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24 June 2020
Virginia Married Couple Arrested for COVID-Relief Loan FraudRead the Press Release
ALEXANDRIA, Va. – An Ashburn woman made her initial appearance in federal court this afternoon for conspiracy to commit wire fraud after allegedly submitting false loan applications in connection with the COVID-19 outbreak that resulted in the disbursement of over $1.4 million in proceeds under the Paycheck Protection Program (“PPP”).
Monica Magdalena Jaworska, 43, and her husband and co-defendant, Tarik Jaafar, 42, were arrested at John F. Kennedy International Airport on June 20, 2020, as they were attempting to flee to Poland. According to court documents, between April and May 2020, Jaworska and Jaafar submitted eighteen PPP loan applications containing materially false statements to twelve financial institutions in the names of four business entities. Relief provided by the CARES Act authorized up to $349 billion in forgivable loans to small businesses for job retention and certain permissible expenses, including payroll costs, rent, and utilities. The applications submitted by Jaworska and Jaafar allegedly were false because they claimed certain payroll tax returns were filed with the Internal Revenue Service (IRS) for each of the four businesses, when they were not in fact filed with the IRS.
As a result of the false statements, three financial institutions disbursed four loans totaling $1,438,500. While some of the funds were subsequently frozen, Jaafar was able to withdraw at least $30,000 in cash.
If convicted, Jaworska and Jaafar each face a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William 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. The Department is also committed to preventing hoarding and price gouging for critical supplies during this crisis. To address this, Attorney General Barr created the COVID-19 Hoarding and Price Gouging Task Force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]. Members of the public in the Eastern District of Virginia are also encouraged to call 804-819-5416, or email [email protected] to reach their local Coronavirus Fraud Coordinator.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the Criminal Division for the FBI’s Washington Field Office; and Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA), made the announcement. Assistant U.S. Attorneys William Fitzpatrick and Kimberly Shartar are prosecuting the case.
Agents from the FBI’s John F. Kennedy International Airport Resident Agency, which included agents from U.S. Customs and Border Protection, assisted in the arrest.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-mj-167.
A criminal complaint is merely an accusation. The defendants are presumed innocent until proven guilty.
Virginia Drug Dealer Pleads Guilty to Possessing with Intent to Distribute Heroin and FentanylRead the Press Release
Baltimore, Maryland – Shawn Growden, age 30, of Winchester, Virginia, pleaded guilty today in federal court in Baltimore, Maryland to federal charges of possessing and distributing heroin and fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Sheriff Mark A. Butler of the Northwest Virginia Regional Drug Task Force; Chief Marcus Jones of the Montgomery County Police Department; Sheriff Lenny Milholland of the Frederick County, Virginia Sheriff’s Office; and Chief John Piper of the Winchester, Virginia Police Department.
“State and federal law enforcement are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “More and more people are dying from fentanyl overdoses, including the fatal overdose victim who bought drugs from this defendant. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to Growden’s plea agreement, he regularly obtained narcotics from a Baltimore-based drug trafficking organization (“DTO”) which he then resold to paying customers in Winchester, Virginia and the surrounding areas.
From March 1, 2019, through Growden’s arrest on March 26, 2019, he regularly traveled to Baltimore to purchase approximately 62 grams of heroin laced with fentanyl, which he possessed with the intent to distribute.
On one occasion, Growden’s drug dealing resulted in a fatal overdose. On March 22, 2019, Growden purchased approximately 11 grams of heroin laced with fentanyl from the DTO in Baltimore. Later that day, Growden traveled to Winchester, Virginia and sold a portion of the heroin/fentanyl he had just bought to a victim.
On March 24, 2019, Virginia State Police responded to the victim’s house for a welfare check and found him deceased inside his bedroom. Inside the residence, police found a powdery substance consistent with heroin, along with the victim’s phone which revealed that the final outgoing text communications were with Growden on March 22, 2019, the contents of which were consistent with arranging a drug transaction. The medical examiner later concluded that the cause of death was acute combined fentanyl, acetyl fentanyl, heroin, and tramadol poisoning.
