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23 July 2020
Ft. Thompson Woman Sentenced on Fentanyl Overdose ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Ft. Thompson, South Dakota, woman convicted of Distribution of a Controlled Substance Resulting in Death was sentenced on July 20, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Renita Faye Taylor, age 39, was sentenced to 240 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Taylor was indicted by a federal grand jury on October 16, 2019. She pled guilty on July 20, 2020.
The conviction stemmed from an incident that occurred on or about August 6, 2019, where Taylor knowingly and intentionally distributed pills containing Fentanyl and that distribution resulted in the death of an adult male on the Crow Creek Indian Reservation.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency, the Northern Plains Safe Trails Drug Enforcement Task Force and the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Taylor was immediately turned over to the custody of the U.S. Marshals Service.
Fresno Man on Federal Supervised Release Indicted on Drug and Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Elias Muhammad, 23, of Fresno, charging him with attempted possession of cocaine with the intent to distribute and two counts of being a felon in possession of a firearm and ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, Muhammad was arrested after a vehicle stop on May 5. He was in possession of a firearm and .40 caliber ammunition after having suffered two prior felony convictions. He posted bail on that offense on May 10 and was released from custody. On June 25, Muhammad was again arrested for being a felon in possession of a firearm, attempting to possess cocaine with the intent to distribute, and for being in violation of his federal supervision resulting from a 2019 conviction for being a felon in possession of a firearm.
This case is the product of an investigation by the Clovis Police Department, the Multi-Agency Gang Enforcement Consortium (MAGEC) and the Bureau of Alcohol. Tobacco, Firearms and Explosives. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Muhammad faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fresno Man Sentenced to 30 Years in Prison for Distributing Fentanyl Resulting in Two Overdose Deaths in Fresno and Madera CountiesRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Darnell Pearson, 42, of Fresno, today to 30 years in prison for two counts of distribution of fentanyl resulting in death and serious bodily injury, U.S. Attorney McGregor W. Scott announced.
“This defendant sold what his customers thought was cocaine that was, in fact, fentanyl and caused the deaths of two people and serious injury to two others,” U.S. Attorney Scott stated. “These two deaths were the first reported fentanyl overdose deaths in Fresno and Madera Counties. As they demonstrate, fentanyl is extremely dangerous and is a serious public health threat in our area and the nation as a whole. Even trace amounts of this drug can be lethal, and it poses serious risks to those who come into contact with it, including first responders. We will continue to work with our state and federal partners to target those who distribute this poison in our communities.”
“Fentanyl is man-made and potent in the smallest amounts. A few grains of the substance can lead to overdose, and we are increasingly seeing it sold as other illicit drugs. The message has been sent, if you distribute drugs that result in death and serious bodily injury, we will use every tool available to ensure that justice is served,” stated Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux. “I applaud the collaborative efforts and good old fashioned police work that led to the successful prosecution of this investigation.”
According to court documents, on Jan. 7, 2019, law enforcement officers responded to a call concerning an overdose in Fresno and found three individuals on the ground with faint or no pulse. All three individuals were transported to Community Regional Medical Center for treatment. One of the individuals was pronounced dead on Jan. 10, 2019. A toxicology report determined that the cause of death for the individual was overdose from fentanyl. The other two individuals survived and were later released from the hospital.
On Jan. 24, after a four-day trial, a jury found that the death resulted from the use of the fentanyl distributed by Pearson, and it caused the other two victims to suffer serious bodily injury. Pearson was convicted of a second count of distribution of fentanyl resulting in death of a victim in Madera, and the jury found the death of this victim resulted from the use of the fentanyl distributed by Pearson. On Jan. 7, 2019, the victim, the mother of Pearson’s children, was found motionless on the floor of her bathroom by family members. Officers and paramedics were unable to revive her and she was pronounced dead that evening.
During the sentencing hearing, Judge Drozd found that Pearson had obstructed justice during the investigation by deleting text messages between himself and the Madera victim in an effort to frustrate law enforcement. Additionally, Judge Drozd found that during the trial, Pearson obstructed justice by testifying falsely in an effort to mislead the jury resulting in an increased sentence. Even though Pearson may not have known he was distributing fentanyl and that his actions would cause the deaths of two people and serious bodily injury to two additional people, that was immaterial Judge Drozd said while imposing the sentence for Pearson’s distribution of drugs that had tragic results.
This case was the product of an investigation by the U.S. Drug Enforcement Administration, Homeland Security Investigations, the Fresno Police Department, and the Madera Police Department. Assistant U.S. Attorneys Laurel Montoya and Michael Tierney prosecuted the case.
Fresno Man Charged with Conspiring to Break into a Mail Truck and Other ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against a Fresno resident, charging him with conspiracy, obstruction of correspondence, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, Joaquin Velasco, 22, and another individual conspired to steal mail from a mail truck. On Feb. 26, they broke into a mail truck while the mail carrier was using the vehicle to deliver mail on a mail route. They removed multiple bags of mail and a white tray of mail and fled the area with the stolen mail in their vehicle. Velasco took the mail, before it was delivered to the person to whom it was directed, with the intent to obstruct the correspondence.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Alexandre Dempsey is prosecuting the case.
If convicted, Velasco faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Frankfort Man Pleads Guilty to Attempting to Entice a Minor OnlineRead the Press Release
FRANKFORT, Ky.- A Frankfort, Ky., man, Ricky Joe Cornish Jr., 33, pleaded guilty in federal court on Thursday, before U.S. District Judge Gregory F. VanTatenhove, to using the internet to attempt to persuade, induce, or entice a minor to engage in sexual activity. .
According to his plea agreement, on May 16, 2019, Cornish contacted an individual who self-identified as a 15-year-old female living in Franklin County, Kentucky, using the MeetMe/Skout messenger application over the Internet, on his cellular telephone. The person Cornish contacted was, in reality, an adult male investigator with the Kentucky Office of the Attorney General’s Cyber Crimes Branch (“the UC”). The UC indicated that her 17-year-old female cousin was with her, and Cornish expressed interest in having sex with the 17-year-old.
Later on May 16, 2019, Cornish drove to an agreed upon hotel, in order to meet the UC and engage in criminal sexual activity. When Cornish arrived at the agreed-upon meeting place in Franklin County, he was arrested by law enforcement. Law enforcement examined his cell phone, which revealed the conversation with the UC, as well as a similar conversation with another presumably minor female.
Cornish was indicted in March 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Ralph Gerds, Assistant Special Agent in Charge, U.S. Secret Service Louisville Field Division; and Daniel Cameron, Attorney General for the Commonwealth of Kentucky, jointly announced the conviction.
The investigation was conducted by United States Secret Service and Kentucky Attorney General’s Cyber Crimes Branch. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney David Marye.
Cornish is scheduled to be sentenced on December 8 in Lexington. He faces a minimum of 10 years and a maximum of life in prison, and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Forsyth man sentenced for attempted attack on the White HouseRead the Press Release
ATLANTA - Hasher Jallal Taheb has been sentenced for attempting an attack upon the White House. Taheb also planned attacks on the Statue of Liberty, Washington Monument, Lincoln Memorial, and a synagogue.
“Taheb painstakingly planned an attack on the White House that potentially jeopardized the lives of White House employees and visitors,” said U.S. Attorney Byung J. “BJay” Pak. “We are thankful to members of our community and our federal and state law enforcement partners who identified Taheb’s scheme and worked cooperatively to bring him to justice.”
“Taheb planned to conduct a terrorist attack on the White House as part of what he claimed was his obligation to engage in jihad,” said Assistant Attorney General for National Security John C. Demers. “And that was just one of the iconic American landmarks he wanted to target. Thanks to a tip from a member of the community and the work of the agents, analysts, and prosecutors responsible for this case, the threat posed by the defendant was neutralized and the defendant has now been sentenced for his planned terrorist attack.”
“Because of a tip from the public, the FBI Atlanta Joint Terrorism Task Force and our law enforcement partners began a year-long investigation that resulted in Taheb's arrest and potentially saved many lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The phrase 'If you see something, say something' may seem trite, but our citizens are our eyes and ears in our communities, one of our most important weapons in fighting terrorism, and this case exemplifies that.”
According to U.S. Attorney Pak, the charges and other information presented in court: In March 2018, a member of the Atlanta community reported concerns about Taheb to a local law enforcement agency, which then contacted the FBI. The community member reported that Taheb had become radicalized and was making plans to travel abroad. During an undercover operation conducted by the FBI, federal investigators learned that Taheb, in fact, applied for a passport and planned to travel overseas. At the same time, Taheb had begun planning domestic attacks in the United States. His targets initially included the White House and the Statue of Liberty. In December 2018, Taheb broadened his prospective targets in the Washington, D.C. area, to include the Washington Monument, the White House, the Lincoln Memorial, and a synagogue.
During undercover meetings with Taheb in January 2019, Taheb provided sketches of the White House and described the types of weapons and explosives he intended to use in the attacks, including semi-automatic weapons, improvised explosive devices, an anti-tank weapon, and hand grenades. FBI special agents arrested Taheb on January 16, 2019, after Taheb arrived at a pre-arranged location where he expected to obtain semi-automatic assault rifles, explosive devices, and an anti-tank weapon.Federal investigators searched Taheb’s computer following his arrest and found a video that he made. In the video, Taheb addressed “. . . America, its allies, its president, and its people.” He recounted his grievances with American policy and proclaimed that America would not see peace unless it changed its foreign policy, as he was a man who loved death more than Americans love life. He also encouraged other Muslims to fight. After entering his guilty plea, Taheb said that he intended “to carry out a martyrdom operation as a tactic of jihad against America.”
Hasher Jallal Taheb, 23, of Cumming, Georgia, has been sentenced by U.S. District Judge Mark H. Cohen to 15 years in prison to be followed by three years of supervised release. Taheb pleaded guilty to these charges on April 1, 2020.
This case was investigated by the FBI Atlanta Joint Terrorism Task Force. Investigators included the U.S. Secret Service, Homeland Security Investigations, U.S. Customs and Border Protection, Diplomatic Security Service, U.S. Army, Cobb County Police Department, Gwinnett County Police Department, and the FBI. The Forsyth County Sheriff's Office also provided assistance.
The case was prosecuted by Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, and Matthew Carrico, Deputy Chief of the Organized Crime and Gangs Section, and Trial Attorneys Danielle Rosborough and B. Celeste Corlett of the Department of Justice National Security Division.
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.
Forsyth Man Sentenced for Attempted Attack on the White HouseRead the Press Release
Hasher Jallal Taheb, 23, of Cumming, Georgia, has been sentenced to 15 years in prison for attempting an attack upon the White House. Taheb also planned attacks on the Statue of Liberty, Washington Monument, Lincoln Memorial, and a synagogue.
“Taheb planned to conduct a terrorist attack on the White House as part of what he claimed was his obligation to engage in jihad,” said Assistant Attorney General for National Security John C. Demers. “And that was just one of the iconic American landmarks he wanted to target. Thanks to a tip from a member of the community and the work of the agents, analysts, and prosecutors responsible for this case, the threat posed by the defendant was neutralized and the defendant has now been sentenced for his planned terrorist attack.”
“Taheb painstakingly planned an attack on the White House that potentially jeopardized the lives of White House employees and visitors,” said U.S. Attorney Byung J. “BJay” Pak. “We are thankful to members of our community and our federal and state law enforcement partners who identified Taheb’s scheme and worked cooperatively to bring him to justice.”
“Because of a tip from the public, the FBI Atlanta Joint Terrorism Task Force and our law enforcement partners began a year-long investigation that resulted in Taheb's arrest and potentially saved many lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The phrase 'If you see something, say something' may seem trite, but our citizens are our eyes and ears in our communities, one of our most important weapons in fighting terrorism, and this case exemplifies that.”
According to the charges and other information presented in court: In March 2018, a member of the Atlanta community reported concerns about Taheb to a local law enforcement agency, which then contacted the FBI. The community member specifically alerted law enforcement that Taheb had become radicalized and was making plans to travel abroad.
During an undercover operation conducted by the FBI, federal investigators learned in October 2018 that Taheb, in fact, applied for a passport and planned to travel overseas. At the same time, Taheb had begun planning domestic attacks in the United States as part of his desire to engage in “jihad.” His targets initially included the White House and the Statue of Liberty. Later in December 2018, Taheb broadened his prospective targets in the Washington, D.C. area, to include the Washington Monument, the White House, the Lincoln Memorial, and a synagogue.
During undercover meetings with Taheb in January 2019, Taheb produced sketches of the White House and described the types of weapons and explosives he intended to use in the attacks, including semi-automatic weapons, improvised explosive devices, an anti-tank weapon, and hand grenades. FBI special agents arrested Taheb on Jan. 16, 2019, after Taheb arrived at a pre-arranged location where he expected to obtain semi-automatic assault rifles, explosive devices, and an anti-tank weapon.Federal investigators searched Taheb’s computer following his arrest and found a video that he made. In the video, Taheb addressed “. . . America, its allies, its president, and its people.” He recounted his grievances with American policy and proclaimed that America would not see peace unless it changed its foreign policy as he was a man who loved death more than American’s love life. He also encouraged other Muslims to fight.
Hasher Jallal Taheb has been sentenced by U.S. District Judge Mark H. Cohen to 15 years in prison to be followed by three years of supervised release. Taheb pleaded guilty to these charges on April 1, 2020.
This case was investigated by the FBI’s Joint Terrorism Task Force, which includes the U.S. Secret Service. The Forsyth County Sheriff Office and Gwinnett County Police Department also provided assistance.
The case was prosecuted by Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, and Matthew Carrico, Deputy Chief of the Organized Crime and Gangs Section, and Trial Attorneys Danielle Rosborough and B. Celeste Corlett of the Department of Justice National Security Division.
Former West Virginia University professor pleads guilty to wire fraud and tax fraudRead the Press Release
CLARKSBURG – Dr. Qingyun Sun, of Morgantown, West Virginia, has admitted to defrauding West Virginia University and filing a false tax return, both offenses arising out of his official travel to China, U.S. Attorney Bill Powell announced.
