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30 June 2020
Joint Statement of the Colorado U.S. Attorney's Office, Department of Justice Civil Rights Division, and the Denver Division of the FBI Regarding the Death of Elijah McClainRead the Press Release
DENVER – The following statement has been issued by the U.S. Attorney’s Office for the District of Colorado, the Department of Justice’s Civil Rights Division, and the Denver Division of the FBI:
“The standard practice of the Department of Justice is to not discuss the existence or progress of ongoing investigations. However, there are specific cases in which doing so is warranted if such information is in the best interest of the public and public safety. Recent attention on the death of Elijah McClain warrants such disclosure.
“The FBI - Denver Division and the U.S. Attorney’s Office for the District of Colorado began reviewing the facts for a potential federal civil rights investigation in 2019. In addition, the Department of Justice’s Civil Rights Division has been notified and has been involved in this review. The matter is ongoing, and we are in the process of gathering additional evidence from the Aurora Police Department and other parties. To date, the City of Aurora has been cooperating.
“We are also aware of recent media reports about Aurora police officers being placed on administrative leave pending an internal investigation into a photograph in which those officers appeared. We are gathering further information about that incident to determine whether a federal civil rights investigation is warranted.
“We will have no further comment until both of those reviews are completed.”
Guam Ambulance Company Owners Sentenced to Prison for Their Roles in Medicare Ambulance Fraud SchemeRead the Press Release
Two owners of Guam Medical Transport (GMT) were sentenced to prison terms today for their roles in a health care fraud and money laundering scheme that resulted in a loss to the United States of approximately $10.8 million, one of the largest single Medicare ambulance fraud cases ever prosecuted by the Justice Department.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Shawn N. Anderson of the Districts of Guam and the Northern Mariana Islands, Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office, Special Agent in Charge Justin Campbell of IRS Criminal Investigation (IRS-CI) Seattle Field Office and Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.
U.S. District Judge Frances Tydingco-Gatewood of the District of Guam sentenced Clifford P. Shoemake, 63, of Guam, and Kimberly Clyde “Casey” Conner, 60, of Saipan, to serve 71 and 63 months, respectively, in federal prison in connection with their Oct. 29, 2019, guilty pleas to one count of conspiracy to commit health care fraud and one count of conspiracy to engage in monetary transactions with the proceeds of specified unlawful activity. Judge Tydingco-Gatewood also ordered the defendants to pay $10,884,964.49 in restitution and to forfeit the same amount.
Medicare and TRICARE are federal health benefit programs which, under certain specified conditions, reimburse providers for medically necessary, non-emergency, scheduled ambulance transportation to and from dialysis treatments, provided to beneficiaries with end stage renal disease (ESRD). Ambulance services are medically necessary when provided to such beneficiaries who cannot be transported by any other means without endangering their health, or were bed confined before, during and after the transportation.
According to their admissions at the plea hearing, from approximately March 11, 2010, to approximately March 21, 2014, the defendants engaged in a conspiracy to defraud Medicare and TRICARE by submitting claims for reimbursement for medically unnecessary ambulance services that GMT provided to patients with ESRD. The defendants admitted they were aware that GMT was transporting patients who did not qualify for ambulance transportation under applicable Medicare and TRICARE regulations and guidelines, with which they had failed to familiarize themselves. Specifically, the defendants admitted they were aware that many of GMT’s patients were not bed-confined, and did not have acute medical conditions that would otherwise qualify them for ambulance transportation.
As part of the scheme, the defendants directed GMT employees to remove from internal documents references to GMT patients’ ability to walk because they knew that Medicare and TRICARE would not provide reimbursement for the patients. The defendants further admitted they were aware of, but failed to address, concerns about GMT’s Medicare and TRICARE billing practices raised by other GMT employees. According to court documents, GMT submitted claims to Medicare totaling approximately $32 million during the course of the scheme. The conspiracy resulted in improper payments to GMT of approximately $10.8 million, the defendants admitted.
The defendants further admitted to conspiring to engage in money transactions involving the proceeds of their health care fraud scheme. Specifically, they admitted that they used the proceeds of their health care fraud scheme to pay for personal expenses, such as vacations, personal income taxes, a personal residence and other items. They then caused these expenses to be falsely categorized as business expenses of GMT, thereby improperly reducing GMT’s taxable income and GMT’s corresponding tax liability, they admitted.
This case was investigated by the FBI, IRS and HHS-OIG. Senior Litigation Counsel John A. Michelich and Trial Attorney Michael McCarthy of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Marivic David of the District of Guam and the Northern Mariana Islands prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Guam Ambulance Company Owners Sentenced to Prison for Their Roles in Medicare Ambulance Fraud SchemeRead the Press Release
Two owners of Guam Medical Transport (GMT) were sentenced to prison terms today for their roles in a health care fraud and money laundering scheme that resulted in a loss to the United States of approximately $10.8 million, one of the largest single Medicare ambulance fraud cases ever prosecuted by the Justice Department.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Shawn N. Anderson of the Districts of Guam and the Northern Mariana Islands, Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office, Special Agent in Charge Justin Campbell of IRS Criminal Investigation (IRS-CI) Seattle Field Office and Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.
U.S. District Judge Frances Tydingco-Gatewood of the District of Guam sentenced Clifford P. Shoemake, 63, of Guam, and Kimberly Clyde “Casey” Conner, 60, of Saipan, to serve 71 and 63 months, respectively, in federal prison in connection with their Oct. 29, 2019, guilty pleas to one count of conspiracy to commit health care fraud and one count of conspiracy to engage in monetary transactions with the proceeds of specified unlawful activity. Judge Tydingco-Gatewood also ordered the defendants to pay $10,884,964.49 in restitution and to forfeit the same amount.
Medicare and TRICARE are federal health benefit programs which, under certain specified conditions, reimburse providers for medically necessary, non-emergency, scheduled ambulance transportation to and from dialysis treatments, provided to beneficiaries with end stage renal disease (ESRD). Ambulance services are medically necessary when provided to such beneficiaries who cannot be transported by any other means without endangering their health, or were bed confined before, during and after the transportation.
According to their admissions at the plea hearing, from approximately March 11, 2010, to approximately March 21, 2014, the defendants engaged in a conspiracy to defraud Medicare and TRICARE by submitting claims for reimbursement for medically unnecessary ambulance services that GMT provided to patients with ESRD. The defendants admitted they were aware that GMT was transporting patients who did not qualify for ambulance transportation under applicable Medicare and TRICARE regulations and guidelines, with which they had failed to familiarize themselves. Specifically, the defendants admitted they were aware that many of GMT’s patients were not bed-confined, and did not have acute medical conditions that would otherwise qualify them for ambulance transportation.
As part of the scheme, the defendants directed GMT employees to remove from internal documents references to GMT patients’ ability to walk because they knew that Medicare and TRICARE would not provide reimbursement for the patients. The defendants further admitted they were aware of, but failed to address, concerns about GMT’s Medicare and TRICARE billing practices raised by other GMT employees. According to court documents, GMT submitted claims to Medicare totaling approximately $32 million during the course of the scheme. The conspiracy resulted in improper payments to GMT of approximately $10.8 million, the defendants admitted.
The defendants further admitted to conspiring to engage in money transactions involving the proceeds of their health care fraud scheme. Specifically, they admitted that they used the proceeds of their health care fraud scheme to pay for personal expenses, such as vacations, personal income taxes, a personal residence and other items. They then caused these expenses to be falsely categorized as business expenses of GMT, thereby improperly reducing GMT’s taxable income and GMT’s corresponding tax liability, they admitted.
This case was investigated by the FBI, IRS and HHS-OIG. Senior Litigation Counsel John A. Michelich and Trial Attorney Michael McCarthy of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Marivic David of the District of Guam and the Northern Mariana Islands prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Great Dismal Swamp Shooter Sentenced to 30 Years in PrisonRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 30 years in prison for assault with intent to commit murder and discharge of a firearm during a crime of violence, stemming from a May 2019 shooting in the Great Dismal Swamp, a National Wildlife Refuge.
According to court documents and evidence presented at trial, Maurice Devonte Lee, 27, had a tumultuous multi-year relationship with the victim, which escalated to the attempted murder in the Great Dismal Swamp. On May 12, 2019, Lee stopped at his parents’ house, retrieved a 9 millimeter semi-automatic handgun loaded with hollow-point bullets, and hid it in his jacket pocket. Lee then lured the victim deep into the Great Dismal Swamp on the premise of having a picnic. After walking miles onto Lynn Ditch Road, Lee pulled out the firearm and shot the victim in the chest at point-blank range after accusing him of being “disloyal.” Lee threatened to shoot the victim again in the head if he told anyone what happened. After the victim begged for his life and convinced Lee not to shoot him again, Lee called 911. When the dispatcher asked how the victim was shot, Lee said that it was a “long story” and that he had been trying to shoot a bear. The victim suffered life-threatening injuries from the bullet but received emergency medical treatment and survived.
When first responders arrived to the scene, Lee continued to claim that he accidentally shot the victim because a bear was going to attack him. Once Lee admitted the bear story was untrue, he provided various versions of what happened. At trial, Lee represented himself and testified on his own behalf. The jury found him guilty on all counts. During the trial, Lee admitted to destroying evidence by throwing the victim’s phone in the swamp and wiping down the gun before first responders arrived. At sentencing, he received a guidelines enhancement for obstruction of justice, based on the Court’s conclusion that he had made false statements under oath at trial.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Edward Grace, Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorneys John F. Butler and Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-106.
Grand Rapids Woman Pleads Guilty to Wire Fraud Conspiracy in Scheme to Defraud Aliens Seeking Legal StatusRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Jessica Marie Rubio, 32, of Grand Rapids, Michigan pleaded guilty before a U.S. Magistrate Judge to one count of wire fraud conspiracy in a scheme to defraud those without legal status in the United States, in violation of 18 U.S.C. §§ 1349 and 1343. Rubio faces a maximum of 20 years’ imprisonment, 3 years’ supervised release, and a fine of $250,000 or twice the gross gain or gross loss resulting from the offense. The sentencing hearing will be held on October 1, 2020.
Rubio admitted at the plea hearing that over a six-year period in Michigan, Texas, and elsewhere, she solicited people who did not have legal status in the United States by assuming the identity of a Department of Homeland Security attorney and promised to prepare and expedite the immigration application process for them, which included the filing of numerous immigration forms to U.S. Citizenship and Immigration Services ("USCIS") and the Department of Justice - Executive Office for Immigration Review. Rubio demanded payment for her services, purported to be legitimate fees, but knew that she did not and would not ever submit these forms on her clients’ behalf. At least 15 victims in Michigan and another 15 victims in Texas fell victim to this scheme, with total loss amounts calculated at $105,245 at the time of the guilty plea.
"This reprehensible scheme targeted people attempting to comply with the immigration laws of the United States, taking advantage of their hopes at the expense of the agencies that administer those immigration laws and our country in the process," U.S. Attorney Birge commented.
Maintaining the integrity of our nation’s immigration system remains one of the top priorities for the Department of Homeland Security ("DHS"), Office of Inspector General ("OIG"). "To that end, the DHS OIG and our law enforcement partners will aggressively pursue and investigate those who disparage the reputation of the DHS or its employees. The agency has zero tolerance for those who prey upon the vulnerable who simply desire to become U.S. citizens, and will continue to work tirelessly to bring justice to those who commit such despicable acts," Acting Special Agent in Charge Todd Dennis, DHS OIG – Detroit Field Office said.
"Ms. Rubio’s conviction serves as an example to those who choose to victimize our community and undermine our nation’s legal system," said Special Agent in Charge, Shane Folden, Homeland Security Investigations ("HSI") - San Antonio Field Office. "She not only stole their money, but their American dream of obtaining legal status to remain in the United States. HSI will continue to work tirelessly with our law enforcement counterparts to investigate criminals who manipulate and exploit the legal system for their own personal gain and see that they are brought to justice."
The case was investigated by DHS OIG - Detroit Field Office, HSI - San Antonio Field Office, the Fraud Detection and National Security Directorate of USCIS – Harlingen Field Office, Texas Department of Public Safety – Harlingen Criminal Investigations Division, and the Holland Department of Public Safety. Assistant U.S. Attorney Clay M. West prosecuted the case.
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Fugitive Chinese National Sentenced to More Than 3 Years in Prison for His Role in Large-Scale Birth Tourism and Immigration Fraud RingRead the Press Release
SANTA ANA, California – A Chinese national was sentenced in absentia today to 37 months in federal prison for participating in a large-scale birth tourism scheme that engaged in visa fraud that allowed foreign nationals to come to the United States and give birth so their children would receive U.S. birthright citizenship.
Chao “Edwin” Chen (陈超), 35, was sentenced by United States District Judge James V. Selna. Chen pleaded guilty in June 2016 to visa fraud, marriage fraud and filing a false tax return. Soon after pleading guilty, Chen fled to China and remains a fugitive.
Along with Dongyuan Li (李冬媛), 42, of Irvine, and Li’s husband, Qiang Yan (闫强), 44, Chen was charged in the nation’s first cases alleging organized birth tourism operations. Chen operated an Orange County-based business named You Win USA, which they marketed to pregnant foreign nationals – mostly from China – who wanted to come to the United States to obtain U.S. citizenship for their children. As part of the scheme, Chen, Li and Yan coached the foreign nationals to misrepresent the true intentions of their visits to United States at ports of entry.
You Win USA advertised that its “100-person team” in China and the U.S. had served more than 500 Chinese birth tourism customers. Chen and Li used 20 apartments in Irvine, charged each customer $40,000 to $80,000, and received $3 million in international wire transfers from China in just two years. You Win USA promoted the benefits of giving birth in the United States rather than in China, which included “13 years of free education from grade school to high school,” “Less pollution” than China,” “An easier way for the whole family to immigrate to the United States,” and “Priority for jobs in U.S. government, public companies, and large corporations.”
When he pleaded guilty, Chen admitted that he had served at least 60 customers, including People’s Republic of China government employees. For example, one of You Win USA’s customers, Xiao Yan Liu (刘小燕), was indicted in November 2018 for two counts of visa fraud and one count of lying to federal law enforcement. According to her visa application, she was the “Chief Physician” at the Henan Shangqiu Power Supply Company Staff Hospital.
Chen admitted in his plea agreement that in June 2014, he met with an undercover agent (UCA) posing as a birth tourism customer, which resulted in a co-conspirator uploading a visa application in China that contained false information about the UCA’s length of travel, location of stay, and personal information. After that fake visa application was uploaded, Chen put the UCA in touch with his “trainer” in China to teach the pregnant customer how to trick U.S. customs and enter the United States without her pregnancy being detected.