On March 26, 2019, Growden again communicated with a member of the Baltimore DTO and arranged to purchase approximately 10 grams of heroin. While returning to Winchester, Virginia, Growden’s vehicle was stopped by members of the Frederick County Sheriff’s Office, who recovered the heroin that Growden had just purchased.
After Growden was arrested, he agreed to speak with investigators and admitted that he had sold heroin to the fatal overdose victim on March 22, 2019. Growden also provided consent to search his cellular phone, which revealed additional text communications indicating that Growden had been redistributing the heroin purchased from the Baltimore DTO over the prior three weeks.
Growden faces a maximum sentence of 40 years in prison possessing and distributing heroin and fentanyl. Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for October 29, 2020 at 2:00 pm.
United States Attorney Robert K. Hur praised the FBI; the Northwest Virginia Regional Drug Task Force; the Frederick County, Virginia Sheriff’s Office; and the Winchester, Virginia Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Goldsticker and Matthew DellaBetta, who are prosecuting the case.
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United States Files Suit Against Drug Manufacturer Regeneron for Paying Kickbacks Through Co-Pay FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that the government has filed a civil False Claims Act complaint against drug manufacturer Regeneron Pharmaceuticals, Inc. (Regeneron), of Tarrytown, N.Y. The complaint alleges that Regeneron paid tens of millions of dollars in kickbacks for its macular degeneration drug Eylea, using a foundation as a conduit to cover co-pays for Eylea.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B, the beneficiary may be required to make a partial payment, which can take the form of a deductible or co-insurance amount (collectively, co-pays). Congress included co-pay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value, including coverage of co-pays – to induce Medicare patients to purchase the companies’ drugs.
“According to the allegations in today’s complaint, Regeneron funneled tens of millions of dollars in kickbacks through a third-party foundation to ensure that few Medicare patients paid a co-pay on Eylea and that physicians who prescribed and purchased the drug did not have to collect Medicare co-pays from their patients,” said United States Attorney Andrew E. Lelling. “Regeneron allegedly paid these substantial sums only after confirming that the foundation needed the money to cover co-pays only for Eylea, and not for competing drugs, and that the company’s payments would generate a handsome return on investment, or ‘ROI,’ in the form of Medicare payments for Eylea. Furthermore, senior company executives allegedly took extensive measures to cover up the scheme.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”
“As alleged, a pharmaceutical company has once again been caught manipulating the system and profiting handsomely at the expense of our taxpayer funded Medicare program,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI will aggressively pursue justice against this company and all companies like it until those in the pharmaceutical industry learn they are not above the law.”
The complaint alleges that, in 2012, soon after the launch of Eylea, Regeneron considered how much to pay a foundation that covered Medicare co-pays for patients taking macular degeneration drugs. At the time, Regeneron and Genentech, which sold Lucentis, were the leading manufacturers of macular degeneration drugs. Regeneron’s senior management was willing to pay the foundation only enough to cover Medicare co-pays for Eylea patients. As Regeneron’s former Chief Financial Officer put it, Lucentis patients were “Genentech’s problem.” Moreover, Regeneron senior management wanted assurances that the company’s payments to the foundation would generate a handsome ROI.
To satisfy senior management, the complaint alleges, Regeneron employees repeatedly contacted the foundation to learn the amount of money the foundation would need to cover the co-pays of Eylea patients only. They then determined the Medicare revenue that Regeneron would derive from those patients and calculated that the company would earn a return of over 400% on its payments to the foundation. Over the course of 2013 and through the beginning of 2014, Regeneron paid the foundation exactly what it said it needed to cover Medicare expenses for Eylea patients only.