Sun, age 58, pleaded guilty to a two-count information charging him with wire fraud and filing a false tax return. Sun was a Chinese National employed by WVU as an associate professor and the associate director of the United States-China Energy Center at the University. As a part of his employment at WVU, through the West Virginia Development Office, he also acted as the Governor’s assistant for China affairs. He was also employed by Synfuels Americas Corporation, an energy conversion technology provider of coal-to-liquids and gas-to-liquids processes located in Sterling, Virginia, but headquartered in Beijing, China. From July 2011 to May 2015, Peabody Energy Generation Holding Company based in St. Louis, Missouri, paid consulting fees to Energy United LC, a consulting business Sun established in 2005. The scheme involved Sun’s operation of his consulting business through Energy United.
In 2015, Sun traveled to China on behalf of WVU and the WV Development Office to prepare for an upcoming visit to China by WVU representatives and to lead a West Virginia industrial delegation for a coal expo in Beijing. Sun booked both a coach flight and a business class flight for this trip, submitting a request for reimbursement to WVU for the coach flight, and submitting a request for reimbursement to Synfuels Americas for the business flight. Sun only used the business class ticket for his trip.
In 2014, Sun filed a joint income tax return with his wife, grossly overstating his business-related travel expenses, when a large sum of those travel expenses were paid for by a State Purchasing Card, or reimbursed to him by WVU and Peabody Energy. He also failed to state any financial interest in, or authority over, a financial account in a foreign country. Sun had an interest in numerous financial accounts in China.
As a part of the plea agreement, Sun has agreed to pay restitution in the amount of $6,233.12 in full to WVU. Sun is no longer employed by WVU.
Sun faces up to 20 years of incarceration and a fine of up to $250,000 for wire fraud and faces up to three years of incarceration and a fine of up to $250,000 for tax fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The FBI and the Internal Revenue Service investigated. WVU cooperated in the investigation of this case.
U.S. Magistrate Judge Michael John Aloi presided.
Former Supervisory Committee Member of Municipal Credit Union Sentenced to 27 Months in Prison for EmbezzlementRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, announced that Joseph Guagliardo, a/k/a “Joseph Gagliardo,” a former New York City Police Department (“NYPD”) officer and former member of the supervisory committee (the “Supervisory Committee”) of Municipal Credit Union (“MCU”), a non-profit financial institution, was sentenced today in Manhattan federal court to 27 months in prison for abusing his leadership position at MCU to embezzle more than $400,000. Guagliardo previously pled guilty to defrauding a federally insured credit union before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “For years, Joseph Guagliardo betrayed the trust of MCU’s members, who elected him to supervise and protect MCU, by abusing his position to steal hundreds of thousands of dollars. Guagliardo did so with the complicity of the now imprisoned former CEO of the credit union, whom he provided with a steady stream of painkillers. Guagliardo will now serve a substantial prison sentence for his crime.”
According to the allegations contained in the Complaint, the Information, other filings in Manhattan federal court, statements made in court, and publicly available documents:
MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”). MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 500,000 members, and with more than $2.9 billion in member accounts, each of which is federally insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA. Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York State governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.
GUAGLIARDO is a former officer with the NYPD and a former Supervisory Committee member of MCU, a volunteer position. In or about 1993, GUAGLIARDO joined the Supervisory Committee, and remained in that position until he was removed from that position by the New York State Department of Financial Services on or about May 24, 2018, except for a brief period of time when he served as a member of MCU’s Board of Directors in or about 2008.
Under New York banking law, the Supervisory Committee’s duties included supervision of the actions of MCU’s Board of Directors and officers. MCU’s written conflict of interest policy, which was regularly distributed to Board members, Supervisory Committee members, and others, provided, among other things, that members of MCU’s “Board of Directors and Supervisory Committee may not do business with the Credit Union, either individually or as representative of any business entity.”
From 2009 through May 2018, in violation of MCU policy and his fiduciary duty as a member of the Supervisory Committee, GUAGLIARDO engaged in a scheme to obtain money from MCU to which he knew he was not entitled, and took steps to conceal his efforts. Among other things, GUAGLIARDO caused MCU to direct more than $250,000 to a security company created and controlled by GUAGLIARDO, but operated in another’s name, and then directed that money from that company be paid to him and to his family members. GUAGLIARDO also over-billed MCU more than $200,000 for purported web advertising services provided by a non-profit organization that GUAGLIARDO also controlled.
In addition, during substantially the same period in which GUAGLIARDO was committing these offenses, GUAGLIARDO unlawfully distributed controlled substances to the former chief executive officer of MCU, Kam Wong, in the form of prescription drugs, some of which were obtained from GUAGLIARDO’s spouse, who worked as a doctor affiliated with a public hospital, and some of which were obtained from a different doctor affiliated with the NYPD.
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In addition to his prison term, GUAGLIARDO, 63, of Brooklyn, New York, was sentenced to two years of supervised release, and was ordered to forfeit $425,514, and to pay $468,189 in restitution to MCU and a fine of $10,000.
Ms. Strauss praised the outstanding work of the Special Agents of the United States Attorney’s Office. Ms. Strauss also thanked the New York County District Attorney’s Office, the New York State Department of Financial Services, and the New York City Police Department Internal Affairs Bureau for their assistance. She noted that the investigation is ongoing.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark and Daniel C. Richenthal are in charge of the prosecution, with assistance of Special Assistant U.S. Attorney Alona Katz from the New York County District Attorney’s Office.
Former Smartbank Vice President of Loan Operations Sentenced for Embezzlement SchemeRead the Press Release
KNOXVILLE, Tenn. – On July 22, 2020, Connie S. Clabo, 54, of Sevierville, was sentenced by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of her plea agreement, Clabo pleaded guilty to an information in November 2019. The information charged Clabo with one count of embezzlement and one count of filing a false tax return. Clabo was sentenced to 15 months in prison, followed by four years of supervised release. Clabo was also ordered to pay restitution of $516,630.06.
From 2013 through February 2018, SmartBank employed defendant as its vice president of loan operations. During that time, Clabo abused her position of private trust with SmartBank by misusing her general-ledger and loan-operations oversight authority to steal, embezzle, misapply, and conceal the theft, embezzlement, and misapplication of more than $600,000 of Smartbank’s money, funds, and credits. Clabo’s conduct was not isolated, but reflected a pattern of repeated deceptive conduct over many years. Clabo abused her managerial position at SmartBank and used her knowledge of SmartBank’s internal controls for personal advantage intending to defraud SmartBank.
In addition to embezzling and the misapplication of funds from SmartBank, Clabo filed false tax returns for 2014 through 2017 that failed to include as income the money she embezzled from her employer, resulting in additional income tax owed of over $89,000.
This prosecution was the result of a joint investigation by the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, the Office of Inspector General for the Federal Housing Finance Agency, Federal Bureau of Investigation, and IRS Criminal Investigations.
Assistant U.S. Attorney Trey Hamilton represented the United States.
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Former SCANA Executive Pleads Guilty to Conspiracy to Commit Mail and Wire FraudRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Stephen A. Byrne, 60, former Executive Vice President of SCANA, pleaded guilty in federal court to conspiracy to commit mail and wire fraud.
Today’s plea is the result of an exhaustive and multi-year joint investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI), the U.S. Securities and Exchange Commission (SEC), the South Carolina Attorney General’s Office, and the South Carolina Law Enforcement Division (SLED). The plea agreement requires that Byrne cooperate with law enforcement officials and includes an agreement with Dominion Energy that will, over time, provide at least four billion dollars of South Carolina ratepayer relief.
“This office will always protect the people of South Carolina and hold accountable those who seek to use positions of trust and responsibility to bilk taxpayers,” said U.S. Attorney McCoy. “As noted in the record, the Defendant conspired with others to lie about the progress of the V.C. Summer Nuclear Station so SCANA could wrongly increase rates on hard-working South Carolinians and qualify for up to $1.4 billion in tax credits. We will not allow this conduct to go unpunished. I also want to thank our federal and state partners for their invaluable contribution to this investigation.”
“This conspiracy to defraud SCANA customers is breathtaking in scope and audacity,” said FBI Special Agent in Charge Jody Norris. “The FBI remains committed to ensure all those responsible for this crime, which only served to enrich a few by robbing families and communities within South Carolina, are held accountable. I thank SLED for its assistance in this complex and extensive investigation.”
“I appreciate the efforts of this joint federal and state investigation,” said South Carolina Attorney General Alan Wilson. “We’ve long argued that the law allowing SCANA to charge customers billions of dollars for a nuclear plant that wasn’t even operating was unconstitutional. Now, a former SCANA executive is being held criminally accountable for his part in the project.”
Evidence presented to the court showed that this case arises out of the failed nuclear project at the V.C. Summer Nuclear Station in Jenkinsville, South Carolina. In 2008, SCANA Corporation and its subsidiary South Carolina Electric & Gas Company (SCE&G) announced their intention to build two new nuclear units with their minority partner, the South Carolina Public Service Authority, a state-owned public power and water utility commonly known as Santee Cooper.
Byrne, who served as SCANA’s Executive Vice President and SCE&G’s President of Generation and Transmission and Chief Operating Officer, oversaw all nuclear operations for SCANA, including the construction of the two new nuclear units.
From its inception, substantial delays and cost overruns plagued the project. In late 2015 and early 2016, Byrne and others in SCANA’s executive leadership were aware that without extraordinary progress, the project was at risk of not completing the construction of both units in time to qualify for the federal nuclear production tax credit, which will expire on December 31, 2020, and was worth up to $1.4 billion. In or around June 2016, Byrne became aware that efforts to improve the pace and productivity of the project were insufficient to meet the nuclear production tax credit deadline.
At that time he joined a conspiracy with other senior SCANA executives to defraud customers of money and property through material false and misleading statements and omissions. In furtherance of the conspiracy, Byrne and his coconspirators made false and misleading statements to the South Carolina Public Service Commission (PSC), the Office of Regulatory Staff (ORS), and the public. Byrne and his coconspirators used both wires and mails in furtherance of their scheme to defraud.
For example, on July 1, 2016, Byrne submitted written testimony to the PSC representing that “SCE&G’s construction experts have reviewed [the consortium’s] schedule and found that its scope and sequencing is logical and appropriate” and that “SCE&G has carefully reviewed and evaluated all information that is available related to the project and schedule and finds it to be reasonable.” In truth, at the time of this statement, Byrne believed that the schedule was unreliable and unlikely to be achieved.
Further, Byrne testified that SCE&G’s contractors “have a reasonable construction plan in place to achieve the [guaranteed substantial completion dates]” such that “the construction schedule . . . is a reasonable and prudent schedule for completing the units.” In truth, Byrne believed that those dates – and therefore the production tax credit deadline that closely followed – were unlikely to be achieved.
Contrary to his and others’ public statements, Byrne was aware in June 2016 that the project construction schedule and completion dates were unrealistic and unlikely to be achieved, and both units of the project were unlikely to be completed in time to qualify for up to $1.4 billion in federal nuclear production tax credits. His false and misleading statements, among others made by his coconspirators, allowed SCANA to obtain rate increases imposed on SCANA’s rate-paying customers and used to finance the project.
Byrne faces a maximum penalty of five years in federal prison. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence him after receiving and reviewing a sentencing report prepared by the United States Probation Office. Assistant United States Attorneys Jim May, Brook Andrews, Winston Holliday, and Emily Limehouse are prosecuting the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Congressman Charged with Ballot Stuffing, Bribery, and ObstructionRead the Press Release
A former U.S. Congressman was charged Tuesday in an indictment unsealed today, with conspiring to violate voting rights by fraudulently stuffing the ballot boxes for specific candidates in the 2014, 2015, and 2016 primary elections, bribery of an election official, falsification of records, voting more than once in federal elections, and obstruction of justice.
Michael “Ozzie” Myers, 77, of Philadelphia, Pennsylvania, is charged with conspiring with and bribing the former Judge of Elections for the 39th Ward, 36th Division, Domenick J. Demuro. Demuro, who pleaded guilty previously in federal court in Philadelphia, was responsible for overseeing the entire election process and all voter activities of his division in accord with federal and state election laws.
“Free and fair elections are the hallmark of our system of government,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Department of Justice has zero tolerance for corruption of the electoral process, and we will spare no effort in investigating and prosecuting those who would seek an unfair advantage at the polls by bribing state and local officials responsible for ensuring the fairness of our elections.”
“Voting is the cornerstone of our democracy. If only one vote has been illegally rung up or fraudulently stuffed into a ballot box, the integrity of that entire election is undermined,” said U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania. “Votes are not things to be purchased and democracy is not for sale. If you are a political consultant, election official, or work with the polling places in any way, I urge you to do your job honestly and faithfully. That is what the public deserves, it is what democracy demands, and it is what my office will enforce.”
“Transparent and fair elections are integral to the proper functioning of our democracy,” said Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Division. “Those who seek to corrupt the vote threaten the public’s trust in the process and must be brought to justice. The FBI is determined to protect the integrity of our electoral system.”
“These charges, announced today by the Justice Department, clearly illustrate allegations of absolute disregard for the sanctity of our electoral system,” said Captain Leo D. Hannon Jr., Director of the Special Investigations Division of the Pennsylvania State Police. “As disheartening as this conduct may be for the voting public in Philadelphia and elsewhere, the citizens we serve should be reassured by the fearless and tireless work of the attorneys, agents, and troopers tasked with the continuation of this active investigation. Particularly in the current atmosphere of impending elections, the Pennsylvania State Police prioritize investigations into allegations of voter fraud and public corruption.”
Myers is charged with bribing Demuro to illegally add votes for certain candidates of their mutual party in primary elections. Some of these candidates were individuals running for judicial office whose campaigns had hired Myers, and others were candidates for various federal, state, and local elective offices whom Myers favored for a variety of reasons. According to the indictment, Myers would solicit payments from his clients in the form of cash or checks as “consulting fees,” and then use portions of these funds to pay Demuro and others in return for tampering with election results.