Chen admitted that in addition to the birth tourism scheme, he also engaged in marriage fraud for himself. According to his plea agreement, Chen entered into a sham marriage to a U.S. citizen and paid the woman $25,000 so he could obtain a green card. In February 2014, Chen also filed a false 2013 federal income tax return in order to prove the legitimacy of his sham marriage, which falsely claimed his gross receipts were $227,453.
Li was sentenced in December 2019 to 10 months in federal prison for her role in the scheme.
Yan, who is a fugitive believed to be in China, was indicted in December 2018 on three counts of visa fraud for filing an application for an “O” visa premised upon being an “alien of extraordinary ability,” which falsely claimed that he had co-authored two books. According to Yan’s indictment, when federal agents search his and Li’s home in 2015, he claimed to have more than $10 million in his Chinese bank accounts.
At least 10 other defendants charged in these birth tourism indictments have fled to China, including Jun Xiao (肖俊) and LongJing Yi (易珑静), who were indicted in February 2018 on charges of conspiracy, visa fraud, obstruction of justice, and criminal contempt. According to court documents in their case, Xiao and Yi paid only $4,600 of the $32,291 in hospital charges related to the birth of their baby in Orange County. The indictments also detail communications from Xiao after he had fled to China, where he continued to denigrate a federal court order requiring him to stay in the United States: “U.S. can’t do anything to me.”
In January 2020, the U.S. Department of State cited these birth tourism cases when changing the official rules for issuing visas for travel to the United States for the purpose of giving birth.
These cases were investigated by Homeland Security Investigations and IRS Criminal Investigation. U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, and the Irvine Police Department provided substantial assistance.
This matter was prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
Former deputy admits possessing child pornographyRead the Press Release
STATESBORO, GA: A former Bulloch County sheriff’s deputy has pled guilty in U.S. District Court to possession of child pornography.
Travis Tuenge, 44, of Statesboro, entered the plea before U.S. District Court Chief Judge J. Randal Hall to one count of Possession of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a penalty of up to 20 years in federal prison and a substantial fine, followed by a period of supervised release and registration as a sex offender.
There is no parole in the federal system.
“Exploitation of children through child pornography is a despicable crime that we will not tolerate in the Southern District of Georgia,” said U.S. Attorney Christine. “Travis Tuenge violated innocent children through his deviant behavior, but also violated the trust of his community and his oath of office as a law enforcement officer.”
According to court documents and testimony, Tuenge – who served as a Superior Court security officer – came under investigation after the Bulloch County Sheriff’s Office received a report of suspicious text messages from Tuenge regarding alleged victimization of children. With assistance from the GBI, investigators discovered images of child pornography on Tuenge’s cell phone.
“It is of utmost importance that public officials, especially sworn law enforcement officers, committing crimes be held accountable for their actions,” said Vic Reynolds, Director of the Georgia Bureau of Investigation (GBI). “The GBI remains committed to working with our local and federal partners to ensure that these type cases are aggressively investigated and prosecuted in order to maintain the faith and trust of the public.”
The case was investigated by the GBI and the Bulloch County Sheriff’s Office with assistance from the U.S. Marshals Service Southeast Regional Fugitive Task Force, and is being prosecuted for the United States by Assistant U.S. Attorneys Joshua S. Bearden and Marcela C. Mateo.
Former Florida State University C.A.R.E. Students and Former University of Florida Football Player Indicted for Conspiracy, Bank Fraud, and Aggravated Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned an indictment charging seven defendants with conspiracy to commit bank fraud, 17 counts of bank fraud, and 8 counts of aggravated identity theft. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The defendants named in this indictment are:
- Kh’lajuwon Amari Murat, 21, Miramar, Florida;
- Kadeem Wysler Joseph Telfort, 22, Miramar, Florida;
- Jada Tisean Barton, 22, Titusville, Florida;
- Ariel Apperlyn Smith, 22, Coral Springs, Florida;
- Deshauan Antwaniece Sanders, 22, Miami, Florida; and
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Voshon Howard, 22, Miramar, Florida
The indictment alleges that Telfort, a student and football player at the University of Florida, and the other defendants who were all students at Florida State University (“FSU”) in the Center for Academic Retention and Enhancement (“C.A.R.E.”), conspired to defraud federally insured financial institutions between July 1, 2017, and October 31, 2017. The indictment further alleges that Murat and Telfort used the Internet and text messaging to unlawfully obtain credit card and debit card account numbers belonging to third parties, and that they used those account numbers to fraudulently deposit funds into the student accounts of FSU students, including accounts belonging to Barton, Smith, Sanders, and Howard. The indictment also alleges that the group communicated by cell phone and text messaging to plan the execution of the scheme. Specifically, the indictment alleges that Murat requested the student account numbers from FSU students and also requested that the FSU students purchase merchandise from the FSU Bookstore using funds that he and Telfort had fraudulently deposited or would later fraudulently deposit into those students’ accounts. It is alleged that the FSU students gave the purchased merchandise to Murat and others, and were permitted to keep any remaining balance of the funds that Murat and Telfort fraudulently deposited into their student accounts for their own personal use. In total, it is alleged that the group fraudulently obtained and attempted to obtain approximately $53,000 in funds to which they were not entitled.
All defendants face a potential maximum penalty of 20 years in prison for each conspiracy to commit bank fraud and bank fraud count, and Murat faces an additional 2-year mandatory minimum prison sentence, consecutive to any other sentence imposed, for each aggravated identity theft count.
This case resulted from an investigation by the Florida State University Police Department and the United States Secret Service. Assistant United States Attorney Justin M. Keen is prosecuting the case.
The jury trial is scheduled for August 17, 2020, at 8:15 a.m. before the Honorable Judge Robert Hinkle at the United States Courthouse in Tallahassee.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release Murat, et al.Former Colorado Judge Pleads Guilty to Obstructing Task Force Investigation of a Drug Trafficking OrganizationRead the Press Release
A former Colorado judge pleaded guilty today to obstructing a federal task force investigation of a large-scale drug trafficking organization.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jason R. Dunn of the District of Colorado and Special Agent in Charge Michael Schneider of the FBI’s Denver Field Office made the announcement.
Ryan Kamada, 41, of Windsor, Colorado, pleaded guilty to one count of obstruction of proceedings before a department or agency of the United States before U.S. District Judge William J. Martinez of the District of Colorado. A sentencing hearing is scheduled for Dec. 4, 2020, before Judge Martinez.
According to admissions Kamada made in connection with his guilty plea, beginning in or around October 2018, a federal task force was investigating an international drug trafficking organization that was distributing large quantities of cocaine throughout northern Colorado. One of the members of the organization was a drug trafficker who lived in Greeley, Colorado. Kamada had known the drug trafficker since high school.
Beginning in January 2019, Kamada served as a District Court judge of the 19th Judicial District of Colorado. While serving as the “on call” judge one evening in April 2019, Kamada received a phone call from a task force officer who was seeking a search warrant related to the investigation into the drug trafficker. The task force officer pointed out to Kamada that he was associated with the drug trafficker on social media. As a result, Kamada recused himself from the case. But early the next morning, Kamada called his best friend, Geoffrey Chacon, who had also known the drug trafficker since childhood. Kamada told Chacon that law enforcement was “watching” the drug trafficker’s house, car and phone, and instructed Chacon to “stay away” from the drug trafficker. Chacon subsequently informed the drug trafficker about the warrant and Chacon modified his own behavior in order to avoid law enforcement attention.
The information that Chacon provided to the drug trafficker also caused the drug trafficker to change his pattern of conduct and substantially interfered with the task force’s investigation. After Chacon relayed the information that he received from Kamada to the drug trafficker, Chacon destroyed records of his communications with the drug trafficker in order to impair efforts by law enforcement to tie Chacon to the drug trafficker. In November 2019, Chacon pleaded guilty in federal court to one count of destruction of records with the intent to obstruct a federal investigation.
The FBI’s Denver Field Office is investigating the case, with substantial assistance from the Greeley Police Department. Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Bryan Fields of the District of Colorado are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Colorado Judge Pleads Guilty to Obstructing Task Force Investigation into Large-Scale Cocaine Trafficking OrganizationRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that a former Colorado state district court judge, Ryan Kamada, age 41, of Windsor, Colorado, pleaded guilty to obstructing a federal task force investigation of a large-scale cocaine trafficking organization. Kamada learned about the investigation in his official capacity as a judge and then disclosed details of the investigation to a friend, who then tipped off the target individual.
Joining U.S. Attorney Dunn in this announcement is Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Michael Schneider of the FBI’s Denver Field Office.
Kamada pleaded guilty to one count of obstruction of proceedings before a department or agency of the United States. The plea was entered before U.S. District Judge William J. Martinez. A sentencing hearing is scheduled for December 4, 2020.
According to the stipulated facts contained in the plea agreement, beginning in or around October 2018, a federal task force was investigating a drug trafficking organization that was distributing large quantities of cocaine throughout northern Colorado. One of the members of the organization was a drug trafficker who lived in Greeley, Colorado. Kamada had known the drug trafficker since high school.
Beginning in January 2019, Kamada served as a District Court Judge of the 19th Judicial District of Colorado. While serving as the “on call” judge one evening in April 2019, Kamada received a phone call from a task force officer who was seeking a search warrant related to the investigation into the drug trafficker. The task force officer pointed out to Kamada that he was associated with the drug trafficker on social media. As a result, Kamada recused himself from the case. But early the next morning, Kamada called his best friend, Geoffrey Chacon, who had also known the drug trafficker since childhood. Kamada told Chacon that law enforcement was “watching” the drug trafficker’s house, car and phone, and instructed Chacon to “stay away” from the drug trafficker. Chacon subsequently informed the drug trafficker about the warrant and modified Chacon’s own behavior in order to avoid law enforcement attention.
The information that Chacon provided to the drug trafficker also caused the drug trafficker to change his pattern of conduct and substantially interfered with the task force’s investigation. After Chacon relayed the information that he received from the judge to the drug trafficker, Chacon destroyed records of his communications with the drug trafficker in order to impair efforts by law enforcement to tie Chacon to the drug trafficker. In November 2019, Chacon pleaded guilty in federal court to one count of destruction of records with the intent to obstruct a federal investigation.
The FBI’s Denver Field Office is investigating the case, with substantial assistance from the Greeley Police Department. Assistant U.S. Attorney Bryan Fields of the District of Colorado and Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section (PIN) are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 20-cr-174.
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 Cemetery Owner Sentenced for Defrauding CustomersRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Theodore Martin, age 57, formerly of York County, Pennsylvania, was sentenced today to 13 months’ imprisonment to be followed by two years of supervised release by Chief United States District Court Judge John E. Jones III, for conspiring to commit mail fraud. The sentence represents a downward adjustment of approximately twenty-eight months to account for prison time that Martin has served for a related fraud scheme in Ohio.
According to United States Attorney David J. Freed, Martin, along with his wife Arminda Martin, owned and operated Suburban Memorial Gardens Cemetery in Dover, Pennsylvania. The Martins previously pleaded guilty to conspiring to defraud hundreds of their customers out of approximately $500,000. The Martins admitted that instead of applying customer payments to cemetery services and products, they embezzled the money for their own personal gain, including for gambling.
Arminda Martin is scheduled to be sentenced on July 28, 2020.
The case was investigated by the United States Department of Veterans Affairs Office of Inspector General, the Federal Bureau of Investigation, and the Northern York County Regional Police Department. Assistant U.S. Attorneys Carlo D. Marchioli and Joseph J. Terz prosecuted the case.
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Florence Man Sentenced to 50 Months for Conspiracy to Distribute MDMARead the Press Release
COVINGTON, Ky. – A Florence, Kentucky, man Richard Gearhart, 39, was sentenced today to 50 months in federal prison, by U.S. District Judge David Bunning, for conspiracy to distribute MDMA (ecstasy).
Gearhart previously admitted to conspiring with others to distribute more than 600 grams of MDMA, between August 2014 and July 2019. According to his plea agreement, numerous packages of MDMA were sent from various overseas locations to Gearhart, through the mail at various addresses. Officials from U.S. Homeland Security and the Postal Inspection Service seized seven of these packages. Agents also seized approximately 100 grams of MDMA, two firearms, and items of drug paraphernalia from his residence, on July 17, 2019. Gearhart was a convicted felon at the time of the commission of this offense.
Gearhart was indicted in November 2019 and pled guilty in March 2020. Under federal law, Gearhart must serve at least 85 percent of his prison sentence and will be under of the supervision of the U.S. Probation Office for four years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentuck; James Giehl, Acting Inspector in Charge, Pittsburgh Division, Cincinnati Field Office, United States Postal Inspection Service; Jerry Templet, Special Agent in Charge, United States Department of Homeland Security Investigations; and Christopher Conners, Director of the Northern Kentucky Drug Strike Force, jointly announced the sentence.
The investigation was conducted by the United States Postal Inspection Service, the Department of Homeland Security, and the Northern Kentucky Drug Strike Force. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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Five charged in Toledo City Council bribery and extortion schemeRead the Press Release
Four sitting Toledo City Council members and one local attorney were charged in a criminal complaint today for their participation in a bribery and extortion scheme that encouraged soliciting and/or accepting cash, checks, money orders, or other things of value from local business owners in exchange for their votes on City Council.
Charged today were Tyrone Riley (District 1), Yvonne Harper (District 4), Garrick “Gary” Johnson (At-Large), Larry Sykes (At-Large) and Keith Mitchell all of Toledo. All defendants were charged via a federal criminal complaint filed in the Northern District of Ohio with Receipt of Bribe by Agent of Organization Receiving Federal Funds and Hobbs Act Extortion Under Color of Official Right. Additionally, defendant Harper was charged with Interstate Communications with Intent to Extort.
“As alleged in the Complaint, four Toledo City Council members and a local attorney have been engaged in a pay-to-play scheme involving bribes for Council votes,” said U.S. Attorney Justin Herdman. “Maintaining the public’s trust in its elected officials is one of the Department of Justice’s core responsibilities. The residents of Toledo should know, as should every other resident of the Northern District of Ohio, that where there are allegations of public corruption and kickbacks, we and our federal partners will be there every time.”
"Elected officials are elected by the people, to serve the people, not to serve their own financial self-interests,” said FBI Special Agent in Charge Eric B. Smith. “The FBI will continue efforts to root out public corruption so citizens can have faith and trust in their public officials.”
According to the criminal complaint, in early 2018, the FBI began to investigate Toledo City Council members for soliciting monetary payments or other things of value from local business owners in exchange for their votes on City Council. In addition, Councilwoman Harper was investigated for an extortion attempt on a local business.
The following is a summary of the events listed in the complaint:
From May of 2018 to April of 2019, a local businessman, Source 1, applied for a Special Use Permit “SUP” for a curb cut at Source 1’s place of business off of Dorr Street in Toledo.Source 1 bribed Councilman Tyrone Riley with $2,000 and other items of value in return for the Councilman’s support of the SUP. On April 30, 2019, the SUP passed council unanimously with Councilman Riley abstaining. Later on, Source 1 would provide an additional $700 bribe to remove a sprinkler system requirement written into Source 1’s SUP.