The government alleges that Regeneron’s conduct violated the anti-kickback statute which prohibits such “indirect” kickbacks to subsidize the price of a Medicare drug. The government further alleges that Regeneron’s senior management knew the conduct was illegal. In 2013, company auditors twice inquired about the information Regeneron was getting from the foundation about Eylea. Both times, Regeneron management, including the company’s commercial chief, lied and asserted that the company was not getting Eylea-specific data from the foundation. In fact, as the executives knew, the company was getting frequent Eylea-specific reports from the foundation and then using that data to correlate the company’s payments to the foundation with the foundation’s spending on co-pays for Eylea. As a result, the government alleges, the physicians who prescribed and purchased Eylea rarely, if ever, had to consider the drug’s substantial cost, because they knew that the foundation would cover their patients’ Medicare co-pays.
U.S. Attorney Lelling, HHS-OIG SAC Coyne, and FBI SAC Bonavolonta made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter is being handled by Assistant U.S. Attorneys Gregg Shapiro and Evan Panich of Lelling’s Affirmative Civil Enforcement Unit.
U.S. Attorney McSwain Announces Charges Filed Against Leader of Northeast Philadelphia Heroin Distribution Ring, his Girlfriend and Five OthersRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Juan Caceres, 30, of Elkins Park, PA; Jose M. Suarez-Mendosa, 29, of Philadelphia, PA; Jerson David Diaz, 31, of Philadelphia, PA; Ezequiel Regalado-Rosario, 45, of Philadelphia, PA; Ramcel Duarte-Rodriguez, 21, of Philadelphia, PA, and Juan Francisco Regalado-Ferreras, 27, of Philadelphia, PA, were arrested and charged by criminal complaint on charges of possession with intent to distribute various amounts of heroin as associates of the Caceres drug trafficking organization.
During the execution of simultaneous search warrants in June, Caceres, Regalado-Rosario, Duarte-Rodriguez and Regalado-Ferreras were arrested at a residence in the 1000 block of Saint Vincent Street in Northeast Philadelphia and charged with possession with intent to distribute one kilogram or more of heroin. At the same time, Suarez-Mendosa and Diaz were arrested at a residence in the 2900 block of Teesdale Street, also in Northeast Philadelphia, and charged with possession with intent to distribute 100 grams or more of heroin.
All six defendants made their initial appearances in federal court last week. Caceres – the ring-leader of the group – Diaz, Suarez-Mendosa, and Regalado-Rosario were all detained by the court until trial. Duarte-Rodriguez and Regalado-Ferreras will appear in court for their detention hearings on Friday, June 26. A seventh defendant, Braulizabeth Reyes-Villanueva (identified as Person #1 in the criminal complaint), 31, of Philadelphia, PA, was charged elsewhere with conspiracy to distribute one kilogram or more of heroin, was arrested separately and also made an appearance in court last week.
In a related investigation, four other defendants, Tennille Lee, 43, of Atlantic City, NJ; Ebony Chapman, 40, of Absecon, NJ; Andrew Prater, 38, of Atlantic City, NJ; and Theresa Lockhart, 28, of Millville, NJ; were charged elsewhere by the Atlantic County Prosecutor’s Office and arrested by authorities in New Jersey in June as part of a joint investigation with members of the Liberty Mid-Atlantic HIDTA (High Intensity Drug Trafficking Area) Task Force.
According to the federal criminal complaint, from February until June 2020, the defendants operated a drug trafficking scheme to package, store and distribute large amounts of heroin in Philadelphia, PA; Elkins Park, PA; Atlantic City, NJ; and other locations in the region. During the execution of the Teesdale Street and Saint Vincent Street search warrants, agents discovered a large-scale heroin packaging operation at the residence on Saint Vincent Street, including tens of thousands of packets of heroin, grinders, scales and other paraphernalia, as well as a loaded Glock 42 firearm with an additional box of 50 rounds. Agents also found two children, approximately two months old and four years old, apparently living in the drug-infested residence.