After receiving payments ranging from between $300 to $5,000 per election from the consultant, the court papers allege Demuro would add fraudulent votes on the voting machine – also known as “ringing up” votes – for Myers’ clients and preferred candidates, thereby diluting the value of ballots cast by actual voters. At Myers’ direction, Demuro would add these fraudulent votes to the totals during Election Day, and then would later falsely certify that the voting machine results were accurate. Myers is also accused of directing Demuro to lie about the circumstances of the bribes and the ballot-stuffing scheme to investigators.
This case is being investigated by the FBI with assistance from the Pennsylvania State Police. It is being prosecuted by Richard C. Pilger, Director of the Elections Crimes Branch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Eric L. Gibson.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Florida Woman Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 35-year-old St. Petersburg, Florida woman has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Erica Ann Lang pleaded guilty on Feb. 10, 2020, to conspiracy to distribute and possess methamphetamine and was sentenced to 37 months in federal prison today by U.S. District Judge Marcia A. Crone. Ryan Andrew Davis, 35, of Clearwater, Florida pleaded guilty to the same charge on Jan. 16, 2020, and was sentenced to 162 months in federal prison on July 9, 2020.
According to information presented in court, on Oct. 24, 2019, Lang and Davis were stopped for a traffic violation on Interstate Highway 10 East in Beaumont, Texas. A certified narcotics detection dog alerted on the car and a search was performed revealing approximately one kilogram of methamphetamine hidden in the trunk of the vehicle.
This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.
Five-Time Felon Sentenced for Illegal Possession of Firearm in Connection with December 2016 GunfightRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Antoni Peralta, 34, of Anchorage, was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 78 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and associated ammunition, in connection with a December 2016 gunfight in a residential neighborhood. Peralta was found guilty following a three-day federal jury trial in September 2019.
According to evidence presented at trial, on the evening of Dec. 16, 2016, Peralta had a confrontation with a man in an Anchorage bar. Peralta then got into his vehicle and left the bar, turning onto Donna Road, out of suspicion that the man had followed him. He saw a black SUV and a white SUV, and gunshots rang out down the residential street. Peralta reached for his Smith & Wesson .40 caliber pistol and Federal .40 caliber ammunition and shot at the SUVs. Peralta, injured by gunfire, crawled from his vehicle to the steps of a nearby home while the SUVs left the area.
Law enforcement officers arrived to investigate the shooting and approached Peralta who was still at the steps of a nearby home. He required medical treatment and was hospitalized. During a search of Peralta’s bullet-riddled vehicle, police found a pistol with a live round and a magazine with additional ammunition.
Peralta has five prior convictions within the state of Alaska for crimes including robbery, vehicle theft, felon in possession of a firearm, and failure to stop at the direction of a police officer. As someone previously convicted of a felony offense, Peralta was prohibited from possessing firearms or ammunition.
As part of his 2005 robbery conviction, Peralta was involved in a gang-related shooting that led to the death of a 14-year-old child. During the investigation, Alaska State Troopers approached Peralta and others, who fled to a vehicle. Peralta, a passenger, pushed the driver out of the vehicle, so he could take the wheel and lead the troopers on a high-speed chase. Peralta’s fleeing vehicle stopped only after the troopers successfully used spike strips. There were six people in the car, including an infant.
At today’s sentencing hearing, the Court noted that Peralta’s crime was committed while he was on supervision for his previous felon in possession conviction in 2014. Judge Burgess stated that, “nothing up to this point has shown me that he [Peralta] has changed.”
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI) conducted the investigation, with assistance from the Alaska Scientific Crime Detection Laboratory, leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Karen Vandergaw and Allison O’Leary.
Felon Sentenced to More Than a Decade in Federal Prison for Dealing Heroin While Discharging a FirearmRead the Press Release
OKLAHOMA CITY – TIAHMO LENELL DRAINE, 47, of Oklahoma City, has been sentenced to 130 months in prison for possessing heroin with intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Timothy J. Downing.
In October 2019, a federal grand jury indicted Draine, and in January 2020 he was convicted after a federal jury trial. During the trial, the government presented evidence that shortly after midnight, on July 3, 2019, a woman called 911. The woman reported she has been chased by an individual driving a gray truck who had shot at her during an altercation that originated at a convenience store. An Oklahoma City Police Officer responded and pursued the truck as it exited I-44, entered a residential neighborhood, and pulled into a yard. The driver, Draine, exited the truck wearing a backpack. He then hid out of view towards the front of the truck. Draine returned, placed the backpack on the driver’s seat, and ultimately followed commands from the officer to walk towards him with his hands up. After law enforcement detained Draine, they located a .40 caliber semi-automatic pistol under the truck. Inside the backpack, law enforcement found heroin, a digital scale, and drug ledgers. An investigating officer returned to the convenience store where the incident originated and located a spent shell casing near the gas pumps. A firearms examiner later determined the .40 caliber found in Draine’s possession fired the shell casing located near the gas pumps.
At a sentencing hearing earlier this week, Senior U.S. District Judge Stephen P. Friot sentenced Draine to serve 130 months in prison, followed by three years of supervised release. The sentence included 70 months on each of the heroine distribution and firearm possession counts to run concurrently, and 60 months for possessing a firearm in furtherance of a drug trafficking crime to run consecutively to the other two counts. In announcing the sentence, Judge Friot took into account the nature and circumstances of the offense and Draine’s criminal history. Public records reflect Draine held felony convictions for Assault and Battery with a Deadly Weapon With Intent to Kill and Domestic Assault and Battery when the incident occurred.
This case is the result of an investigation by the Oklahoma City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Ashley L. Altshuler prosecuted the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The local implementation of these initiatives is through “Operation 922,” which prioritizes the prosecution of federal gun crimes in connection with domestic violence.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Federal Inmate Sentenced for Escaping from Beaumont FacilityRead the Press Release
BEAUMONT, Texas –A 26-year-old federal inmate has been sentenced for escaping from a Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Leo Martinez of Miami, Florida, pleaded guilty on March 11, 2020, to escaping from federal custody and was sentenced to an additional 18 months in federal prison by U.S. District Judge Marcia Crone today.
According to information presented in court, on Oct. 11, 2019, the Jefferson County Sheriff’s Office received an anonymous tip alerting them that inmates at the Bureau of Prisons Camp Facility in west Jefferson County were planning to escape from the facility in order to retrieve contraband that had been left for them in a field off Hillebrandt Road. Law enforcement officers surrounded the area in concealed locations and within several hours observed four inmates approaching on foot. All four inmates were apprehended after attempting to flee. After they were captured, a search of the inmates revealed several cellular telephones and a bottle of whisky. All four were indicted by a federal grand jury on Nov. 6, 2019.
Martinez was serving a federal prison sentence for a drug trafficking conviction out of the Western District of Oklahoma. Martinez’s new prison sentence will begin once he has served the remainder of his original prison sentence.
This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
El Departamento de Justicia Resuelve Acusaciones Relacionadas con la Inmigración contra una Agencia de Contratación Legal y un Bufete de AbogadosRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que había llegado a un acuerdo con Arnold & Porter Kaye Scholer LLP (Arnold & Porter), un bufete de abogados nacional, y Law Resources Inc. (Law Resources), una empresa de contratación legal con sede en Washington, D.C., lo que resuelve acusaciones de que las compañías discriminaban, por motivos de estatus de ciudadanía, en los procesos de contratación.
El acuerdo resuelve acusaciones de que Law Resources, por orden de Arnold & Porter, eliminó a ciudadanos estadounidenses con doble nacionalidad y a individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. como candidatos para un proyecto de revisión de documentos por motivos de su estatus de ciudadanía, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés). Por otra parte, el acuerdo resuelve las acusaciones de que Law Resources tomó represalias contra una trabajadora afectada cuando ella se opuso a la restricción relacionada con el estatus de ciudadanía.
«Estados Unidos de América es la tierra de oportunidades, y el Gobierno de los Estados Unidos sigue plenamente comprometido al principio fundamental que en este país toda persona que cuente con la autorización legal necesaria para trabajar deberá tener la posibilidad de perseguir la felicidad ganándose la vida sin sufrir la humillación de ser discriminada por motivos de lugar de donde proviene. Nuestras leyes protegen este ideal de muchas maneras, entre ellos al prohibir las restricciones ilícitas a la contratación que se basen en el estatus de ciudadanía», afirmó el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «Esperamos colaborar con Law Resources y Arnold & Porter para asegurar que sus procedimientos de contratación cumplen plenamente con la prohibición de la ley de Inmigración y Nacionalidad contra la discriminación en el empleo por motivos de estatus de ciudadanía».
El Departamento inició su investigación después de que una ciudadana con doble nacionalidad presentó una querella de discriminación contra Law Resources, lo que llevó al Departamento a dar pie a una investigación independiente de Arnold & Porter.
Según la disposición antidiscriminatoria de la INA, por lo general, es ilegal para los empleadores discriminar a alguien durante el proceso de contratación por motivos de su estatus de ciudadanía, a no ser que sea obligados a hacerlo por ley o un contrato gubernamental. El Departamento determinó que ni Arnold & Porter ni Law Resources tenían un fundamento jurídico para las restricciones relacionadas con la ciudadanía en su proceso de contratación. Asimismo, la disposición antidiscriminatoria de la INA prohíbe que los empleadores tomen represalias contra trabajadores porque estos se hayan opuesto a una conducta ilícita por parte del empleador o a cualquier otra conducta que ellos crean, por motivos fundados, que constituye discriminación ilícita.
Las investigaciones concluyeron que Arnold & Porter y Law Resources implementaron una política de excluir a personas con doble nacionalidad e individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. a la hora de reclutar y contratar a empleados temporales para trabajar en un proyecto de Arnold & Porter de revisión de documentos en otoño del 2018. La investigación del Departamento halló que Arnold & Porter malinterpretó los requisitos de los Reglamentos para el Tráfico Internacional de Armas. Asimismo, las investigaciones concluyeron que, después de que la querellante se opuso a la restricción que tiene que ver que el estatus de ciudadanía, Law Resources, por su cuenta, tomó represalias en su contra al agregarla a una lista de personas que no serían contratadas en el futuro.
Conforme los términos del acuerdo conciliatorio, Arnold & Porter y Law Resources pagarán una sanción civil que asciende a 56.500 $ por las acusaciones de discriminación por motivos de estatus de ciudadanía. Law Resources pagará por separado una sanción civil de 3.000 $ y ofrecerá 11.875 $ por concepto de pagos retroactivos a la trabajadora afectada con el fin de resolver las acusaciones de represalias. Juntas, las compañías contribuirán 55.000 $ a un fondo de pagos retroactivos para otros trabajadores afectados, capacitarán a los empleados relevantes acerca de la disposición antidiscriminatoria de la INA y se someterán a la supervisión del Departamento durante dos años.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; represalias o la intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía, o bien por su nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sometidos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery. Miembros del público pueden informarnos de posibles vulneraciones de derechos civiles mediante el portal de declaraciones de la División de Derechos Civiles.
Eighteen Charged in Wide-Ranging Fentanyl, Heroin, Crack, and Cocaine ConspiracyRead the Press Release
BOSTON – Eighteen individuals from Massachusetts and elsewhere were charged in a superseding indictment unsealed today in federal court in Boston on charges related to a wide-ranging fentanyl, heroin, crack, and cocaine trafficking conspiracy.
Eight individuals, Pedro Baez, 50, of Fitchburg; Anthony Baez, 31, of Fitchburg; Amanda Ford, 33, of Fitchburg; Monica Troche, 27, of Fitchburg; Branny Taveras, 37, of Fitchburg; Shastaalena Blair, 39, of Fitchburg; Jessica Hughes 28, of Gardner; and Valerie Lucier, 30, of Fitchburg, were previously arrested and charged in a November 2019 indictment. Pedro and Anthony Baez are both detained pending trial. The superseding indictment unsealed today charges eight additional individuals who were arrested: Pablo Vidarte Hernandez, 46, of Fitchburg; Adiangel Paredes, 33, of Leominster; Kevin Martinez, 41, of Fitchburg; Ricky Figueroa, 29, of Fitchburg; Pedro Villot-Santiago, 30, of Fitchburg; Ivan Torres, 30, of Fitchburg; Jonathan Villot, 29, of Fitchburg; and Hector Matos, 29, of Whitinsville. Two other individuals were also indicted and remain at large.
The November 2019 indictment charged the defendants with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, 400 grams or more of fentanyl, 100 grams or more of heroin, and 28 grams or more of cocaine base (crack). Anthony Baez and Monica Troche were also charged with five counts of distribution and possession with intent to distribute and distribution of fentanyl, heroin, and cocaine.
The superseding indictment adds defendants Pablo Vidarte Hernandez, Adiagel Paredes, Kevin Martinez, Ricky Figueroa, and Pedro Villot-Santiago to count one and alleges the conspiracy involved one kilogram or more of heroin, 280 grams or more of cocaine base, 400 grams or more of fentanyl, and 500 grams or more of cocaine. The superseding indictment charges Pedro Baez and Anthony Baez with distribution and possession with intent to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and cocaine. In addition, the superseding indictment charges Ricky Figueroa, Pedro Villot-Santiago, Ivan Torres, Jonathan Villot, Hector Matos, and two others with conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base and 500 grams or more of cocaine.
The charge of conspiracy to distribute one kilogram or more of heroin, 280 grams or more of cocaine base, 400 grams or more of fentanyl, and 500 grams or more of cocaine provides for a sentence of up to life in prison, a term of supervised release of at least three years and up to life, and a fine of up to $10 million. The charge of conspiracy to distribute 280 grams or more of cocaine base and 500 grams or more of cocaine provides for a sentence of up to life in prison, a term of supervised release of at least four years and up to life, and a fine of up to $10 million. The other drug trafficking charges provide for a sentencing range of five years to a lifetime in prison, a term of supervised release of at least four years and up to life, and a fine of between $5 million to $10 million. Due to a previous conviction of a qualifying drug trafficking offense, Pedro Baez faces enhanced mandatory minimum sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Fitchburg and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dorchester Man Charged in Second Superseding Indictment with Sex Trafficking over 15 Year PeriodRead the Press Release
BOSTON – A Dorchester man and a Rehoboth woman have been indicted by a federal grand jury in Boston on sex trafficking charges.