In April of 2018, a local businessman, Source 2, applied for a SUP for the re-zoning of an internet café business on Holland-Sylvania Rd. Source 2 bribed Councilman Tyrone Riley $1,000 in return for the Councilman’s support of the re-zoning SUP. On October 23, 2018, Riley and the rest of City Council voted in favor of SOURCE 2’s SUP for his/her internet café on Holland-Sylvania Rd.
From 2018 to 2020, Source 2 solicited and bribed council members Yvonne Harper (through local attorney Keith Mitchell), Tyrone Riley, Garrick “Gary” Johnson and Larry Sykes with monetary payments and other items of value in return for their support of a SUP to open an internet café on Central Avenue in Toledo.
Source 2 paid Councilwoman Harper, through Mitchell, a total of $2,825 ($2,000 for Harper for the Central Ave. SUP; $500 for Mitchell; and $320 for Harper’s fundraiser), Councilman Johnson $1,000 in a check for him in some else’s name, Councilman Riley $5,000 and Councilman Sykes $1,500 all in return for their support of the Central Ave SUP. On February 25, 2020, the Central Avenue internet café SUP passed City Council unanimously.
In 2019, Source 2 applied for two SUPs for two internet cafés on Reynolds Rd. During the same approximate time period, Source 2 wanted City Council to pass a moratorium to prohibit any additional internet cafés within the city for a specified time frame. Source 2 then paid Councilman Sykes in return for three votes in favor of the two internet cafes on Reynolds Rd., the moratorium legislation, and paid Riley $5,500 in bribe money for his three votes in favor of these issues. Source 2 also paid Councilman Tyrone Riley $500 for his support of the two Reynolds Rd internet cafes and moratorium legislation.
On January 2, 2020, Sykes and Riley voted yes on a moratorium on internet cafés and the two Reynolds Rd SUPs; all three measures passed.
In 2019, an acquaintance of Source 2, A.M., applied for a SUP to open an internet café on Manhattan Blvd. A.M. provided two bribes, one to Councilwoman Harper’s reelection campaign for $5,000 and a separate fee to Mitchell for $1,500. 114. On July 23, 2019, Harper voted in favor of A.M.’s SUP during the City Council meeting. A.M.’s SUP was approved unanimously.
Additionally, in 2019, A.M., applied for a SUP to open an internet café on Secor Rd. A.M. and Source 2 paid Councilman Johnson $2,000 in return for his support of the SUP. The SUP ultimately failed to garner the required votes in Planning Commission and in City Council.
In November of 2019, Councilwoman Harper and Source 1 convened a meeting to discuss a Facebook post by one of Harper’s constituents claiming that Source 1’s tenant used racial slurs when interacting with a female customer from the neighborhood. Harper then threatened Source 1 with protests, negative media attention and potential loss of their liquor license unless the constituent was compensated appropriately. On January 31, 2020, Source 1 paid the constituent $2,500.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Cleveland Division of the FBI and is being prosecuted by Assistant U.S. Attorney Michael Freeman.
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Five Tampa Residents Charged in $21 Million Money Laundering Conspiracy of Drug Trafficking ProceedsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the unsealing of a 37-count indictment charging five individuals with money laundering and conspiracy to commit money laundering. If convicted, each defendant faces a maximum penalty of 20 years in federal prison per count. The indictment also notifies the defendants that the United States is seeking a money judgment of $21,567,939 and forfeiture of approximately $167,008 seized from a bank account, which represents the proceeds of the offenses.
CHARGED DEFENDANTS
Name
Age, Residence
Counts
Hector Rodriguez Mendez
44, Tampa
Counts 1 through 37
Virginia Garcia Moreta
33, Tampa
Counts 1 through 37
Leo Pichardo
60, Tampa
Counts 1-7, 12, 16-20, 23, 25, 29, 31, and 33-35
Cleto Dominguez
38, Tampa
Counts 1, 8-11, 13-15, 24, 30, 37
Samuel Rivera
42, Tampa
Counts 1, 21-22, 26-28, 32
According to the indictment, the individuals used the cash proceeds of drug trafficking to purchase cashier’s checks in their individual capacities and through various businesses that they had created. These cashier’s checks were then remitted to various other individual and business accounts to receive, disguise, conceal, and distribute the drug trafficking proceeds.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, and Homeland Security Investigations as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Five Dayton men indicted for ID theft conspiracy involving gas stolen from area gas stationsRead the Press Release
DAYTON – A federal grand jury has charged five Dayton men in an identity theft conspiracy that involved re-encoding gift and credit cards in order to steal gasoline at approximately 50 Dayton-area gas stations and convenience stores.
According to the indictment, co-conspirators executed a fraud scheme to acquire bulk quantities of stolen personal credit card account numbers, names, addresses and other personal identifying information from the Dark Web.
The stolen information was thereafter allegedly re-encoded by the co-conspirators on hundreds of blank and reused gift cards and credit cards for later use in the left of large quantities of gasoline from approximately 50 Dayton-area gas stations and convenience stores over a two and a half year time period.
Court documents say the defendants issued announcements on Facebook and sent blast text messages indicating the precise date, time and retail establishment of upcoming illicit “fill-ups.”
Conspirators would allegedly appear at the designated locations for the purpose of hi-jacking the operation of retail store gas pumps using counterfeit credit cards accepting $20-$30 payments from customers, filling up their vehicles with stolen gas. It was reportedly not unusual to observe six to 10 vehicles lined up at designated gas pumps waiting to receive “fill-ups” from members of the conspiracy.
Those charged include Kevin Earl Alexander, Jr., 33; Demetrius Hicks, 28; Tyson Kenneth Thomas, 24; Darrell Toshe White, 27; and Isaiah Cooper, 20. Each of the defendants is charged with conspiracy to engage in access device fraud, punishable by up to seven and one-half years in prison. Defendants are also charged in the 11-count indictment with aggravated identity theft, illegally possessing unauthorized access devices and device making equipment. Hicks is also charged with illegally possessing a firearm as a convicted felon.
Three of the defendants were arrested over the past two days. Alexander was already in state custody for a prior state conviction. All five defendants will appear in federal court for arraignment.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, Cincinnati Field Office; and Dayton Police Chief Richard S. Biehl announced the charges. Assistant United States Attorney Dwight Keller is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Fifth Pharmaceutical Company Charged in Ongoing Criminal Antitrust InvestigationRead the Press Release
Glenmark Pharmaceuticals Inc., USA was charged for conspiring to fix prices for generic drugs, the Department of Justice announced today.
The charge, filed today in the U.S. District Court in Philadelphia, Pennsylvania, alleges that Glenmark conspired with other generic drug companies, including a company with its principal place of business in Montgomery County, Pennsylvania, and Apotex Corp., to increase and maintain prices of pravastatin and other generic drugs beginning in or around May 2013 and continuing until at least in or around December 2015. Pravastatin is a prescription medication that reduces cholesterol, helping to prevent heart attacks and strokes. The charge alleges that the gain to the conspirators, and the loss to the victims, was at least $200 million.
“By cheating through fixing prices, generic drug companies artificially raised prices even though prescription drug costs were already sky high,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “As today’s charge shows, the Antitrust Division will not hesitate to charge these companies, and litigate where necessary, particularly where their crimes resulted in hundreds of millions of dollars in overcharges for life-saving medications.”
“During these difficult times, it is more important than ever that our pharmaceutical companies conduct business with the well-being of the consumer in mind,” said Deputy Special Agent in Charge Steven Stuller, U.S. Postal Service Office of Inspector General. “When generic drug companies conspire to artificially increase prices, they do so to the detriment of many who depend on these medications to maintain good health. Along with the Department of Justice Antitrust Division and our partners at the Federal Bureau of Investigation, the USPS Office of Inspector General will remain committed to investigating those who would engage in this type of harmful conduct.”
“The FBI will continue to work closely with our partners to pursue companies and individuals who seek to manipulate the economic system to their benefit,” said Timothy R. Slater, Assistant Director in Charge of the FBI Washington Field Office. “Today's charge demonstrates the FBI's ongoing commitment to rooting out this greed and illegal activity. There are real victims in these crimes; they are the patients around the country who rely on these vital medications.”
“Artificially inflating the price of medication is reprehensible and illegal,” said Jennifer Arbittier Williams, First Assistant U.S. Attorney for the Eastern District of Pennsylvania. “This ill-gotten gain by the pharmaceutical industry potentially put the health of millions of Americans at risk. Just as with the other charges that have been brought out of this investigation into generic pharmaceuticals, today’s announcement demonstrates that we will continue to hold accountable any company that engages in this type of conduct.”
Glenmark is the fifth company to be charged over the last 13 months in connection with antitrust violations in the generic pharmaceutical industry. The previous corporate charges, including the charge against Glenmark’s co-conspirator Apotex, were resolved by deferred prosecution agreement. Four senior executives have also been charged. Three entered guilty pleas and the fourth is awaiting trial.
A criminal Information merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The offense charged carries a statutory maximum penalty of $100 million, which may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $100 million.
This charge is the result of an ongoing federal antitrust investigation into market allocation, price fixing, bid rigging, and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the Federal Bureau of Investigation’s Washington and Philadelphia Field Offices, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging, or other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Federal Seizure Warrants Freeze Funds Tied to COVID-19 Unemployment Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office has taken swift action to seize $48,742.50 in funds held at bank accounts allegedly used to perpetuate COVID-19 unemployment fraud, announced U.S. Attorney Andrew Murray. The federal asset forfeiture seizure warrants executed by the United States Secret Service were unsealed by the Court today.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
In a memorandum issued on March 16, 2020, Attorney General William P. Bar directed U.S. Attorney’s Offices across the country to remain vigilant in detecting, investigating, and prosecuting wrongdoing related to COVID-19, and to prioritize the investigation and prosecution of criminal conduct exploiting the coronavirus epidemic.
In making today’s announcement, U.S. Attorney Murray said, “We will not allow scammers to profit from the COVID-19 crisis. Federal prosecutors in this Office have been working closely with federal, state and local authorities to ensure that we swiftly investigate possible misconduct related to the coronavirus, and use all enforcement tools available to end the fraud and punish the perpetrators.”
“Today’s announcement illustrates the Secret Service’s commitment to combating COVID-19 unemployment fraud,” said Special Agent in Charge DeMatteis. “The actions taken by the Secret Service and the U.S. Attorney’s Office prevented legitimate unemployment funds from getting into the wrong hands. The Secret Service will continue to work closely with the U.S. Attorney’s Office to investigate and prosecute criminals who attempt to defraud the critical COVID-19 relief programs and the American taxpayer.”
As alleged in the affidavit filed in support of the federal warrants, the seizures stem from an ongoing investigation of a COVID-19 unemployment fraud scheme that implicates bank accounts in the Western District of North Carolina. These bank accounts were allegedly used to transfer money from unemployment benefit programs to fraudsters. Both the federal government and state governments have recently implemented unemployment benefit programs to disburse money to certain qualifying individuals who have become unemployed as a result of the recent coronavirus outbreak. These programs provide means for impacted individuals to apply online for unemployment benefits and to receive much-needed funds. In some instances, fraudsters have targeted these benefit programs and have exploited them for their benefit.
According to allegations in the affidavit, to carry out the scheme, the fraudsters used victims’ stolen identities to apply for unemployment benefits online. The scammers then used the bank accounts of yet another set of unsuspecting individuals as “money mule” accounts, to receive and transfer the stolen benefits. “Money mule accounts” are bank accounts used by fraudsters as a pass through means of moving fraudulently-obtained funds. Oftentimes, the unwitting money mule victims, typically acting at the direction of the fraudsters, receive fraud proceeds and conduct financial transactions with those proceeds, or transfer the money from the money mule account to other bank accounts, often located overseas. In many instances, the account holders are not aware they are being exploited to carry out financial fraud.
As alleged in the federal affidavit, in some instances in this case, the individuals who opened the money mule accounts believed themselves to be engaged in online romantic relationships with the fraudsters. The funds identified for seizure in this case were deposited as a result of fraud on coronavirus-related unemployment benefit programs, into many such money mule accounts, including accounts purportedly opened by individuals in the Western District of North Carolina.
Commending the investigative work of the United States Secret Service, U.S. Attorney Murray said, “I thank the U.S. Secret Service for acting quickly to stop this fraud. My office will continue to with work federal, state, and local law enforcement and stakeholder banks, to make sure domestic or foreign criminals do not profit from pillaging important COVID-19 relief programs.”
U.S. Attorney Murray also noted that the public plays an important role in stopping COVID-19 fraud and urged everyone to remain alert about possible coronavirus scams. “If you are engaged in an online-only relationship and your paramour asks you to open a new bank account, or use your existing account to transfer funds, think twice. A fraudster posing as a romantic online partner could be using you and your accounts as a repository to launder stolen money. Don’t let a scammer turn you into a money mule. Be extra vigilant about online scams, and if the circumstances are suspicious get in touch with law enforcement right away.”
The U.S. Secret Service is in charge of the investigation, which is ongoing. Assistant U.S. Attorney Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte, is handling the federal civil court proceedings.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal law enforcement partners to protect the public from scammers who are attempting to prey upon fears. If you think you are a victim of a scam or attempted fraud involving COVID-19, you can report the fraud by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Fair Housing Act Discrimination Lawsuit Against Owner of Pullman, Washington Apartment Complex Results in Consent DecreeRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that the United States has reached a resolution of a housing discrimination lawsuit in Pullman, Washington concerning discrimination against a mother with a disability and her son.
Under the terms of the consent decree approved by the Federal Court in Spokane, Ed L. Christensen is required to pay $13,000 in monetary relief to a mother and son who were threatened with fines and eviction for having an assistance animal in the apartment they rented from Christensen. The consent decree also requires Christensen to take numerous corrective measures, including training, adopting a nondiscrimination policy, record keeping, and monitoring for a period of three years.
According to allegations in the complaint, which originated from an investigation by the U.S. Department of Housing and Urban Development (HUD), Christensen refused to allow the victims to have an assistance animal in their apartment, threatened to fine and evict the victims if they did not remove the service animal, and also told fair housing testers from Northwest Fair Housing Alliance that he would not rent to an individual with a prescribed service animal.
United States Attorney Hyslop said, “Individuals with a disability should not be discriminated against or barred from renting because they have an assistance animal. The Fair Housing Act ensures that individuals renting or seeking to rent an apartment are protected from this kind of discrimination. My office, in coordination with the Department of Justice’s Civil Rights Division, will continue to vigorously investigate and protect the civil rights of individuals with a disability in the Eastern District of Washington and across the country.”
