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11 August 2020
Bucks County Man Charged with Distribution of Child PornographyRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Patrick Shaknitz, 29, of Croydon, PA, has been arrested and charged by Complaint with one count each of distribution and attempted distribution of child pornography. These charges arise out of the defendant’s alleged distribution of images and videos of child pornography to others, including undercover federal agents, over the Internet.
According to the Complaint, beginning in November 2019, undercover federal agents exchanged private messages with a user identified as “intoeverything1991,” who distributed images and videos containing child pornography. One such video depicts an adult female in a dark blue face mask molesting a minor child. During chats with the agents, the same user described in explicit detail how he abused other children. Subpoenas issued for “intoeverything1991” revealed an IP address and other identifying information allegedly belonging to Shaknitz.
“As alleged in the Complaint, Shaknitz is a depraved abuser of children who multiplied the impact of that abuse by sharing images of it over the Internet,” said U.S. Attorney McSwain. “These children will have to deal with the impact of this abuse for the rest of their lives. We can never make them fully whole again, but we can bring them some measure of justice by investigating and prosecuting the people responsible for stealing their innocence.”
“The distribution of child pornography results in the continued sexual exploitation of innocent children,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “That’s what pushes the FBI to keep investigating these disturbing but important cases. Protecting kids is paramount and we’ll never give up that fight.”
If convicted, Shaknitz faces a statutory maximum sentence of 20 years’ incarceration with a 5-year mandatory minimum sentence of imprisonment, a lifetime of supervised release, and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Kathryn Deal.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Anson County Man Is Sentenced to More Than 13 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – On Monday, August 10, 2020, U.S. District Judge Frank D. Whitney sentenced Jeremy McQuage, 41, of Morven, N.C. to 160 months in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Morven was also ordered to serve a lifetime of supervised release, and to register as a sex offender after he completes his prison term.
Joining U.S. Attorney Murray in making today’s announcement is John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
On December 18, 2019, McQuage pleaded guilty to distribution, receipt and possession of child pornography. According to court documents and today’s sentencing hearing, in February 2019, over the course of an investigation into BitTorrent peer-to-peer file sharing network, the FBI discovered that an individual, later identified as McQuage, was downloading child pornography, including videos and images of infants being sexually abused. On March 14, 2019, the FBI executed a search warrant at the residence where the internet had been used to access and download the child pornography. While there, FBI agents learned that McQuage did not reside there but would often park in the driveway of the residence and use the wifi to connect to the internet. FBI agents located McQuage and seized his cellular phone. A forensic analysis of the device revealed that McQuage possessed hundreds of images and videos of children, including infants and toddlers, being sexually abused. According to court records, in addition to downloading child pornography, McQuage also used BitTorrent to distribute and share the child pornography with others.
In announcing today’s sentence, Judge Whitney said that the court was troubled by the quantity and the gravity of the images and videos, and that McQuage’s conduct helped feed and facilitate a global market of abuse. Judge Whitney noted that the victimization of the minors in the videos and images was extraordinary and that the lengthy sentence was needed to deter others from committing similar crimes.
McQuage is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The case was investigated by the FBI. Assistant U.S. Attorney Emily Wasserman and Special Assistant U.S. Attorney Stephanie Spaugh prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Akron man sentenced to more than 16 years after convictions of possession with intent to distribute cocaine and possession of firearms as a felonRead the Press Release
U.S. Attorney Justin Herdman announced today that Jaquar Keyshore Latimer, age 43, of Akron, was sentenced by Judge Sara Lioi to 199 months imprisonment after being found guilty during a trial by jury of possession with intent to distribute cocaine and possession of firearms as a convicted felon on August 23, 2019.
“This defendant has spent the majority of his adult life dealing drugs and illegally possessing firearms,” said U.S. Attorney Justin Herdman. “Violent crime and felonious assaults with a firearm are on the rise in cities like Akron and throughout Northern Ohio. We must send a strong message to the community and career-criminals that illegally possessing a stolen firearm or having a firearm with felony convictions will result in many years and months in federal prison.”
“As stated by U.S. Attorney Herdman, Latimer has spent most of his adult life spreading violence and addiction,” stated Roland Herndon, ATF’s Special Agent in Charge for the Columbus Field Division. “This lengthy sentence will ensure that he does not have the opportunity to continue to terrify and intimidate the Akron community.”
According to court documents, in December of 2017, Latimer was on supervised release from federal prison after serving a sentence for a conviction of felon in possession of a firearm. On February 9, 2018, officers with the Ohio Parole Authority conducted a home visit at the residence where Latimer resided. When APA officers entered the home, they found Latimer walking within a few feet of a firearm on a couch.
Court documents state that Akron Police Department officers arrived on the scene and assisted with searching the home. During the search, law enforcement officers discovered 11 grams of cocaine, more than $1,000 in cash, and three firearms: a 9mm automatic handgun, which had been reported stolen; a loaded .380 caliber, semi-automatic handgun; and a loaded .357 caliber revolver. Latimer was prohibited from possessing a firearm due to previous convictions of being a felon in possession of a firearm, sexual battery, aggravated assault, and drug possession.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Akron Police Department and was prosecuted by Assistant U.S. Attorneys Brendan D. O’Shea and Mark S. Bennett.
10 August 2020
Weston Man Pleads Guilty to Wire Fraud in International Student Recruitment SchemeRead the Press Release
BOSTON – A Weston man pleaded guilty today in connection with a scheme to defraud private high schools and international students of millions of dollars in tuition and other fees.
Keenam “Kason” Park, 59, of Weston, pleaded guilty to one count of wire fraud before U.S. Senior District Court Judge Mark L. Wolf, who scheduled sentencing for Nov. 2, 2020. According to the terms of the plea agreement, the government will recommend a sentence of 51 months in prison, two years of supervised release and a fine and restitution/forfeiture of at least $5,192,330. Park was charged in November 2019.
Park caused EduBoston to collect tuition and other payments from students’ families for the 2019-2020 academic year but failed to remit tuition payments to partnering schools. Instead, Park used the funds on unrelated expenses, including personal expenses. Park also caused EduBoston to collect advance tuition and other payments for the 2020-2021 academic year, which Park failed to return to the students’ families after EduBoston went out of business around September 2019. As a result, EduBoston owes over $5 million to partnering schools.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. 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. Assistant U.S. Attorney Leslie A. Wright of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.
West Virginia Doctor Found Guilty of Unlawfully Distributing OpioidsRead the Press Release
A federal jury found a West Virginia doctor guilty today of unlawfully distributing opioids to his patients. The defendant was charged in a September 2019 indictment as part of the second Appalachian Regional Prescription Opioid (ARPO) Strike Force Takedown, a coordinated effort by the Justice Department’s Fraud Section to target unlawful drug diversion activities in areas of the country particularly hard-hit by the opioid epidemic.
Following a six-day trial, Ricky L. Houdersheldt, D.O., 68, of Hurricane, West Virginia, was found guilty of 17 counts of distribution of controlled substances outside the scope of professional practice and without a legitimate medical purpose. Sentencing is scheduled for Nov. 23, 2020, before U.S. District Judge Robert C. Chambers of the Southern District of West Virginia, who presided over the trial.
According to the evidence presented at trial, Houdersheldt prescribed hydrocodone, morphine, fentanyl, oxycodone, acetaminophen codeine phosphate, and diazepam to three patients which were outside the usual course of professional practice and without a legitimate medical purpose. Evidence at trial established that Houdersheldt prescribed more than 150 opioid pills to one female patient in an effort to establish a sexual relationship and companionship with her, and that in many instances he would meet her in parking lots – rather than at his medical office – to provide the prescriptions for these drugs. Evidence at trial also showed that Houdersheldt did not record these prescriptions in the female patient’s patient file for some of these unnecessary opioid prescriptions, and that many patients became addicted to the drugs as a result of Houdersheldt’s criminal conduct.
The evidence further established that for one of the patients, Houdersheldt prescribed more than seven times the dosage of opioid drugs recommended by the Centers for Disease Control, and that he commonly prescribed this patient the dangerous combination of morphine and the powerful opioid fentanyl.
The DEA, along with the Hurricane, West Virginia Police Department, investigated the case. Assistant Chief Kilby Macfadden and Trial Attorney Andrew B. Barras of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing approximately 50 million pills. Thus far there have been 30 guilty pleas as a result of ARPO Strike Force’s efforts. The ARPO Strike Force is part of the Medicare Fraud Strike Force Program, led by the Fraud Section. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, 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.
Union County Men Indicted for Violent Robbery SpreeRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted two Union County, New Jersey, men for allegedly committing multiple armed robberies from August 2018 through February 2019, U.S. Attorney Craig Carpenito announced.
Jaime Fontanez, 43, and Vincent Chan-Guillen, 30, both of Elizabeth, New Jersey, are charged in a 13-count indictment with conspiracy to commit Hobbs Act robbery, multiple counts of Hobbs Act robbery, as well as brandishing and discharging a firearm during the commission of a crime of violence. Fontanez and Chan-Guillen will be arraigned at a date to be determined. Both men were previously arrested on a criminal complaint for this conduct on Feb. 21, 2019.
According to documents filed in this case and statements made in court:
From August 2018 through February 2019, Fontanez and Chan-Guillen conspired with each other, and others, to commit robberies in Bronx and New York counties in New York and Union, Middlesex, and Essex counties in New Jersey. The conspirators targeted convenience and liquor stores. After entering the business, one of the conspirators pointed a firearm at the store clerk while another conspirator went behind the counter to steal money from the cash register. On one occasion, Chan-Guillen discharged a firearm into the liquor store. That firearm was subsequently discovered in Chan-Guillen’s possession.
The Hobbs Act charges each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. The discharging of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison, which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigation leading to the charges. He also thanked the U.S. Attorney’s Office for the Southern District of New York, under Acting U.S. Attorney Audrey Strauss, for their assistance with this case and the Elizabeth Police Department, under the direction of Chief Giacomo Sacca; the Rahway Police Department, under the direction of Chief John Rodger; the Woodbridge Police Department, under the direction of Director Robert Hubner; the Bloomfield Police Department, under the direction of Public Safety Director Samuel A. DeMaio; the Linden Police Department, under the direction of Chief David Hart; the Kenilworth Police Department, under the direction of Chief John Zimmerman; the Township of Union Police Department, under the direction of Director Dan Zieser; the N.J. State Police, under the direction of Col. Patrick J. Callahan; and the New York City Police Department, under the direction of Commissioner Dermot Shea for their work on this case.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Philadelphia Men Indicted for Brazen Armed Robbery of Armored Truck and Shootout in University CityRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jerry Collins, 40, and Tyree Lamont Holmes, 28, both of Philadelphia, PA, were indicted for armed robbery of a Garda armored truck on the 3500 block of Market Street in the University City section of West Philadelphia just over one year ago.
According to the indictment, on August 1, 2019, at approximately 10:00 a.m., Holmes and a second unidentified suspect, both wearing masks and gloves, one armed with a loaded Glock 17 semi-automatic handgun and the other with a loaded assault rifle with an attached drum-style magazine, exited a Chevy Trailblazer that was parked behind a Garda armored truck. As one of the guards removed three black bags containing a total of $434,000 cash, Holmes and his accomplice approached the guard, pointed their firearms at him and announced a robbery while Collins waited in the driver’s seat of the getaway vehicle, the Trailblazer. Holmes allegedly grabbed the bags of money and attempted to get back into the vehicle when two guards drew their firearms and began shooting at the fleeing robbers, who fired back. During the shootout, Holmes dropped the bags of money on the ground and fled on foot while the second robber got into the Trailblazer with Collins and fled the scene.