Bruce Brown, a/k/a “Arki,” 41, of Boston, was indicted in a second superseding indictment unsealed today in federal court. The second superseding indictment charges Brown with an additional count of sex trafficking by force, fraud or coercion and an additional count of conspiracy to commit sex trafficking. It also charges Muriel Close, 42, of Rehoboth, with conspiracy to commit sex trafficking.
Brown was previously indicted on Feb. 13, 2020, with four counts of sex trafficking by force, fraud, or coercion; one count of sex trafficking of a minor by force, fraud and coercion; one count of transportation of a minor for purposes of prostitution; and one count of conspiracy to commit sex trafficking. On June 16, 2020, Brown was charged in a superseding indictment with obstruction of justice and witness tampering for his attempt to influence a victim’s testimony related to the pending charges against him. Brown dubbed this scheme his “Plan B.”
According to the second superseding indictment, Brown engaged in the sex trafficking of five victims over a 15 year period beginning in June 2004 and continuing through approximately December 2019.
Close’s conspiracy charges are based on her conduct involving three victims, two from 2012, and one from 2019.
The charges of sex trafficking and conspiracy to commit sex trafficking provide for a sentence of up to life in prison, five years of supervised release and a $250,000 fine. The sex trafficking statute also imposes a mandatory minimum sentence of 15 years for offenses committed by means of force, threats of force, fraud or coercion. Sentences are imposed by a federal district court judge based on 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. The Newton Police Department provided valuable assistance in the investigation. The case is being prosecuted by Lelling’s Civil Rights Enforcement Team.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Pleads Guilty in Manhattan Federal Court to Illegal Distribution of Oxycodone from Brooklyn ClinicRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Raymond Donovan, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), Leigh-Alistair Barzey, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General’s Defense Criminal Investigative Service (“DCIS”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced that DMITRY DONSKY, a doctor who practiced in New York, pled guilty today to an Information charging him with conspiring to illegally distribute large quantities of oxycodone from a medical clinic in Brooklyn, New York. DONSKY pled guilty before U.S. District Judge Paul A. Crotty in Manhattan federal court.
Acting U.S. Attorney Audrey Strauss said: “As he admitted in court today, Dmitry Donsky violated the oath of his profession and broke the law by peddling more than half a million oxycodone pills to ‘patients’ he knew had no medical need for them. Now he awaits sentencing for his crime.”
DEA Special Agent-in-Charge Raymond Donovan said: “Dr. Donsky’s plea is evidence that he knows the difference between right and wrong. As a trusted medical professional he betrayed his patients, their loved ones, and his community. I commend our law enforcement partners, and the Southern District of New York, for their diligent efforts identifying, investigating, and prosecuting this case.”
DCIS Special Agent in Charge Leigh-Alistair Barzey said: “The risks created by the improper prescription of oxycodone are well documented and tragically real. Today’s guilty plea is the result of a joint effort and demonstrates the DCIS’s ongoing commitment to work with the U.S. Attorney’s Office, the DEA, and other law enforcement partners, to protect U.S. military members and their dependents from the dangers posed by medical professionals who illegally prescribe oxycodone.”
NYPD Commissioner Dermot Shea said: “Our work here stopped a doctor who betrayed his oath to victimize vulnerable New Yorkers. The case highlights the NYPD’s continuing fight, with our law enforcement partners, against this ongoing epidemic.”
According to the allegations contained in the Information and statements made during today’s plea proceeding:
DONSKY, a licensed physician, practiced at a medical clinic in Brooklyn. From 2014 to 2019, despite specializing in internal medicine and pediatrics, DONSKY illicitly prescribed over 500,000 oxycodone 30-milligram pills to individuals he knew had no legitimate medical need for the pills. DONSKY often performed little or no physical examination on purported patients receiving the illicit oxycodone prescriptions. Patients received as many as 360 oxycodone 30-milligram pills each month, and several patients even received duplicate monthly prescriptions of oxycodone from DONSKY.
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DONSKY, 60, of Marlboro, New Jersey, pled guilty to one count of narcotics distribution conspiracy, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
DONSKY is scheduled to be sentenced by Judge Crotty on October 22, 2020.
Ms. Strauss praised the outstanding investigative work of DCIS and of the DEA’s New York Tactical Diversion Squad, which comprises agents and officers from the DEA, the NYPD, the New York State Police, New York State Department of Financial Services, New York National Guard, New York City Department of Investigation, and New York State Department of Health Bureau of Narcotics Enforcement. Ms. Strauss also thanked the U.S. Department of Health and Human Services - Office of Inspector General for its assistance.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Juliana N. Murray is in charge of the prosecution.
Department of Justice Issues Business Review Letter to Monoclonal Antibody Manufacturers to Expedite and Increase the Production of Covid-19 Mab TreatmentsRead the Press Release
The United States Department of Justice announced today that it will not challenge proposed efforts by Eli Lilly and Company, AbCellera Biologics, Amgen, AstraZeneca, Genentech, and GlaxoSmithKline (together, the Requesting Parties) to share information about manufacturing facilities and other information that could enable them to expedite the production of monoclonal antibody treatments that are determined to be safe and effective to treat COVID-19.
As the letter explains, the demand for monoclonal antibodies targeting COVID-19 is likely to exceed what any one firm could produce on its own. Moreover, waiting until regulators approve specific treatments before scaling up manufacturing might delay access to these potentially life-saving medicines by many months, which adversely could affect the nation’s efforts to fight COVID-19. The Requesting Parties aim to address both problems by sharing information about their manufacturing facilities, capacity, raw materials and supplies that could be used to produce successful COVID-19 monoclonal antibody treatments subject to important safeguards and limits, so that facilities can be ready to manufacture treatments once they prove safe and effective. Among other competitive safeguards, they have committed that they will not exchange information related to the prices of those treatments or the costs of inputs for or production of those treatments. Their efforts likely will expedite and expand the overall production of monoclonal antibody treatments targeting COVID-19 in a way that is unlikely to lessen competition.
“This critical collaboration will help Americans get access to potentially life-saving therapeutics sooner than otherwise would be possible,” Assistant Attorney General Makan Delrahim said. “It also will help preserve Americans’ ability to benefit from the free market competition that drives innovation and access to drugs in the biotech and pharmaceutical industry.”
The Requesting Parties submitted their business review request pursuant to the expedited, temporary review procedure detailed in the Joint Antitrust Statement Regarding COVID-19 (the “Joint Statement”) issued on March 24 by both the Department and the Federal Trade Commission. According to the Joint Statement, the Department will aim to resolve COVID-19-related business review requests like this one within seven (7) calendar days of receiving all necessary information.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division. After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
Council Bluffs Man Sentenced to Prison for Possession of a FirearmRead the Press Release
COUNCIL BLUFFS, Iowa – United States Attorney Marc Krickbaum announced on Tuesday, July 14, 2020, United States District Court Judge Rebecca Goodgame Ebinger sentenced Jimmy Joe Gappa, age 27, of Council Bluffs, to 63 months in prison for felon and drug user in possession of a firearm. Gappa was ordered to serve a period of supervised release of three years to follow his prison term and pay a $100 special assessment payable to the Crime Victims’ Fund. There is no parole in the federal system.
On June 8, 2019, Gappa and a friend were in Mills County driving when their vehicle broke down. As they walked away from the vehicle, a law enforcement officer stopped them. Gappa had an outstanding warrant and he was arrested. Gappa was in possession of a stolen pistol, ammunition, and methamphetamine.
This investigation was conducted by the Mills County Sheriff’s Office and the Southwest Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted sex offender pleads guilty to operating a child pornography chat groupRead the Press Release
GAINESVILLE, Ga. - Terence Dewayne Dixon has pleaded guilty to conspiracy to advertise child pornography. Dixon ran a Kik chat group that he named “House of 1000 Littles.” In 2018, the chat group involved more than 20 members from around the world who talked about and traded child pornography on a daily basis before the group was shut down in October 2018.
“Dixon and his chat group traded these disgusting files without regard for the lives they impacted,” said U.S. Attorney Byung J. “BJay” Pak. “Individuals who share images of the sexual abuse of children feed the horrific exploitation of children, creating ongoing trauma to these vulnerable young victims and their families each time their image is distributed.”
“It is detestable that this predator delighted in seeing images of children being victimized, but to make matters worse, he organized an online haven for others to discuss and traffic in this filth,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta and its state and local partners will continue to identify and arrest these predators that are victimizing and stealing the innocence of our youth.”
“For this defendant to take the images of innocent children and pass them around in order to exploit them and use them to arouse in a sexual nature is absolutely despicable. The GBI is committed to working with our partners to stop this criminal behavior and protect our young ones,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the charges and other information presented in court: As early as November 2017, Dixon created a chat group on the social media app, Kik, and named it “House of 1000 Littles.” Members of Dixon’s group discussed how they were sexually aroused by children and sent one another links to child pornography files on a daily basis until October 2018. Investigators identified most of the other members of the chat group, living all across the United States, including in Georgia, Michigan, Ohio, Illinois, New York, Louisiana, Tennessee, and California. On one day, in or about January 2018, Dixon shared 21 links. On another occasion, in February 2018, he bragged that his shared link contained 5,000 videos of child pornography.
Sentencing for Terence Dewayne Dixon, also known as “Devilman Crybaby”, 37, of Houston, Texas, has not been scheduled yet.
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, and the Georgia Bureau of Investigation.
Assistant U.S. Attorney Jennifer Keen is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.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.
Convicted Felon Admits Selling Semi-Automatic Rifle in TrentonRead the Press Release
TRENTON, N.J. – A Trenton man today admitted unlawfully possessing a semi-automatic rifle during the course of an attempted sale to another individual, U.S. Attorney Craig Carpenito announced.
Edwin Gaines, 59, pleaded guilty today by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count of possession of a firearm by a convicted felon.
According to documents filed in this case and statements made in court:
On Feb. 15, 2019, Gaines, who previously had been convicted of murder in New Jersey Superior Court and who has other felony convictions, arranged to sell to another individual a Ruger .22 semi-automatic rifle as well as an extended magazine. The purchaser, however, was acting at the direction and supervision of law enforcement. In a video- and audio-recorded transaction in the basement of a Trenton residence, the individual purchased the rifle and magazine from Gaines using money that law enforcement had provided.
The firearm charge to which Gaines pleaded guilty carries a statutory maximum term of 10 years in prison and a fine of $250,000. Gaines’s sentencing is scheduled for Nov. 24, 2020.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson, and detectives from the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Marita Navarro of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Connecticut Substance Abuse Treatment Provider Pays over 354K to Settle Improper Billing AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that RECOVERY NETWORK OF PROGRAMS, INC. (“RNP”), a healthcare organization that provides substance abuse and mental health services in Fairfield County, has entered into a civil settlement agreement with the federal and state governments in which it will pay $354,367 to resolve allegations that it caused overpayments for urine drug testing services to be paid by the Connecticut Medicaid Program.
RNP entered into contracts with the State of Connecticut Department of Social Services ("DSS") to provide behavioral health and substance use disorder services to Medicaid beneficiaries. Medicaid reimburses methadone clinics, such as RNP, utilizing a weekly rate payment for each Medicaid patient provided methadone treatment. Regulations issued by the State of Connecticut in 2013 made it clear that the weekly payment was a “bundled” rate that included intake evaluation; initial physical examination; on-site drug abuse testing and monitoring; and individual, group and family counseling services.
On September 3, 2014, Medicaid issued a Provider Bulletin to all methadone clinics reminding them that the weekly rate payment included reimbursement for on-site drug abuse testing and monitoring.
On February 1, 2015, DSS published on its website an Audit Protocol for methadone clinics. The Audit Protocol stated that if a DSS audit found Medicaid paid another laboratory provider for drug testing within a week of the date a methadone clinic was paid for methadone treatment, Medicaid would reduce the methadone clinic's payment for the methadone treatment service by the cost of the laboratory service.
DSS conducted an audit of RNP and found that both RNP and an independent laboratory billed Medicaid for drug testing performed by the laboratory, contrary to DSS’ weekly rate payment regulation. In January 2016, DSS issued an Audit Report warning RNP that continued non-compliance with the weekly rate payment rule would result in financial disallowances in future audits.
The government alleges that, despite clear guidance from the Medicaid program and the audit finding indicating that on-site drug testing was part of the bundled rate, RNP routinely referred urine drug tests for RNP’s patients to an outside, independent laboratory. As a result, Medicaid paid for the claims twice, once to RNP pursuant to the bundled rate and a second time to the outside laboratory.
To resolve its liability, RNP will pay $354,367 to the federal and state governments for conduct occurring between March 1, 2017 and October 17, 2017.
“Overbilling of Medicaid and other government health insurance programs cannot be tolerated and providers who fail to follow the rules, especially after multiple warnings, face serious consequences,” stated U.S. Attorney Durham.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorneys General Michael Cole and Greggory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Carrizo Springs Man Arrested for Assisting Arsonists in Evading Capture in Connection with Demonstrations after George Floyd Death in MinneapolisRead the Press Release
In Del Rio today, a federal complaint was unsealed against 29-year-old Leeroy Felan for providing false information to federal agents and assisting arsonists in evading arrest, announced U.S. Attorney John F. Bash and U.S. Marshal Susan Pamerleau. Deputy U.S. Marshals arrested Felan in Carrizo Springs on July 21, 2020.
The complaint charges Felan with being an accessory after the fact. According to court records, Felan provided false statements to federal law enforcement officers in order to impede the investigation and arrest of his brother, Jose Felan, Jr., and his brother’s wife, Mena Yousif. Felan also assisted with the transportation of Jose Felan, Jr. and Mena Yousif in order to hinder and prevent both from being apprehended by law enforcement.