“HUD brought this case because telling individuals with a disability they cannot have an assistance animal in their apartment or threatening them with fines or evictions for having an assistance animal is illegal,” said Anna Maria Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Individuals with a disability may not be denied access to rentals or penalized for having an assistance animal.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The Federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at http://www.justice.gov/crt/housing/ or http://www.hud.gov/fairhousing.
This case was investigated by the Seattle Regional Office of the U.S. Department of Housing and Urban Development. The Northwest Fair Housing Alliance in Spokane represented the victims. This case was prosecuted by Joseph P. Derrig, an Assistant United States Attorney for the Eastern District of Washington.
FBI Undercover Operation Leads to Federal Charges for 14 Men Attempting to Meet Minors for SexRead the Press Release
Fairview Heights, Ill. – U.S. Attorney Steven D. Weinhoeft and FBI Special Agent in Charge Sean M.
Cox announced today that 14 men have been federally charged for attempting to engage in sexual activity with minors. The cases are the result of an FBI led operation involving multiple federal and state law enforcement agencies that targeted online predators attempting to meet minors for sex. Over 50 law enforcement agents were involved in the operation.U.S. Attorney Steven Weinhoeft said, “Instead of lurking on playgrounds, modern predators hide behind electronic devices using social media and texting apps to access young children.” Weinhoeft continued, “Serious dangers are no further away than a child’s cell phone or tablet, and we strongly urge parents to monitor their children’s online activity, be aware of who their children are talking with, and have conversations about how to stay safe online.”
SAC Cox echoed those remarks: “Over this past weekend, FBI Agents from Springfield and St. Louis partnered with law enforcement to conduct an operation to identify child predators. These are some of the most difficult, and yet the most important, investigations we work with our partners to make a positive impact in our communities and protect our children. In today’s world, children have a much larger presence on social media platforms than they had in the past, which places them at far greater risk of becoming a victim to online sexual predators. These arrests should serve as a reminder to parents everywhere of the importance of monitoring the computer usage of their children and staying active in their lives.”
During the two-day operation, undercover agents pretended to be minors in a variety of online texting, social media and message board platforms and apps. All of the defendants contacted these profiles online, engaged in sexually explicit discussions with the undercover agents and arrived at a residence with the intent to engage in sexual acts with minors. Some of the defendants also propositioned the undercover agents to send them pornographic photos, traveled across state lines for the purpose of illicit sexual activity with a minor, and/or offered to pay money to engage in sexual activity with a minor. All of the defendants were arrested after arriving at the undercover residence. Several defendants arrived with items intended for the fictitious minors, including alcohol, sex toys, lubricant, condoms, methamphetamine, and in one case, a dog leash and a dog collar with the name of the undercover profile engraved on it. No actual minors were harmed.
All of the defendants were charged by criminal complaint between June 28-29, 2020. U.S. Attorney
Weinhoeft said, “Sex trafficking and child exploitation continue to impact our communities, and we will aggressively enforce the law against those who would prey upon children.”The identities of the 14 men who were charged in the East St. Louis Division of the United States
Name Age City Charges Brett Brimberry 28 Glen Carbon, IL Attempted Enticement of a Minor Richard L. Britt 38 Granite City, IL Attempted Enticement of a Minor; Interstate
District Court for the Southern District of Illinois, as well as their charges, are set out in the table below:
Travel to Engage in Illicit Sexual Conduct Urich Gaines 32 Belleville, IL Attempted Enticement of a Minor Kayln E. Hoggat 27 Bridgeport, ILAttempted Enticement of a Minor; Attempted
Kevin Kamler 30 O'Fallon, MO Attempted Enticement of a Minor Brian Lotz 56 Collinsville, IL Attempted Enticement of a Minor Anthony Parrish 33 Swansea, IL Attempted Enticement of a Minor Philip M. Reis 55 O'Fallon, IL Attempted Enticement of a Minor Gerald S. Sewell 56 Belleville, IL Attempted Enticement of a Minor: Interstate
Production of Child Pornography
Travel to Engage in Illicit Sexual Conduct James R. Sears 35 Bridgeport, IL Attempted Enticement of a Minor Travis Shubert 29 Granite City, IL Attempted Enticement of a Minor Preston Thomas 57 St. Louis, MO Attempted Enticement of a Minor Nicholas Wright 35 O'Fallon, MO Attempted Enticement of a Minor; Interstate
Travel to Engage in Illicit Sexual Conduct;
Attempted Sex Trafficking of a Child Vallie F. Zeller 43 St. Louis, MO Attempted Enticement of a Minor; Interstate
Travel to Engage in Illicit Sexual Conduct;
Attempted Production of Child Pornography
Between June 29-July 1, 2020, all 14 defendants will have an initial appearance in front of United
States Magistrate Judges Mark Beatty or Gilbert Sison at the federal courthouse in East St. Louis.
Each of the offenses is alleged to have occurred in Madison County, Illinois. If convicted, the defendants each face a minimum penalty of 10 years imprisonment and could receive as much as life behind bars. The offenses also carry a possible lifetime term of supervised release and fines of up to $250,000.Pending trial, all 14 defendants will be held without bond or released on electronic monitoring and other strict conditions mandated by the Adam Walsh Act.
A complaint is merely a charge against a defendant. Under the law, a defendant is presumed to be innocent of the charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
These cases fall under the umbrella of Project Safe Childhood, a nationwide initiative launched in
2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”The investigation was led by the FBI-Springfield Division, with the assistance of the FBI- St.
Louis Division, U.S. Air Force Office of Special Investigations, the Belleville Police Department, the Collinsville Police Department, the Edwardsville Police Department, the Franklin County
Sheriff’s Office, the Illinois State Police, the Southern Illinois University-Edwardsville Police
Department, the St. Louis County Police Department, the Swansea Police Department, and the United
States Secret Service. Additional assistance was provided by the United States Marshals Service, the Alton Jail, the Monroe County Jail, and the St. Clair County Jail. The 14 defendants’ cases will be prosecuted by Assistant Unite States Attorneys Chris Hoell, Ali Burns, Karelia
Rajagopal, and Laura Reppert.Ex-Husband of ‘Real Housewives of New Jersey’ Star and Lucchese Crime Family Soldier Indicted for Assault and Other CrimesRead the Press Release
NEWARK, N.J. – The ex-husband of one of the stars of the Bravo television show “The Real Housewives of New Jersey,” and an organized crime soldier were arrested today on charges of planning and carrying out an assault of the Bravo star’s current husband in exchange for a lavish wedding reception, U.S. Attorney Craig Carpenito announced.
Thomas Manzo, 55, of Franklin Lakes, New Jersey, and John Perna, 43, of Cedar Grove, New Jersey, are each charged by indictment with committing a violent crime in aid of racketeering activity and conspiracy to commit a violent crime in aid of racketeering activity. The indictment also charges Perna – identified in the indictment as a soldier in the Lucchese Crime Family – with conspiracy to commit wire and mail fraud related to the submission of a false car insurance claim, and Manzo with falsifying and concealing records related to the federal investigation of the violent crime. Both defendants will make their initial appearances today by videoconference before U.S. Magistrate Judge Cathy L. Waldor.
According to the documents filed in this case and statements made in court:
In the spring of 2015, Manzo, one of the owners of the Brownstone Restaurant in Paterson, New Jersey, allegedly hired Perna to assault his ex-wife’s then-boyfriend in exchange for a deeply discounted wedding reception for Perna held at the upscale venue. Perna, who is a “made man” in the Lucchese Crime Family with his own crew, worked with his associates to plan and carry out the assault, which took place in July of 2015. In exchange for committing the assault, Perna held a lavish wedding reception at Manzo’s restaurant for a fraction of the price, which was paid by another Lucchese associate and close friend of Manzo’s. The wedding and reception, held in August 2015, were attended by approximately 330 people, and included many members of the Lucchese Crime Family.
Separately, prior to the date that Perna was scheduled to begin serving a state prison sentence in January 2016, he falsely reported that his Mercedes Benz was stolen and destroyed. Perna filed an insurance claim for the destruction of the Mercedes Benz in order for the balance due on the Mercedes Benz. However, Perna had staged the vehicle theft and arson with other members of the Lucchese Crime Family.
The charge against Manzo for allegedly falsifying and concealing records related to the federal investigation of the July 2015 assault relates to federal grand jury subpoenas that were sent to the Brownstone Restaurant seeking documents related to the August 2015 Perna wedding reception. Manzo failed to turn over relevant documents in response to those subpoenas and deliberately submitted a false document regarding the reception to the government, along with a false certification. In November 2019, agents with the FBI executed a search warrant at the Brownstone Restaurant and seized invoices for the August 2015 Perna wedding reception and other relevant documents that were not previously turned over.
The violent crime in aid of racketeering activity count against both defendants carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The conspiracy to commit the violent crime in aid of racketeering activity count against both defendants carries a maximum potential penalty of three years in prison and a $250,000 fine. The conspiracy to commit mail and wire fraud count against Perna carries a maximum potential penalty of 20 years of in prison and a $250,000 fine. The falsifying and concealing records related to a federal investigation count against Manzo carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigation leading to the charges and arrest.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Eleventh Circuit Court of Appeals Upholds Convictions of Doctor on Twenty Counts of Healthcare FraudRead the Press Release
Tampa, Florida — United States Attorney Maria Chapa Lopez announces that the United States Court of Appeals for the Eleventh Circuit has upheld the convictions of Dr. David M. Pon on 20 counts of healthcare fraud. The Eleventh Circuit also rejected Pon’s challenges to his 121-month sentence.
According to evidence presented at his trial, Pon, an ophthalmologist, intentionally and fraudulently misdiagnosed hundreds of Medicare beneficiaries as suffering from wet macular degeneration, a degenerative and incurable eye disease. Pon then used his false diagnoses to bill the Medicare program for unnecessary diagnostic testing and unwarranted laser treatments. Several of the misdiagnosed patients testified and explained the significant emotional impact the false diagnosis had on their lives, including the fear of going blind as a result of the disease they supposedly had.
On appeal, Pon did not challenge the sufficiency of the evidence against him. He instead challenged the district court’s evidentiary rulings at trial. He argued that the district court should have allowed his expert to testify about a theoretical treatment method for wet macular degeneration. He also argued that the United States should not have been allowed to present rebuttal evidence showing that Pon had billed Medicare for performing services on a patient’s blind left eye, or, at a minimum, should have allowed him to respond more extensively to that evidence in surrebuttal.
The Court of Appeals upheld the district court’s ruling that Pon’s expert’s theory was unreliable, noting that even Pon’s expert recognized that his theory had not been scientifically tested and he had “not seen … clinical data” about it.
The Court of Appeals also ruled that the district court did not abuse its discretion in allowing the United States to present rebuttal evidence and that any error in limiting Pon’s surrebuttal was harmless beyond a reasonable doubt given the “overwhelming proof of Pon’s guilt.” (One judge dissented on this issue, disagreeing with the Court’s assessment that any error was harmless.) The Court observed that the United States had “presented the testimony of not one, but a dozen doctors about the patients listed in the indictment,” and the doctors “collectively had more than 330 years of experience.” The majority observed that “[n]one of those doctors could find any evidence that any of the eleven patients identified in the indictment had [wet macular degeneration] when Pon diagnosed them with it, and they all concluded that the patients did not have the telltale scars associated with the laser photocoagulation treatment that Pon had billed Medicare for performing on each patient.” The Court also noted the “strong evidence” that Pon had “incorrectly diagnosed and improperly ‘treated’ not just the eleven patients listed in the indictment but also hundreds of other patients.”
The Court of Appeals also rejected Pon’s challenges to his 121-month sentence. Specifically, the Court found that the district court’s finding that Pon’s crimes had caused a loss of almost $7 million was based on “reliable and specific evidence,” including a spreadsheet showing how much Medicare had paid Pon for thousands of claims and the “extensive testimony” of a Medicare-fraud investigator.
This case was investigated by United States Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorneys Michelle Thresher Taylor and David Rhodes represented the United States on appeal.
Dominican National Charged with Unlawful ReentryRead the Press Release
BOSTON – A Dominican national was charged yesterday with unlawfully reentering the United States after being deported.
Pedro Wilson Hernandez-Castillo, 49, who resided in Worcester, was charged in a criminal complaint with one count of unlawful reentry of a deported alien.
According to the charging documents, Hernandez-Castillo unlawfully re-entered the United States after being deported in August 2018. On June 16, 2020, Hernandez-Castillo was stopped by law enforcement while driving. When asked for identification, Hernandez-Castillo provided the driver’s license and Social Security card of another individual. After determining that Hernandez-Castillo provided false information, the state trooper arrested Hernandez-Castillo. Following his arrest, it was determined that Hernandez-Castillo’s fingerprints biometrically matched the fingerprints in his alien file.
According to charging documents, Hernandez-Castillo was previously removed from the United States in August 2011, July 2000 and January 1999.
The charging statute provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement. The Massachusetts State Police provided valuable assistance. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Warns of Inaccurate Flyers and Postings Regarding the Use of Face Masks and the ADARead the Press Release
WASHINGTON – Assistant Attorney General for the Civil Rights Division Eric Dreiband reiterated today that cards and other documents bearing the Department of Justice seal and claiming that individuals are exempt from face mask requirements are fraudulent.
Inaccurate flyers or other postings have been circulating on the web and via social media channels regarding the use of face masks and the Americans with Disabilities Act (ADA) due to the COVID-19 pandemic. Many of these notices included use of the Department of Justice seal and ADA phone number.
As the Department has stated in a previous alert, the Department did not issue and does not endorse them in any way. The public should not rely on the information contained in these postings.
The ADA does not provide a blanket exemption to people with disabilities from complying with legitimate safety requirements necessary for safe operations.
The public can visit ADA.gov or call the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY) for more information.
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Department of Justice and Federal Trade Commission Issue New Vertical Merger GuidelinesRead the Press Release
The Department of Justice and Federal Trade Commission issued today new Vertical Merger Guidelines that outline how the federal antitrust agencies evaluate the likely competitive impact of mergers and whether those mergers comply with U.S. antitrust law. These new Vertical Merger Guidelines mark the first time the Department and the FTC have issued joint guidelines on vertical mergers, and represent the first major revision to guidance on vertical mergers since the Department’s 1984 Non-Horizontal Merger Guidelines, which the Department withdrew in January of this year.
In March 2019, Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division announced that a draft of new vertical merger guidelines was underway, following an FTC workshop in Fall 2018 on whether new vertical merger guidelines should be issued.
“As a joint effort of DOJ and the FTC, the new vertical merger guidelines will provide greater transparency and predictability to the marketplace when businesses combine at different levels of the supply chain," said Deputy Attorney General Jeff Rosen.