Collins was arrested by the FBI on August 7, 2020; Holmes was arrested by the Philadelphia Police Department on February 18, 2020. Both defendants were indicted for conspiracy to commit Hobbs Act robbery, robbery which interfered with interstate commerce, and using, carrying and brandishing a firearm during and in relation to a crime of violence. Holmes is detained pending trial; the Government has moved to detain Collins, as well, who will appear in federal court for his detention hearing tomorrow, August 11, 2020.
“Robbing any type of business – especially a brazen armed robbery of an armored vehicle in broad daylight – is a serious federal offense that can carry stiff penalties,” said U.S. Attorney McSwain. “And here, the alleged robbery precipitated a shootout on a busy city block that endangered many innocent bystanders. It is remarkable that nobody was struck and killed. This type of criminal behavior is completely unacceptable and my Office is focused on rooting it out.”
“This was a risky armed robbery carried out on a dense and active block in University City,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The robbery crew showed up armed to the teeth to accost Garda personnel, prompting a barrage of gunfire. Holmes, Collins, and their accomplices put countless innocent people in danger by allegedly planning and carrying out this daylight gunpoint heist. It’s imperative all involved are held accountable, both to keep them off the street and send a message to anyone else who may contemplate such a dangerous assault on our community.”
Each defendant faces a maximum term of life imprisonment with a mandatory minimum term of seven years’ imprisonment without the possibility of parole, up to five years of supervised release, and a $750,000 fine. Committing a violent crime in the Eastern District of Pennsylvania carries a tremendous risk of a long prison sentence, which is the message of the Office’s new anti-violence public awareness campaign.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, with assistance from the University of Pennsylvania Police Department, and is being prosecuted by Assistant United States Attorney José Arteaga.
Two Men Indicted on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that two St. Francis, South Dakota, men have been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Charles Little Elk, III, a/k/a Charlie Little Elk, age 37, and Todd Eastman, Jr., age 32, were indicted on July 16, 2020. They appeared before U.S. Magistrate Judge Mark A. Moreno on August 6, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 10 years, up to life in prison and/or a $10,000,000 fine, at least 5 years, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that a conspiracy began on or about January 1, 2015, and continued to on or about January 17, 2017, where Little Elk and Eastman knowingly and intentionally conspired to distribute and possess with intent to distribute 500 grams or more of methamphetamine on the Rosebud Indian Reservation.
The charges are merely accusations and Little Elk and Eastman are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Little Elk and Eastman were released on bond pending trial. A trial date has not been set.
Two Felons Indicted for Stealing Explosive Materials from Mining CompanyRead the Press Release
LAS VEGAS, Nev. —Two Las Vegas residents made their initial court appearance on Friday, August 7, 2020, on charges for allegedly stealing explosive materials from a mining company in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
A federal grand jury returned an indictment on July 29, 2020, charging Sergio Bautista, aka “Ismael Cuevas-Flores,” 34, and Eric Golden, 54, each with one count of conspiracy to steal explosive materials; one count of theft of explosive materials moved in interstate commerce; one count of theft of explosive materials from licensee or permittee; one count of felon in possession of explosives; and one count of possession of stolen explosives. A jury trial has been scheduled before U.S. District Judge James C. Mahan on September 28, 2020.
According to the indictment, from about May 12 to May 13, 2020, Bautista and Golden conspired to steal and did steal a 50 pound bag of ammonium nitrate fuel oil (an industrial explosive) and 18 one-kilogram sticks of ammonium nitrate from Hinton Mining LLC.
Both Bautista and Golden are convicted felons. Bautista’s prior felony convictions include possession of a controlled substance with intent to distribute, identity theft, forgery, and unlawful possession of a controlled substance. Golden’s prior felony convictions include trafficking in a controlled substance, unlawful possession of a controlled substance, and conspiracy to commit grand larceny.
The statutory maximum sentence for each count of the indictment is 10 years in prison and a $250,000 fine, a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the Las Vegas Metropolitan Police Department and ATF. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case.
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Twice Convicted Felon Indicted by A Federal Grand Jury for Possessing A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that a federal grand jury has returned an indictment charging Ernest Green, a/k/a Fire, 37, of Buffalo, NY, with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment and evidence presented by the Government at the defendant’s arraignment today before U.S. Magistrate Judge Jeremiah J. McCarthy, on July 26, 2020, Green drove a vehicle through the Towne Gardens Housing Complex and opened fire with a gun. The defendant then crashed the vehicle into a tree, got out, and ran. Green was seen on video running in an easterly direction, and the firearm he allegedly used in the shooting was found five blocks east of where it occurred.
In November 2004, Green was convicted of a felony in Erie County Court. In October 2010, Green was convicted of a felony in New York State Court. As a result of those convictions, he is legally prohibited from possessing a firearm.
The government requested that Green be detained and he is being held pending a decision by Judge McCarthy on the government’s request.
The indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Thief River Falls Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Erica H. MacDonald today announced the unsealing of a federal indictment charging BENJAMIN JOSEPH ROGGENBUCK, 38, with production, attempted production, distribution, and possession of child pornography. ROGGENBUCK made his initial appearance today before Magistrate Judge Elizabeth Cowan Wright in U.S. District Court in St. Paul, Minnesota. ROGGENBUCK was ordered to remain in custody pending further proceedings.
According to the allegations in the indictment, between at least February 12, 2020, and February 20, 2020, ROGGENBUCK used or attempted to use two prepubescent minor children to produce visual depictions of sexually explicit conduct. The indictment also alleges that ROGGENBUCK knowingly distributed pornography depicting a prepubescent minor child. The indictment further alleges that ROGGENBUCK knowingly possessed other pornography depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension and the Thief River Falls Police Department.
Assistant U.S. Attorneys Chelsea A. Walcker and Miranda E. Dugi are prosecuting the case.
Defendant Information:
BENJAMIN JOSEPH ROGGENBUCK, 38
Thief River Falls, Minnesota
Charges:
- Production and attempted production of child pornography, 2 counts
- Distribution of child pornography, 1 count
- Possession of child pornography, 1 count
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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
South Georgia cocaine trafficker sentenced to 30 years in federal prisonRead the Press Release
ATLANTA - Alfonzo Jamal Lewis has been sentenced to 30 years in federal prison for trafficking five kilograms of cocaine in 2015.
“Illegal drugs destined to poison communities in southwest Georgia were stopped by our federal and state law enforcement partners,” said U.S. Attorney Byung J. “BJay” Pak. “Their outstanding work resulted in the seizure of a half-million dollars’ worth of cocaine and a lengthy term of imprisonment for a career drug dealer.”
“This investigation is indicative of cooperative federal, state, and local law enforcement efforts to rid our communities of this poison,” said Dan Salter, Executive Director, Atlanta-Carolinas HIDTA.
“This is another example of how partnerships benefit citizens by removing illegal drugs from our streets. It is critical that we continue to collaborate to keep dangerous drugs away from children and families. Fulton County Sheriff’s deputies are dedicated to this important duty and we are grateful to the U.S. Attorney’s Office for its unwavering commitment to this cause,” said Fulton County Sheriff Theodore “Ted” Jackson.
According to U.S. Attorney Pak, the charges and other information presented in court: On multiple occasions in late 2015, Lewis traveled from southwest Georgia to the Atlanta metro area and purchased bulk amounts of cocaine. He then took the cocaine back to the Albany, Georgia area to sell. On August 20, 2015, HIDTA agents observed Lewis entering and exiting a drug stash house in Decatur, Georgia, but did not attempt an arrest.
Four months later, on December 14, 2015, agents observed Lewis entering and exiting a drug stash house in East Point, Georgia. The Fulton County Sheriff’s Office and Georgia State Patrol stopped Lewis’s vehicle for speeding while Lewis was traveling back to Albany from East Point. A deputy sheriff recovered five kilograms of highly-pure cocaine from the backseat and arrested Lewis.
A federal grand jury charged Lewis with conspiracy to possess cocaine with intent to distribute and possession of cocaine with intent to distribute. After a three-day trial, Lewis was convicted on February 5, 2020 of both charges.
Alfonzo Jamal Lewis, a/k/a Pookie, 35, of Albany, Georgia, was sentenced on August 4, 2020, to 30 years in prison to be followed by ten years of supervised release.
The Atlanta-Carolinas HIDTA and Fulton County Sheriff’s Office investigated this case. The Georgia State Patrol, Georgia Bureau of Investigation, Monroe Police Department, Albany Police Department, and U.S. Marshals Service provided valuable assistance.
Assistant U.S. Attorney Theodore S. Hertzberg and former Emory Law School Extern Joseph N. Lenoff prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Sioux Falls Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Adam Michael Tanner, age 47, was sentenced to 144 months in federal prison, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Tanner was indicted by a federal grand jury on September 10, 2019. He pled guilty on May 19, 2020.
The conviction stemmed from a conspiracy that occurred between March 1, 2018, and September 10, 2019, in which Tanner and others, intentionally distributed over 1400 grams of methamphetamine in and around the Pierre and Ft. Pierre communities. During the conspiracy, Tanner and others routinely carried firearms to protect their product.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Division of Criminal Investigation, the Pierre Police Department, the Stanley County Sheriff’s Office, the South Dakota Highway Patrol, and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Tanner was immediately turned over to the custody of the U.S. Marshals Service.
Rockford Man Sentenced to More Than 17 Years in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard on federal charges of drug trafficking and possessing a firearm in furtherance of drug trafficking.
ANTWAN D. MANLEY, 27, was sentenced to 154 months in prison on the drug trafficking charge and 60 months on the firearm charge, to be served consecutively, for a total sentence of 17 years and ten months in federal prison.
Manley pleaded guilty on Nov. 27, 2019, to one count of possessing with intent to distribute heroin, cocaine base, and marijuana, and one count of possessing a firearm in furtherance of a drug trafficking offense. In the written plea agreement, Manley admitted that on Jan. 11, 2018, he possessed in a vehicle approximately 21 baggies of heroin, 24 baggies of marijuana, and a bag of cocaine base in the form of crack cocaine. Manley admitted that he also possessed in the same vehicle a loaded, black Beretta 9mm pistol that previously had been stolen, as well as approximately $6,950 in drug trafficking proceeds, four cell phones, a digital scale, and a box of latex gloves. Manley admitted that he intended to distribute the heroin, crack cocaine, and marijuana to street-level users, and that he possessed the loaded pistol to protect himself, his drug inventory, and his drug trafficking proceeds from individuals who may attempt to rob him of the drugs or money, including customers and rival drug dealers. Manley also admitted that he had distributed heroin to an individual cooperating with law enforcement on two occasions in November and December 2017.
The sentencing 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 Field Office of the FBI; Kristen De Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Dan O’Shea, Chief of the Rockford Police Department. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above agencies as well as the Loves Park and Freeport Police Departments. The Winnebago County Sheriff’s Office also assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
Rochester Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Wehs, 24, of Rochester, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to serve eight months home confinement and eight years supervised release by U.S. District Judge Elizabeth A. Wolford. The defendant will also have to register as a sex offender.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that members of the FBI’s Child Exploitation Task Force executed a search warrant on September 18, 2019, at the defendant’s residence in Rochester following a cybertip from an online social media company. The tip indicated that an account holder had uploaded an image of child pornography using the company’s messaging application. Investigators ultimately traced the child pornography to Wehs’ Rochester apartment. The defendant’s computer was seized and a preliminary review recovered multiple images and videos of child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
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Rapid City Woman Sentenced for Making False Statements to Receive Government FundsRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of two counts of False Statements was sentenced on August 3, 2020, by Jeffrey L. Viken, U.S. District Judge.
