to the inmate during a contact visit at the prison.
Investigators learned of the plot by listening to recorded prison calls and decoding the calls between Keko Olani and the inmate. When Keko Olani flew from Honolulu and landed in Sacramento on Nov. 15, investigators spotted her in the airport and identified the silver Toyota Camry she rented to carry out the smuggling operation. On Nov. 16, 2019, Keko Olani arrived at High Desert State Prison in Susanville. Investigators seized heroin she had hidden on her person. They also discovered additional heroin in her rental car parked in the prison parking lot.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation (CDCR), Lassen County Sheriff’s Office, Susanville Police Department, Lassen County District Attorney’s Office, and Sacramento County Sheriff’s Office. Assistant U.S. Attorney Jason Hitt is prosecuting the case.
Keko Olani made her initial appearance on March 11, and was ordered released on bond.
If convicted, Keko Olani faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Wilson County Man Sentenced to 15 years for Firearms OffensesRead the Press Release
RALEIGH, N.C. – A Wilson County man was sentenced today to 180 months in prison and 5 years of supervised release for firearms offenses related to drug dealing.
According to court documents, Kendrick Taiwan Taylor, 43, was initially charged with six counts: Counts One-Three charged distribution of crack, Count Four charged possession with intent to distribute crack, cocaine, and marijuana, Count Five charges felon in possession of a firearm, and Count Six charged possession of a firearm in furtherance of a drug trafficking crime. Taylor pled guilty to Counts Five and Six on January 8, 2020.
In January, 2019, the Wilson County Sherriff’s Office initiated a drug investigation into Taylor after learning he was selling crack from his residence in Elm City, NC. Investigators conducted several controlled purchases of crack from Taylor and, as a result, obtained a search warrant for Taylor’s home that was executed on March 20, 2019.
During the search of Taylor’s residence officers located over 1,200 grams of marijuana, more than 7 grams of cocaine, more than 9 grams of crack, over $16,000, 5 loaded rifles (two of which were assault-style rifles with high capacity magazines), 3 loaded handguns (one with an obliterated serial number), as well as drug paraphernalia; digital scales; and assorted ammunition.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. ATF and Wilson County Sheriff’s Office investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00155-BO.
###
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
Wetzel County woman sentenced for methamphetamine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Amber L. Brown, of New Martinsville, West Virginia, was sentenced today to 108 months incarceration for drug distribution in the northern panhandle of West Virginia, U.S. Attorney Bill Powell announced.
Brown, age 33, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances” in September 2019. Brown admitted to distributing methamphetamine in Wetzel County and elsewhere from July 2018 to June 2019.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Washington Man Sentenced for Role in Developing “Mirai” Successor BotnetsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Washington man has been sentenced to federal prison for his role in a long-running scheme in which he and his criminal associates developed distributed denial-of-service (DDoS) botnets. The defendant used the botnets to facilitate DDoS attacks, which occur when multiple computers acting in unison flood targeted computers with information to prevent them from being able to access the internet.
Kenneth Currin Schuchman, 22, of Vancouver, WA, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve 13 months in prison, after previously pleading guilty to one count of fraud and related activity in connection with computers, in violation of the Computer Fraud & Abuse Act. As part of his sentence, Schuchman was also ordered to serve a term of 18 months of community confinement following his release from prison and a three year term of supervised release.
According to court documents, the botnets were initially based largely on the source code previously developed by other individuals to create the Mirai botnet; however, Schuchman and his criminal associates “Vamp” and “Drake” added additional features over time, so that the botnets grew more complex and effective. At various times, these successor botnets were known as “Satori,” “Okiru,” “Masuta,” and “Tsunami”/”Fbot.” While Schuchman and his criminal associates utilized these successor botnets to conduct DDoS attacks themselves, their primary focus was selling access to paying customers in order to generate illicit proceeds.