“These new Vertical Merger Guidelines provide transparency in the important area of vertical merger analysis,” said Assistant Attorney General Delrahim. “They explain our investigative practices as we apply them today and have applied them in recent years. The guidelines will give greater predictability and clarity to the business community, the bar, and enforcers. I am grateful for the commitment, thoroughness, and dedication with which staff from both agencies worked on this project. This has been a successful process because of our robust public engagement and our excellent collaborative relationship with the FTC.”
“These new Vertical Merger Guidelines are an important step forward in maintaining vigorous antitrust enforcement, and reaffirm our commitment to challenge vertical mergers that are anticompetitive and would harm American consumers,” said FTC Chairman Joe Simons. “The new guidelines reflect our current enforcement approach and, through increased transparency, will help businesses and practitioners understand how we evaluate vertical transactions. The new Guidelines also reflect our strong collaboration with the Department of Justice, and the substantial input that we received from the public.”
Vertical mergers combine two or more companies that operate at different levels in the same supply chain. A primary goal of the new Vertical Merger Guidelines is to help the agencies identify and challenge competitively harmful mergers while avoiding unnecessary interference with mergers that either are competitively beneficial or likely will have no competitive impact on the marketplace. To accomplish this, the guidelines detail the techniques and main types of evidence the agencies typically use to predict whether vertical mergers may substantially lessen competition. The Guidelines will help businesses, antitrust practitioners and other interested persons by increasing transparency into the agencies’ principal analytical techniques, practices, and enforcement policies for evaluating vertical transactions.
The new Vertical Merger Guidelines reflect the agencies’ analysis of vertical mergers. The revised guidelines:
- Explain that mergers often present both horizontal and vertical elements, and the agencies may apply both the Horizontal Merger Guidelines and the Vertical Merger Guidelines in their evaluation of a transaction, as part of a fact-specific process that involves a variety of tools to determine whether a merger may substantially lessen competition.
- Clarify that its analytical techniques, practices, and enforcement policies apply to a range of non-horizontal transactions, including strictly vertical mergers, “diagonal” mergers, and vertical issues that can arise in mergers of complement.
- Clarify that when the agencies identify a potential competitive concern in a relevant market, they will also specify one or more related products. A related product is a product or service that is supplied or controlled by the merged firm and is positioned vertically or is complementary to the products and services in the relevant market.
- Provide detailed discussions, including multiple diverse examples, of the “raising rivals’ costs” and “foreclosure” theories of harm. In recent decades, these theories of harm have been the principle theories investigated in merger reviews.
- Identify conditions under which a vertical merger would not require an extensive investigation, because the merger does not create or enhance the merged firm’s incentive or ability to harm rivals.
- Emphasize that analyzing efficiencies is an important part of reviewing vertical mergers.
- Explain in detail the analysis of the elimination of double marginalization (“EDM”), which economists emphasize is a frequent procompetitive result of vertical transactions.
The new guidelines are the culmination of a process that dates back to the start of the FTC’s Hearings on Competition and Consumer Protection in the 21st Century in June 2018. In June 2018, and then again in the October 2018, the Commission sought comment on the legal and economic analysis of vertical mergers, and whether new Vertical Merger Guidelines should be issued by the antitrust agencies. In November 2018, the Commission held a public hearing to discuss the proper scope of new guidelines. In the spring of 2019, both agencies began working on revisions to the 1984 Non-Horizontal Merger Guidelines, and began sharing drafts of proposed new guidelines in the summer of 2019. On January 10, 2020, the agencies jointly released a draft version of the Vertical Merger Guidelines; the agencies received 74 substantive comments on the draft. A public workshop to discuss the draft was held on March 11, 2020 during which staff from both agencies moderated debate and discussion on the draft Vertical Merger Guidelines. The guidelines released today modify the draft released in January to incorporate comments from the public.
Convicted felon pleads guilty to illegal possession of a firearmRead the Press Release
COLUMBUS, Ohio – A convicted felon who was stopped for a traffic violation by Dublin, Ohio Police officers pleaded guilty in U.S. District Court to illegal possession of a firearm after officers found a loaded gun in his car.
Waymond C. Gordon, 33, of Columbus entered the plea on June 29.
According to court documents, on March 12, 2019, Dublin police stopped Gordon for a traffic violation. A records check found that Gordon was driving with a suspended license and had outstanding arrest warrants. Officers searched his car and found a loaded .22 caliber revolver between the driver’s seat and the center console.
Gordon had been convicted in Franklin County Common Pleas Court in 2009 of robbery. Federal law prohibits convicted felons from possessing or controlling firearms or ammunition.
Possession of a firearm by a convicted felon is punishable by up to ten years in prison. A judge will set a date for Gordon’s sentencing.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Dublin Police Chief Justin Paez announced the plea entered before U.S. Magistrate Judge Elizabeth Preston Deavers. Deputy Assistant Criminal Chief Gary Spartis is representing the United States in this case.
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California man charged with possessing drugs for distributionRead the Press Release
GREAT FALLS -- The U.S. Attorney’s Office today announced that Mitchell Joseph Wright. 40, of Los Angeles, CA, appeared on Monday on a criminal complaint charging him with possession with intent to distribute controlled substances.
If convicted of the most serious crime, Wright faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. The charging documents are merely accusations and Wright is presumed innocent until proven guilty.
U.S. Magistrate Judge John T. Johnston presided and continued Wright's detention pending further proceedings.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Postal Service, Russell Country Drug Task Force, Cascade County Sheriff's Office and Great Falls Police Department investigated the case.
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Burlington Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa - United States Attorney Marc Krickbaum announced on June 29, 2020, Johnathan Keith Sneed, age 34, of Burlington, was sentenced by United States District Court Chief Judge John A. Jarvey for a felon in possession of a firearm charge. Sneed was sentenced to 80 months in prison to be followed by a term of supervised release of three years. Sneed was ordered to pay $100 to the Crime Victims’ Fund.
Sneed pleaded guilty on February 18, 2020, and admitted on September 13, 2018, he possessed a loaded .380 caliber Hi-Point pistol. Prior to possessing the weapon, Sneed had been convicted of a felony and was prohibited from possessing a gun.
This case is part of Project Guardian and Project Safe Neighborhoods, programs bringing together all levels of law enforcement and the communities they serve to reduce gun crime and make our neighborhoods safer for everyone. This case was investigated by the Burlington, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Buffalo Man Pleads Guilty to Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kevin Miller, 30, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to distribute, and distribution of, controlled substances. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Joseph M. Tripi and Meghan E. Leydecker, who are handling the case, stated that between March 2016, and September 25, 2018, the defendant sold cocaine, crack cocaine, marijuana, and heroin in the City of Buffalo and surrounding suburbs. During that time, Miller utilized residences at 45 Easton Avenue and 507 E. Ferry Street in Buffalo to store and distribute the drugs. Also during the same time period, the defendant possessed various firearms, including semi-automatic pistols he posed with online using social media.
On March 31, 2016, New York State parole officers conducted a search at Miller's parole residence after receiving evidence that the defendant violated his curfew. During the search, parole officers located and seized three digital scales with residue; two bags of ammunition; a quantity of crack cocaine; and a cell phone. Buffalo Police were called and Miller was arrested.
On September 25, 2018, the ATF and Buffalo Police Department executed federal search warrants at 45 Easton Avenue, and on a vehicle used by the defendant. As investigators prepared to enter the residence, they observed an object that was thrown from an upper window at the rear of the house. The object thrown from the window was loaded revolver. During a search of the upper apartment, three vials of marijuana, $411 cash, a large number of empty glass vials, 17 cellular telephones, and four scales were seized. The clothing Miller was wearing in the August 17, 2018, social media video depicting him with a firearm was also located inside the apartment. In addition, a scale and a loaded semi-automatic firearm were found in the basement.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci.
Sentencing is scheduled for October 8, 2020, at 12:30 p.m. before Judge Arcara.
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Buffalo Man Going to Prison for Selling Heroin and FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jose Lao, 25, of Buffalo, NY, who was convicted of distributing heroin and fentanyl, was sentenced to serve 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Justin G. Bish, who handled the case, stated that on six occasions between May 3 and June 23, 2017, the defendant sold a mixture containing heroin and fentanyl during an undercover drug operation led by the Drug Enforcement Administration.
The sentencing is a result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Beckley Woman Who Faked Death to Avoid Sentencing Will Serve 42 Months in Federal Prison for Health Care FraudRead the Press Release
CHARLESTON, W.Va. – Julie M. Wheeler, 43, of Beckley, was sentenced by Senior United States District Judge John T. Copenhaver, Jr. to 42 months in federal prison for federal health care fraud, announced United States Attorney Mike Stuart. After serving her prison sentence, she will be placed on supervised release for three years. She was further ordered to pay restitution in the amount of $289,055.07, an amount calculated by the Veterans Administration (VA) and approved by the court.
In imposing a sentencing enhancement for obstruction, Judge Copenhaver found that Wheeler attempted to obstruct and impede the administration of justice by staging an “elaborate hoax” to fake her own death to avoid federal sentencing. On May 31, 2020, Wheeler and other family members staged her fall from the Grandview State Park overlook. Wheeler’s family members then falsely reported to law enforcement her fall off of Grandview Ledges at the New River Gorge. This report led to an extensive search effort in the New River Gorge by state, federal and local authorities, assisted by numerous volunteers. The West Virginia State Police eventually located Wheeler at her own home, hiding in a closet. Wheeler and her husband are presently charged in Raleigh County Magistrate Court for numerous felony and misdemeanor offenses relating to the false reporting of an emergency. The court found that this scheme contributed to Wheeler’s failure to accept responsibility for her criminal conduct and enhanced her federal sentence accordingly.
“Absolutely despicable. Wheeler’s egregious fraud scheme denied much needed spina bifida care for her own sister while she fleeced the Veteran’s Administration of almost $300,000,” said United States Attorney Mike Stuart. “Then she faked her own disappearance to evade sentencing, risking the lives and resources of first responders and emergency personnel. Outrageous. Terribly tragic case all around.”
Wheeler pled guilty on February 11, 2020, and admitted that she submitted fraudulent applications to the VA Spina Bifida Health Care Benefits Program where she overbilled for providing spina bifida care for a family member, K.L. Wheeler was the owner of a homecare services company, JRW Homecare Support Services. Wheeler was hired to provide services to K.L. due to K.L.’s spina bifida condition at the VA approved rate of $736 a day to provide eight hours of daily services. Wheeler’s care was supposed to include bathing, grooming, changing K.L.’s clothes and other issues associated with K.L.’s hygiene, food intake and lifestyle.
Wheeler did not provide K.L. the care for and during the time period described. Wheeler submitted claims to the VA stating that she provided care for K.L. eight hours a day, seven days a week, from October 2016 to April 2018 at the full daily rate of $736 a day. Wheeler gave a statement to the VA and the FBI admitting that she greatly inflated the rate and quality of the care that she provided to K.L. This was corroborated by other witnesses who provided statements that Wheeler did not provide eight hours of daily care. Wheeler further admitted that her conduct defrauded the VA of hundreds of thousands of dollars and deprived the victim of services. The victim of the spina bifida diagnosis, K.L., has since passed away.
Assistant United States Attorney Erik S. Goes handled the prosecution.
Stuart praised the work of the Veterans Affairs - Office of Inspector General (VA-OIG), the Federal Bureau of Investigation, the Office of Veterans Affairs (VA), and the United States Department of Health and Human Services - Office of Inspector General (HHS-OIG) for the investigation of the underlying fraud, and the National Park Service and the West Virginia State Police for their work in locating Wheeler.
The fraud investigation was conducted by members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid (ARPO) Strike Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.
Follow us on Twitter: SDWVNews and USAttyStuart
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Attorney General William P. Barr's Statement on the Supreme Court's Ruling in Espinoza v. Montana Department of RevenueRead the Press Release
Attorney General William P. Barr has released the following statement:
“We are pleased with the Supreme Court’s decision today in Espinoza v. Montana Department of Revenue. Montana’s Blaine Amendment excluded religious schools from state scholarship programs that are open to other educational institutions. It thus prevented parents who send their children to religious schools from receiving scholarship funds that are available to the rest of the community.
The Supreme Court concluded today that Montana’s Blaine Amendment violates the Free Exercise Clause of the First Amendment. The Court recognized that the Free Exercise Clause “condemns discrimination against religious schools and the families whose children attend them.” As a result of the Court’s decision, a state may no longer disqualify religious schools from scholarships or other programs “solely because they are religious.”
The Court’s decision represents an important victory for religious liberty and religious equality in the United States. As the Court explained, religious people are “members of the community too,” and their exclusion from public programs because of their religion is “odious to our Constitution” and “cannot stand.” We were pleased to see the Court agree with the Trump Administration that such blatant discrimination against religion has no place in our constitutional system.”
Armed Career Criminal Sentenced to Fifteen Years in Prison for Selling FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Ryan Perrin (34, Palm Harbor) to 15 years in federal prison for possessing firearms and ammunition as a convicted felon. Perrin’s criminal history—including prior state felony convictions for selling cocaine and aggravated assault—qualified him for sentencing as an Armed Career Criminal. Perrin had pleaded guilty on October 31, 2019.
According to court documents, in April 2017, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Perrin, a convicted felon, was trafficking in firearms in Pinellas County. An undercover ATF special agent arranged to meet with Perrin, and purchased firearms and ammunition from him on two occasions. In total, Perrin sold 7 firearms and 87 rounds of ammunition to the undercover agent.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Arizona Man Sentenced for Illegally Manufacturing Ammunition Without A LicenseRead the Press Release
LAS VEGAS, Nev. – Douglas Haig, 57, of Mesa, Arizona, was sentenced today to 13 months in federal prison for manufacturing ammunition without a license, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.
This case arose out of the investigation into the October 1, 2017 mass shooting at the Route 91 Harvest music festival in Las Vegas. In the hotel room from which the shooter staged his attack, investigators located a box with a shipping label setting forth Haig’s name and address.
According to court documents, from July 2016 to October 2017, Haig illegally manufactured various types of ammunition. Haig had operated “Specialized Military Ammunition,” an Internet business selling armor piercing (AP) ammunition, armor piercing incendiary (API), and high explosive armor piercing incendiary (HEAPI) ammunition. Business records showed that Haig sold such ammunition throughout the United States, including Nevada, Texas, Virginia, Wyoming, and South Carolina.
Beginning on October 2, 2017, agents from the FBI and ATF began a series of interviews with Haig, who admitted to meeting the October 1 shooter and selling him ammunition. Haig also admitted to traveling to gun shows to sell ammunition. Even though Haig’s website promoted his ability to “fabricate” and “manufacture” military style “mil spec” ammunition, including AP ammunition, API, and HEAPI ammunition, Haig told a witness to lie to the FBI and ATF agents about whether he sold the ammunition that he manufactured. Because Haig did not possess a federal firearms license, he was not authorized to manufacture ammunition.