Jolenta Apodaca, f/k/a Jolenta American Horse, age 44, was sentenced to 6 months’ custody, followed by 2 years of supervised release, and ordered to pay restitution of $26,920 to the Social Security Administration (SSA) and $4,713 to the South Dakota Department of Social Services (SD DSS). Apodaca was also ordered to pay $200 in special assessments to the Federal Crime Victims Fund.
Apodaca was indicted on January 22, 2020, for Theft of Government Funds, two counts of False Statements, and Misuse by a Representative Payee.
The Rapid City SSA Field Office was notified by a third party that she went to the SD DSS to apply for state benefits for Apodaca’s child, who had been living with the third party for several years. SD DSS notified the third party that the child was a Title XVI Supplemental Security Income (SSI) beneficiary. The third party advised SSA she was unaware the child was a SSI beneficiary and reported that she received no funds from Apodaca or SSI for the care of the child. The third party also reported that Apodaca’s child had not lived with Apodaca for several years.
The Sioux Falls Cooperative Disability Investigation Unit (CDIU) corroborated that Apodaca, as the child’s SSA approved Representative Payee (RP), had misused dedicated SSI funds (back payments) as well as monthly SSI payments, and had spent the funds on herself rather than her child. Additionally, CDIU corroborated that Apodaca misused $4,713 in Supplemental Nutrition Assistance Program (SNAP) benefits payable to the child.
Pursuant to the CDIU investigation, SSA determined that from September 1, 2016, through August 31, 2019, Apodaca misused $26,920 in Title XVI SSI benefits to which she was not entitled.
This case was investigated by the Office of the Inspector General – Social Security Administration. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Pittsburgh Felon Sentenced to Prison for Illegal Gun PossessionRead the Press Release
PITTSBURGH, Pa. – Reginald Milligan was sentenced to 37 months in prison for possessing a firearm after a prior felony conviction, United States Attorney Scott W. Brady announced today.
Milligan, age 28 of Pittsburgh, was sentenced by United States District Judge Cathy Bissoon. Judge Bissoon also sentenced Milligan to three years of supervised release upon the completion of his prison sentence.
Milligan unlawfully possessed a stolen and loaded 9mm pistol, and 10 heroin/fentanyl stamp bags, inside his car in Pittsburgh during the early morning of January 19, 2019. B y that date, he had already been convicted of committing three felony crimes in prior state prosecutions between 2013 and 2015. The felony crimes were possession with intent to deliver heroin, carrying a firearm without a license, and person not to possess a firearm.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Federal Bureau of Investigation, and the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the conviction and sentence in this case. This case was prosecuted as part of Project Safe Neighborhoods (PSN) which 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.
Pembroke Woman Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD - Nadine Jacques, 46, of Pembroke, pleaded guilty in federal court on Friday to methamphetamine trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in February and March of 2020, a cooperating individual made four controlled purchases of methamphetamine from Jacques in Suncook, Concord, and Dover, New Hampshire.
Agents conducting surveillance at the final purchase on March 4, 2020, witnessed Jacques obtaining the drugs from her source in Dover. Agents arrested Jacques and the source and recovered over 111 grams of methamphetamine.
Jacques is scheduled to be sentenced on November 17, 2020.
“Methamphetamine is a dangerous drug that continues to cause significant damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “We will not hesitate to bring federal charges against the dealers who are responsible for distributing this dangerous substance in the Granite State.”
This matter was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Middleton Man Sentenced for Perjury During Bankruptcy ProceedingRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Todd Goldbeck, 46, Middleton, Wisconsin was sentenced by U.S. District Judge William M. Conley to one year and one day in federal prison for committing perjury during a bankruptcy proceeding. Judge Conley also ordered Goldbeck to pay restitution in the amount of $2,466,550.46 to Summit Credit Union. Goldbeck pleaded guilty to this charge during a combined plea and sentencing hearing on Friday, August 7.
In 2015, Goldbeck received a $2.4 million government-backed loan from Summit Credit Union and the Small Business Administration (SBA) to build a sports complex in Jefferson, Wisconsin. Summit and SBA approved the loan based on a several documents Goldbeck submitted, including: (1) a construction contract that estimated the total cost of the building at approximately $2.5 million; and (2) a signed lease agreement between Goldbeck and a regional medical center showing the medical center agreed to rent a portion of the completed building.
After construction began, Goldbeck contacted Summit and requested an additional $2.5 million to finish the project. Goldbeck claimed Summit knew the sports complex was a two-phase project. Goldbeck supported his request with a second construction contract estimating the total cost of the project at approximately $5 million. The new loan was not approved, and Goldbeck never completed the building.
Summit filed a civil suit against Goldbeck in Dane County Circuit Court, and obtained a money judgment in the amount of approximately $2.5 million. After entry of this judgment, Goldbeck filed a bankruptcy petition in the Western District of Wisconsin. During the proceedings, Goldbeck told the bankruptcy trustee, under oath, that Summit knew the building was a two-phase project when they closed the loan. Goldbeck also told the bankruptcy trustee that he did not forge the lease with the medical center.
During the course of the criminal investigation, law enforcement officials obtained documents and emails showing Goldbeck intentionally misrepresented the cost and scope of the project. In addition, law enforcement officials received sworn affidavits from employees at the medical center stating they never signed a lease agreement with Goldbeck.
At sentencing, Judge Conley told Goldbeck that his hubris fueled his scheme to defraud Summit and the SBA. When his scheme failed, Goldbeck “doubled-down” and lied to the bankruptcy trustee.
The charge against Goldbeck was the result of an investigation conducted by the Small Business Administration – Office of Inspector General and the Federal Bureau of Investigation, with the assistance of the Office of the U.S. Trustee for the Western District of Wisconsin. The prosecution of the case has been handled by Assistant U.S. Attorney Chadwick M. Elgersma.
Miami Business Owners Sentenced in Illegal Wildlife Trafficking OperationRead the Press Release
MIAMI – Alvaro Y. Cortes, 62, Olga L. Aya Rodriguez, 53, both of Doral, Florida, and Planet Express Cargo & Courier Corp., a Miami company, were sentenced today in federal district court in Miami for their involvement in a conspiracy to knowingly export fish and wildlife knowing that the fish and wildlife were transported and sold in violation of federal law.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, David G. Pharo, Resident Agent in Charge, U.S. Fish and Wildlife Service (FWS), Manny Antonaras, Deputy Special Agent-in-Charge, National Oceanic & Atmospheric Administration, Office of Law Enforcement (NOAA/OLE), Southeast Division, Anthony Salisbury, Special Agent in Charge, U.S. Department of Homeland Security Investigations (HSI) Miami, Daniel Alonso, Acting Director of Field Operations, U.S. Customs and Border Protection (CBP), Miami/Tampa, made the announcement.
U.S. District Judge Darrin P. Gayles, who previously accepted guilty pleas from each of defendant, sentenced Cortes and Aya Rodriguez each to a term of six months’ imprisonment, a term of supervised release of one year, and a criminal fine of $7,500.00. Judge Gayles placed PECC on probation for four years.
According to court documents, the parties’ joint factual proffer, and in-court statements, Cortes and Aya Rodriguez conducted business as Planet Express Cargo & Courier Corp., which principally engaged in business as a freight forwarder, consolidating cargo freight for international shipment, primarily to Colombia, South America. From May 2014 through July 2015, the defendants provided international shipping manifests to United Parcel Service that falsely identified shipments of fish and corals that had been delivered to PECC’s business premises by its customers as “Accesorios de Acuario” (“aquarium accessories”). As part of the conspiracy, PECC and its principals failed to acquire permits required for the export of certain of the species in the shipments and failed to declare to the Fish & Wildlife Service and CBP that they were exporting wildlife. Based on the fraudulent documents, the fish and wildlife was exported from the United States to Colombia.
All fish and wildlife exported from the United States, must first be made available for inspection and properly declared to FWS and CBP, pursuant to Title 50, Code of Federal Regulations, Sections 14.52 and 14.63. The regulations require the exporter or exporter’s agent to provide specific documentation and information to the FWS in order to have a shipment of merchandise cleared for export, prior to the physical loading of the merchandise on a vehicle or aircraft, and prior to the palletization of the shipment for export. The required notice must include all shipping documents, permits, and licenses, and a listing of the fish and wildlife being exported. Additionally, the exporter or exporter’s agent is required to present an executed Declaration for Importation or Exportation of Fish or Wildlife (Form 3-177) to the FWS prior to the exportation, which Form requires identification of the merchandise by scientific name, common name, quantity, and value. Further, Form 3-177 requires proper identification of the shipper and the consignee, and an attestation that all the information being provided is true and correct. Title 50, Code of Federal Regulations, Sections 14.52 and 14.63.
In addition to the false manifests generated at PECC, employees of PECC, at the direction of its principals, obscured markings on the boxes of wildlife which identified them as containing live fish, by taping over the labeling and wrapping everything in black plastic. They did this so that United Parcel Service employees and government authorities would not realize the shipments contained un-inspected wildlife. The government also presented evidence at sentencing that, in addition to the number of shipments identified in the count of conviction, the defendants had been involved in the export of almost 1,000 such shipments to Colombia.
Ms. Orshan commended the investigative efforts of the Special Agents and Wildlife Inspectors of the Fish & Wildlife Service, and the Special Agents of NOAA/OLE and HSI, and Officers of the Customs and Border Protection who participated in the investigation This matter is being prosecuted by Deputy Chief Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section and Assistant U.S. Attorney Christopher Cheek.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to More Than Two Years in Prison for Illegal ReentryRead the Press Release
Fort Myers, Florida – U.S. District Judge John L. Badalamenti today sentenced Jose Alfredo Carbajal-Espinosa (34, Mexico) to 30 months in federal prison for illegal reentry into the United States after deportation. Carbajal-Espinosa had pleaded guilty on May 26, 2020.
According to court documents, Carbajal-Espinosa was previously deported from the United States to Mexico on seven occasions. On April 8, 2013, he was convicted of illegal reentry after deportation, a federal felony offense. Following his conviction, Carbajal-Espinosa illegally reentered the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO). It was prosecuted by Assistant United States Attorney Trent Reichling.
Member of Santo Domingo Pueblo charged with Assault on federal officersRead the Press Release
ALBUQUERQUE – Stephen Reano, 21, of Santo Domingo, New Mexico, and an enrolled member of Santo Domingo Pueblo, appeared in federal court on July 23, 2020, for an arraignment on an indictment charging him with two counts of assault on a federal officer with a deadly and dangerous weapon.
According to the indictment and other court records, on June 11, 2020, Bureau of Indian Affairs patrol officers responded to calls about an individual – later identified as Stephen Reano – armed with a firearm in Santo Domingo Pueblo. During the nighttime search, officers eventually located Reano, who was carrying a rifle. At various times during the encounter, Reano pointed his rifle at two officers and tracked them with his rifle while moving toward them. Following repeated directives to drop his weapon, Reano eventually was shot by one of the officers. He was transported and treated at University of New Mexico Hospital before being released and then arrested.