The investigation revealed that Schuchman had been engaging in criminal botnet activity since at least August 2017, ultimately compromising hundreds of thousands of devices worldwide, including devices in the District of Alaska. Schuchman continued to engage in criminal botnet activity, and violated several other conditions of his pretrial release, following his arrest in August 2018. The three defendants responsible for creating the Mirai botnet, the computer attack platform that inspired the successor botnets, were previously sentenced in September 2018.
“Cybercriminals depend on anonymity, but remain visible in the eyes of justice,” said U.S. Attorney Schroder. “Today’s sentencing should serve as a reminder that together with our law enforcement and private sector partners, we have the ability and resolve to find and bring to justice those that prey on Alaskans and victims across the United States.”
“Cyber-attacks pose serious harm to Alaskans, especially those in our more remote communities,” said Special Agent in Charge Robert W. Britt of the FBI's Anchorage Field Office. “The increasing number of Internet-connected devices presents challenges to our network security and our daily lives. The FBI Anchorage Field Office will continue to work tirelessly alongside our partners to combat those criminals who use these devices to cause damage globally, as well as right here in our own neighborhoods.”
In a recently unsealed indictment, Schuchman’s criminal associates Aaron Sterritt, a/k/a “Vamp,” or “Viktor” a national of the United Kingdom; and Logan Shwydiuk, a/k/a “Drake,” a Canadian national, have also been charged for their roles in developing and operating these botnets to conduct DDoS attacks, following an investigation by the FBI with the assistance of other law enforcement partners.
The FBI’s Anchorage Field Office conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Adam Alexander of the U.S. Attorney’s Office for the District of Alaska, and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section (CCIPS) of the Justice Department’s Criminal Division. The U.S. Attorney’s Offices for the Western District of Washington and the District of Oregon, and the FBI’s Portland Field Office and Vancouver, WA Resident Agency provided assistance and support during the investigation. Additional assistance was provided by Akamai, Cloudflare, Google, Oracle, Palo Alto Unit 42, Unit 221B, LLC and the University of Cambridge, among other partners.
United States Attorney William D. Hyslop Issues Warning About the Use of Fentanyl as Fentanyl Dealer is Sentenced to Eighty-five Months in Federal Prison for Drug Trafficking and Firearm PossessionRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Francisco Salazar, Jr., age 30, of Yakima, Washington, was sentenced today after having pleaded guilty on February 26, 2020, to Possession with Intent to Distribute Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. United States District Judge Stanley A. Bastian sentenced Salazar to an 85-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
United States Attorney Hyslop said, “Fentanyl is the leading cause of overdose deaths in the United States. The community needs to know that an incredibly small amount of Fentanyl in a pill can kill you instantly. It is incredibly dangerous. When a person buys a pill from a drug dealer, they have no way of knowing whether they will drop dead from that first pill or not, and even if they cut the pill, they have no way of knowing how much Fentanyl is in the portion that they swallow. The United States Attorney’s Office for the Eastern District of Washington commends the outstanding work of the Yakima Police Department and the U.S. Drug Enforcement Administration in investigating this case. Together, we will continue to fight to take this incredibly dangerous drug off the streets, but every user must know they are gambling with their life in even swallowing one Fentanyl-laced pill.”
According to information disclosed during court proceedings, during an October 2018, controlled buy, the Yakima Police Department (YPD) purchased Fentanyl-laced pills from Salazar. Five days later they arrested Salazar and searched his vehicle and residence, where YPD officers found additional Fentanyl-laced pills, a firearm, and U.S. currency. Salazar was charged in state court and released pending trial.
Months later, while still on pretrial release on the state charge, Salazar continued selling Fentanyl in the community. In September 2019, YPD and the U.S. Drug Enforcement Administration (DEA) conducted a controlled buy of twenty-five Fentanyl-laced pills from Salazar. In October, 2019, DEA and YPD obtained warrants to search Salazar’s car and residence. During execution of the warrants, law enforcement agents found approximately 300 Fentanyl-laced pills, drug packaging, U.S. currency, and a loaded firearm.