On October 24, 2017, agents seized hundreds of pounds of ammunition and ammunition components when they executed a search warrant at Haig’s residence. Haig had ammunition or firearms-related equipment in nearly every room, and a workshop had been converted into a manufacturing operation for ammunition that he was in the process of automating.
A fingerprint examination established that Haig’s fingerprints were on two pieces of armor piercing ammunition removed from a magazine located in the October 1 shooter’s hotel room. A forensic firearms examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.
Haig was indicted by a grand jury on August 22, 2018, and pleaded guilty to the illegally manufacturing ammunition charge on November 19, 2019. U.S. District Judge James Mahan ordered Haig to self-surrender to the Bureau of Prisons by October 2, 2020.
The investigation was conducted by the FBI with assistance from ATF and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Tony Lopez and former Assistant U.S. Attorney Patrick Burns prosecuted the case.
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Albany Felon Admits Unlawful Firearm PossessionRead the Press Release
ALBANY, NEW YORK – Luis Rivera, age 34, of Albany, pled guilty last week to unlawfully possessing a firearm as a felon. The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The guilty plea took place on June 25. Rivera, who has three prior felony convictions, admitted that on January 31, 2019, he possessed a Taurus PT 738 .380 caliber pistol.
Rivera faces up to 10 years in prison and a post-imprisonment supervised release term of up to 3 years, when he is sentenced by United States District Judge Mae A. D’Agostino on October 26, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Acting Manhattan U.S. Attorney Announces Consent Decree with Chestnut Petroleum Distributors, Inc., and Affiliates Resolving Violations of the Resource Conservation and Recovery ActRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has entered into a Consent Decree settling a civil lawsuit against Chestnut Petroleum Distributors, Inc., and its affiliates CPD Energy Corp., CPD NY Energy Corp., Chestnut Mart of Gardiner, Inc., Chestnut Marts, Inc., Greenburgh Food Mart, Inc., Middletown Food Mart, Inc., and NJ Energy Corp. (collectively, “Defendants”), for violating the Resource Conservation and Recovery Act (“RCRA”) in connection with their ownership or operation of underground storage tanks at 20 separate gas stations within the Southern District of New York and adjoining districts.
Acting U.S. Attorney Audrey Strauss said: “Today’s settlement holds Chestnut Petroleum Distributors, Inc., and its affiliates accountable for repeatedly failing to comply with regulations designed to prevent gasoline leaks from injuring public health and the environment, and ensures ongoing oversight of the defendants’ operations to protect the public in the future.”
EPA Regional Administrator Peter D. Lopez said: “Failure to regularly monitor underground storage tanks and address possible leaks risks contaminating groundwater, which is one of our most valuable natural resources. This settlement requires the companies to follow laws in place to mitigate safety threats and protect the environment.”
Petroleum products such as gasoline contain chemical compounds that pose substantial threats to human health. Service stations typically store gasoline in underground storage tanks. When operated conscientiously and monitored closely, underground storage tanks are a safe and effective means to store gasoline. But when those tanks are not subjected to basic operational safeguards, they can endanger the public and the environment, for example by leaking petroleum into the water supply, discharging toxic vapors into the air, or even triggering fires or explosions. EPA’s regulations under RCRA are designed to protect the public by requiring underground storage tank operators to reduce the likelihood of leaks, monitor for leaks so they can promptly be addressed, and maintain adequate insurance to conduct corrective action and compensate injured third parties should a leak occur.
The Consent Decree, which is subject to public comment and approval by the district court, resolves a lawsuit filed by the United States in May 2019, which alleges that Defendants repeatedly violated RCRA and related regulations at various times between 2011 and 2014 with respect to their ownership and/or operation of underground storage tanks at 20 gas stations.
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In the Consent Decree filed today, Defendants admit, acknowledge, and accept responsibility for failing to perform required actions at one or more facilities on various specified dates between 2011 and 2014. This includes:
- failing to perform release (i.e., leak or spill) detection;
- failing to maintain and provide records of release detection monitoring;
- failing to operate corrosion protection systems (including inspecting and testing) for steel underground storage tank systems and failing to maintain and provide records of corrosion protection monitoring;
- failing to cap and secure underground storage tanks that were temporarily closed;
- failing to perform release detection for underground storage tanks that were temporarily closed;
- failing to report suspected releases or unusual operating conditions for underground storage tanks;
- failing to conduct release investigations and confirm suspected releases or unusual operating conditions; and
- failing to maintain insurance policies sufficient to take corrective action and compensate third parties for bodily injury and property damage caused by accidental releases arising from the operation of the underground storage tanks.
Pursuant to the Consent Decree, Defendants are required to comply with the regulations applicable to underground storage tanks for all underground storage tanks at the facilities at issue, and to take various measures to ensure such compliance, including undertaking inspections, maintaining and operating an electronic environmental management system providing centralized electronic monitoring of release detection at all underground storage tanks at the facilities, monitoring the under-dispenser containment systems at all underground storage tanks at the facilities, and providing semi-annual reports to EPA. Defendants also agree to undertake certain measures with respect to newly acquired facilities containing underground storage tanks, including providing notice to EPA of the planned acquisition, conducting a pre-acquisition assessment, and ensuring that all underground storage tanks at newly acquired facilities are promptly brought into compliance with all applicable regulations.
In addition to this injunctive relief, Defendants will pay a civil penalty of $187,500. Defendants will also be subject to substantial penalties if they fail to comply with the terms of the Consent Decree.
The Consent Decree will be lodged with the District Court for a period of at least 30 days, and notice of the Consent Decree will be published in the Federal Register before the Consent Decree is submitted for the Court’s approval. This will afford members of the public the opportunity to submit comments on the Consent Decree to the Department of Justice.
Acting U.S. Attorney Strauss thanked EPA’s attorneys and staff for their critical work on this matter.
This case is being handled by the Office’s Environmental Protection Unit. Assistant United States Attorneys Christopher Connolly, Rachael Doud, and Jennifer C. Simon are in charge of the case.3 Men Indicted for Carjacking and Using a Firearm During a Crime of ViolenceRead the Press Release
MEMPHIS, TN– Elden Collins, 25, KolonjiWarren, 24, and Kristopher Harris, 23, have been indicted for the federal offenses of carjacking and using a firearm during and in relation to a crime of violence. D. Michael Dunavant, U.S. Attorney announced the indictment today.
According to the indictment, on July 17, 2019, the victim was seated inside his vehicle at the Pump and Munch gas station on East Shelby Drive in Memphis, TN. Collins and his two accomplices drove a tan Jeep SUV to the gas station, and pulled alongside the victim's vehicle.
Harris, pointed a semi-automatic handgun at the victim, firing one shot into the front passenger-side window of the vehicle. After the victim fled, Warren entered the victim's vehicle and drove away. One shell casing left at the scene was collected as evidence.
Part of the carjacking incident was captured on video surveillance, which confirmed the suspect’s vehicle in the area and showed Warren enter the gas station prior to the carjacking. During the course of the investigation the defendants were all positively identified.
If convicted of the carjacking offense, the defendants each face sentences of up to 15 years imprisonment; a $250,000 fine and 3 years supervised release. If convicted of using a firearm during a crime of violence offense, the defendants each face an additional mandatory minimum consecutive sentence of 10 years imprisonment; a $250,000 fine and 5 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Under our Carjacking Initiative, the U.S. Attorney’s Office is continuing to coordinate with our federal and local law enforcement partners to prioritize and target carjacking cases for aggressive federal prosecution. This indictment demonstrates our resolve to incapacitate the most violent offenders, uphold the rule of law, deter criminal conduct with a strong message of significant consequences, and make our community safer."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Wendy K. Cornejo is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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23 Defendants Arrested, Three at Large, on Federal Drug Conspiracy and Firearms Charges in Horry County in Operation Broken BranchRead the Press Release
Conway, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that a joint team of more than 200 federal, state, and local law enforcement officers arrested 23 individuals who have all been charged in federal court for their roles in a drug trafficking organization that operated out of the Cedar Branch area of Horry County, South Carolina. Three additional defendants remain at large.
The arrests mark the first in Operation Broken Branch, the latest iteration in a series of joint federal, state, and local investigations targeting violent crime in Myrtle Beach and throughout Horry County.
According to court records, the Federal Bureau of Investigation (FBI), through its Pee Dee Safe Streets Gang Task Force, began this multi-year investigation in conjunction with the 15th Circuit Solicitor’s Office Drug Enforcement Unit (DEU) and Horry County Sheriff’s Office. The operation specifically targeted alleged members of the drug trafficking organization based on the organization’s distribution of dangerous drugs, such as heroin and fentanyl, and its members’ use of firearms in furtherance of the drug trafficking crimes.
“Pandemic or not, there is no safe harbor for criminals in South Carolina,” said U.S. Attorney McCoy. “I want to commend the exceptional efforts of the law enforcement officers who put themselves in harm’s way for this morning’s operation. With today’s arrests, in the last six weeks alone this office has charged more than 50 individuals for major drug trafficking crimes or serious firearms offenses. We can only do this work through close relationships with our federal, state, and local partners. Arrests like these help take down entire criminal organizations, allowing us to protect the people of South Carolina and help ensure they have safe neighborhoods to call home.”
“These complaints and arrests demonstrate drug trafficking organizations will be investigated and dismantled, no matter what corner of South Carolina they are found,” said Jody Norris, Special Agent in Charge of the FBI. “All our law enforcement partners, especially the FBI’s Pee Dee Safe Streets Gang Task Force, the Drug Enforcement Unit of the Fifteenth Circuit, and the Horry County Sheriff’s Office, should be commended for their tremendous work in eliminating an organization that is alleged to have peddled dangerous drugs and violence in multiple states.”
The following defendants have been arrested on criminal complaints under various charges related to their alleged roles in the drug trafficking organization:
DARRELL LAMONT JACKSON, 46, of Myrtle Beach, is charged in the conspiracy with five kilograms or more of cocaine. This charge carries a potential penalty of 10 years to Life imprisonment.
MARK TYREISE JACKSON, a/k/a “Ty,” 24, of Loris, is charged in the conspiracy with 500 grams or more of cocaine. This charge carries a potential penalty of five to 40 years imprisonment.
TERAINE LAVANCE GREEN, a/k/a “Juice,” 28, of Loris, is charged in the conspiracy with a quantity of cocaine base and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
WINFERD JUNIOR SHERMAN, a/k/a “Dunk,” 22, of Loris, is charged in the conspiracy with a quantity of cocaine base and a quantity of heroin. This charge carries a potential penalty of up to 20 years imprisonment.
TREMAYNE TYRONE GREEN, a/k/a “Plies,” a/k/a “P,” 24, of Loris, is charged in the conspiracy with a quantity of heroin and a quantity of fentanyl. This charge carries a potential penalty of up to 20 years imprisonment.
PHILLIP JAMAL JOHNSON, a/k/a “Foo,” 28, of Loris, is charged in the conspiracy with a quantity of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment. He is also charged with possession of a firearm in furtherance of a drug trafficking crime, which carries a potential penalty of at least five years consecutive to any other penalty imposed.
ANTRA TRUMAINE GORE, a/k/a “Priest,” 37, of Loris, is charged in the conspiracy with a quantity of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment. He is also charged with unlawful possession of a firearm by a prohibited individual, which carries a potential penalty of up to 10 years imprisonment.
ANGELO TARAY JACKSON, a/k/a “Che Che,” 23, of Loris, is charged in the conspiracy with a quantity of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
ANTHONY LAMONT NEALEY, a/k/a “Esse,” 40, of Longs, is charged in the conspiracy with 28 grams or more of cocaine base and a quantity of cocaine. This charge carries a potential penalty of five to 40 years imprisonment.
JAMES GOMILOUS RIGGINS, a/k/a “Scooby,” 43, of Tabor City, North Carolina, is charged in the conspiracy with 500 grams or more of cocaine. This charge carries a potential penalty of five to 40 years imprisonment.
LATEICE LANEICE GRIFFIN, a/k/a “Teice,” a/k/a “Thugbunny1120,” 28, of Longwood, North Carolina, is charged in the conspiracy with a quantity of cocaine base and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
LEON DALE GREEN, a/k/a “Young,” 31, of Loris, is charged in the conspiracy with 500 grams or more of cocaine and a quantity of heroin. This charge carries a potential penalty of five to 40 years imprisonment.
TEONTRIC SAQIWINA JACKSON, a/k/a “T,” 28, of Loris, is charged is charged in the conspiracy with 28 grams or more of cocaine base, 100 grams or more of heroin, 500 grams or more of cocaine, a quantity of methamphetamine, and a quantity of fentanyl. This charge carries a potential penalty of five to 40 years imprisonment. He is also charged with possession of a firearm in furtherance of a drug trafficking crime, which carries a potential penalty of at least five years consecutive to any other penalty imposed.
JAMES MYERS, III, a/k/a “Brix,” 31, of Loris, is charged in the conspiracy with a quantity of fentanyl, a quantity of cocaine, and a quantity of oxycodone. This charge carries a potential penalty of up to 20 years imprisonment. He is also charged with unlawful possession of firearm by a prohibited individual, which carries a potential penalty of up to 10 years imprisonment; and possession of a firearm in furtherance of a drug trafficking crime, which carries a potential penalty of at least five years consecutive to any other penalty imposed.
DEVANTE JAQUAN SQUIRES, a/k/a “Buddy Ro,” 25, of Loris, is charged in the conspiracy with a quantity of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
SHAQUAN TAEREEK HEMINGWAY, a/k/a “Obe,” 22, of Loris, is charged in the conspiracy with a quantity of heroin and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
TYRUSS KENDREZ HEMINGWAY, a/k/a “OT,” a/k/a “Macc,” 19, of Loris, is charged in the conspiracy with a quantity of heroin and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
ALFREDO GORE, a/k/a “AG,” 41, of Loris, is charged in the conspiracy with 100 grams or more of heroin, a quantity of cocaine base, and a quantity of cocaine. This charge carries a potential penalty of five to 40 years imprisonment.
MONTEL LASAUL HYPPOLITE, a/k/a “Pooh,” 21, of Conway, is charged in the conspiracy with a quantity of heroin and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
BILLIE LEE GREEN, a/k/a “Old School,” 59, of Longs, is charged in the conspiracy with a quantity of heroin and a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
BYRON JAMES JACKSON, a/k/a “B,” 27, of Loris, is charged in the conspiracy with 100 grams or more of heroin, 500 grams or more of cocaine, and a quantity of cocaine base. This charge carries a potential penalty of five to 40 years imprisonment.
ROBERT JERMAINE ATTAWAY, a/k/a “Ant,” 26, of Myrtle Beach, is charged in the conspiracy with a quantity of heroin. This charge carries a potential penalty of up to 20 years imprisonment.