Reano is in custody pending trial, which has yet to be scheduled. He faces up to 20 years in prison if convicted of the charged offenses.
Indictments are only allegations. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Albuquerque office of the Federal Bureau of Investigation. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
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Member of Jersey City Gang Charged with Gun Possession and Distribution of PCPRead the Press Release
NEWARK, N.J. – A high-ranking member of a violent street gang operating in Jersey City, New Jersey, made his initial court appearance today on charges he possessed a weapon as a convicted felon, possessed Phencyclidine (more commonly known as PCP) with intent to distribute, and possessed a firearm in furtherance of his PCP distribution, U.S. Attorney Craig Carpenito announced.
Jalil Burns, a/k/a “Big Ben,” 33, of Jersey City, was charged by complaint on Aug. 4, 2020, with one count of unlawful possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute PCP, and one count of possessing a firearm in furtherance of a drug trafficking crime. Burns appeared today by videoconference before U.S. Magistrate Judge Edward S. Kiel and was detained.
According to documents filed in this case and statements made in court:
On Aug. 3, 2020, Burns was found in possession of a .40 caliber handgun, which was loaded with six rounds of ammunition, and a jar of Phencyclidine. In 2009, Burns was convicted in federal court of unlawfully possessing a firearm as a convicted felon.
The charge of unlawfully possessing a firearm as a convicted felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The charge of possessing with intent to distribute Phencyclidine carries a maximum potential penalty of 20 years in prison, and a $1 million fine. The charge of possessing a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years in prison, a maximum of life imprisonment, and a $250,000 fine.
U.S. Attorney Carpenito credited the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division; and special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigation leading to the charges and arrest.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Media Advisory – Dr. Javaid Perwaiz Case UpdateRead the Press Release
CASE NAME: United States v. Javaid Perwaiz, Criminal Case No. 2:19-cr-189
COURT: U.S. District Court for the Eastern District of Virginia, Norfolk Division
CASE SUMMARY: On June 19, 2020, a federal grand jury sitting in the Eastern District of Virginia returned a 62-count superseding indictment charging the defendant, Dr. Javaid Perwaiz, with 26 counts of health care fraud, 33 counts of making false statements relating to healthcare matters, and three counts of aggravated identity theft. The charged conduct is alleged to have occurred between in and about 2010 and November 2019. As detailed in the superseding indictment, Dr. Perwaiz allegedly performed unnecessary surgeries and medical procedures without the proper knowledge or consent of patients at his OB/GYN medical practice, and he allegedly filed false claims regarding those procedures to health care benefit programs.
CASE STATUS: The defendant was arrested and made his initial appearance in court on Nov. 8, 2019. He is currently in custody pending further proceedings in the case.
VICTIM RESPONSE: To ensure that members of the public, including current and former patients of Dr. Perwaiz, are informed of developments in this ongoing case, the U.S. Attorney’s Office has established a page on its website, available at the following link: https://www.justice.gov/usao-edva/united-states-v-javaid-perwaiz. The website currently includes a copy of the superseding indictment summarizing the charges filed against the defendant. The district court has authorized the U.S. Attorney’s Office to use this website as part of its obligations to notify potential victims.
In addition, the website includes the following guidance for current or former patients:
FBI TIPS: Current and former patients should contact the Federal Bureau of Investigation at 1-800-CALL-FBI or https://www.fbi.gov/tips if they would like to share information.
MEDICAL RECORDS: Current or former patients seeking a copy of their medical records should email [email protected] with their full name and dates of service. Please Note: FBI only possesses records that were maintained by Dr. Perwaiz’s practice for patients who received services from 2015 through 2019.
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
McNairy County Man Sentenced to 5 Years for Being a Felon in Possession of a FirearmRead the Press Release
Jackson, TN – Peyton McCray Roberts, 21, has been sentenced to 60 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in Court, on August 12, 2019, officers with the Selmer Police Department responded to an apartment complex in Selmer, TN., with regard to a shooting incident. Officers spoke with the defendant, Peyton Roberts, who admitted to being intoxicated and firing a gun into the floor of his apartment after having an argument with friends.
Roberts gave consent to law enforcement to enter his apartment and recover his gun which he had placed under a mattress. Officers recovered an H & R, Model Topper Jr., .410 gauge shotgun containing a fired shell. Roberts informed law enforcement that he shot the gun into the floor after he tried to coerce his friends to leave his residence. He said the gun went off while he was trying to unload it.
After taking Roberts into custody, law enforcement verified that he was previously convicted of the felony offenses of Introduction of Contraband into a Penal Institution and Possession of a Schedule III Controlled Substance with the Intent to Deliver in McNairy County on December 3, 2018. As a result of those prior felony convictions, Roberts is prohibited by federal law from possession of firearms or ammunition.
On August 7, 2020, U.S. District Court Chief Judge S. Thomas Anderson sentenced Roberts to 60 months in federal prison followed by three years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Prohibited persons in possession of firearms present a known and immediate risk of violence to the community at large, as seen by this convicted felon who recklessly endangered individuals with an illegal gun. In order to protect public safety and uphold the rule of law, we must remove firearms from the hands of prohibited persons and remove dangerous felons from our streets. This sentence does just that, and will make McNairy County and West Tennessee a safer place."
This case was investigated by the Selmer Police Department and the Federal Bureau of Investigation (FBI).
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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Martinsburg man sentenced for role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Anthony Jones, of Martinsburg, West Virginia, was sentenced today to 30 months of incarceration for his role in a cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Jones, also known as “Moosa,” age 43, pled guilty to one count of “Unlawful Use of Communication Facility” in December 2019. Jones admitted to using a phone to arrange a heroin purchase in December 2018 in Berkeley County.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Chief U.S. District Judge Gina M. Groh presided.
Man Pleads Guilty to Straw Purchasing Three FirearmsRead the Press Release
ALEXANDRIA, Va. – An Emporia man pleaded guilty today to straw purchasing three firearms.
According to court documents, Corey O’Neal Phipps, Jr., 23, straw purchased three firearms from a federal firearms licensee (FFL) in the Eastern District of Virginia for another individual. In making the purchase, Phipps, Jr. represented himself as the true buyer of the firearms, but immediately after he received the firearms, he transferred them to another individual and was paid for making the purchase.
Phipps, Jr. pleaded guilty to making false statements with respect to the purchase of a firearm. He faces a maximum penalty of five years in prison when sentenced on Dec. 2. 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.
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. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea. Special Assistant U.S. Attorney Rachael C. Tucker and Assistant U.S. Attorney Patricia T. Giles are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-108.
Lyndonville Man Sentenced on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nolan Donald, 21, of Lyndonville, NY, who was convicted of being an unlawful drug user in possession of firearms and ammunition, and possessing with intent to distribute, and distributing marijuana, was sentenced to serve three years home confinement by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that between February 2018 and April 18, 2018, the defendant was addicted to, or was an unlawful user of, marijuana. On April 18, 2018, Donald was arrested following the execution of a search warrant at his residence on North Lyndonville Road. Inside the residence, investigators recovered a 9mm, semi-automatic pistol, loaded with eight rounds of ammunition; a 12-gauge shotgun; 79 rounds of ammunition; a small quantity of marijuana; edible marijuana cookies; and plastic baggies.
Following his arrest, the defendant admitted that he sold marijuana for approximately two years preceding his arrest and continued to sell marijuana and other marijuana products up until the time of his arrest. Donald also stated that he had used marijuana every day for the past year and a half.
Between February 17, 2018, and April 18, 2018, the defendant posted videos and photos to the social media application "Snapchat" in which he appeared to be in possession of a pistol and large quantities of marijuana, and using what appeared to be marijuana and prescription medicine.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Lebanon County Man Charged with Trafficking Counterfeit DrugsRead the Press Release
HARRISBURG-The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stefan Knoche, age 55, of Lebanon, Pennsylvania, was charged by Criminal Information with trafficking in counterfeit drugs.
According to United States Attorney David J. Freed, the information alleges that Knoche intentionally trafficked drugs knowing them to contain counterfeit marks of pharmaceutical manufacturers Pfizer Pharmaceuticals, Bayer AG, Eli Lilly and Company, and Roche Holding AG between May 23, 2017 and April 12, 2018. The information alleges Knoche knowingly trafficked counterfeit Viagra, Aurogra, Xanax, Levitra, Cialis, and Valium, all using counterfeit trademarks of their respective pharmaceutical companies.
The case was investigated by the U.S. Postal Inspection Service; U.S. Food and Drug Administration, Office of Criminal Investigations; and U.S. Department of Homeland Security, Homeland Security Investigations. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Leader of New Haven Drug Ring Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JERMAYNE BUTLER, also known as “Main,” “Main Live” and “Liver,” 39, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment, followed by four years of supervised release, for his leadership role in a New Haven drug trafficking ring.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Butler. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in the New Haven area.
Between August and November 2017, investigators made six controlled purchases of crack from Butler. A subsequent wiretap investigation revealed that Butler was obtaining bulk quantities of crack from others and distributing the drug through a network of street-level dealers. Butler also conspired with others to distribute oxycodone.
Butler and several of his associates were arrested on February 6, 2018. In association with the arrests, investigators conducted court-authorized searches of seven properties in New Haven and Hamden and seized seven firearms, ammunition, approximately 100 grams of crack cocaine, and approximately $14,000 in cash. Butler has been detained since his arrest.
On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging Butler and 18 other individuals with various offenses. All have been convicted.
On August 9, 2019, Butler pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine base (“crack”).
Butler’s criminal history includes multiple drug-related convictions.
Judge Shea ordered Butler, who is released on a $200,000 bond, to report to prison in 90 days.
This matter has been investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
Law Enforcement Intervenes to Prevent Thirty Nine-Year Old Nebraska Man from Having Sex with an Iowa Thirteen-Year OldRead the Press Release
A Nebraska man who attempted to entice a thirteen-year old for explicit sexual conduct was sentenced today to more than 10 years in federal prison. In addition, the man, who had a prior conviction for domestic assault and stalking, illegally possessed ammunition.
Jeremy Kozak, age 39, from Columbus, Nebraska, received the prison term after pleading guilty to one count of attempted enticement of a minor and one count of possession of ammunition by a person previously convicted of domestic abuse.
In a plea agreement, Kozak admitted he used the username “Boredguy4girls” online to communicate with an underage victim he knew to be only thirteen-years old. Law enforcement became aware of Kozak’s sexually explicit communications with the victim and took over the victim’s account in an undercover capacity. Believing he was still communicating with a thirteen-year old, Kozak made plans to drive the three hours from Nebraska to Iowa, to meet the thirteen-year old victim at a local park and engage in sexual activity. Kozak directed the thirteen-year old victim what to wear and when to leave home to meet him. On August 12, 2019, Kozak arrived at the park and after seeing a decoy dressed in the agreed upon attire, Kozak drove towards the decoy but was apprehended by law enforcement. Inside Kozak’s vehicle officers found a box of condoms, and shotgun ammunition that was illegal for Kozak to possess, because he had been previously convicted of domestic abuse.