This case was investigated by the Yakima Resident Office of the Drug Enforcement Administration, and the Yakima Police Department. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Two Defendants Sentenced in Multi-Million Dollar Health Care Fraud ConspiracyRead the Press Release
PITTSBURGH, Pa. – Two residents of Pittsburgh, Pennsylvania, were sentenced in federal court for conspiracy to defraud the Pennsylvania Medicaid program and health care fraud, United States Attorney Scott W. Brady announced today.
On June 24, 2020, United States District Judge Cathy Bissoon sentenced Larita Walls, 57, to five years of probation, including twelve months of home detention, and Tionne Street, 48, to three years of probation, including six months of home detention, for their roles in a years-long conspiracy. Walls and Street were also ordered to pay restitution to the Pennsylvania Medicaid program in the amounts of $56,738.28 and $31,181.61, respectively.
In connection with their guilty pleas, the defendants admitted that between 2011 and 2017 they were employees of Moriarty Consultants, Inc. (MCI), one of four related entities operating in the home health care industry. The other three entities were Activity Daily Living Services, Inc. (ADL), and Everyday People Staffing, Inc. (EPS). MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients ("consumers"), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Between in and around January 2011 and in and around April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for these services, with PAS payments accounting for more than $80,000,000 of the total amount.
During that time, Walls and Street admitted that they participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims. As part of the conspiracy, Walls and Street admitted that they fabricated timesheets to reflect the provision of in-home PAS care that, in fact, they never provided to the consumers identified on the timesheets. Some of the fabricated care occurred while Street was, in fact, working for a different employer. Walls further admitted that she caused the submission of Medicaid claims in the name of "ghost" employees—close relatives—for PAS care that did not occur. Likewise, Walls admitted that she paid kickbacks to a consumer in exchange for the consumer’s participation in the fraudulent billing scheme. In total, Walls and Street admitted causing losses to the Pennsylvania Medicaid program in excess of $180,000 and $70,000, respectively.
To date, twelve defendants have pleaded guilty for their roles in the conspiracy.
Assistant United States Attorney Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
Two Baltimore County Men Facing Federal Extortion ChargesRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Clement Robert Mercaldo, Jr., age 61, of Timonium, Maryland and Stepfen Gerard Gaither, age 29, of Randallstown, Maryland, for collection of credit by extortionate means and for interstate communications with intent to extort. The criminal complaint was returned on June 16, 2020, and was unsealed at their initial appearance yesterday.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the affidavit filed in support of the criminal complaint, Mercaldo loaned money to a Baltimore County restaurant owner. The affidavit alleges that an arson and destruction of property at the restaurant owner’s residence, as well as numerous text message threats received by the restaurant owner and his business partner, are related to recent non-payments of this loan. Furthermore, evidence collected during the investigation indicates that Mercaldo hired Stepfen Gaither to collect money for these loans and assist with the arson and destruction of property. Mercaldo and Gaither allegedly also discussed and planned the murder of one or both of the victims.
Specifically, in June 2008, the restaurant owner obtained an “interest only” loan from Mercaldo to open a restaurant. The loan was repaid through monthly checks given to Mercaldo, and was fully repaid by 2011. Between 2010 and 2017, the restaurant owner took additional loans from Mercaldo, and Mercaldo insisted that the restaurant owner pay him in cash, weekly.
As detailed in the affidavit, the restaurant owner reduced his monthly payments to Mercaldo in March 2017, due to other outstanding debt. In February 2019, the restaurant owner again cut his monthly payment to Mercaldo. Shortly thereafter, the restaurant owner began receiving threatening phone calls and text messages regarding the debt.
On March 29, 2019, the Baltimore County Police Department received a report from the restaurant owner that his vehicle was vandalized while parked in front of his residence overnight. Initial investigation revealed that between 9:45 p.m. and 6:00 a.m., an unknown subject destroyed the vehicle’s front windshield, and used a cement garden statue to shatter the rear window.
On August 4, 2019 at 2:52 a.m., the restaurant owner called the Baltimore County Fire Department after he and his wife were awoken by smoke detectors and discovered a fire in the basement near the rear door. The fire had extended to the exterior first floor of the home. Based on the physical evidence at the residence, investigators believe that an unknown subject(s) started a fire by breaking the basement window, pouring an ignitable liquid inside and igniting the liquid. An estimated $50,000 of damage was caused to the dwelling, and the restaurant owner and his wife had to move out of the residence. There were no injuries to the residents or emergency responders.