Jose Felan, Jr. and Mena Yousif are wanted in connection with a fire set at a Goodwill retail store in St. Paul, Minnesota, on May 28, 2020. The store was set ablaze after demonstrations across Minnesota, following the death of George Floyd in Minneapolis. Surveillance cameras show two suspects alleged to be involved in setting the fire to the Goodwill store’s back room. Those two suspects were later identified as Jose Felan, Jr. and Mena Yousif. ATF is offering two rewards of up to $10,000 each for information that leads to the apprehension and conviction of Jose Felan and Mena Yousif. Additional information regarding Jose Felan, Jr. and Mena Yousif can be found at this link: https://www.usmarshals.gov/news/chron/2020/062620.htm.
In 2015, Leeroy Felan was convicted of one count of conspiracy to transport illegal aliens; he was sentenced to 36 months of federal imprisonment. Felan is currently on federal supervised release stemming from the 2015 conviction. He is scheduled for a detention and preliminary hearing on this current case on July 31, 2020, before U.S. Magistrate Judge Collis White in Del Rio.
The U.S. Marshals Service in Del Rio is investigating this case. Assistant U.S. Attorney Jody Gilzene is prosecuting this case on behalf of the government.
A complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Anyone with information on the whereabouts of Jose Felan, Jr. or Mena Yousif can report the information at www.usmarshals.gov/tips. Tipsters can also call 877-WANTED-2 (877-926-8332).
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Buffalo Police Department Receives DOJ Grant to Implement A Shooting Review Process Targeting Unsolved Shootings and Improving Clearance RatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr., Buffalo Police Commissioner Byron Lockwood, and Erie County District Attorney John J. Flynn announced today that the Department of Justice has awarded the Buffalo Police Department a 2020 Project Safe Neighborhood grant totaling $229,837. The funding will be used to implement a Shoot Review Process in the police department.
The Shoot Review Process is designed to address unsolved gun assaults and increase clearance rates in the City of Buffalo through the development of a case review process. By reviewing shootings in the city on a regular basis, the goal is to remove active shooters from the streets, strengthen the administration of justice, increase public safety in urban neighborhoods, and increase community confidence in the police.
The Shoot Review Process team is headed by Buffalo Deputy Police Commissioner Joseph Gramaglia, and includes the Buffalo Police Department’s Gun Violence Unit, crime analysts from the Erie Crime Analysis Center, and representatives from the District Attorney’s Office, probation, and parole, as well as the U.S. Attorney’s Office, the ATF, and the FBI.
The review process will be modeled after best practices nationally. In March 2020, Police Commissioner Lockwood, U.S. Attorney Kennedy, Erie County District Attorney John Flynn, ATF managers, and members of the various command staffs, traveled to Milwaukee, Wisconsin, to meet with members of the Milwaukee Police Department, the United States Attorney’s Office for the Eastern District of Wisconsin, and others who have successfully implemented a shooting review process. After implementing the process in 2018, the City of Milwaukee saw a 17% reduction in homicides and a 15% reduction in non-fatal shootings.
A successful shooting review process includes:
• A review of several months’ worth of previous shootings to identify trends in types of shootings, victims and suspects; • Detailed reports on all cases, including shooting(s) date, location, victim information, and victim and suspect intelligence; • Regular and consistent meetings to conduct shooting reviews; and
• Development of innovative strategies to reduce violence, improve case closure and improve case prosecution.“Simply put, violent crime is rising at a staggering rate and homicides are soaring across the country and right here in our own city, and many of these crimes involve a gun,” stated U.S. Attorney Kennedy. “Also, much of the violence is playing out in distressed and economically disadvantaged neighborhoods, leaving residents to live in fear of bloodshed and fear for their own lives. This shoot review process will target the most dangerous and violent offenders in our community who are committing gun assaults and murders. This review process will remove active shooters from the streets, strengthen the administration of justice, and increase public safety in urban neighborhoods. This program will bring increased accountability not only for the results achieved by the law enforcement agencies who have been under attack as of late but also for the criminals who are terrorizing our communities. Increased accountability across the board is a good thing—both for the law enforcement and for criminals.”
“I want to thank our many partners in this important initiative to reduce gun violence in our community,” stated Buffalo Police Commissioner Byron Lockwood. “Working together we can help solve some of these senseless crimes. I look forward to working with all of the agencies and I thank the U.S. Attorney's Office for the important funding they are providing for this critical collaborative effort.”
“We have seen a spike in shootings this summer, and we are working hard every day to bring justice to the victims. When I learned about this program that has proven successful in Milwaukee, I wanted to bring it to Buffalo immediately,” said Erie County District Attorney John J. Flynn. “I want to thank U.S. Attorney J.P. Kennedy for securing federal funding for this collaborative effort to end gun violence in our city. I also want to thank Captain Jeff Rinaldo and the Buffalo Police Department for inviting the District Attorney’s Office to be a part of this new initiative. I look forward to working together to uncover the perpetrators of these unsolved shootings. I hope that our efforts will also deter people from committing these senseless acts of violence in the future.”
“ATF’s highest priority is and will remain reducing violent crime and firearm-related violence,” stated ATF Special Agent-in-Charge John B. Devito. “We will be relentless in the pursuit of the criminal groups who are intent on violating federal law and those who represent the greatest threat to the safety of our communities. Through this Project Safe Neighborhood grant, strong law enforcement partnerships, and community involvement we will see a safer Buffalo.”
“Every time a gun slides into a conversation in front of a corner store, or in a community park, its impact is devastating,” said FBI Buffalo Special Agent-in-Charge Stephen Belongia. “Gun violence victims are not simply statistics. They are fathers, mothers, grandparents and neighbors. And, all too often, the victims of gun violence are innocent children. We are committed to making a difference by preventing the trauma caused by violent crime through leadership and partnership.”
“Shoot Review is about accountability,” said Mayor Byron W. Brown. “We share our community’s sense of urgency to curb the senseless gun violence that harms the quality of life in Buffalo, and this collaborative initiative will help us further reduce and prevent gun violence in our city. This intelligence led, data driven violence reduction strategy is the latest example of our City's commitment to interagency collaboration between local and federal law enforcement agencies. I thank United States Attorney for the Western District of New York James P. Kennedy, Jr. for securing the $229,000 federal grant to support this program that will further increase the solvability of shooting cases and reduce gun violence throughout neighborhoods citywide.”
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Brooklyn Man Sentenced to 126 Months for Cocaine PossessionRead the Press Release
ALBANY, NEW YORK – Tyshawn Warren, age 35, of Brooklyn, New York, was sentenced today to serve 126 months in federal prison for possessing cocaine with intent to distribute, announced United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Senior United States District Judge Thomas J. McAvoy also imposed a 6-year term of supervised release, to begin once Warren is released from prison.
On July 18, 2019, following a traffic stop in Potsdam, New York, Warren was found in possession of more than 37 grams of cocaine powder. At the time of his arrest, Warren had previously been convicted of two (2) felony controlled substance offenses.
This case was investigated by Homeland Security Investigations (HSI), the St. Lawrence County Sheriff’s Office, and the Village of Potsdam Police Department, and was prosecuted by Assistant U.S. Attorney Shira C. Hoffman.
Billings meth trafficker sentenced to more than 26 years in prisonRead the Press Release
BILLINGS— A Billings man convicted of bringing large quantities of methamphetamine to the community and of possessing firearms was sentenced today to 26 years and 10 months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
After a two-day trial in March, a jury found Maurice Joseph Fregia, 33, guilty of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possessing a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Susan P. Watters presided.
“Fregia's sentencing should put all meth dealers on notice that they face long prison terms if they plan to push this highly addictive drug into our communities and use firearms to further their trade. We will continue to prosecute dealers like Fregia and his co-conspirators to the full extent of the law,” U.S. Attorney Alme said.
The prosecution presented evidence at trial that Fregia, along with co-defendant Chad Beres, headed a large drug trafficking organization that brought large quantities of meth and other drugs into Montana from California. In April 2018, law enforcement officers with the Eastern Montana High Intensity Drug Trafficking Area Task Force served three search warrants on three Billings residences, including a house where Fregia and Beres lived. Both Fregia and Beres were present during the search. Officers found almost 700 grams of meth, which is about 1.5 pounds and about 5,600 doses, sticking out of a clothes dryer vent, $14,538 in currency, jewelry, including a Rolex watch in Beres’ room, other drugs and various firearms and ammunition. Beres pleaded guilty to charges and was sentenced to 15 years in prison.
During the search of a second residence, occupied by co-defendant Larry Barnett, agents found meth and a handgun. Barnett, who pleaded guilty and was sentenced to seven years in prison, admitted he had received multiple pounds of meth from Fregia and Beres and had seen both men with firearms.
Assistant U.S. Attorneys Colin Rubich and Julie Patten prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the FBI and the Billings Police Department.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Big Arm man admits making sexually explicit videos of minor girlRead the Press Release
MISSOULA – A Big Arm man accused of making child pornography videos and sending an image to an undercover agent today pleaded guilty to charges, U.S. Attorney Kurt Alme said.
Billy Dean Smith, 55, pleaded guilty to sexual exploitation of a child. Smith faces a minimum mandatory 15 years to 30 years in prison, a $250,000 fine and five years to life of supervised release.
U.S. District Judge Donald W. Molloy presided and set sentencing for Nov. 6. Smith was detained.
In court documents filed in the case, the prosecution said that in January, an undercover FBI agent was investigating a KIK chat group known to exchange child pornography. KIK is a mobile phone app that allows users to exchange instant messages over the internet. Smith exchanged messages with the undercover agent where he described sexually abusing a girl, who was under the age of 18. Smith sent a sexually explicit image of the girl to the undercover agent. Agents obtained a search warrant for Smith's cell phone, seized it and conducted a forensic analysis of its contents. The forensic examiner located the sexually explicit image of the girl that Smith had sent the agent. The examiner also located other videos and images of the girl. The images were created in January and February using the cell phone. The video contained child pornography of the girl. Smith admitted he had filmed the sexually explicit videos of the girl.
Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by the FBI and the Internet Crimes Against Children Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Berkeley County residents facing drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Berkeley County residents were indicted this week on drug charges, U.S. Attorney Bill Powell announced.
Arnel Hategekimana, also known as “Dominique Cash Robinson” and “Homie,” and Kristina Gilmore, also known as “Diamond,” were indicted on one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base,” one count of “Aiding and Abetting Distribution of Heroin and Fentanyl Mixture,” and one count of “Aiding and Abetting Distribution of Cocaine Base.” Hategekimana was also indicted on one count of “Possess with Intent to Distribute Forty Grams or More of a Fentanyl and Heroin Mixture,” one count of “Possess with Intent to Distribute Cocaine Base,” one count of “Possess with Intent to Distribute Cocaine Hydrochloride,” and one count of “Possessing a Firearm in Furtherance of a Drug Trafficking Crime.” Hategekimana, 21, of Harpers Ferry, West Virginia, and Gilmore, 25, of Martinsburg, West Virginia, are accused of working together to distribute heroin, fentanyl, and cocaine base in February 2020 in Berkeley County and elsewhere.
Hategekimana and Gilmore each face up to 20 years of incarceration and a fine of up to $1,000,000 for each of the first three counts. Hategekimana also faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the other three drug counts and no less than five years of incarceration for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The government is also seeking the forfeiture of $4,348 in cash, a Glock pistol, and ammunition connected to this case.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Baton Rouge Man Sentenced to 180 Months in Federal Prison on Gun and Drug ChargesRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge Brian A. Jackson sentenced Michael Brown, Jr., age 34, of Baton Rouge, Louisiana, to 180 months in federal prison following his convictions for conspiracy to distribute and possess with the intent to distribute controlled substances, distribution of heroin and methamphetamine, distribution of furanyl fentanyl, possession with the intent to distribute 500 grams or more of methamphetamine, possession of firearms in furtherance of drug-trafficking crimes, and unlawful use of communication facilities. The Court further sentenced Brown to serve five years of supervised release following his term of imprisonment and ordered that the firearms involved be forfeited.
According to admissions made as part of his guilty plea, Brown was a member of a drug trafficking organization based in Baton Rouge, engaged in distribution of various drugs, including manufacturing counterfeit controlled substance pharmaceutical pills.
Between October 19, 2016, and January 11, 2017, Brown distributed hundreds of counterfeit pills bearing the identifying mark and imprint of oxycodone in exchange for a total of $14,500. The counterfeit pills were submitted to the DEA Laboratory for chemical analysis and actually contained heroin and furanyl fentanyl. On June 29, 2017, law enforcement executed a search warrant at Brown’s apartment in Baton Rouge and recovered seven firearms, ammunition, ballistics vests, and drugs. Law enforcement officers recovered thousands of pills in Brown’s bedroom, which the DEA Lab found to contain methamphetamine.
U.S. Attorney Fremin stated, “This is yet another step in reaching our office’s goal of reducing crime and aggressively enforcing federal law. I applaud the excellent work of our prosecutors along with DEA and ATF.”
“The successful prosecution and sentencing of this member of a major local drug trafficking organization should be a warning to others who engage in this type of activity,” stated DEA Assistant Special Agent in Charge Michael R. Sader. “This case highlights the impact multiple agencies can have when they join forces. We will continue to work together and pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs and bring them to justice.”
This investigation is another effort by the OCDETF Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations, and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana; the Baton Rouge District Office of the Drug Enforcement Administration; and the Baton Rouge Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief, and Assistant United States Attorney Demetrius D. Sumner.
Bank of America Settles Fair Housing Act Discrimination Claims and Agrees to Pay Damages to VictimsRead the Press Release
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Eric S. Dreiband, Assistant Attorney General for Civil Rights, filed a civil complaint and proposed settlement agreement with Bank of America, N.A. (“Bank”) today to resolve claims that the Bank engaged in a pattern or practice of discrimination on the basis of disability, in violation of the Fair Housing Act. The Settlement Agreement is subject to being so ordered by the assigned district judge.
According to the civil complaint, the United States alleged that, between January 2010 and 2016, the Bank maintained a policy of denying mortgage loans and, between January 2010 and 2017, home equity loans, to adults with disabilities who were under legal guardianships or conservatorships.