CARL LEE GREEN, 43, of Longs, is charged in the conspiracy with 500 grams or more of cocaine, 28 grams of cocaine base, and a quantity of heroin. This charge carries a potential penalty of five to 40 years imprisonment.
The following defendants are still at large:
TYSHON LAMONT CLIFTON, a/k/a “Rondo,” 20, of Loris, is charged in the conspiracy with a quantity of heroin. This charge carries a potential penalty of up to 20 years imprisonment.
BRADLEY CHRISTOPHER GRIFFIN, JR., 34, of Longwood, North Carolina, is charged in the conspiracy with a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
TIMOTHY MONDALE LONG, a/k/a “Black,” 38, of Loris, is charged in the conspiracy with 280 grams or more of cocaine base and 100 grams or more of heroin. This charge carries a potential penalty of 10 years to Life imprisonment. He is also charged with possession of a firearm in furtherance of a drug trafficking crime, which carries a potential penalty of at least five years consecutive to any other penalty imposed.
Operation Broken Branch is at least the third investigation targeting violent crime in the area. In 2017, Operation Silver Sunset targeted 29 associates of the Billy Bloods street gang, a subset of the United Blood Nation. In 2018, Operation Rise and Shine targeted 34 associates of G-Shine/SMG, another subset of the Bloods. Today’s arrests mark the latest, but not the last, investigation targeting violent crime in Horry County and surrounding areas.
During the course of this investigation, agents seized substantial quantities of heroin, fentanyl, cocaine, crack cocaine, and methamphetamine. Agents also seized more than a dozen firearms, bulk ammunition, and more than $180,000 in suspected drug proceeds.
The case was investigated by the FBI, 15th Circuit Solicitor’s Office DEU, Horry County Sheriff’s Office, 15th Circuit Solicitor’s Office, South Carolina Law Enforcement Division (SLED), Myrtle Beach Police Department, Horry County Police Department, Coastal Carolina University Police Department, Loris Police Department, Conway Police Department, North Myrtle Beach Department of Public Safety, Brunswick County Sheriff’s Office in North Carolina, Columbus County Sheriff’s Office in North Carolina, South Carolina Highway Patrol, and City of Georgetown Police Department.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Everett McMillian is prosecuting the case, alongside Special Assistant U.S. Attorney Scott Hixson, who also serves as Deputy Solicitor for 15th Circuit Solicitor’s Office, and Special Assistant U.S. Attorney David Caraker.
The United States Attorney stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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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.
29 June 2020
‘Secretary’ to Mexican Mafia Member, who Ferried Orders from Imprisoned Gang Leader, Sentenced to over 12½ Years in PrisonRead the Press Release
LOS ANGELES – A Whittier woman who was convicted earlier this year on several charges related to her role as a “secretary” to an imprisoned Mexican Mafia member who controlled a street gang was sentenced today to 151 months in federal prison.
Sylvia Olivas, 73, was sentenced by United States District Judge Dale S. Fischer for playing an active role in the affairs of the Canta Ranas street gang.
Following a 2½-week trial in February, a federal jury found Olivas guilty of participating in three separate conspiracies – one to violate the Racketeer Influenced and Corrupt Organization (RICO) Act, a second involving the trafficking of methamphetamine and heroin, and a third centered on money laundering.
For at least a decade, Olivas served as the secretary to her brother, David Gavaldon, a long-time member of the Canta Ranas street gang who was not charged in this case as he is serving a life-without-parole sentence in Pelican Bay State Prison. From prison, Gavaldon exerted control over Canta Ranas and other gangs, and he received compensation in the form of “rent” or “taxes” generated by drug trafficking and other offenses committed in gang territory.
Olivas regularly visited Gavaldon to discuss gang business and obtain orders that she brought back to the gang.
Olivas “was a Mexican Mafia secretary in a large-scale racketeering enterprise – a powerful and highly respected role within this criminal organization,” prosecutors wrote in a sentencing memorandum. “Despite her false and misleading statements in trial to cover up her involvement in the CRO [Canta Ranas Organization], the evidence overwhelmingly showed that defendant knew exactly what happened in the CRO and participated in it by passing messages from Mexican Mafia leader David Gavaldon to two generations of shotcallers, delivering edicts on extortionate taxes, secretly meeting with CRO members to collect taxes and launder them through her accounts to distribute them to David Gavaldon and his chosen recipients, and using code and other measures to cover her criminal activity from law enforcement.”
When she imposed the sentence this morning, Judge Fischer disputed Olivas’ contention that she should receive leniency because she had no prior criminal convictions. “She has been in trouble every day of her life helping the CRO, she was just never caught,” the judge said.
Olivas was among 51 defendants charged in a 2016 federal grand jury indictment targeting Canta Ranas members and associates. Nearly all of those defendants have been convicted, including Jose Loza, the “shotcaller” of the Santa Fe Springs and Whittier-based Canta Ranas gang, who was sentenced in March to life plus an additional 30 years in federal prison.
The RICO indictment targeting the Canta Ranas gang was the result of Operation Frog Legs, which was an investigation by the Southern California Drug Task Force, which is led by the Drug Enforcement Administration as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. The Task Force members that participated in Operation Frog Legs were Homeland Security Investigations, the Whittier Police Department, the Los Angeles County Sheriff’s Department, IRS Criminal Investigation, and the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit. The investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
The case against Olivas was prosecuted by Assistant United States Attorneys Chelsea Norell, MiRi Song and Jehan Pernas of the International Narcotics, Money Laundering, and Racketeering Section.
Wood County Parolee Sentenced for Federal Drug OffenseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced a Wood County man was sentenced to 90 months in federal prison for possession with intent to distribute methamphetamine. Joshua Michael Conger, 41, of Parkersburg, also will serve five years on supervised release.
“Conger was given a second chance when state court gave him parole. But what did he do? He went right back to drugs and guns. Not this time - there’s no parole in the federal system,” said United States Attorney Mike Stuart.
Conger pled guilty in January 2020 admitting that he possessed 388 grams of methamphetamine and two handguns in his vehicle when it was parked at his Gihon Road residence. Conger had previously been convicted in Wood County Circuit Court of operating a methamphetamine laboratory in 2012 and possession with intent to distribute a controlled substance in 2016. He was on parole at the time of his arrest in June 2018.
The Parkersburg Narcotics Task Force and the Federal Bureau of Investigation (FBI) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Joshua Hanks handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
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Westmoreland County Man Charged with Possessing FentanylRead the Press Release
PITTSBURGH,- A resident of Adamsburg, PA, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on June 23, named Chad Caye, age 22, as the sole defendant.
According to the Indictment, on February 12, 2020, Caye was found to be in possession of 40 grams or more of fentanyl.
The law provides for a maximum total sentence of not less than 5 years and not more than 40 years in prison, a fine not to exceed $5,000,000, a period of supervised release of at least 4 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Schupansky is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office to Join Federal, State, and Local Law Enforcement Officers for a Press Conference Tomorrow, June 30, in Conway at 3:00 p.m.Read the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that a press conference will be held tomorrow, June 30, 2020, at 3 p.m., outside the Horry County Government Center, 1301 2nd Avenue, Conway, South Carolina 29526.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina and the following law enforcement agencies: Federal Bureau of Investigation (FBI); 15th Circuit Solicitor’s Office; 15th Circuit Drug Enforcement Unit; Horry County Sheriff's Office; South Carolina Law Enforcement Division (SLED); Myrtle Beach Police Department; Horry County Police Department; Coastal Carolina University Police Department; Loris Police Department; Conway Police Department; North Myrtle Beach Department of Public Safety; Brunswick County Sheriff’s Office, NC; South Carolina Highway Patrol; and City of Georgetown Police Department.
WHEN: Tuesday, June 30, 2020, at 3 p.m.
WHERE: Outside the Horry County Government Center
1301 2nd Avenue
Conway, South Carolina 29526
NOTE: Press inquiries regarding logistics should be directed to Derek A. Shoemake, 843-813-0982. Members of the media wishing to attend the remarks should gather outside the Horry County Government Center at 2:30 p.m., 30 minutes in advance.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Warns Public About Fraudulent Face Mask DocumentsRead the Press Release
United States Attorney Brandon J. Fremin today advised the public that fraudulent cards and other documents bearing the Department of Justice seal are being distributed around the country with written advisories that persons are exempt from COVID-19-related face mask requirements.
There have been reports of individuals handing out cards claiming that the bearer is exempt from face mask requirements under the Americans with Disabilities Act (ADA). The Department of Justice also is aware of postings or flyers on the Internet making similar claims. Many of these documents include the Department’s seal. The following is an example of one such card that has been distributed in another state:
These documents were not issued by the Department, and the Department does not endorse them. The Department also has not granted permission for the use of its seal for this purpose. Misuse of the Department seal is a federal crime.
The Department urges the public not to rely on the information contained in these documents and to visit https://www.ada.gov/ for ADA information issued by the Department.
For more information and technical assistance about the ADA, please contact the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY).
U.S. Attorney Appoints First Missing and Murdered Indigenous Persons CoordinatorRead the Press Release
EUGENE, Ore.—U.S. Attorney Billy J. Williams announced today the appointment of Cedar Wilkie Gillette to serve as the Missing and Murdered Indigenous Persons (MMIP) Coordinator for the District of Oregon.
As the District of Oregon’s first MMIP coordinator, Ms. Wilkie Gillette will gather reliable data to identify MMIP cases connected to Oregon; conduct outreach with tribal communities to assist in the creation and implementation of community action plans; coordinate with tribal, local, state, and federal law enforcement in the development of protocols and procedures for responding to and addressing MMIP cases; and promote improved data collection and analyses throughout Oregon.
Working in the U.S. Attorney’s Office in Eugene, Ms. Wilkie Gillette will serve tribal communities and victims throughout Oregon.
“We are very excited to welcome Ms. Wilkie Gillette into this important new position designed to serve native crime victims and their families. For generations, American Indians and Alaskan Natives have suffered from disproportionately high levels of violence. This is unacceptable,” said U.S. Attorney Williams. “Ms. Wilkie Gillette is eminently qualified for this role and will join a long history of District of Oregon staff committed to reducing violent crime in tribal communities.”
Prior to joining the U.S. Attorney’s Office, Ms. Wilkie Gillette served as a law fellow for Earthjustice, a nonprofit environmental law organization. She has a juris doctorate from the Vermont Law School and a bachelor’s degree in applied social justice and human rights activism from the University of Minnesota. Ms. Wilkie Gillette is an enrolled member of the Mandan, Hidatsa, and Arikara Nation and a direct descendant of the Turtle Mountain Band of Chippewa. She has conducted extensive research on indigenous human rights and environmental justice issues.
On November 22, 2019, Attorney General William Barr launched a national strategy to address missing and murdered Native Americans. When establishing the MMIP Initiative, the Department of Justice made an initial investment of $1.5 million to hire MMIP coordinators to serve with U.S. Attorney’s Offices in 11 states, including Oregon.
The strategy also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.justice.gov/Celebrating150Years.
Two New Yorkers Charged with Fraud Conspiracy to Commit Passport Fraud and Bank Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that THIERNO O. BAH, age 29, and MANUELA GONZALEZ-BOOKMAN, age 73, both residents of New York, New York, were charged on June 26, 2020 in an indictment with charges related to their arrest by Jefferson Parish Sheriff’s deputies on February 19, 2020 in Metairie, Louisiana.
According to court documents, BAH and GONZALEZ-BOOKMAN flew from Newark Liberty International Airport to Louis Armstrong International Airport on February 18, 2020. They rented a car, and the following day GONZALEZ-BOOKMAN entered a Capital One bank branch while BAH waited in the car outside. GONZALEZ-BOOKMAN then attempted to cash a stolen check while using a false passport card in the name of another person.
The grand jury returned an indictment charging BAH and GONZALEZ-BOOKMAN with three counts. They were charged with one count of conspiracy to use a false passport, which carries a maximum sentence of 5 years in prison and a $250,000.00 fine. The indictment also charged BAH and GONZALEZ-BOOKMAN with conspiracy to commit bank fraud, which carries a maximum 30 years in prison and a maximum $1,000,000.00 fine. Finally, they were charged with one count of aggravated identity theft, which carries a mandatory two years in prison consecutive to any other sentence and a $250,000.00 fine.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The investigation is being handled by the U.S.Department of State's Diplomatic Security Service and Homeland Security Investigations. U.S. Attorney Strasser extended his thanks to the Jefferson Parish Sheriff’s Office and the Jefferson Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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Two Local Leaders of MS-13 Gang Sentenced to over 25 Years in Prison for Racketeering, Extortion, and MurderRead the Press Release
SAN JOSE – Tomas Rivera, a/k/a Jonas Portillo Escobar, a/k/a Profugo, a/k/a Caballo, and Alexander Martinez-Flores, a/k/a Pocar, were sentenced to prison for their respective roles in Santa Cruz-based MS-13 gang-related crimes, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. Rivera was sentenced today to 27 years in prison for conspiring to engage in racketeering, extortion by force, and murder in aid of racketeering. Flores was sentenced on June 18, 2020, to 30 years in prison for using a firearm to cause murder, conspiracy to commit murder and extortion, and racketeering conspiracy. The sentences were handed down by the Hon. Edward J. Davila, U.S. District Judge.
On January 23, 2020, Rivera, 27, of El Salvador, pleaded guilty to all the charges pending against him and on March 16, 2020, Martinez-Flores, 29, of Santa Cruz, Calif., pleaded guilty to three of the six counts then pending against him. Both defendants admitted being a member of the transnational street gang La Mara Salvatrucha, also known as MS-13. MS-13 has local chapters, or “cliques,” throughout the world, including El Salvador, Honduras, Mexico, and the United States. Members and associates of the gang engage in crimes such as murder, narcotics trafficking, extortion, and obstruction of justice. MS-13 members enforce gang rules and protect gang territory with violence, including murder. The Santa Cruz Salvatrucha Locos (SCSL) is an MS-13 clique that operates in and around Santa Cruz, Calif.
In his plea agreement, Rivera admitted he arrived in Santa Cruz in April of 2016, where he quickly stepped in as second-in-command of the SCSL clique of the MS-13 gang. Rivera admitted he played a key role in a murder committed by SCSL gang members. Specifically, Rivera admitted that in April 2016, he discussed seeking approval from gang members in El Salvador to kill a suspected rival gang member. Then, after the murder was committed by Martinez-Flores and other SCSL members on September 22, 2016, Rivera collected the murder weapons. Rivera, Martinez-Flores and other SCSL members then celebrated the murder. Rivera’s plea agreement also provides details of addition crimes he has committed as part of the gang including the following:
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At a meeting on October 2016, Rivera took charge of organizing the day-to-day efforts of SCSL members to kill additional rivals.