The affidavit alleges that from March through September 2019, phone numbers associated with Mercaldo and Gaither used messaging and calling applications to call and text threatening messages to the restaurant owner and his business partner. These messages including several that took credit for the fire and threatened additional harm to the restaurant owner, his business partner, and their family members if the restaurant owner did not pay his debt. Text messages sent by Mercaldo and Gaither to each other between October 2019 and January 2020 indicated that Mercaldo solicited Gaither to kill the restaurant owner and his business partner and that Gaither conducted surveillance in furtherance of that plan.
If convicted, Mercaldo and Gaither face a maximum sentence of 20 years for both credit by extortionate means and for interstate communications with intent to extort. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At yesterday’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Charles B. Day ordered that Mercaldo and Gaither be detained pending a detention hearing scheduled for Friday, June 26, 2020 at 10 am, and 1:30 pm, respectively.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
# # #
Twin Falls Man Sentenced to over 16 Years in Federal Prison for Sexual Exploitation of ChildrenRead the Press Release
BOISE – Bryan Lee Thieme, 39, of Twin Falls, was sentenced to 200 months in federal prison for sexual exploitation of children, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also imposed lifetime supervised release to follow Thieme’s prison sentence. Thieme pleaded guilty to the charge on August 21, 2019.
According to court records, on May 19, 2018, the Twin Falls Police Department responded to Thieme’s residence to investigate reports that minors were consuming alcohol at the residence. During the investigation, officers received information from minors at that location that Thieme had taken nude images of minors with his cellphone. Officers also learned Thieme was a registered sex offender on federal supervised release for a conviction of possession of matters of minors engaged in sexually explicit conduct, entered in the Southern District of California in 2015.
The United States Probation Office and Homeland Security Investigations (HSI) conducted an investigation into Thieme’s activities at his residence. They discovered Thieme had recently re-set his cell phone to the factory setting, erasing all of its contents. Twin Falls police officers obtained a search warrant for the contents of Thieme’s Google account. As a result, HSI agents discovered nude images of minors and two videos taken by Thieme with his cell phone, at his residence, on April 23, 2018, that depicted a minor engaged in sexually explicit conduct with an adult.
This case was investigated by Homeland Security Investigations, United States Probation Office, and Twin Falls Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
# # #
Twelve Area Individuals Indicted in Gun CrimesRead the Press Release
DAVENPORT, Iowa – Twelve people, all of whom are felons, are facing 28 criminal charges as part of federal drug and gun investigations announced United States Attorney Marc Krickbaum. A Federal Grand Jury filed eleven Indictments and one Superseding Indictment earlier this month in United States District Court in Davenport, Iowa.
The investigations occurred in Scott and Des Moines Counties. The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
In addition to the above, 21 additional individuals have been federally charged with gun crimes out of the Davenport Divisional Office since January 1, 2020. During the same time period, 15 individuals have been sentenced for gun-related crimes, resulting in sentences up to 240 months of imprisonment, with the average imprisonment sentence being 101 months or roughly 8.5 years.
There is no parole in the federal system.“Prosecuting violent crime—especially gun crime—in places like Davenport and Burlington is our office’s top priority,” said United States Attorney Marc Krickbaum. “Our message is very simple. Put down the gun, or we will ask a judge to put you in federal prison.”
These cases are part of Project Guardian (PG) and Project Safe Neighborhoods (PSN), programs bringing together all levels of law enforcement and the communities they serve to reduce gun crime and make our neighborhoods safer for everyone. The cases were investigated by the Davenport Police Department, Burlington Police Department, Bettendorf Police Department, and the Scott County Sheriff’s Office. The cases are being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Several defendants have been arrested and are outlined below. The other cases remain sealed pending arrest.