During the investigation, agents allegedly observed Reyes-Villanueva and Caceres supplying Lee with packages of drugs on multiple occasions in an alleyway behind the Teesdale Street residence. Lee would transport the drugs from Philadelphia in her vehicle to a stash house in Atlantic City. From there, Lee, Chapman, Prater and Lockhart were also allegedly involved in a drug distribution conspiracy in New Jersey working for a different organization. According to the complaint, Reyes-Villanueva is romantically linked with Caceres and is a major facilitator in his organization with multiple vehicles used by members of the group registered in her name.
“As alleged in the criminal complaint, Caceres and his cohorts pumped huge quantities of deadly heroin onto the streets of our city and region,” said U.S. Attorney McSwain. “Drug trafficking is an inherently dangerous business that preys on individuals in addiction and puts innocent bystanders, like the two young children found living in one of these drug dens, in jeopardy. Our office is determined to work with our law enforcement partners at all levels and in other jurisdictions to investigate and convict those who are poisoning our community with deadly drugs and put them where they belong -- behind bars.”
“Those who profit from drug trafficking have no regard for the incredible damage they’re doing to our communities,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “As alleged, Caceres and his crew pushed vast amounts of heroin into Philadelphia, Atlantic City, and surrounding areas, a region hit hard by the opioid epidemic. The FBI will continue to work with our federal, state, and local partners to take drug traffickers and their dangerous product off the streets.”
“This investigation proves once again that drug traffickers do not allow state lines to interfere with their illegal operations,” said Susan A. Gibson, Special Agent in Charge of the DEA’s New Jersey Division. “It is the mission of law enforcement at all levels to keep our communities safe. Those choosing to distribute these deadly narcotics need to know we will go wherever the investigation takes us to carry out that mission.”
“Atlantic County is a part of the epi-center of the opioid epidemic in this country,” said Atlantic County Prosecutor Damon G. Tyner. “This operation is exactly the type of collaborative effort that we envisioned when the Atlantic County Prosecutor’s Office sought to be included in the Liberty Mid-Atlantic High Intensity Drug Trafficking Area. The ability to work with multiple agencies to disrupt the illegal activity of large drug trafficking organizations and make our community safer is our mission every day.”
If convicted, the defendants arrested in the Teesdale residence, Suarez-Mendosa and Diaz, face a maximum possible sentence of 40 years in prison, and the defendants arrested in the Saint Vincent Street residence, Caceres, Regalado-Rosario, Duarte-Rodriguez and Regaldo-Ferreras, as well as Reyes-Villanueva, face a maximum possible sentence of lifetime imprisonment.
The case was investigated by the Federal Bureau of Investigation Philadelphia Division, the Philadelphia Police Department, the Pennsylvania Attorney General’s Office, the Montgomery County District Attorney’s Office Detectives – Violent Crime Unit, and the Cheltenham Police Department, with assistance from the Federal Bureau of Investigation Newark Division – Atlantic City Resident Agency, the Drug Enforcement Administration Atlantic City office and the Atlantic County Prosecutor’s Office, and is being prosecuted by Assistant United States Attorney Joseph Labrum.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two-Time Convicted Felon Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss – Hakeem Burnett, 30, of Jackson, pled guilty today before U.S. District Court Judge Henry T. Wingate to possessing a firearm after having been previously convicted of a felony crime, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On November 15, 2019, Vicksburg Police officers and FBI Task Force officers apprehended Burnett in Vicksburg pursuant to a warrant out of Hinds County for Drug Court violations. Burnett was in possession of a firearm at the time he was apprehended. Burnett has previous convictions for house burglary and being a felon in possession of a firearm.
On January 15, 2020, Burnett was charged in a federal criminal indictment with possessing a firearm as a convicted felon. He will be sentenced on September 22, 2020 at 9:30 a.m. by Judge Wingate. He faces a statutory penalty of up to 10 years in prison and a $250,000 fine.