Kozak was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. He was sentenced to 128 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
“As children are spending more and more time online due to COVID-19, we all need to do our part to keep them safe,” said U.S. Attorney Peter Deegan. “Child predators like Jeremy Kozak will use this time to try to manipulate kids into having sex or posing for sexually explicit photos. Parents and loved ones can help protect children by monitoring their computer and cell phone use and teaching them about the risks of communicating online with someone they don’t know.” U.S. Attorney Deegan also acknowledged the great work of Iowa’s law enforcement in bringing Kozak to justice. “Thanks to the outstanding investigative work of the Buena Vista County Sheriff’s Office and the Iowa Division of Criminal Investigation and the cooperation of the Buena Vista County Attorney’s Office, a child predator was stopped. We can all be proud of Iowa’s state and local law enforcement and their dedication to protecting children.”
Paul Allen, Buena Vista County Attorney stated, “This case represents what can be achieved when state and federal prosecutors and law enforcement work collectively to hold dangerous individuals accountable.”
Iowa Division of Criminal Investigation Special Agent in Charge Darrell Simmons added, “Today I would like to recognize the outstanding team work and professionalism of Iowa Division of Criminal Investigation (DCI) Special Agent Matthew Burns and Buena Vista County Sheriff’s Deputy Sgt. Joey Speers for their dedication and hard work on this important investigation. Throughout the investigation, Mr. Kozak made numerous contacts with the minor and the ‘undercover officer’ eliciting inappropriate sexual acts and photographs of the 13-year old. I have no doubt that if not for the intervention of Law Enforcement, not only would this 13-year old child have been victimized, other children would have been at risk from Mr. Kozak’s tactics.”
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.” The case was prosecuted by Assistant United States Attorney Mikala Steenholdt with the assistance of the Buena Vista County Attorney; and investigated by the Iowa Division of Criminal Investigations and Buena Vista County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4022. Follow us on Twitter @USAO_NDIA.
Hammon Man to Serve Life in Federal Prison for Murder, Kidnapping, Carjacking, and Arson in Indian CountryRead the Press Release
OKLAHOMA CITY – TOMMY DEAN BULLCOMING, 56, of Hammon, Oklahoma, was sentenced today by U.S. District Court Judge Charles B. Goodwin to serve life in federal prison for the first-degree felony murder in Indian Country and related offenses, announced U.S. Attorney Timothy J. Downing. In addition, Bullcoming was ordered to pay $17,613 in restitution for damage to the victim’s home and vehicle as well as funeral expenses.
A five-count indictment unsealed on April 6, 2018, charged Bullcoming with crimes he committed on September 6, 2017: first-degree premeditated murder, first-degree felony murder, carjacking resulting in death, kidnapping resulting in death, and arson. The indictment stated he "used force, violence, and intimidation to intentionally take a Lexus RX300" from an Indian and that this resulted in death. It further alleged he killed the victim "by stabbing and cutting her with a sharp object." The arson count alleged he maliciously set fire to the victim’s dwelling in Hammon.
Beginning on November 12, 2019, a jury heard evidence that Bullcoming beat the victim, his ex-girlfriend, in her home and then bound her mouth and wrists with duct tape. Evidence at trial showed that, using her vehicle, he drove her to a field in Indian Country and made her walk approximately 50 yards away from the road, where he stabbed her 48 times and slit her throat. Evidence also showed that he then drove her vehicle back to her home, which he set on fire. Volunteer firefighters from Hammon noticed fresh blood in the residence, and a Special Agent with the Bureau of Indian Affairs found fresh blood on the headrest of the vehicle. Both blood samples matched the victim, while blood on the vehicle’s dashboard matched Bullcoming.
The Bureau of Indian Affairs arrested Bullcoming in El Reno on September 8, 2017, for failing to appear before the Tribal District Court for the Cheyenne and Arapaho Tribes in Concho on September 7 on a charge of trafficking in controlled dangerous substances. Evidence at trial showed that he had scrapes and cuts on his arms, hands, and legs, as well as blood on his belt and sandals. DNA analysis confirmed the blood on his sandals belonged to the victim. On December 5, 2017, Bullcoming pleaded guilty in federal court to possessing marijuana with intent to distribute. He was sentenced in that case on April 18, 2018, to ten months in prison.
During the early evening of November 21, a jury found Bullcoming guilty of first-degree felony murder, carjacking resulting in death, kidnapping resulting in death, and arson of a dwelling. It was unable to reach a verdict on first-degree premeditated murder. The verdict was returned on what would have been the victim’s birthday.
Citing Bullcoming’s three prior convictions for violent crimes against women, Judge Goodwin sentenced Bullcoming to life imprisonment for first-degree felony murder, 25 years imprisonment for carjacking resulting in death, life imprisonment for kidnapping resulting in death, and 25 years imprisonment for arson. There is no parole in the federal prison system.
This case is in federal court because Bullcoming is a member of the Cheyenne and Arapaho Tribes, the offenses occurred in Indian Country under the jurisdiction of the Cheyenne and Arapaho Tribes, and the vehicle used in the carjacking had travelled in interstate commerce. The victim was also a member of the Cheyenne and Arapaho Tribes.
This case is the result of an investigation by the Bureau of Indian Affairs, Office of Justice Services; the Federal Bureau of Investigation Oklahoma City Field Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Secret Service; the Oklahoma State Bureau of Investigation; the Oklahoma Highway Patrol; the Roger Mills County Sheriff’s Office; the Custer County Sheriff’s Office; the United States Marshals Service; and the Hammon Fire Department. Assistant U.S. Attorneys Mark R. Stoneman and Arvo Q. Mikkanen are prosecuting the case, which furthers the Department of Justice’s Missing and Murdered Indigenous Persons Initiative. For more information, go to https://www.justice.gov/opa/pr/attorney-general-william-p-barr-launches-national-strategy-address-missing-and-murdered.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Gibson County Man Sentenced to 7 Years for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, TN – Michael Taylor, 37, has been sentenced to 87 months in federal prison for possession with intent to distribute methamphetamine. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on May 20, 2019, agents with the 28th Judicial District Drug Task Force executed a search warrant at a Milan, Tennessee, residence and seized approximately five grams of methamphetamine. The occupants of the home agreed to cooperate with law enforcement and consented to call their supplier, the defendant, Michael Taylor, and order .5 ounces (or approximately 15 grams) of methamphetamine. Taylor agreed to bring .5 ounces of methamphetamine to that residence in Milan.
Agents subsequently observed Taylor pull into the driveway at that residence, in a Pontiac 4-door car. He then exited the driver’s side door and walked up to the front door. Agents ordered Taylor to the ground, but he refused to comply with the officers’ directives and was physically restrained. He was ultimately taken into custody and advised of his Miranda rights. A search of Taylor’s person revealed approximately 15 grams of methamphetamine, 69 grams of cutting agent, and $2,244.00 in U.S. currency. The $2,244.00 was in the same pocket as the methamphetamine Taylor was delivering to that residence.
A search of Taylor’s vehicle revealed a tin can in the driver’s side door containing approximately nine grams of methamphetamine in three different baggies, as well as some Xanax pills. The agents also located and seized a black bag containing several baggies commonly used for packaging methamphetamine and other drugs, scales with methamphetamine residue on them, and another 57 grams of methamphetamine. Taylor confirmed to law enforcement how he distributed the methamphetamine and that he owned the methamphetamine seized from his person and from his vehicle.
On August 13, 2019, the Drug Enforcement Agency issued a Chemical Analysis Report confirming the methamphetamine seized from Taylor tested positive for d- Methamphetamine Hydrochloride with a net weight of 79.10 grams and a substance purity of 100%.
On July 10, 2020, U.S. District Court Chief Judge S. Thomas Anderson sentenced Taylor to 87 months in federal prison followed by three years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Drug distribution is NOT a victimless crime. Methamphetamine causes significant human pain, loss, and destruction in countless ways, including addiction, injuries, and deaths. Individuals who distribute harmful drugs into our rural communities can no longer hide, and those who choose to engage in such lawlessness will pay the price with a long prison sentence."
This case was investigated by the 28th Judicial District Drug Task Force and the Drug Enforcement Administration (DEA).
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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Georgia man and his company charged with selling misbranded drug advertised to treat COVID-19Read the Press Release
SAVANNAH, GA: A Georgia man and his company have been charged with violating the Federal Food, Drug, and Cosmetic Act (FDCA) by selling a drug claiming to treat COVID-19.
Matthew Ryncarz, and his company, Fusion Health and Vitality, LLC d/b/a/ Pharm Origins, are accused of selling a misbranded drug called “Immune Shot” that they falsely claimed would lower consumer’s risk of contracting COVID-19 by nearly 50 percent, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
In March 2020, during the midst of the global COVID-19 public health crisis, Ryncarz, through his company, Pharm Origins, created a website and began selling “Immune Shot” for $19 a bottle. Among other things, the website represented that “YOU will learn in JUST MINUTES … how to LOWER your risk of COVID-19 by nearly 50%.” Further, to sell “Immune Shot,” Ryncarz and Pharm Origins targeted individuals, ages 50 and older, with heavy-handed sales pitches, such as “The NEXT FIVE MINUTES could save your life,” “We are offering you the exclusive price of only $19 per bottle because we know that Immune Shot could be the most important formula in the WORLD right now due to the new pandemic,” “Immune Shot is Not a Luxury, It is a Necessity Right Now,” “Point Blank, if YOU Leave, YOU are at Risk,” and “Is Your Life Worth $19? Seriously, Is It?”
Ryncarz and Pharm Origins sold “Immune Shot” to consumers in the Southern District of Georgia and outside of the state of Georgia. The defendants were charged by way of an Information, filed in the U.S. District Court for the Southern District of Georgia. The Information alleges that “Immune Shot” was a misbranded drug within the meaning of 21 U.S.C. § 352(a)(1), in that it bore false and misleading labeling.
“Our office is committed to ensuring that businesses do not take advantage of a global health crisis and people’s fears in order to unlawfully make a buck,” said U.S. Attorney Christine. “We will continue to work with our law enforcement partners to make sure consumers are not exploited during these challenging times.”
U.S. Attorney Christine expressed appreciation to investigators in the U.S. Attorney's Office, and to David A. Frank, Senior Litigation Counsel with the Department of Justice’s Consumer Protection Branch, Lynn M. Marshall, Associate Chief Counsel for Enforcement, Office of the Chief Counsel, FDA, and to the FBI for their assistance in this prosecution.
“Americans expect and deserve treatments that are safe, effective and meet appropriate standards. The FDA is actively monitoring the marketplace for misbranded products represented as preventing, curing, or treating COVID-19,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations, Miami Field Office. “Today’s announcement should serve as a reminder that we will take action against those who take advantage of a crisis by potentially jeopardizing the health of Americans.”
“The FBI and our law enforcement partners will not allow anyone to take advantage of our citizens’ fears during a pandemic like COVID-19,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is especially concerning because this alleged scheme targeted citizens who are most vulnerable to the virus.”
Criminal informations contain only charges; defendants are presumed innocent unless and until proven guilty.
Please report COVID-19 fraud to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or go to justice.gov/disastercomplaintform.
Assistant U.S. Attorneys J. Thomas Clarkson and Patrick J. Schwedler are prosecuting this case on behalf of the United States.
Founder of Plastics Company Indicted in $61 Million Tax Evasion SchemeRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted a Florida man for evading over $61 million in income taxes from 2016 through 2018, U.S. Attorney Craig Carpenito announced.