DEFENDANTAlexander Jamica Hubbard
Case Number 3:20-cr-48
SUMMARY OF CHARGES
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(D) - Possession with Intent to Distribute a Controlled Substance Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 924(c)(1)(A) – Possession of a Firearm in Furtherance of a Drug Trafficking Crime Maximum Penalty is life in custody; 25 year mandatory minimum (enhanced due to prior conviction)
DEFENDANT
Jermaine Allen Ford
Case Number 3:20-cr-22
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 922(j) – Possession of a Stolen Firearm Maximum Penalty is 10 years in custody
Title 21, U.S.C. § 844(a) – Possession of a Controlled Substance Maximum Penalty is 1 year in custody
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(C) – Distribution of a Controlled Substance Maximum Penalty is 20 years in custody
DEFENDANT
Adam Brent Branton
Case Number 3:20-cr-53
SUMMARY OF CHARGES
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) –Distribution of a Controlled Substance Maximum Penalty is life in custody; 10 year mandatory minimum
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
DEFENDANT
David Christopher Westby
Case Number 3:20-cr-59
SUMMARY OF CHARGES
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(C) – Possession With Intent to Distribute a Controlled Substance Maximum Penalty is 20 years in custody
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 924(c)(1)(A) – Possess a Firearm During and in Relation to a Drug Trafficking Crime Maximum Penalty is life in custody; 5 year mandatory minimum
DEFENDANT
Vernon Lee Bellamy
Case Number 3:20-cr-60
SUMMARY OF CHARGES
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(C) – Possession With Intent to Distribute a Controlled Substance Maximum Penalty is 20 years in custody
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
DEFENDANT
Darius Antwone Sims
Case Number 3:20-cr-61
SUMMARY OF CHARGES
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession with Intent to Distribute a Controlled Substance Maximum Penalty is life in custody; 10 year mandatory minimum
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
DEFENDANT
Nihjl Shaquielle Rahmhad HooverCase Number 3:20-cr-68
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Tipton County Armed Career Criminal Sentenced to over 17 Years in Federal PrisonRead the Press Release
MEMPHIS, TN -Maurice Nash, A/K/A "Monster," 47, of Atoka, TN has been sentenced to 210 months in federal prison for being a convicted felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on May 3, 2019, members of the Tipton County Sheriff’s Office, Tennessee Bureau of Investigation, Board of Probation and Parole and the Bureau of Alcohol, Tobacco, Firearms and Explosives, conducted a parole check at the residence of Maurice Nash and his brother Henry Nash in Atoka, Tennessee. Maurice was home. The parole check was part of "Operation Crime Driver", a joint federal, state and local law enforcement anti-violence initiative led by the District Attorney General’s Office for the 25th Judicial District, and conducted between February and May 2019, where law enforcement targeted offenders wanted on arrest warrants for violent criminal offenses in Tipton County, Tennessee.
Officers found a loaded .40 caliber handgun in a shoebox in the closet of the master bedroom. They also found $10,500 in $100 bills in a black pouch in a sleeve of a black jacket that hung beneath the firearm; and 90 suspected MDMA pills (that were ultimately determined by TBI drug chemistry lab testing to be methamphetamine), along with $180. Nash told police that everything in the house belonged to him. Officers also found 8 small marijuana plants in a planter behind the house that were between 1 and 3 inches tall.
A K-9 unit on scene indicated a positive alert on two vehicles at the residence. One of the vehicles was a Tahoe registered to Nash’s mother; however, it contained Nash’s ID and other documents confirming the Tahoe belonged to Nash. Police found 3 bags of compressed marijuana, each weighing about one pound, on the floor by the front passenger seat of the Tahoe. Police also found an unloaded rifle similar to a SKS on the floor behind the passenger seat in the Tahoe. Nash exercised his right to remain silent concerning the drugs and rifle found in the Tahoe.