“This settlement ensures that Bank of America will no longer discriminate against people with disabilities when issuing mortgage and home equity loans, and compensates the victims for their losses,” stated Acting United States Attorney DuCharme. “Our Office is committed to standing up for the rights of individuals with disabilities and taking action when necessary to vindicate those rights.”
“No one in this free country should be denied access to the American dream merely because of a disability. The unalienable right to pursue happiness extends to all people, including those with disabilities, and purchasing a home is one way many people exercise this right,” said Assistant Attorney General Dreiband of the Civil Rights Division. “The Fair Housing Act prohibits banks from denying mortgage loans and other housing-related credit to people because of their disabilities, and this Department will hold accountable those lenders who engage in such illegal conduct. Today’s settlement provides compensation to victims of unlawful discrimination and requires Bank of America to apply non-discriminatory policies in deciding which applicants will receive loans.”
The Bank has ended its practice of denying mortgage and home equity loans to adults with disabilities under guardianships or conservatorships. The terms of the settlement require the Bank to pay approximately $300,000 to compensate victims of its conduct. The settlement also requires the Bank to maintain the new, non-discriminatory loan underwriting policy and train its employees on the new policy. In addition, the Bank must monitor its loan processing and underwriting activities to ensure compliance with the Fair Housing Act. The Bank will report to the United States every six months for a two year period regarding its compliance with the terms of the settlement and on any complaints it has received regarding any instance in which a mortgage loan application was denied to an adult applicant represented by a legal guardian or conservator.
Bank of America cooperated with the United States’ investigation and agreed to settle this matter without contested litigation. By entering this Agreement, Bank of America does not admit, and expressly denies, any liability, wrongdoing, or non-compliance with the provisions of the FHA.
This case is being handled by Eastern District of New York Assistant U.S. Attorney Rachel G. Balaban and Deputy Chief Lucy G. Carlson and Trial Attorney Katherine A. Raimondo of the Civil Rights Division Housing and Civil Enforcement Section.
E.D.N.Y. Civil Docket No.: 20-CV-3306 (AMD)
Armed Drug Trafficker SentencedRead 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 Billy B. Sanders, 37, of Rochester, NY, who was convicted of being a felon in possession of ammunition, was sentenced to serve 71 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that the defendant was arrested on May 2, 2019, after New York State Parole officers went to Sander’s residence on Saratoga Avenue in Rochester, for a compliance check. During that check, parole officers found a Polymer 80 semiautomatic pistol loaded with eight rounds of ammunition inside a backpack. The handgun did not have a serial number on it. During his plea, Sanders stated that he had the handgun and ammunition because he had been shot and needed the handgun for protection. The defendant admitted he also possessed a small amount of cocaine.
Sanders was previously convicted in April of 2004 in Federal Court of possessing with intent to distribute crack cocaine and carrying and brandishing a firearm during a drug trafficking crime, and was sentenced to serve 105 months in prison. In addition, the defendant was convicted in May of 2004 in Monroe County Court of Robbery in the First Degree, and received a 12 year prison sentence. As a result of those felony convictions, Sanders is legally prohibited from possessing firearms and ammunition.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Rochester Police Department, under the direction of Chief La’Ron Singletary; and 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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Anchorage Man and Woman Indicted on Federal Gun Charges in Connection with April 2020 Shooting DeathRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Rachel Torey Danielle Epperson, 30, and Adam Alan Blodgett, 37, both of Anchorage, have been indicted on federal gun charges in connection with the April 4, 2020, shooting death of another individual.
Epperson and Blodgett have both been charged with conspiracy and acquiring a firearm by deception. Blodgett has also been charged with illegally possessing a firearm as a convicted felon. Epperson was arrested on April 4, 2020, and Blodgett was arrested on July 16, 2020.
According to federal charging documents, on March 17, 2020, Epperson is alleged to have straw-purchased a firearm from a licensed gun dealer on behalf of Blodgett, who, with six prior felony convictions, was unable to purchase one himself. At the direction of Blodgett, Epperson allegedly purchased a 9mm pistol for Blodgett, who had taken possession of the pistol thereafter.
The federal charges stem from an April 4, 2020, shooting that resulted in the death of another individual. Epperson and Blodgett are currently facing charges with the State of Alaska for Manslaughter in connection to the shooting death. Additionally, Epperson, along with Angelique Aurora Petty, 34, are also facing charges with the State of Alaska for Attempted Murder and Assault of Blodgett.
If convicted on the federal charges, Epperson and Blodgett face a maximum of 10 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Anchorage Police Department (APD) conducted the investigation leading to the charges in this case. The federal case is being prosecuted by Assistant U.S. Attorney James Klugman of the U.S. Attorney’s Office for the District of Alaska.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Acting Manhattan U.S. Attorney Announces $49 Million Settlement with Biotech Testing Company for Fraudulent Billing and Kickback PracticesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health, Office of Inspector General (“HHS OIG”), Leigh-Alistair Barzey, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General’s Defense Criminal Investigative Service (“DCIS”), and Christopher Algieri, Special Agent in Charge of the Department of Veterans Affairs (“VA”), Office of Inspector General, Northeast Field Office (“VA OIG”), announced today a $49 million settlement with PROGENITY, INC. (“PROGENITY”), a San Diego-based biotechnology company that provides molecular and diagnostic tests. The settlement resolves claims that PROGENITY fraudulently billed federal healthcare programs for prenatal tests and provided kickbacks to physicians to induce to them to order PROGENITY tests for their patients. The Office’s lawsuit filed in Manhattan federal court alleges that PROGENITY overbilled Medicaid and the VA by fraudulently using a billing code that misrepresented the tests provided. The lawsuit further alleges that PROGENITY provided illegal kickbacks in the form of excessive “draw fees” to physicians, meals and happy hours for physicians and their staff, and the improper reduction or waiver of patient coinsurance and deductible payments.
Under the settlement approved today by U.S. District Judge Loretta A. Preska, PROGENITY will pay $19,449,316 to the United States to resolve the kickback claims and the Medicaid and VA fraudulent billing claims, and also makes extensive admissions regarding the company’s conduct. PROGENITY will also pay $13,150,684 to various states to resolve these claims. In addition, PROGENITY will pay $16.4 million to resolve similar fraudulent billing claims related to TRICARE and the Federal Employees Health Benefits Program through a separate civil settlement with the United States Attorney’s Office for the Southern District of California (“USAO SDCA”), and has entered into a Non-Prosecution Agreement with that office.
Acting U.S. Attorney Audrey Strauss said: “Progenity received millions of dollars from federal healthcare programs through its fraudulent billing and kickback schemes. The company misrepresented the tests it performed, and tried to get doctors to order Progenity tests by paying them excessive fees and providing meals and happy hours for them and their staff. Our Office will continue to hold healthcare providers accountable when they engage in fraud and other illegal conduct.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Kickbacks and fraudulent billing schemes undermine the integrity of our healthcare system, compromise patient care, and increase the financial burden on taxpayers. Along with our law enforcement partners, HHS-OIG will continue to ensure that those billing federal health insurance programs do so in an honest manner.”
DCIS Special Agent in Charge Leigh-Alistair Barzey said: “Ensuring the integrity of TRICARE, the U.S. Defense Department's healthcare system for military members and their families, is top priority for the DCIS. This settlement agreement is the result of a joint effort and demonstrates the DCIS’s commitment to work with the USAO-SDNY and its law enforcement partners to investigate and prosecute kickbacks and other fraudulent schemes that impact TRICARE.”
VA-OIG Special Agent in Charge Christopher Algieri said: “VA OIG will vigorously pursue those who engage in unjust kickback and billing schemes, which generate profits at the expense of veterans and taxpayers. We appreciate the United States Attorney’s Office and our agency partners for this collaborative effort.”
As alleged in the Complaint filed in Manhattan federal court:
Fraudulent Billing
When submitting claims for payment, healthcare providers use Current Procedural Terminology (“CPT”) codes to identify the nature of the medical procedure or services rendered. Government healthcare payors rely on the CPT code to determine whether the procedure or service is covered, as well as the level of reimbursement. From March 2014 through April 2016, PROGENITY fraudulently used CPT code 88271 to seek reimbursement for noninvasive prenatal tests (“NIPTs”) that screen for genetic disorders and abnormalities when this code misrepresented the services PROGENITY actually provided. As a result, PROGENITY received payments for non-reimbursable tests, or received substantially higher payments than it was entitled to receive. PROGENITY knew that many patients did not meet the medical necessity criteria for NIPTs, and that it could circumvent those requirements by billing under the incorrect billing code.
Kickbacks
PROGENITY induced physicians to order PROGENITY tests by engaging in three kickback schemes. First, from January 2012 through March 2016, PROGENITY paid “draw fees” to physicians or physician offices for blood specimens collected for PROGENITY tests. These fees exceeded the fair market value of the services performed. The total draw fees paid to physicians depended on the volume of blood specimens collected, so physicians would receive more money if they ordered more PROGENITY tests.
Second, from 2012 through 2018, PROGENITY sales representatives provided food and alcohol to physicians and their staff at gatherings, including happy hours and birthday or holiday parties, that often involved little or no educational content. For the vast majority of the relevant period, PROGENITY did not limit or even monitor the total amount its sales representatives spent on a physician. One former sales representative spent $65,658 on meals and alcohol for physicians during a single year.
Third, from January 2012 through April 2018, to market its expensive tests, PROGENITY routinely reduced or waived coinsurance and deductible payments without making the required individualized determination of financial need or reasonable collection efforts. Sales representatives informed physicians and their staff, as well as patients, that PROGENITY would waive coinsurance and deductibles, or limit the patient’s payment to a certain maximum out-of-pocket amount. And PROGENITY had agreements with several physicians that it would not collect any payments from their patients.
As part of the settlement approved today by Judge Preska, PROGENITY admits, acknowledges, and accepts responsibility for the following conduct:
Miscoding:
- From March 2014 through April 2016, PROGENITY knowingly submitted false claims for payment to Medicaid and the VA by using CPT code 88271 to obtain reimbursement for NIPTs.
- PROGENITY improperly used CPT code 88271, which applies to fluorescence in situ hybridization (“FISH”) procedures, knowing that its genetic tests were cell-free DNA sequencing-based NIPTs that are not FISH procedures and that CPT code 88271 did not accurately represent the tests performed.
- As a result of fraudulently using CPT code 88721 and misrepresenting the type of test performed when submitting claims for payment to Medicaid and the VA for NIPTs, PROGENITY received payments for non-reimbursable tests, or received substantially higher payments than it was entitled to receive for the genetic testing services provided.
Kickbacks:
- From January 2012 through March 2016, PROGENITY knowingly made “draw fee” payments to physicians or physicians’ offices for the collection of blood specimens for PROGENITY tests performed on federal healthcare program beneficiaries. In total, PROGENITY paid over $1.7 million in draw fees during this period.
- The draw fees paid by PROGENITY exceeded the fair market value of the services performed when collecting blood specimens. PROGENITY frequently paid physicians $20 or more for each blood draw. PROGENITY paid dozens of physicians and physician offices thousands of dollars in above fair market draw fee payments during the relevant time period.
- From 2012 through 2018, PROGENITY knowingly provided meals and happy hours to physicians who ordered PROGENITY tests for federal healthcare program beneficiaries, as well to individuals who worked in physicians’ offices. The value of these meals and happy hours exceeded Stark Law limits. In total, PROGENITY expended millions of dollars on food and drinks for physicians and their staff during this period.
- During the vast majority of the relevant period, PROGENITY did not have effective systems in place to ensure that the company’s expenses for meals and happy hours for physicians and their employees complied with the Stark Law and the Anti-Kickback Statute. For example, PROGENITY did not (i) reliably track the amount it spent on meals and happy hours for physicians or their staff, (ii) maintain accurate sign-in sheets reflecting attendance at PROGENITY-sponsored gatherings, (iii) keep records of materials or topics that were discussed during PROGENITY-sponsored gatherings, and (iv) implement and enforce limits on the total nonmonetary compensation that could be provided to physicians.
- From January 2012 through April 2018, PROGENITY knowingly routinely reduced or waived federal healthcare program beneficiaries’ coinsurance and deductible payments without making the required individualized determinations of financial need or reasonable collection efforts. PROGENITY offered to reduce or waive coinsurance and deductible payments as part of its sales efforts.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act, which alleged that PROGENITY engaged in illegal kickback schemes. PROGENITY has also entered into a Corporate Integrity Agreement (“CIA”) with HHS-OIG. The CIA promotes compliance with the statutes, regulations, program requirements, and written directives of federal healthcare programs. Among other things, the CIA requires that for the next five years PROGENITY must retain an Independent Review Organization to annually review the accuracy of the company’s claims for services furnished to federal healthcare program beneficiaries and monitor its arrangements with other individuals and entities.
Ms. Strauss thanked HHS-OIG, VA-OIG, DCIS, USAO SDCA, and the Medicaid Fraud Control Unit of the New York State Attorney General’s Office for their assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Kirti Vaidya Reddy are in charge of the case.
- From March 2014 through April 2016, PROGENITY knowingly submitted false claims for payment to Medicaid and the VA by using CPT code 88271 to obtain reimbursement for NIPTs.
25 charged in six-state drug conspiracy involving heroin, fentanyl, cocaineRead the Press Release
MARTINSBURG, WEST VIRGINIA – Residents of multiple states were arrested today in connection with four indictments for drug conspiracies that traveled across New Jersey, New York, Maryland, Pennsylvania, Virginia, and West Virginia, U.S. Attorney Bill Powell announced.