Alfred Teo, 74, of Boca Raton, Florida, is charged with three counts of tax evasion and six counts of making and subscribing false personal and corporate tax returns in tax years 2016, 2017, and 2018. The indictment follows a June 17, 2020, complaint charging tax evasion, for which U.S. Magistrate Judge Edward S. Kiel set bond at $20 million. Teo will be arraigned at a date to be determined.
According to documents filed in this case and statements made in court:
Teo was the majority shareholder of multibillion-dollar plastics manufacturing holding company Alpha Industries Management (Alpha). During the tax years 2016, 2017, and 2018, Alpha transferred funds directly into trading accounts for Teo’s benefit. Instead of reporting the funds Alpha sent for Teo’s benefit as income on his personal tax returns, a significant portion of Teo’s income from Alpha was recorded as 1099 Income to AAST Holding Corp. (AAST), another Teo-owned entity that was unrelated to his plastics business. Through AAST, Teo engaged in numerous acts to conceal and attempt to conceal the income he received from Alpha in order to evade income taxes.
According to AAST’s corporate tax returns, AAST received 1099 income from Alpha of approximately $27 million, $53 million, and $89 million in 2016, 2017, and 2018, respectively, for a total of approximately $169 million.
However, Alpha did not transfer these amounts to bank accounts controlled by AAST. The money Alpha recorded as 1099 income to AAST was instead money provided for the benefit of Teo and included money that Alpha sent directly to Teo’s brokerage accounts. Instead of reporting the $169 million of income from Alpha on Teo’s personal tax returns in 2016, 2017, and 2018, and paying taxes on that income, the income was reported on AAST’s corporate tax returns. Teo then provided false deduction information to his tax preparer in the form of fictitious “cost of goods sold” to artificially reduce his income and evade the income taxes owed.
AAST was organized as a holding company, and, in reality, AAST did not have cost of goods sold of these amounts for these years.
In 2016, 2017, and 2018, Teo’s tax preparer provided draft AAST corporate tax forms for Teo’s review. Teo then returned the corporate tax forms with handwritten notes that indicated AAST had tens of millions of dollars of cost of goods sold. Teo’s tax preparer used the information that Teo provided to report AAST’s cost of goods sold on AAST’s corporate tax returns in the amounts of approximately $26 million, $51 million, and $87 million for 2016, 2017, and 2018, respectively.
By submitting fraudulent cost of goods sold expenses to his tax preparer for inclusion on AAST’s corporate tax returns, Teo used AAST to avoid paying tens of millions of dollars of income taxes. He reduced AAST’s net business income by approximately $165 million for tax years 2016, 2017, and 2018 combined.
Teo’s personal IRS Forms 1040 for 2016, 2017, and 2018 included AAST’s net business income – as reduced by the approximately $165 million in AAST’s false cost of goods sold – as income to Teo. As a result, Teo understated his personal income for those years by approximately $165 million.
Because Teo’s personal tax returns for 2016, 2017, and 2018 included AAST’s net business income, Teo’s fraudulent reduction of AAST’s net business income with purported cost of goods sold expenses resulted in a tax loss of approximately $10 million, $20 million, and $31 million in 2016, 2017 and 2018, respectively, for a total tax loss of approximately $61 million.
The tax evasion charges in Counts 1 through 3 of the indictment each carry a maximum potential penalty of five years in prison and a $250,000 fine. The six false tax return charges in Counts 4 through 9 each carry a maximum potential 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 today’s charges.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio and Vijay Dewan of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Vance AFB Major Sentenced to Two Years in Federal Prison for Taking Kickbacks Involving Compounding PharmaciesRead the Press Release
OKLAHOMA CITY – ROMEATRIUS MOSS, 40, a nurse and former Air Force Major stationed at Vance Air Force Base in Enid, Oklahoma, was sentenced today to serve 24 months in prison for health care fraud in which she accepted kickbacks for referring TRICARE beneficiaries to pharmacies furnishing compounded drugs, announced U.S. Attorney Timothy J. Downing. Moss was also ordered to pay restitution in the amount of $622,459.00.
According to a felony information filed on September 30, 2019, Moss solicited and received $73,823.06 in return for referring prescriptions for members of the U.S. military to compounding pharmacies that were reimbursed by TRICARE, a health insurance program for military members. Because of resulting cost increases and infringement on patient choice, it is a crime to solicit or receive payments for referrals to health care providers for an item or service that could be paid, in whole or in part, by a federal health care program.
Moss pleaded guilty on October 15, 2019, before U.S. District Judge Patrick R. Wyrick. She admitted that while she was employed in the medical unit at Vance AFB, she gave military members pre-printed prescription pads and induced them to ask their doctors for specific compounded drugs. Moss admitted she then sent the prescriptions or caused them to be sent to specific pharmacies. Moss admitted she was paid a kickback that was a percentage of the gross reimbursement the pharmacies received from TRICARE for filling the prescriptions.
Today, Judge Wyrick sentenced Moss to 24 months in the custody of the Bureau of Prisons, followed by three years of supervised release. Judge Wyrick also ordered Moss to pay restitution to TRICARE in the amount of $622,459.00, the total amount of kickbacks she received in the referral scheme. She was also ordered to forfeit her residence in Enid.
The case is the result of an investigation by the Defense Criminal Investigative Service, the Air Force’s Office of Special Investigations, and the Federal Bureau of Investigation–Oklahoma City Division. Assistant U.S. Attorneys Jessica Perry and Amanda Maxfield Green prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Former Sidney Man Sentenced for Dumping Hazardous Waste Without a PermitRead the Press Release
United States Attorney Joe Kelly announced that Edward Miller, age 44, formerly of Sidney, Nebraska, was sentenced today by Senior United States District Judge Laurie Smith Camp to 33 months’ imprisonment for the disposal of hazardous waste without a permit. There is no parole in the federal system. After his release from the Bureau of Prisons, Miller will serve a three-year term of supervised release. Senior Judge Smith Camp ordered Miller to pay $25,471 in restitution.
The Resource Conservation and Recovery Act (RCRA) is the primary federal law regulating the generation, treatment, storage, and disposal of hazardous waste. Objectives of the RCRA include, among others things, protection of human health and the environment through stringent regulating guidelines. The disposal of hazardous waste is prohibited except in accordance with a RCRA permit.
An investigation conducted by the EPA Criminal Investigation Division determined that on October 24, 2017, Miller loaded a truck and flatbed trailer with various chemicals, which included pesticides, from a warehouse at Renkoski Property Development located in Sidney, Cheyenne County, Nebraska. The containers of chemicals were hazardous wastes due to their corrosivity and ignitability characteristics. Later that day, Miller drove the truck and flatbed trailer with the hazardous wastes through the District of Nebraska, where defendant, without a RCRA permit, disposed of the hazardous wastes by dumping, spilling, and placing the hazardous wastes at three undeveloped sites along South T Road approximately three miles south of Aurora, Hamilton County, Nebraska.
“The defendant’s disregard for the law created serious human health and environmental hazards,” said Assistant Special Agent in Charge Cate Holston of EPA’s Criminal Investigation Division in Kansas. “EPA and its law enforcement partners are committed to holding responsible parties accountable for violations that endanger our communities, first responders and the environment.”
This case was investigated by the EPA Criminal Investigation Division.
Former Buncombe County Commissioner Pleads Guilty to Federal Conspiracy ChargeRead the Press Release
ASHEVILLE, N.C. – Former Buncombe County Commissioner Ellen Madans Frost, 65, of Black Mountain, N.C., appeared in federal court today and pleaded guilty to conspiracy to commit federal program fraud, for her involvement in a scheme to use Buncombe County funds to sponsor equestrian activities in North Carolina and Florida, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s plea hearing, Frost was elected as Commissioner for Buncombe County (the County) in November 2012, and continued to serve until December 2018. Beginning in early 2014 through November 2017, Frost conspired with former County Manager, Wanda Skillington Greene, to execute a scheme to defraud the County by misapplying funds allocated to the County’s Economic Development Program to support various equestrian enterprises in North Carolina and Florida, specifically, the Tryon International Equestrian Center (the Tryon Center) located in Polk County, and its affiliate, the Palm Beach International Equestrian Center located in Wellington, Florida.
According to court documents, in or about 2014, Frost began to speak with Greene about Frost’s desire to support the Tryon Center and related equestrian activities on behalf of the County. As a result, Frost and Greene developed a scheme to enter into sponsorship and advertising contracts with the Tryon Center, the Palm Beach International Equestrian Center, and affiliated equestrian enterprises. To pay for the associated expenses, Wanda Greene proposed using monies from the County’s Economic Development Incentive Fund. The equestrian enterprises were unaware of the criminal nature of the scheme, including the lack of authorization for Frost and Greene to enter into these negotiations and agreements without the knowledge and approval of the Board of Commissioners, as required by State law.
Greene and Frost took steps to cover the fraudulent scheme and to hide the County’s involvement in these unauthorized sponsorship and advertising contracts, by using the funds to promote the Asheville Regional Airport (the Airport), even though the Airport is an independent entity not governed or funded by the County. In an effort to conceal the fact that the County was the funding source, Greene and Frost ensured that the contracting parties understood that all sponsored events, signage, and advertisements would bear the name and logo of the Asheville Regional Airport, and that no signage or advertisements would be in the name of Buncombe County, even though the County was the paying sponsor.
According to court documents the County’s sponsorship contracts guaranteed access to amenities at the two equestrian venues exclusive to high-level sponsors. Specifically, the Tryon Center contract included access to a “Members Only” VIP table in an area known as the Legends Club. Entrance to the Legends Club and use of the VIP table was limited to persons whose names were on the admission list. Court records show that Frost ordinarily served as the contact person and approved the use of the County-funded table at the Legends Club. Furthermore, during the 2015 and 2016 seasons at the Tryon Center, Frost repeatedly used the VIP table, and invited her friends and other guests to attend the events.
Following Greene’s retirement in June 2017, County employees discovered the County’s payments to the equestrian enterprises. In August 2017, the Board of Commissioners learned of the number and amounts of these payments, when the new County Manager informed the Board of the payments county employees had discovered.
Following her plea hearing, Frost was released on bond. The federal program fraud conspiracy charge carries a maximum penalty of five years in prison. A sentencing date for Frost has not been set.
In making today’s announcement U.S. Attorney Murray commended the FBI, IRS-CI and the SBI for their investigation of this case.
Assistant United States Attorneys Richard Edwards and Don Gast of the U.S. Attorney’s Office in Asheville are prosecuting the case.
Forest Park Anesthesiologist Sentenced to 5.5 Years in Federal PrisonRead the Press Release
An anesthesiologist at the center of the $200 million Forest Park Medical Center fraud has been sentenced to five and a half years in federal prison and ordered to pay more than $82.9 million in restitution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Richard Ferdinand Toussaint, Jr. – who is already serving a 41-month federal prison sentence for a separate health care fraud conviction – pleaded guilty to his involvement in the Forest Park scheme in March 2018, admitting to one count of conspiracy to pay health care bribes and kickbacks and one count of illegal remuneration under the Travel Act. The 66-month sentence handed down today by U.S. District Judge Jack Zouhary will be served concurrent to the 41-month sentence.
In plea papers, Dr. Toussaint, 61, acknowledged that he teamed up with co-defendant Dr. Wade Neal Barker, a bariatric surgeon, to launch Forest Park Medical Center, a physician-owned hospital for bariatric and spinal surgery patients, in 2008. Together with Forest Park hospital manager Alan Andrew Beauchamp, Dr. Toussaint, Dr. Barker, and their colleagues conspired to steer lucrative patients – particularly those with high-reimbursing, out-of-network private insurance – to the now defunct hospital by paying surgeons for referrals.