Nash’s mother told police that she did not know anything about the gun or drugs in the vehicle. She also acknowledged that her son Maurice had insurance for the Tahoe in his name. Nash was ultimately among 6 defendants from the first phase of Operation Crime Driver to be indicted in federal court in October, 2019 for various drug and gun offenses. https://www.justice.gov/usao-wdtn/pr/operation-crime-driver-targets-violent-criminals-tipton-county
On February 12, 2020, Nash pled guilty to being a convicted felon in possession of a firearm. Due to his extensive criminal history which included prior felony convictions for aggravated assault, reckless endangerment with a deadly weapon, and possession of MDMA, cocaine, and marijuana with intent to deliver, Nash was classified as an armed career criminal under federal law and was therefore subject to an enhanced, mandatory minimum sentence.
On June 25, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Nash to 210 months in federal prison followed by 3 years supervised release. Because Nash was on state parole release status at the time of this new arrest, this federal sentence will be served consecutively to the remainder of his state custodial sentence in the Tennessee Department of Correction as a result of parole revocation. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "This defendant has a long criminal history of felony convictions, and was on parole when he was found in possession of firearms and illegal narcotics. Nash has devoted his adult life to a career of repeated criminal conduct, and that prior history has finally caught up with him. ‘Monster’ was a real crime driver, but will no longer terrorize Tipton County. This sentence removing him from the community for more than 17 years is well-deserved, and will make Tipton County and West Tennessee a safer place."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tipton County Sheriff's Office, Tennessee Bureau of Investigation (TBI) and the Tennessee Board of Probation and Parole.
Assistant U.S. Attorney P. Neal Oldham prosecuted this case on behalf of the government.
###
Three Individuals Charged, Fourth Admits Guilt in $6 Million Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A federal grand jury has returned a 33-count indictment charging three individuals, including a doctor and an advanced practice nurse, with defrauding New Jersey state health benefits programs and other insurers out of more than $6 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced today. A fourth individual, a Mt. Laurel, New Jersey, doctor, pleaded guilty to signing four false prescriptions for patients he never met.
Brian Sokalsky, D.O., 42, of Margate, New Jersey, and Vincent Tornari, 46, of Linwood, New Jersey, were charged with conspiracy to commit health care fraud and wire fraud. Sokalsky was charged with a second conspiracy to commit health care fraud and wire fraud. Ashley Lyons-Valenti, 63, of Swedesboro, New Jersey, and Tornari were charged with a third conspiracy to bribe Lyons-Valenti and deprive her patients and employer of her honest services. Sokalsky and Tornari also were each charged with individual acts of health care fraud and wire fraud, and Lyons-Valenti was charged with individual acts of wire fraud and five false statement counts. Lyons-Valenti was also charged with obstruction of justice for tampering with a grand jury witness.
The cases are assigned to U.S. District Judge Robert B. Kugler in Camden. The indicted defendants are expected to appear today by videoconference before U.S. Magistrate Judge Joel Schneider.
According to the indictment:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
The conspirators recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from a Louisiana pharmacy, identified in the indictment as “Compounding Pharmacy 1,” and a Pennsylvania pharmacy, identified in the indictment as “Compounding Pharmacy 2.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, and other insurance plans. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey or the other insurance plans for the amounts paid.
In the first charged conspiracy, Matthew Tedesco, who previously pleaded guilty to conspiracy to commit health care fraud, had an arrangement with Sokalsky – if Tedesco sent new patients to Sokalsky’s medical practice, Sokalsky would prescribe Compounding Pharmacy 1 medications for the patients. Tedesco received a percentage of the amount that Compounding Pharmacy 1 received for prescriptions obtained by Tedesco and his associates. Tedesco and his conspirators recruited public employees and others covered by the Pharmacy Benefits Administrator to agree, in exchange for money, to obtain compounded medications from Compounding Pharmacy 1. Tedesco sent the recruited individuals to Sokalsky and often tipped him off that they were coming. Sokalsky prescribed Compounding Pharmacy 1 medications for the patients, including medications that patients did not need or discuss with him. Sokalsky profited by billing insurance for over 30 new patients.
The completed prescriptions were faxed to Compounding Pharmacy 1, which filled the prescriptions and billed the Pharmacy Benefits Administrator. The Pharmacy Benefits Administrator paid Compounding Pharmacy 1 over $5 million for compounded medications prescribed by Sokalsky.