This case was investigated by the Vicksburg Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Two Men Indicted for Bank RobberyRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted two Florida men for a bank robbery in Anniston, announced U.S. Attorney Jay E. Town and FBI Special Agent Johnnie Sharp, Jr.
A one-count indictment filed in U.S. District Court charges Christopher Jermain Spann, 35, and Shaun Jamar Harris, 31, Miami, FL with the January 10th robbery of a Regions Bank branch on Greenbriar Road in Anniston.
“The defendants did not care about the terror they caused when robbing the bank,” Town said. “Citizens doing their jobs and those conducting business in a bank should feel safe. We will continue to work with our law enforcement partners to investigate and prosecute those who commit violent crime in the district.”
The maximum penalty for bank robbery is 20 years in prison and a $250,000 fine.
The FBI investigated the case, along with the Anniston Police Department. Assistant U.S. Attorney Kristy Peoples is prosecuting.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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 Fayetteville Men Indicted for the Arson of Fayetteville’s Market HouseRead the Press Release
WILMINGTON, N.C. – A federal grand jury returned indictments today charging two Fayetteville men with the arson of the City of Fayetteville’s Market House, a National Historic Landmark.
According to the indictments, Charles Anthony Pittman, 32, and Andrew Salvarani Garcia-Smith, 32, took part in the burning of the Market House after the peaceful protests following the death of George Floyd turned violent.
Several local news outlets filmed Pittman carrying around a red gasoline container on the second story of the Market House. Pittman proceeded to pour the gasoline throughout the second story of the Market House, which was then set on fire. Prior to any protests, Pittman posted a video on social media discussing his plans to bring the Market House down.
Authorities identified Garcia-Smith after he reported to a local hospital with several burn injuries as a result his actions. Garcia-Smith threw a bottle of burning liquid into the Market House. As he did so, the burning liquid spilled back onto him—setting Garcia-Smith’s hair and clothes ablaze. A social media video of the incident went viral, as several news outlets showed Garcia-Smith running down the steps of the Market House engulfed in flames.
Pittman and Garcia-Smith are each charged with the malicious burning of a building owned or possessed by an entity receiving Federal assistance. If convicted, both Pittman and Garcia-Smith face mandatory minimum sentences of 7 years in prison.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fayetteville Police Department are investigating the case and Assistant U.S. Attorneys Chad Rhoades and J.D. Koesters are prosecuting the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-mj-01575-JG for Pittman and 5:20-mj-01574-JG for Garcia-Smith.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Three New Jersey Men Charged in Connection with Interstate Luxury Car Theft RingRead the Press Release
NEWARK, N.J. – Three New Jersey men have been charged for their alleged roles in a conspiracy to steal luxury cars in New Jersey, New York, and Connecticut and transport them across state lines, U.S. Attorney Craig Carpenito announced today.
Malik Baker, a/k/a “Smack,” a/k/a “Mu,” of Vauxhall, New Jersey, 26, and Hakeem Smith, a/k/a “B.A.,” a/k/a “Hak,” 29, and Nafique Goodwyn, 26, both of Newark, were charged by complaint with conspiring to transport stolen vehicles in interstate commerce. Baker and Smith were also charged with one count of conspiring to receive stolen vehicles and one count of receiving a stolen vehicle that had crossed state lines after being stolen, and Smith was also charged with one count of transporting a stolen vehicle across state lines. Goodwyn was arrested today and made his initial appearance via video conference before U.S. Magistrate Judge Joseph A. Dickson. He will be released on $100,000 bond with home detention. Baker and Smith are currently detained on unrelated charges and will make their initial appearances in federal court at a later date.