Most of the kickbacks, which totaled more than $40 million, were disguised as consulting fees or “marketing money,” doled as a percentage of surgeries each doctor referred to Forest Park, Dr. Toussaint admitted. Email correspondence proved he and Dr. Baker were kept up to date about how much surgeons were being paid.
Instead of billing patients for out-of-network co-payments, instituted by insurers to de-incentivize the high costs associated with out-of-network treatment, Forest Park allegedly waived co-insurance, assured patients they would pay in-network prices. Because they knew insurers wouldn’t tolerate such practices, they concealed the patient discounts and wrote off the difference as uncollected “bad debt.”
Dr. Toussaint was one of 18 convicted in the scheme.
Defendants who pleaded guilty before trial include: Wade Neal Barker, Alan Andrew Beauchamp, Kelly Wade Loter, David Daesung Kim, Israel Ortiz, Andrea Kay Smith, Frank Gonzales, Jr., Andrew Jonathan Hillman, and Semyon Narosov.
Defendants convicted at trial include: Wilton McPherson “Mac” Burt, Jackson Jacob, Douglas Sung Won, Michael Bassem Rimlawi, Shawn Mark Henry, Mrugeshkumar Shah, and Iris Kathleen Forrest.
The case was investigated by the U.S. Office of Personnel Management Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration Office of Criminal Investigations. Assistant U.S. Attorneys Andrew Wirmani, Marcus Busch, Mark Tindall, and Gail Hayworth are prosecuting the case.
Florida Man Alleged to Have Fraudulently Received Covid-19 Relief Loans While Awaiting Trial on Separate Unrelated Fraud Crimes Charged in Federal CourtRead the Press Release
MIAMI -- Judlex Jean Louis, 32, of Lauderhill, Florida, was arrested and charged with bank fraud, making false statements to a financial institution, and aggravated identity theft after receiving fraudulent Paycheck Protection Program (PPP) loans intended to help small businesses keep employees paid during the COVID-19 pandemic. At the time of his arrest, Louis was awaiting trial on theft, money laundering, and fraud charges related to a separate series of crimes occurring in 2014 and 2015.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge of the U.S. Secret Service’s (USSS) Miami Field Office; and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service-Criminal Investigations (IRS-CI), Miami Office, made the announcement.
The federal government enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020 to provide emergency financial assistance to the millions of Americans suffering economic harm from the COVID-19 pandemic. One source of relief the government established through the CARES Act was the authorization of government-backed and potentially forgivable PPP loans to small businesses for job retention and certain other expenses.
According to the allegations in the criminal complaint, Louis received proceeds from three fraudulent PPP loans in early June 2020. Each loan application hid Louis’s identity as the true loan recipient. On a loan application that Louis submitted for his own claimed business using a social security number that did not belong to him, Louis allegedly falsely certified that he was not subject to any pending criminal charges. On another loan application that Louis submitted in the name of an accomplice’s purported business, he allegedly used a doctored bank statement. Finally, on a third loan application, Louis allegedly made up a business and used the name and social security number of a victim to whom he had no connection. According to the criminal complaint affidavit, Louis had PPP loan money deposited into accounts that he controlled. Surveillance cameras caught Louis withdrawing cash from one of these accounts soon after the loan money was deposited.
Louis is scheduled to appear for a detention hearing and preliminary hearing on August 14, 2020, at 11:00 a.m., before U.S. Magistrate Judge Lurana S. Snow, who sits in Ft. Lauderdale.
USSS Miami and IRS-CI Miami handled the investigation, with assistance from the Coral Springs Police Department: Economic Crimes Unit, the Broward County State Attorney’s Office, and the Broward County Sheriff’s Office. Assistant U.S. Attorney Kiran N. Bhat is prosecuting this case. Assistant U.S. Attorney Nicole S. Grosnof is handling asset forfeiture.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A criminal complaint is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-6328-mj-Hunt.
Federal Jury Convicts Suburban Man of Threatening Law Enforcement OfficerRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a suburban man of threatening a law enforcement officer and posting similarly threatening messages on social media.
ROBERT ANTHONY HAAS in 2019 sent harassing and threatening text messages and voicemails to a federal task force officer. In one of the text messages, Haas stated, “I’m not afraid to walk out my door in the morning. You should be however considering you support Jewish terrorism and your anti-American [expletive] is going to get you killed.” The officer had come into contact with Haas when he interviewed him after the FBI received a complaint about disturbing messages Haas posted to a social media website.
In addition to the threats against the federal officer, evidence at trial revealed that Haas posted similarly disturbing messages at the social media website. In one of those postings, Haas stated, “I don’t care if it’s a cop, prosecutor, judge, politician or elite. You try to stop me from telling the truth I will cut every throat in your home. Try me!”
After a four-day trial, a federal jury in Chicago on Thursday convicted Haas, 40, of Ottawa, Ill., on all 13 counts against him, including five counts of threatening to assault or murder a federal official and eight counts of knowingly transmitting in interstate commerce a communication containing a threat to injure another. Each count of threatening a federal official is punishable by up to ten years in federal prison, while the maximum sentence for each of the other threat counts is five years. U.S. District Judge Edmond E. Chang set sentencing for Nov. 3, 2020.
The conviction 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 Field Office of the FBI; and Patrick S. Mills, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS), Chicago Field Office. Assistance was provided by the Illinois State Police and the Ottawa, Ill., Police Department. The government is represented by Assistant U.S. Attorneys Erin Kelly and Barry Jonas.
Federal Grand Jury Indicts Oklahoma City Man for Drug and Firearms Offenses Plus Witness TamperingRead the Press Release
OKLAHOMA CITY – JUAN JABARI HOLLIS, 42, of Oklahoma City, has been indicted on drug and firearm related charges in addition to witness tampering, announced U.S. Attorney Timothy J. Downing.
On August 4, 2020, a federal grand jury in the Western District of Oklahoma returned a four-count indictment against Hollis. In Count 1, Hollis is charged with being a felon in possession of a firearm; in Count 2, with possessing methamphetamine with the intent to distribute; and in Count 3, with possessing a firearm in furtherance of drug trafficking. Finally, Count 4 charges Hollis with witness tampering, specifically that he attempted to influence, delay, and prevent the testimony of another person in criminal proceedings against him.
If convicted on Count 1, Hollis faces up to ten years in prison and three years of supervised release. If convicted on Count 2, Hollis could receive a term of imprisonment of up to twenty years in prison and three years of supervised release. Count 3 carries a mandatory term of imprisonment of not less than 5 years, to be served consecutive to any other term of imprisonment, and a term of supervised release of up to 5 years. Finally, if convicted of witness tampering as alleged in Count 4, Hollis could receive a prison term of no more than 20 years and a term of supervised release of no more than 3 years.
This case arises from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Oklahoma City Police Department. Assistant U.S. Attorney Nick Coffey is prosecuting the case.
The public is reminded that this charge is merely an allegation and that Hollis is presumed innocent unless and until proven guilty beyond a reasonable doubt. To download a photo of U.S. Attorney Downing, click here.
Eastern Kentucky Doctor and Assistant Plead Guilty to Unlawfully Distributing OpioidsRead the Press Release
A Kentucky doctor and his former office assistant pleaded guilty on Aug. 7 for their roles in unlawfully distributing opioids and other controlled substances during a time when the defendants did not have a legitimate medical practice.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office, Special Agent in Charge Jeffrey T. Scott of the U.S. Drug Enforcement Administration’s (DEA) Louisville Field Division, and Executive Director W. Bryan Hubbard of the Kentucky Medicaid Fraud Control Unit (MFCU) made the announcement.
Scotty Akers, M.D., 48, a licensed physician, and Serissa Akers, 33, his wife and former office assistant, both of Pikeville, Kentucky, pleaded guilty to unlawfully distributing controlled substances. As part of the plea, Dr. Akers also agreed to a money judgement of $12,275. Sentencing for both defendants has been scheduled for Nov. 20.
As part of their guilty pleas, the defendants admitted to using Facebook messenger to sell unnecessary prescriptions for opioids. According to their plea agreement, Serissa Akers exchanged prescriptions written by Dr. Akers for cash in parking lots around Pikeville. The defendants also admitted that Dr. Akers performed no physical examinations that would justify these parking-lot prescriptions, and failed to engage in other measures that prevent the abuse and diversion of opioids. The defendants continued operating their opioid-delivery scheme even after they came under investigation and up until the moment when Dr. Akers’s medical license was suspended.
HHS-OIG, DEA and Kentucky MFCU investigated the case. Assistant Chief Katherine E. Payerle and Trial Attorney Dermot Lynch of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in ten districts, has charged more than 70 defendants who are collectively responsible for distributing approximately 50 million pills. Thus far there have been 30 guilty pleas as a result of ARPO Strike Force’s efforts. The ARPO Strike Force is part of the Medicare Fraud Strike Force Program, led by the Fraud Section. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
Eastern Kentucky Doctor and Assistant Plead Guilty to Unlawfully Distributing OpioidsRead the Press Release
LEXINGTON, Ky. – A Kentucky doctor and his office assistant pleaded guilty today for their roles in unlawfully distributing opioids and other controlled substances during a time when the defendants did not have a legitimate medical practice.
Scotty Akers, M.D., 48, a licensed physician, and Serissa Akers, 33, his wife and former office assistant, both of Pikeville, Kentucky, pleaded guilty to unlawfully distributing controlled substances. As part of the plea, Scotty Akers also agreed to a money judgement of $12,275. Sentencing has been scheduled for November 20, 2020.
As part of their guilty pleas, the defendants admitted to using Facebook messenger to sell unnecessary prescriptions for opioids. According to their plea agreements, Serissa Akers exchanged prescriptions written by Scotty Akers for cash in parking lots around Pikeville. The defendants also admitted that they performed no physical examinations that would justify these parking-lot prescriptions, failed to keep virtually any records on the patients who received these prescriptions, allowed patients to receive early refills, nd failed to engage in other measures that prevent the abuse and diversion of opioids. The defendants continued operating their opioid-delivery scheme even after they came under investigation and up until the moment when Scotty Akers’s medical license was suspended.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office, Special Agent in Charge Jeffrey T. Scott of the U.S. Drug Enforcement Administration’s (DEA) Louisville Field Division, and Executive Director W. Bryan Hubbard of the Kentucky Medicaid Fraud Control Unit (MFCU) made the announcement.
“The unlawful distribution of opioids by medical professionals is unacceptable,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We will continue to vigorously investigate and prosecute these important cases.”
HHS-OIG, DEA and Kentucky MFCU investigated the case. Assistant Chief Katherine E. Payerle and Trial Attorney Dermot Lynch of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.
The ARPO Strike Force is made up of prosecutors and data analysts with the Department of Justice’s Fraud Section, prosecutors with the ten U.S. Attorney’s Offices in the Appalachian region, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force operates out of two hubs based in Ft. Mitchell, Kentucky, and Nashville, Tennessee, areas, supporting the ten districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force works closely with other state and federal law enforcement agencies, including the Kentucky Medicaid Fraud Control Unit.