The indictment charges Sokalsky and Tornari with a similar scheme to write fraudulent prescriptions for Compounding Pharmacy 2. Tornari’s company had an agreement with Compounding Pharmacy 2 to receive 50 percent of the insurance payment for prescriptions they arranged. Tornari then hired Mark Bruno to find patients who would agree to receive Compounding Pharmacy 2 medications in exchange for cash payments. Bruno pleaded guilty in 2019 to conspiracy to commit health care fraud for his participation in the scheme. Tornari had Sokalsky agree to write Compounding Pharmacy 2 prescriptions for new patients sent to him. Bruno found patients and sent them to Sokalsky, often after letting Sokalsky know that they were coming. Sokalsky wrote Compounding Pharmacy 2 prescriptions that the patients did not need or discuss with Sokalsky, sometimes without even seeing the patients. These prescriptions cost insurers over $500,000.
In a third charged scheme, Tornari hired Lyons-Valenti’s boyfriend and agreed to pay him commissions on each Compounding Pharmacy 2 prescription that Lyons-Valenti wrote. Lyons-Valenti then started writing Compounding Pharmacy 2 prescriptions and Tornari paid commissions to the boyfriend, who gave Lyons-Valenti half of the commission payments. Lyons-Valenti persuaded her workers and subordinates at her medical office to receive Compounding Pharmacy 2 prescription medications that they did not need, often without giving them a medical examination or recording the prescriptions in their medical records. Lyons-Valenti wrote Compounding Pharmacy 2 prescriptions for which insurance paid over $1.25 million and received over $90,000 in kickbacks in return.
In a fourth scheme, Lyons-Valenti signed five Compounding Pharmacy 1 prescriptions for Judd Holt, who previously pleaded guilty to conspiracy to commit health care fraud for his role in the scheme. On each of the five prescriptions, Lyons-Valenti falsely stated that she had examined the patient’s medical records, conducted a face-to-face examination of the patient, and determined that the prescribed medications were medically necessary, when in fact she had never met or examined any of the five patients.
Lyons-Valenti also was charged with witness tampering for making false and misleading statements to a co-worker who was a federal grand jury witness. Lyons-Valenti called and texted the witness before and after the witness talked to the FBI and before the witness was scheduled to testify in the grand jury. Lyons-Valenti told the witness to tell the FBI that Lyons-Valenti had examined the witness before prescribing medications for the witness, which was false. Lyons-Valenti also falsely told the witness that Lyons-Valenti had never received any money for writing the prescriptions.
The health care fraud and wire fraud conspiracy count with which defendants Sokalsky and Tornari are charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The honest services conspiracy count and the false statement counts each carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The witness tampering charge carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense
Also today, Michael Goldis, D.O., 64, who had a medical practice in Stratford, New Jersey, pleaded guilty by videoconference before Judge Kugler to four counts of making false statements relating to health care matters. According to admissions made in court, Goldis signed four prescriptions for individuals who were not his patients at the request of Richard Zappala, who previously pleaded guilty to conspiracy to commit health care fraud. On each of the four prescriptions, Goldis falsely certified that he had examined the patient’s medical records, conducted a face-to-face examination of the patient, and determined that the prescribed medications were medically necessary, when in fact Goldis had never met or examined any of the four patients. Goldis admitted that he received $1,000 checks on the same days he signed two of the prescriptions and received a total of $4,700 from Zappala. The Pharmacy Benefits Administrator paid approximately $1 million for prescriptions Goldis signed at Zappala’s request.
Goldis was previously charged in an indictment with conspiracy to commit health care fraud and other offenses with Steven Monaco, Daniel Oswari, and Aaron Jones. Oswari pleaded guilty in December 2019 to fraud and kickback charges. The indictment remains pending against Monaco and Jones.
Goldis faces a maximum penalty on each count of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 6, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Douglas Korneski in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the indictment and guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment and the indictment against Monaco and Jones are merely accusations, and the defendants are presumed innocent unless and until proven guilty.