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Rivera destroyed evidence of another murder by MS-13 members. Specifically, the agreement described Rivera’s involvement in burning clothing and a car that played a role in the murder.
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From April 2016 through January 2017, Rivera engaged in drug trafficking and extortion with other SCSL members.
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Rivera coordinated with MS-13 members in El Salvador and other places to carry out the directives of the gang’s leadership in and around Santa Cruz. Rivera acknowledged that he pushed for strict adherence to MS-13 rules, including the rule that required all people who wanted to join the gang to commit a murder to qualify for membership.
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Rivera was involved in patrolling the area over which SCSL gang members asserted their control. Rivera admitted in the plea agreement that on one occasion he and other SCSL members beat up a suspected rival gang member they found in their territory. On another occasion, Rivera and other MS-13 members were in a car when they spotted people they suspected of being rival gang members. One of the MS-13 members shot at and attempted to kill a member of the group.
As for Martinez-Flores, he admitted that he was one of the shooters in the September 22, 2016, murder committed by SCSL gang members. Martinez-Flores admitted that in April 2016, the gang discussed seeking approval from El Salvador to kill a suspected rival gang member and after the murder was approved, Martinez-Flores was one of the gang members tasked with killing the victim. Martinez-Flores was one of the gang members who celebrated the murder after it was completed. Martinez-Flores’s plea agreement also describes how Martinez-Flores collected an extortion payment—the “monthly fee due to SCSL”—from a local drug dealer.
A federal grand jury returned a second superseding indictment against Rivera, Martinez-Flores and others on August 16, 2018. The indictment charged Rivera with one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit extortion by force, in violation of 18 U.S.C. § 1951(a); and one count of conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5). Rivera pleaded guilty to all three counts against him. Martinez-Flores was charged in multiple counts in the same second superseding indictment, and pleaded guilty to the racketeering conspiracy, conspiracies to commit extortion and murder, and use of a firearm causing murder counts. The remaining counts against him were dismissed at sentencing.
In addition to the prison terms, Judge Davila sentenced both defendants to a 5-year period of supervised release. The defendants have been in continuous federal custody since their arrests, and they will be transferred to the custody of the Bureau of Prisons to serve the remainder of their sentences.
In addition to Rivera and Martinez-Flores, eight additional defendants in this case have pleaded guilty for their respective roles in the SCSL and MS-13 criminal enterprise. Seven such defendants have been sentenced as reflected in the following chart:
Name
Charges
Sentence
Ismael Alvarenga-Rivera, a/k/a Casper
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 23, 2019, to 90 months in prison
Willfredo Ayala-Garcia, a/k/a Chino
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 17, 2019, to 80 months in prison
Jose David Abrego-Galdamez, a/k/a Largo
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 16, 2019, to 36 months in prison, consecutive to his sentence in CR 17-567 BLF
Gerber Morales, a/k/a Choco
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on September 17, 2019, to 72 months in prison
Emilio Escobar-Albarnga, a/k/a Diablo
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on January 20, 2020, to 60 months in prison
Josue Alcedis Escobar Cerritos, a/k/a Penguino
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on July 30, 2019, to 72 months in prison
Melvin Lopez, a/k/a Sharky
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a); Conspiracy to Commit Murder, 18 U.S.C. § 1959(a)(5)
Sentenced on January 27, 2020, to 120 months in prison
Velarmino Escobar-Ayala, a/k/a Meduza
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a); Conspiracy to Commit Murder, 18 U.S.C. § 1959(a)(5)
Scheduled to be sentenced on July 6, 2020
The United States Attorney’s Office’s Organized Crime Strike Force is prosecuting the case. This prosecution is the result of an investigation conducted by HSI with the assistance of the Santa Cruz Police Department.
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Three men sentenced to federal prisonRead the Press Release
SAVANNAH, GA: Three men were sentenced to federal prison in separate cases adjudicated today (June 29, 2020) in the Southern District of Georgia.
In sessions in U.S. District Court in Savannah and Augusta, each of the defendants who previously pled guilty to felony charges received sentences including federal prison terms followed by periods of supervised release, said, Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Those sentenced Monday include:
- Rashad Stanford, 37, of Savannah, sentenced to 92 months in prison followed by three years of supervised release by U.S. District Court Judge Lisa Godbey Wood. Stanford, with five previous felony convictions for entering automobiles, pled guilty to Possession of a Firearm by a Convicted Felon. He was arrested by Savannah Police in January 2019 after brandishing a firearm – later determined to have been stolen in a previous vehicle break-in – when a victim found Stanford rummaging through his car.
- Vodie Nathaniel Bell Jr., 30, of Savannah, sentenced to 27 months in prison followed by three years of supervised release by Judge Wood. Bell, who has three prior felony convictions, pled guilty to Possession of a Firearm by a Convicted Felon. Bell was carrying a pistol in his pocket when he was arrested by Savannah Police in May 2018 on an outstanding warrant for aggravated assault.
- John Russell Dixon, 40, of Waynesboro, sentenced to 80 months in prison followed by four years of supervised release by U.S. District Court Chief Judge J. Randal Hall. Dixon pled guilty to Possession of Methamphetamine and Marijuana with Intent to Distribute, and Possession of a Firearm by an Illegal Drug User. Dixon was arrested by Burke County and Richmond County sheriff’s deputies after an October 2018 traffic stop in which significant amounts of drugs, cash and two firearms were found in his vehicle.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Savannah Police Department, the Richmond County Sheriff’s Office and the Burke County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Joshua S. Bearden, Henry W. Syms Jr., Joseph McCool and Special Assistant U.S. Attorney Katelyn Semales.
The Department of Justice Files Sexual Harassment Lawsuit Against the Owner and Manager of Rental Properties in Davenport, IowaRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that the owner and manager of rental properties in Davenport, Iowa violated the Fair Housing Act by subjecting a female tenant to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Southern District of Iowa, alleges that Juan Goitia, the manager of multiple residential rental units in Davenport, sexually harassed a female tenant from March 2018 until August 2018. According to the complaint, Goitia made repeated and unwelcome sexual comments, touched the tenant’s body without her consent on multiple occasions, and retaliated against the tenant for filing a fair housing complaint. The United States also named 908 Bridge Cooperative, the corporate owner of the rental property where the harassment occurred, as a defendant in the lawsuit.
“No woman should have to endure sexual harassment to keep her home,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct.”
“Women have a hard enough time finding a decent affordable place to live without having to be subjected to unwanted sexual advances,” said Assistant Secretary Anna Maria Farias of the U.S. Department of Housing and Urban Development’s (HUD) Fair Housing and Equal Opportunity Office. “HUD applauds the action the Justice Department is taking in this matter and remains committed to working together to protect the housing rights of women when those rights are violated.”
The lawsuit arose from a complaint about Goitia’s conduct that the former tenant filed with the Davenport Commission on Civil Rights (DCRC) and HUD. After DCRC and HUD investigated the complaints, HUD issued a charge of discrimination and the matter was referred to the Department of Justice.
Today’s lawsuit seeks monetary damages to compensate the victim and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Department of Justice to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. The goal of the initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the Department of Justice has filed 16 lawsuits alleging sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Juan Goitia or 908 Bridge Cooperative, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number 91 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by visiting civilrights.justice.gov.
Ten Defendants Charged in $1.4 Billion Rural Hospital Pass-Through Billing SchemeRead the Press Release
UPDATE
On March 21, 2023, a federal jury acquitted defendants Aaron Durall, Christian Fletcher, Neisha Zaffuto, and Aaron Alonzo of the charges alleged in the indictment described in the press release below.
Ten individuals, including hospital managers, laboratory owners, billers and recruiters, were charged in an indictment unsealed today for their participation in an elaborate pass-through billing scheme using rural hospitals in several states as billing shells to submit fraudulent claims for laboratory testing. The indictment alleges that from approximately November 2015 through February 2018, the conspirators billed private insurance companies approximately $1.4 billion for laboratory testing claims as part of this fraudulent scheme, and were paid approximately $400 million.
Jorge Perez, 60, of Miami-Dade County, Florida; Seth Guterman, 54, of Chicago, Illinois; Ricardo Perez, 57, of Miami-Dade County, Florida; Aaron Durall, 48, and Neisha Zaffuto, 44, each of Broward County, Florida; Christian Fletcher, 34, of Atlanta, Georgia; James Porter Jr., 49, of Marion County, Florida; Sean Porter, 52, of Citrus County, Florida; Aaron Alonzo, 44, and Nestor Rojas, 45, each of Miami-Dade County, Florida, were charged in an indictment filed in the Middle District of Florida.
All defendants (except Sean Porter) were charged with one count of conspiracy to commit health care fraud and wire fraud. In addition, Jorge Perez, Guterman, Ricardo Perez and Durall were each charged with five counts of substantive health care fraud; Durall and Zaffuto were charged with two counts of conspiracy to commit money laundering; Jorge Perez, Guterman, Ricardo Perez, Fletcher, James Porter and Sean Porter were charged with one count of conspiracy to commit money laundering and the following defendants were charged with substantive money laundering: Durall (three counts); Zaffuto (one count); Jorge Perez (seven counts); Guterman (one count); Ricardo Perez (five counts); Fletcher (two counts); James Porter (12 counts) and Sean Porter (two counts).
Jorge Perez, Ricardo Perez, and Durall appeared this afternoon before U.S. Magistrate Judge Joel B. Toomey of the Middle District of Florida. Initial appearances for Zaffuto, Fletcher, James Porter Jr., Sean Porter, Aaron Alonzo, and Nestor Rojas are scheduled before Magistrate Judge Toomey on June 30 and July 1.
“This was allegedly a massive, multi-state scheme to use small, rural hospitals as a hub for millions of dollars in fraudulent billings of private insurers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The charges announced today make clear that the department is committed to dismantling fraud schemes that target our health care system, however complex or elaborate.”
“Trust and integrity undergird the confidence and reliability in our healthcare system,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Fraudulent and deceptive business practices undermine those values and erode the public’s trust in that system. We will continue to pursue those who set these tenets aside and compromise the care and safety of our citizens for profit.”
“The FBI views health care fraud as a severe crime problem that impacts every American,” said Special Agent in Charge Rachel L. Rojas of the FBI’s Jacksonville Field Office. “Fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for everyone. The FBI and our law enforcement partners will continue to investigate these crimes and prosecute all those who are intent in defrauding the American public.”
“OPM OIG remains committed to investigating those who seek to defraud the federal health care system for their own personal gain,” said Deputy Assistant Inspector General Thomas W. South of the U.S. Office of Personnel Management Office of Inspector General (OPM OIG). “Schemes that exploit rural hospitals are particularly egregious as they can undermine access to care in underserved communities. We are extremely proud of our criminal investigators and law enforcement partners for their hard work uncovering this complex criminal fraud scheme.”
“An important mission of the Office of Inspector General is to investigate allegations of health care fraud in union benefit plans,” said Special Agent in Charge Rafiq Ahmad of the U.S. Department of Labor Office of Inspector General (DOL OIG) Atlanta Region. “We will continue to work with our law enforcement partners to protect the integrity of labor unions and their benefit plans.”
“Our office, in partnership with our fellow investigative agencies, will continue to comprehensively investigate and bring to justice the people who perpetrate health care fraud,” said Kevin Winters, Amtrak’s Inspector General. “Preventing health care fraud is particularly important to Amtrak because, as a self-insured company, the fraud adversely impacts its operating budget, which is dedicated to multiple critical requirements such as passenger safety.”
The indictment alleges that the conspirators would take over small, rural hospitals, often in financial trouble, using management companies they owned and operated. The conspirators would then bill private insurance companies through those rural hospitals for millions of dollars of expensive urinalysis drug tests and blood tests, conducted mostly at outside laboratories they often controlled or were affiliated with, using billing companies that they also controlled. While outside laboratories did most of these laboratory tests, the conspirators allegedly billed private insurance companies as if these laboratory tests were done at the rural hospitals.
According to the indictment, these rural hospitals had negotiated contractual rates with private insurers that provided for higher reimbursement than if the tests were billed through an outside laboratory. Accordingly, the scheme used the hospitals as a shell to fraudulently bill for such tests. Further, the indictment alleges that the lab tests were often not even medically necessary. The conspirators allegedly would obtain urine specimens and other samples for testing through kickbacks paid to recruiters and health care providers, often sober homes and substance abuse treatment centers. The indictment also alleges that the conspirators engaged in sophisticated money laundering to promote the scheme and to distribute the fraudulent proceeds.
The rural hospitals involved in this case are: Cambellton-Graceville Hospital (CGH), a 25-bed rural hospital located in Graceville, Florida; Regional General Hospital of Williston, a 40-bed facility located in Williston, Florida; Chestatee Regional Hospital, a 49-bed rural hospital located in Dahlonega, Georgia; and Putnam County Memorial Hospital, a 25-bed rural hospital located in Unionville, Missouri.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s Jacksonville Field Office, OPM OIG, DOL OIG and Amtrak OIG. Trial Attorneys Gary A. Winters and James V. Hayes of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tysen Duva of the Middle District of Florida are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Syracuse Man Sentenced to 102 Months Following Drug Trafficking ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Daitwaun Fair, age 33, of Syracuse, was sentenced today to serve 102 months (eight and one-half years) in prison in connection with his convictions for conspiracy to distribute and possess with intent to distribute cocaine and cocaine base (“crack cocaine”), possession with intent to distribute cocaine, and maintaining a drug involved premises, announced United States Attorney Grant C. Jaquith; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); New York State Police Superintendent Keith Corlett; Sheriff Eugene Conway, Onondaga County Sheriff’s Office; and William J. Fitzpatrick, Onondaga County District Attorney.
The defendant was also ordered to serve a four-year term of supervised release following his release from prison, and ordered to forfeit $112,500.00 in proceeds from his drug trafficking activity.
In imposing sentence, the Court found that Fair and his coconspirators were responsible for distributing between 3.5 and 5 kilograms of cocaine in the Syracuse area from July to September 2018. The Court also found that Fair was the organizer of the drug trafficking operation, which included 12 other coconspirators, all of whom have previously pled guilty.
This case was investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the New York State Police, the Onondaga County Sheriff’s Office, and the Onondaga County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Seth Morgan Sentenced to Time Served for Mail TheftRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Seth Morgan, 38, of Sheldon, Vermont was sentenced today to time served following his guilty plea to the lead count of a five count indictment charging him with mail theft. The thefts occurred at the Sheldon Springs Post Office in Sheldon, Vermont between April 2, 2018 and May 4, 2018. United States District Judge William K. Sessions III also ordered Morgan to serve a 2-year term of supervised release and to pay a $100 special assessment.
The lead investigator on the case was United States Postal Inspector Kristin Miller. Morgan was represented by Assistant Federal Public Defender David L. McColgin. Assistant United States Attorney Nikolas Kerest handled the prosecution for the United States.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.