Since its inception in October 2018, the ARPO Strike Force, which operates in ten districts, has charged more than 70 defendants who are collectively responsible for distributing approximately 50 million pills. Thus far there have been 30 guilty pleas as a result of ARPO Strike Force’s efforts. The ARPO Strike Force is part of the Medicare Fraud Strike Force Program, led by the Fraud Section. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Dominican National Sentenced for False Identity CrimesRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced today for fraudulent use of a Social Security number.
Richard Zapata Suarez, 33, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 12 months in prison and one year of supervised release. In June 2020, Zapata Suarez pleaded guilty to one count of false representation of a Social Security number.
On May 17, 2016, Zapata Suarez used the Social Security number of a U.S. citizen to submit a renewal application for a Massachusetts driver’s license under the victim’s name. In order to obtain the license, Zapata Suarez fraudulently provided various documents to the Massachusetts Registry of Motor Vehicles, including a Social Security card and birth certificate bearing the victim’s name.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprised of personnel from various state, local and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Valuable assistance was provided by the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Boston; U.S. Marshals Service; Massachusetts State Police; and the Massachusetts Office of Inspector General. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit prosecuted the case.
Disbarred Beverly Hills Lawyer Pleads Guilty to Federal Charge that He Embezzled His Client’s Money and Used It to Pay Off DebtRead the Press Release
LOS ANGELES – A disbarred Beverly Hills lawyer pleaded guilty today to a federal criminal charge for scheming to steal more than $500,000 from a client he represented in bankruptcy proceedings and then use part of the money to pay off a $75,000 debt.
Alan F. Broidy, 65, pleaded guilty to a one-count information charging him with interstate transportation of stolen property.
According to his plea agreement, Broidy was hired to represent GRL-Mesa Investments LLC, a Phoenix-based company that filed for Chapter 11 protection in United States Bankruptcy Court in Los Angeles in December 2015.
In August 2016, the bankruptcy case was resolved and dismissed. Broidy was directed by the court to hold $2,469,926 in a client trust account – funds derived from the sale of assets belonging to GRL-Mesa’s bankruptcy estate. This money was supposed to be distributed to Mesa’s creditors.
Although he transferred a total of $1,937,400 of Mesa’s funds to its creditors, including $975 owed to the United States Trustee, Broidy did not return the remaining $512,526 that belonged to Mesa. Instead, he stole it and used it to pay for personal expenses.
Broidy admitted that on August 16, 2016, without his client’s knowledge or consent, he deposited $100,000 of Mesa’s money into his personal bank account, and then transferred $75,000 of that money to the bank account in New York of one of Broidy’s own creditors. Through these unauthorized transfers that were hidden from Mesa, Broidy arranged to pay one of his own expenses with Mesa’s money.
In July 2019, the State Bar of California disbarred Broidy based on the facts involved in this case.
United States District Judge Dale S. Fischer scheduled a November 30 sentencing hearing, at which time Broidy will face a statutory maximum sentence of 10 years in federal prison.
This matter was investigated by the FBI and the United States Trustee Program's Los Angeles Division.
This case is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.
Colorado Springs Man Pleads Guilty to Threatening to Kill Federal Law Enforcement OfficersRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Timothy Hummel, age 26, of Colorado Springs, Colorado, pleaded guilty to threatening to murder federal law enforcement officers. Hummel made his initial appearance remotely while free on bond. His bond was continued at the hearing’s conclusion. The Denver office of the FBI and the Federal Protective Service (FPS) joined in today’s announcement.
According to the stipulated facts contained in Hummel’s plea agreement, on August 14, 2019, Hummel repeatedly called the Denver Field Office of U.S. Immigration and Customs Enforcement (ICE) Enforcement Removal Operations (ERO), which is the directorate within ICE focused on arrests and removals of individuals living in the United States without authorization. Hummel left two voicemails minutes apart and shortly thereafter sent an email to the Denver ERO Outreach mailbox. In the voicemails and email, Hummel threatened to murder ICE agents and members of their families.
During the investigation it was determined that Hummel made the threats in order to scare ICE agents and cause them to use their resources reacting to the threats rather than doing their jobs.
U.S. District Court Judge R. Brooke Jackson presided over the change of plea hearing today, August 10, 2020. Hummel was charged by indictment on March 11, 2020. He is scheduled to be sentenced on October 26, 2020. This case was investigated by the Denver office of the FBI and the FPS. The defendant is being prosecuted by Assistant U.S. Attorney Julia Martinez.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 20-cr-087.
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.
Charleston Woman Sentenced to Federal Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Courtney Ferrell, 45, was sentenced to 36 months in prison for possession with intent to distribute methamphetamine. She also will serve four years of supervised release.
“My team is doing what it does best…putting criminals behind bars and ridding the streets of dangerous drugs and drug dealers,” said United States Attorney Mike Stuart.
Ferrell previously admitted that she was in possession of over 134 grams of methamphetamine when officers searched her room at the Motel 6 in Cross Lanes on November 15, 2018. A search of her home on October 12, 2018 revealed an additional 500 grams of methamphetamine. Ferrell accepted responsibility for 680.33 grams of methamphetamine.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Julie White and former Assistant United States Attorney Ryan Saunders handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00269.
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California Man Pleads Guilty to Illegally Exporting Cesium Atomic Clocks to Hong KongRead the Press Release
BOSTON – A California man pleaded guilty today in federal court in Boston to illegally exporting cesium atomic clocks to Hong Kong.
Alex Yun Cheong Yue, 69, of South El Monte, Calif., pleaded guilty to one count of conspiracy to commit export violations, two counts of unlawful exports and attempted exports of U.S. goods to Hong Kong, and one count of smuggling. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 10, 2020. Yue was charged by indictment and arrested in June 2019. Wai Kay Victor Zee, 56, of Hong Kong, along with his company, Premium Tech Systems, Limited were also charged. Zee remains at large in Hong Kong Special Administrative Region of the People’s Republic of China.
Beginning in December 2015, Yue, Zee, and Premium Tech conspired to procure U.S.-origin cesium atomic clocks and export them to Hong Kong without obtaining the required export licenses. Cesium atomic clocks are used in global positioning system solutions, network timing protocols, encryption programs, and national defense and space applications. They are controlled for export by the U.S. Department of Commerce for national security and anti-terrorism reasons.
To obtain the atomic clocks, Yue purchased them using a fictitious company, “Ecycle Tech International Ltd.,” by falsely representing to the U.S. seller that the atomic clocks would be used solely in the United States for cordless phone research and development. Based on Yue’s false representations, the U.S. seller sold the cesium atomic clocks to Ecycle. On Feb. 19, 2016, the atomic clocks shipped from the manufacturing facility in Beverly, Mass., to Yue in California. Three days later, on Feb. 22, 2016, Yue allegedly reshipped the controlled cesium atomic clocks to Zee at Premium Tech in Hong Kong. Neither Yue, Zee, nor Premium Tech ever applied for or obtained the required export licenses from the U.S. Department of Commerce. On Feb. 24, 2016, Zee allegedly confirmed receipt of the cesium atomic clocks in Hong Kong.
In December 2017, Yue attempted to purchase an additional cesium atomic clock. Prior to the sale, however, the U.S. seller required Yue to provide an end-user statement detailing where and for what the clocks would be used. In April 2018, Yue sent an end-user certificate on Ecycle letterhead stating that the atomic clocks would be used in a calibration lab in California. In response to further inquiries from the U.S. seller, Yue falsely declared that he was not intending to export the cesium atomic clocks. When the U.S. seller insisted on a site visit to the California location where the atomic clocks would be utilized, Yue abruptly canceled the order. On July 13, 2018, Yue received a refund payment from the U.S. seller. Three days later, on July 16, 2018, Yue sent a wire transfer to Premium Tech’s bank account in Hong Kong with the refunded money.
The charge of conspiring to commit export violations and unlawfully exporting and attempting to export U.S. goods provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $1 million. The charge of smuggling goods from the United States provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; William Higgins, Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Scott Garland, Deputy Chief of Lelling’s National Security Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Man Pleads Guilty in Manhattan Federal Court to Attempting to Provide Material Support to ISISRead the Press Release
The Department of Justice announced that Zachary Clark, a/k/a “Umar Kabir,” a/k/a “Umar Shishani,” a/k/a “Abu Talha,” pleaded guilty to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS). Clark pled guilty today in Manhattan federal court before U.S. District Judge Naomi Reice Buchwald. Judge Buchwald is scheduled to sentence Clark on Feb. 9, 2021, at 12:00 p.m.
“Having pledged allegiance to ISIS, Clark provided specific instructions for how to conduct attacks in New York City, instructing others on knifing and bomb-making,” said Assistant Attorney General for National Security John C. Demers. “We must remain vigilant to the threat of terrorism. We must remain committed to identifying and holding accountable those who threaten our communities because of their support for foreign terrorist organizations.”
“As he admitted in court today, Zachary Clark pledged allegiance to ISIS and posted calls for attacks on the public and institutions in New York on encrypted pro-ISIS chatrooms,” said Acting U.S. Attorney Audrey Strauss for the Southern District of New York. “He also posted detailed instructions for carrying out those violent acts. Thanks to the Joint Terrorism Task Force, Clark’s efforts to incite deadly violence on behalf of ISIS have been silenced, and he now awaits sentencing for his crimes.”
“Today’s plea by Mr. Clark is yet one more example of the resolve of the FBI’s JTTF in New York, and our many law enforcement partners, to protect this city and our citizens from the danger of lone wolf attacks,” said FBI Assistant Director William F. Sweeney Jr. “Many thanks to all of our partners who work side by side with us every day to neutralize threats of this nature.”
According to the allegations in the indictment, complaint, other court filings, and statements made during court proceedings:
Clark pledged allegiance to ISIS twice, first in July 2019, to ISIS’s then-leader Abu Bakr al-Baghdadi, and then in October 2019, to ISIS’s new leader, Abu Ibrahim al-Sashemi al-Qurayshi, who ISIS promoted after al-Baghdadi’s death. Beginning in at least March 2019, Clark disseminated ISIS propaganda through, among other avenues, encrypted chatrooms intended for members, associates, supporters, and potential recruits of ISIS. Clark’s propaganda included, among other things, calls for ISIS supporters to commit lone wolf attacks in New York City. For example, on Aug. 3, 2019, Clark posted instructions about how to conduct such an attack, including directions on how to select an attack target, how to conduct preoperational surveillance, how to conduct operational planning, and how to avoid attracting law enforcement attention when preparing for and conducting the attack. On another occasion, Clark posted a manual entitled “Knife Attacks,” which stated, among other things, that discomfort at “the thought of plunging a sharp object into another person’s flesh” is “never an excuse for abandoning jihad” and that “[k]nives, though certainly not the only weapon for inflicting harm upon the kuffar [non-believers], are widely available in every land and thus readily accessible.” Clark urged the participants in encrypted chatrooms to attack specific targets, posting maps and images of the New York City subway system and encouraging ISIS supporters to attack those locations. Clark’s guidance also included posting a manual entitled “Make a bomb in the kitchen of your Mom,” which was issued by al-Qaeda in the Arabian Peninsula and included detailed instructions about constructing bombs using readily available materials.
Clark, 41, of Brooklyn, New York, pled guilty to one count of attempting to provide material support or resources to a designated foreign terrorist organization, namely, ISIS, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Assistant Attorney General Demers and Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state and local agencies. Ms. Strauss also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Gillian Grossman, Matthew Hellman, and Sidhardha Kamaraju are in charge of the prosecution, with assistance from the National Security Division’s Counterterrorism Section.