Those charged in a 20-count indictment involving a conspiracy to distribute 100 grams or more of heroin and 40 grams or more of fentanyl are:
• Sterling C. Davis, 42, of Camden, New Jersey
• Braheem R. Sallie, 40, of Camden, New Jersey
• Sanford Fayton Venable, 49, of Martinsburg, West Virginia
• Mary Margaret Renfro, 37, of Martinsburg, West Virginia
• Kaleah Scott, 39, of Winchester, Virginia
• Kyle Flack, 37, of Camden, New Jersey
• Paul Wayne Anders, Jr., 47, of Ranson, West VirginiaTwelve people are charged in a 44-count indictment involving a conspiracy to distribute 280 grams or more of cocaine base and 40 grams or more of fentanyl. They are:
• Aquilino Javier Lorenzo-Rivera, 36, of Blackwood, New Jersey
• Ana B. Lopez, 20, of Camden, New Jersey
• Shaquan Omar Richardson, also known as “Wave,” 24, of Harpers Ferry, West Virginia
• Braheem Jamal Gilbert, also known as “Slick,” 30, of Martinsburg, West Virginia
• Duane Curtis Jackson, also known as “Duke,” 28, of Shenandoah Junction, West Virginia
• Theodore Richardson, also known as “JR,” 56, of Martinsburg, West Virginia
• Lisa Richardson, 49, of Martinsburg, West Virginia
• Ashley Lynn Hess, 31, of Inwood, West Virginia
• Medo Hallack, 31, of Inwood, West Virginia
• Brandon Eugene Corbin, 34, of Inwood, West Virginia
• Dallas Marie Harris, 22, of Inwood, West Virginia
• Ashley Marie Seal, 31, of Bunker Hill, West VirginiaThose facing charges in a 17-count indictment involving a conspiracy to distribute 28 grams or more of cocaine base are:
• Sanford Fayton Venable, 49, of Martinsburg, West Virginia
• Mary Margaret Renfro, 37, of Martinsburg, West Virginia
• Wilton Paulino, also known as “Felix,” 42, of New York, New York
• Argelianka Garcia, 43, of New York, New York
• Pedro Garcia Rondon, 33, of New York, New York
• Wendy Paulino, 48, of New York, New York
• Terry Lee Shifflett, 46, of Martinsburg, West VirginiaThree are also facing charges in an indictment involving a conspiracy to distribute one kilogram or more of a mixture and substance containing phencyclidine (PCP). They are:
• Kevin Joseph Young, 54, of Baltimore, Maryland
• Shaquan Omar Richardson, also known as “Wave,”24, Harpers Ferry, West Virginia
• Ashley Lynn Hess, 31, of Inwood, West VirginiaThe government is seeking forfeiture of more than $130,000 in cash, multiple firearms, ammunition, multiple cell phones and other various items associated with the alleged crimes.
“These Indictments represent the culmination of lengthy investigations that were vigorously pursued through the pandemic. This Prosecution of drug and violent crimes cases have always been and will continue to be vigorously pursued by the dedicated prosecutors and law enforcement agencies in the Northern District of West Virginia,” said Powell.
"The safety and quality of life of our citizens is a top priority," said FBI Pittsburgh Special Agent in Charge Michael Christman. "Drug dealers who think they can make a living bringing dangerous drugs into our community need to know it won't be tolerated. The FBI and our trusted state, local and federal partners remain vigilant in pursuing drug investigations that are devastating our communities. This multi-agency, multi-state investigation shows there are no boundaries to getting dangerous criminals off the streets. I commend the work of the Eastern Panhandle Drug & Violent Crimes Task Force for their tremendous efforts in the Martinsburg area. They are making a substantial difference in that community and neighboring states."
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The U.S. Marshal Service and the West Virginia Air National Guard assisted with the arrests.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
22 July 2020
Yulee Man Pleads Guilty to Conspiracies to Commit Wire Fraud, Mail Fraud, and Money LaunderingRead the Press Release
Jacksonville, Florida – Richard Everett Camp, Jr. has pleaded guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit mail fraud, and one count of conspiracy to commit money laundering. He faces a maximum penalty of 20 years in federal prison for the conspiracy to commit wire fraud offense and for the conspiracy to commit mail fraud offense. He faces up to 10 years’ imprisonment for the conspiracy to commit money laundering offense. A sentencing date has not yet been set. As part of the agreement, the court has ordered restitution to Swisher International, Inc., and the forfeiture of three pieces of real property, two vehicles, and more than $250,000.
According to the plea agreement, Camp and his co-conspirators stole approximately $5.7 million from Swisher International, Inc. and its sister company, E-Alternative Solutions (EAS), which are both headquartered in Jacksonville. Camp and his co-conspirators used two different schemes to acquire the funds. In a wire fraud scheme, the co-conspirators diverted to Camp’s personal bank accounts federal tobacco excise tax refunds that were owed to Swisher. In the mail fraud scheme, the conspirators caused fraudulent invoices to be submitted to Swisher and EAS for services that were never rendered. One of the co-conspirators was an employee of Swisher at the time and vouched for the accuracy of the invoices and payments to be made.
During the money laundering scheme, Camp and a co-conspirator engaged in monetary transactions of criminal proceeds from the mail fraud scheme. They deposited funds into accounts of one of the companies claiming to have rendered services, and then transferred the funds to Camp’s personal accounts from which he purchased real property and numerous other items, including vehicles and jewelry.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the Special Prosecution Division, State Attorney’s Office, Fourth Judicial Circuit. It is being prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.
Wisconsin Rapids Woman Sentenced to 30 Months for Stealing MailRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Shelby Bottensek, 42, of Wisconsin Rapids, Wisconsin pleaded guilty today to wire fraud and identity theft, and was sentenced by Chief U.S. District Judge James D. Peterson to 30 months in federal prison. Judge Peterson also ordered Bottensek to pay restitution of $6,353.54 to the victims of her crimes.
Bottensek began stealing mail in August 2019 from residential mailboxes in 13 Wisconsin communities including, among others, Amherst, Wisconsin Rapids, Waupaca, Port Edwards, Nekoosa, Necedah, Plover, Portage, Wausau, Friendship, Janesville and Westfield. Bottensek opened and sorted through 361 pieces of stolen mail from 170 victims in an effort to locate items of value, including cash, uncashed checks, and credit cards.
Bottensek admitted at today’s plea hearing that she stole at least three different credit cards from the mail and made unauthorized charges, without the permission or knowledge of the cardholders. Bottensek agreed that her unlawful conduct created an intended loss amount of $133,609.22.
At today’s sentencing, Judge Peterson noted that Bottensek committed these crimes while suffering from a severe addiction to methamphetamine, and although perhaps mitigating, Bottensek still was responsible for her actions. Judge Peterson said that Bottensek had the ability and the duty to manage her addiction and her mental health for her sake, as well as the sake of the community, which she ultimately failed to do.
In imposing sentence, Judge Peterson stressed to Bottensek that a 30-month sentence was required to provide her with specific deterrence so that she will not repeat this criminal conduct. The judge explained to Bottensek that, “stealing the mail is not a minor crime. People really trust the U.S. mail system and for many it is an important avenue of communication to the rest of the world.” He added, “Stealing somebody’s mail creates a profound sense of violation of personal integrity – it’s like breaking into someone’s house and stealing their property.” Judge Peterson noted that Bottensek added to this sense of violation by stealing identities and violating people’s financial security through credit card fraud.
The case against Bottensek is the result of an investigation conducted by the U.S. Postal Inspection Service, Wood County Sheriff’s Department, Grand Rapids Police Department, and Plover Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Daniel Graber.
Wife of U.S. Army Soldier Sentenced to Prison for Obstruction of JusticeRead the Press Release
The wife of a U.S. Army soldier was sentenced today to three years in prison, to be followed by one year of supervised release, the maximum statutory sentenced allowed under the law for obstruction of justice, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Robert Higdon Jr. of the Eastern District of North Carolina announced.
Shanynn Kemp, 52, of Cameron, North Carolina, pleaded guilty on Dec. 11, 2019, to one count of obstruction of justice before U.S. District Court Chief Judge Terrence W. Boyle of the Eastern District of North Carolina, who sentenced Kemp earlier today and remanded her to the custody of the U.S. Marshals Service.
According to facts presented in the guilty plea hearing, Shanynn Kemp’s husband, Daniel Kemp Sr., was employed by the U.S. Army as an active duty member when he forcibly raped a minor victim. After an investigation into the aggravated sexual assault was underway, Shanynn Kemp intentionally harassed and dissuaded a witness from disclosing to law enforcement information about the sexual offense. Daniel Kemp Sr. was sentenced to life in prison on July 8.
The investigation of the case was conducted by U.S. Army Criminal Investigation Command and the FBI. This case is being prosecuted by Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Charity Wilson of the U.S. Attorney’s Office in the Eastern District of North Carolina.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Wife of U.S. Army Soldier Sentenced to Prison for Obstruction of JusticeRead the Press Release
RALEIGH - The wife of a U.S. Army soldier was sentenced today to three years in prison, to be followed by one year of supervised release, for obstruction of justice, the maximum statutory sentence allowed under the law for obstruction of justice, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon, Jr. of the Eastern District of North Carolina announced.
Shanynn Kemp, 52, of Cameron, North Carolina, pleaded guilty on Dec. 11, 2019, to one count of obstruction of justice before U.S. District Court Chief Judge Terrence W. Boyle of the Eastern District of North Carolina, who sentenced Kemp earlier today and remanded her to the custody of the U.S. Marshals Service.
According to facts presented in the guilty plea hearing, Shanynn Kemp’s husband, Daniel Kemp Sr., was employed by the U.S. Army as an active duty member when he forcibly raped a minor victim. After an investigation into the aggravated sexual assault was underway, Shanynn Kemp intentionally harassed and dissuaded a witness from disclosing to law enforcement information about the sexual offense. Daniel Kemp Sr. was sentenced to life in prison on July 8.
The investigation of the case was conducted by U.S. Army Criminal Investigation Command and the FBI. This case is being prosecuted by Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Charity Wilson of the U.S. Attorney’s Office in the Eastern District of North Carolina.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00149-BO-1.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
White Earth Man Charged with Robbery, Violent AssaultRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging WESLEY ROBERT WARREN, 22, with robbery and assault on the White Earth Indian Reservation. WARREN made his initial appearance earlier today before Magistrate Judge Jon T. Huseby in U.S. District Court in Bemidji, Minnesota.
According to allegations in the indictment, on June 3, 2020, on the White Earth Indian Reservation, WARREN robbed and assaulted a victim with a cinder block, resulting in serious bodily injury to the victim.
This case is the result of an investigation conducted by the White Earth Police Department, the Becker County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the FBI Headwaters Safe Trails Task Force, with assistance from the Becker County Attorney’s Office.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
WESLEY ROBERT WARREN, 22
Ponsford, Minn.
Charges:
- Assault with intent to commit murder, 1 count
- Assault with a dangerous weapon, 1 count
- Assault resulting in serious bodily injury, 1 count
- Robbery, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Washington, D.C. Dentist and Two Others Facing Federal Indictment in Maryland on Charges Related to a Scheme to Defraud MedicaidRead the Press Release
Greenbelt, Maryland – A federal grand jury in Maryland has indicted licensed dentist Edward T. Buford III, age 68, of Silver Spring, Maryland; his business partner Kasandra Vilchez-Duarte, age 44, of Fort Washington, Maryland; and Donnie Amis, age 63, of Washington, D.C. on the federal charges of conspiracy to violate the federal Anti-Kickback Statute and conspiracy to commit health care fraud and mail fraud. The indictment was returned on July 13, 2020, and unsealed today at the defendants’ initial appearance.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation (FBI), Washington Field Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS OIG); Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General (SSA-OIG), Philadelphia Field Division; and Inspector General Daniel W. Lucas, District of Columbia, Office of the Inspector General (OIG).
According to the indictment, Buford was a licensed dentist in Washington, D.C., where he was the owner and chief executive officer of International Dental Associates, Inc. (IDA). Vilchez-Duarte was Buford’s business partner and manager of IDA. IDA was a provider with Medicaid from about July 2011 to the present and billed Medicaid for dental services purportedly provided to Medicaid beneficiaries. Buford was also enrolled as an individual Medicaid provider prior to April 10, 2015, when Medicaid suspended payments to Buford under his individual provider number. After that date, Buford and Vilchez-Duarte continued to submit claims to Medicaid through IDA’s Medicaid provider number. The indictment alleges that from January 2013 through May 2018, Buford and Vilchez-Duarte paid kickbacks to Amis to recruit Medicaid beneficiaries for which IDA billed, and received payment from, Medicaid.
Specifically, the indictment alleges that Buford and Vilchez-Duarte offered and paid kickbacks to Amis and others in exchange for referring Medicaid beneficiaries to IDA for dental services and even employed an individual to drive a van to transport recruited beneficiaries to IDA. Buford allegedly also sent text messages encouraging Amis and others to recruit Medicaid beneficiaries to refer to IDA for dental services, including dentures and extractions. Buford and Vilchez-Duarte paid Amis larger cash kickbacks, typically approximately $50 per beneficiary, for beneficiaries Amis recruited who agreed to be fitted for dentures than for beneficiaries who agreed to receive dental cleanings at IDA. Amis recruited Medicaid beneficiaries by offering cash bribes to induce them to visit and accept dental services, including dentures, from IDA. According to the indictment, Buford, Vilchez-Duarte, and Amis typically paid and caused to be paid approximately $20 to each recruited beneficiary who agreed to be fitted for dentures and approximately $10 to each recruited beneficiary who agreed to receive a cleaning from IDA. The beneficiaries typically only received the payment for the initial visit to be fitted for dentures, even though denture fittings require multiple visits and many beneficiaries never returned to IDA after receiving the cash payment. As a result, many beneficiaries never returned after the initial visit. On IDA’s premises, Buford, Vilchez-Duarte, and their co-conspirators stored hundreds of undelivered dentures, many of which had been billed to and paid for by Medicaid.
As detailed in the indictment, Buford, Vilchez-Duarte, and Amis submitted and caused to be submitted through IDA claims to Medicaid for dental services purportedly provided to the recruited beneficiaries. Medicaid then sent checks to a post office box in Silver Spring, Maryland, which Buford identified as IDA’s billing address, as payment for the dental services purportedly provided to the recruited beneficiaries. Further, the indictment alleges that in approximately April 2016, Buford and Vilchez-Duarte re-enrolled IDA in Medicaid. In the application, in response to the question, “Have you ever been suspended from the Medicare or Medicaid program, or has your participation status ever been modified (terminated, suspended, restricted, revoked, limited, cancelled),” Buford and Vilchez-Duarte failed to disclose Buford’s suspension from Medicaid.
According to the indictment, from January 2013 to February 2015, Buford and Vilchez-Duarte caused to be submitted to Medicaid under Buford’s individual provider number claims totaling $5.2 million and Medicaid paid approximately $2.7 million of those claims, including approximately $2 million in claims for dentures. From February 2014 to May 2018, Buford, Vilchez-Duarte, and Amis caused to be submitted to Medicaid through IDA claims totaling $12 million and Medicaid paid approximately $6.4 million of those claims, including approximately $4.5 million in claims for dentures.
If convicted, the defendants each face a maximum sentence of five years in federal prison for conspiracy to violate the federal Anti-Kickback Statute and a maximum of 20 years in federal prison for conspiracy to commit health care fraud and mail fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. The defendants had an initial appearance before U.S. Magistrate Judge Timothy J. Sullivan in U.S. District Court in Greenbelt today. The defendants were released pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, HHS OIG, SSA OIG, and the District of Columbia OIG’s Medicaid Fraud Control Unit for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Jessica Collins, who are prosecuting the case.
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USAO employee indicted for conspiring to obstruct justiceRead the Press Release
HOUSTON – A federal grand jury sitting in Austin has returned a six-count indictment against a 31-year-old paralegal specialist with the U.S. Attorney’s Office (USAO) for the Western District of Texas, announced U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Jennifer Loya is charged with drug trafficking crimes, conspiring to obstruct justice and making a false statement to federal law enforcement officers. Also charged are Roland Gustamante, 30, his wife Kimberly Loya, 27, and Nathan Lopez, 27. All are from San Antonio.
Gustamante allegedly imported drugs from Mexico, sold them in the San Antonio area and transported proceeds back to suppliers in Mexico. Kimberly Loya served as a courier for Gustamante’s drug trafficking organization, according to the indictment, while Lopez was an associate of the Gustamante drug trafficking organization. Jennifer Loya is Kimberly’s sister.
Gustamante, Lopez and Kimberly Loya are charged with conspiring to distribute heroin and meth. Gustamante is also charged with possessing with the intent to distribute meth and with engaging in an international money laundering conspiracy with Kimberly Loya.
According to the indictment, Jennifer Loya worked in the San Antonio USAO. There, she allegedly learned confidential law enforcement information related to federal drug trafficking investigations including the identity of investigation targets, cooperating witnesses and defendants as well as planned dates for charging and arresting defendants. The indictment alleges she shared this information with her sister who then relayed it to her husband. Gustamante used the information to evade law enforcement and to warn his fellow drug traffickers about impending law enforcement actions, according to the charges,
Federal authorities allegedly confronted Jennifer Loya about her activities, at which time she allegedly concealed that she had previously revealed to her sister that Gustamante was under federal investigation for drug trafficking.
All had previously been charged by criminal complaint. Gustamante was ordered into custody, while the Loya sisters were premitted release upon posting bond. They are all expected to appear again before a U.S. magistrate judge in San Abntonio the near future.
If convicted, all four face a minimum of 10 years and up to life in prison for the drug trafficking charges. In addition, Gustamante and Kimberly Loya face up to 20 years for the international money laundering conspiracy. Jennifer Loya faces up to five years for the conspiracy to obstruct justice and for the false statement charge.
The FBI, Drug Enforcement Administration and Department of Justice - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.U.S. Attorney Brady Announces Coalition Dedicated to Ending Human TraffickingRead the Press Release
PITTSBURGH - U.S. Attorney Scott W. Brady today announced the creation of a new anti-human trafficking coalition, Operation T.E.N. (Trafficking Ends Now), comprised of federal, state, and local law enforcement agencies as well as non-governmental organizations.
Operation T.E.N. serves as an umbrella coalition for the 25 counties in the Western District of Pennsylvania, and is a coordinated effort aimed at ending human trafficking through education, improving cooperation among local, state, and federal law enforcement agencies, and will enhance our ability to empower victims of human trafficking to become thriving survivors.
"Human trafficking is an affront to human dignity," said U.S. Attorney Brady. "It is a form of modern-day slavery that knows no race, gender, age or border. Operation T.E.N.’s collaborative approach will tighten the net around human traffickers by providing a truly intergovernmental, coordinated approach to investigating and prosecuting these predators and their networks. Equally important, it will also ensure that survivors can more easily and directly access the services they need for a healthy, safe recovery."
"The FBI depends on our partnerships to help us protect communities," said FBI Pittsburgh Special Agent in Charge Michael Christman. "We will work with our partners at every level to take those responsible for this heinous crime off our streets. It’s our priority to identify and recover child victims of human trafficking. They are some of the most vulnerable members of our community who have been physically and emotionally abused and don’t see a way out. We want them to know there is a way to start rebuilding their lives and human trafficking will not be tolerated."
"Human trafficking is a corrosive and degrading practice that goes against both the rule of law and the most basic standards of human dignity. Homeland Security Investigations is excited about the formation of the newly formed Operation T.E.N. Coalition, dedicated to ending human trafficking, and we look forward to expanding our role in the community by promoting partnerships with private and public entities," said David Abbate, Assistant Special Agent in Charge for HSI Pittsburgh. "We are confident that we can affect change with our victim-centric approach to investigations, where equal value is placed on the identification and stabilization of victims, as well as the investigation and prosecution of suspects."
Combatting human trafficking is currently one of the Department of Justice’s highest priorities nationally and in our community. As part of the strategy, Assistant U.S. Attorney Rebecca L. Silinski, who is an experienced prosecutor and serves as the Human Trafficking Coordinator for the U.S. Attorney’s office, will oversee Operation T.E.N. and community outreach, serving as a resource that members of our community can utilize to directly access the United States Attorney’s Office regarding human trafficking.
Two Minneapolis Men Charged with Illegally Possessing A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced the unsealing of a federal indictment charging TRAVON LAVELLE BLACKMAN, 23, and MICHAEL EUGENE HUNTER, 21, with one count of possession of a firearm by a felon. BLACKMAN made his initial appearance on July 17, 2020, and HUNTER made his initial appearance earlier today before Magistrate Judge Katherine M. Menendez in U.S. District Court in Minneapolis, Minnesota.
According to allegations in the indictment, between April 30, 2020 and May 5, 2020, BLACKMAN and HUNTER were in possession of a Glock, model 22, .40-caliber semiautomatic pistol, with an attached 50-round drum magazine. Because BLACKMAN and HUNTER both have prior felony convictions, they are prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
TRAVON LAVELLE BLACKMAN, a/k/a “Ruger,” a/k/a “Ruger Moe,” a/k/a “Gargy,” 23
Minneapolis, Minn.
Charges:
- Felon in possession of a firearm, 1 count
MICHAEL EUGENE HUNTER, a/k/a “Mike Moe,” 21
Minneapolis, Minn.
Charges:
- Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two MS-13 Members Plead Guilty to RICO Conspiracy and July 2018 Murder of Teenager in LynnRead the Press Release
BOSTON – Two members of the violent transnational criminal gang known as “La Mara Salvatrucha” or “MS-13” pleaded guilty in federal court yesterday to RICO conspiracy and admitted to their participation in the July 2018 murder of a teenage boy in Lynn.
Erick Lopez Flores, a/k/a “Mayimbu,” 31, of Lynn, and Marlos Reyes, a/k/a “Silencio,” 20, of Chelsea, pleaded guilty in separate proceedings before Senior U.S. District Court Judge Mark L. Wolf to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, also known as RICO conspiracy, on behalf of the MS-13 gang. As part of their plea, the defendants admitted that on July 30, 2018, they participated in the murder of a teenage boy who was murdered with extreme atrocity and cruelty, and with deliberate premeditation, in violation of Massachusetts law. Sentencing is scheduled for Oct. 14, 2020
According to court documents, MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members often commit acts of violence against rival gang members, those suspected of cooperating with law enforcement, and others. In recent years, dozens of MS-13 members have been convicted of RICO conspiracy and other serious felonies in the District of Massachusetts.
Both Lopez Flores and Reyes belonged to the “Sykos Locos Salvatrucha” clique of MS-13, which operated in Lynn, Chelsea and other parts of Massachusetts. Lopez Flores was one of the leaders of the Sykos clique. Both defendants admitted that their racketeering activity on behalf of MS-13 included acts involving murder.
Specifically, Lopez Flores and Reyes admitted that they participated in the July 30, 2018 murder of a teenage boy, whose body was found in a wooded area in Lynn on Aug. 2, 2018. The victim was found dead with dozens of sharp force trauma wounds consistent with being stabbed numerous times. The investigation revealed that Lopez and others had lured the victim to the wooded park a few days prior, where they murdered him because they did not believe he was sufficiently loyal to the group.
Lopez Flores and Reyes are two of six alleged MS-13 members arrested in October 2018.
The charge of RICO conspiracy involving murder provides for a sentence of up to life in prison, five years of supervised release, a fine up to $250,000 and restitution. 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; Essex County District Attorney Jonathan Blodgett; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lynn Police Chief Michael Mageary made the announcement . The Boston, Chelsea, and Peabody Police Departments, as well as the Massachusetts Department of Corrections, provided valuable assistance with the investigation.
The case was investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are merely allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Indicted on Conspiracy to Commit Marriage Fraud, Marriage Fraud, Aiding and Abetting, Visa Fraud, False Statement in an Immigration Proceeding and Preventing Testimony of a Person in an Official Proceeding ChargesRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment today charging both a citizen of Ghana, as well as a naturalized citizen of the U.S., born in Ghana who is also an active member of the U.S, Army, with conspiracy to commit marriage fraud, marriage fraud, aiding and abetting, visa fraud, false statement in an immigration proceeding and preventing testimony of a person in an official proceeding.
According to the indictment, JOSHUA KWAME ASANE and LAWRENCE OPPONG KYEKYEKU knowingly induced U. S. citizens to enter into sham marriages with foreign-born nationals for the purpose of evading United States immigration laws and obtaining lawful permanent residence status for otherwise inadmissible foreign-born nationals.
If convicted of conspiracy to commit marriage fraud, marriage fraud, visa fraud, false statement in an immigration proceeding and preventing testimony of a person in an official proceeding, ASANE, age 45, and a foreign student residing in Norfolk, Virginia, faces a maximum imprisonment term of 50 years, a $1,250,000 fine, a term of supervised release following any term of imprisonment.
If convicted of conspiracy to commit marriage fraud, marriage fraud, and aiding and abetting, OPPONG KYEKYEKU, age 28, of Cumberland County, faces a maximum imprisonment term of 10 years, a $500,000 fine, and a term of supervised release following any term of imprisonment.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The case was investigated by the U.S. Army Criminal Investigation Division and the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina lead by Homeland Security Investigations.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Twice Convicted Child Sex Offender Indicted for Receipt and Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 21, 2020, a federal grand jury returned a two-count indictment against Darrin S. McElhatton (age: 40) of Appleton, Wisconsin.
McElhatton faces charges alleging he received child pornography contrary to Title 18, United States Code, Section 2252A(a)(2)(A) and that he possessed child pornography in violation of Title 18, United States Code, Section 2252A(a)(5)(B). The indictment alleges that McElhatton received and possessed digital videos and images of prepubescent boys in the act of being sexually abused.
In 2011, McElhatton was convicted of sexual exploitation of a child in Green Lake County Circuit Court. Following a prison sentence, he was convicted again in 2014 in Outagamie Circuit Court for the possession of child pornography. He is required to register as a sexual offender under the laws of the State of Wisconsin. Based on his prior record, McElhatton faces a mandatory 15 years’ imprisonment and up to 40 years imprisonment if convicted of the charges.
This case was investigated by the Grand Chute Police Department and the Wisconsin Department of Community Corrections. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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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Supplier, Dealer Plead Guilty in Significant South Georgia Cocaine Trafficking OperationRead the Press Release
VALDOSTA, Ga. – Two men involved in distributing many kilos of cocaine in South Georgia have entered guilty pleas for their crime, said Charlie Peeler, the United States Attorney for the Middle District of Georgia.
Kendrick Deshaun Bradley, 41, of Valdosta, pleaded guilty before U.S. District Judge Louis Sands on Monday, July 20 to one count possession with intent to distribute cocaine base. Co-defendant Hector J. Becerra, 45, of Edinburg, Texas, pleaded guilty before Judge Sands on Tuesday, June 23 to one count possession with intent to distribute cocaine. Becerra and Bradley face maximum sentences of 20 years in prison, a $1,000,000 fine and three years supervised release. A sentencing date has not been scheduled.
Agents with the Special Operations Division of the Lowndes County Sheriff’s Office received a tip in December 2018 that Bradley was trafficking cocaine in the region, and was supplied from Becerra. On February 21, 2019, agents observed Bradley and Becerra together in Valdosta, entering an apartment on Greenlee Street. Bradley was detained later that day, and agents conducting a legal search at the apartment found an intact “cookie” of crack cocaine, a jar containing 11 one-ounce bags of powder cocaine, and three kilograms of cocaine along with a number of drug trafficking related items including a currency counter, a bag containing a number of Ziploc bags, whisks, steel measuring cups (some with cocaine residue), digital scales, a crack cocaine cutting agent, flip phones and blue tin cups with cocaine residue. Two days later, on February 23, agents found another three kilograms of cocaine inside the vehicle Becerra was driving, and he was taken into custody. Becerra admitted he attempted to distribute six kilograms of cocaine and was, at times, the supplier for Bradley. Bradley admitted to trafficking crack and cocaine and will be sentenced based on attempting to distribute all of the drugs found in the Greenlee Street apartment.
“Law enforcement shut down a significant drug trafficking operation supplying large amounts of cocaine and crack cocaine across theValdosta area. The defendants undoubtedly ruined lives as they reaped their illegal gains. They will pay a price for their crimes,” said U.S. Attorney Charlie Peeler. “I want to thank the Lowndes County Sheriff’s Office and the FBI for their excellent work investigating this case.”
The case was investigated by the Lowndes County Sheriff’s Office and the FBI. Assistant U.S. Attorney Robert McCullers is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.