According to documents filed in this case and statements made in court:
Beginning in July 2019, the defendants and others stole and conspired to steal at least 10 luxury cars in New Jersey, New York, and Connecticut, and hid those cars at a location in Irvington, New Jersey. The cars included a 2019 BMW X4 M40i, stolen from Greenwich, Connecticut, on July 19, 2019; a 2016 Mercedes-Maybach S600, stolen from Clifton, New Jersey, on Aug. 1, 2019; a 2019 Porsche Cayenne, stolen from New City, New York, on Aug. 6, 2019; a 2017 Mercedes S550 and a 2019 Rolls Royce, stolen from Hewlett Bay Park, New York, on Aug. 13, 2019; a 2019 Land Rover, stolen from Kensington, New York, on Aug. 22, 2019; a 2019 Mercede-Maybach, stolen from Quogue, New York, on Aug. 29, 2019; a 2014 Lexus GS, stolen from West Long Branch, New Jersey, on Aug. 29, 2019; a 2017 BMW M4, stolen from Marlton, New Jersey, on Sept. 7, 2019; and a 2017 Mercedes AMG S63, stolen from Orangeburg, New York, in September 2019.
The defendants often used the stolen cars to steal additional cars, and, in one instance, they used a Maserati GranTurisimo they stole from Manalapan, New Jersey, to steal a Range Rover and a Porsche Cayenne in the early morning hours of Aug. 6, 2019 in New City, New York. When law enforcement attempted to conduct a stop of the Maserati, the Maserati accelerated and crashed head-on into a police vehicle before the suspects fled the scene in another stolen vehicle. Law enforcement recovered one of the stolen cars in a shipping container at the port in Newark en route to Ghana.
The cars stolen by the defendants have an estimated value of at least $1.5 million.
The charges of interstate transportation of stolen vehicles and receipt of stolen vehicles are both punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offenses.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Douglas Korneski in Newark;, as well as the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; the Irvington Township Police Department, under the direction of Director Tracy Bowers; the Clarkstown, New York, Police Department, under the direction of Chief Raymond McCullagh; the Wall Township Police Department, under the direction of Chief Kenneth Brown Jr.; the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; the Tewksbury Township Police Department, under the direction of Chief Tim Barlow; the New Jersey State Police, under the direction of Colonel Patrick J. Callahan; and the Hunterdon County Prosecutor’s Office, under the direction of Acting Prosecutor Michael J. Williams, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Christopher Amore and Olajide Araromi of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Men Indicted for Setting Fire to Police Vehicle During Protest in Las VegasRead the Press Release
LAS VEGAS, Nev. — Tyree Walker, 23, Devarian Haynes, 23, and Ricardo Densmore, 24, all of Las Vegas, were arraigned in federal court today on an indictment charging them for conspiring to and setting fire to a Las Vegas Metropolitan Police Department vehicle during a protest in Las Vegas three weeks ago, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Walker, Haynes, and Densmore were each charged with two counts of conspiracy to commit arson and two counts of arson. The defendants made their initial appearance today before U.S. Magistrate Judge Cam Ferenbach who scheduled a jury trial for August 24, 2020, before U.S. District Judge Andrew Gordon.
According to allegations contained in court documents, on May 31, 2020, Walker, Haynes, and Densmore conspired with each other to damage a marked Las Vegas Metropolitan Police Department (LVMPD) patrol vehicle while protests relating to George Floyd’s death in Minneapolis were occurring in the vicinity. Shortly after midnight on May 31, Las Vegas Fire & Rescue responded to a fire involving a LVMPD patrol vehicle parked near the intersection of South Ninth St. and East Carson Avenue in downtown Las Vegas. A video posted to social media captured the event, leading LVMPD investigators to Walker, Haynes, and Densmore. The video, which was filmed by Densmore, showed Haynes pouring a flammable liquid from a gas can through a broken front passenger side window of the patrol vehicle. Walker lit an object to ignite the liquid, and then Haynes dropped the gas can into the patrol vehicle. All three defendants fled when they heard sirens from an approaching LVMPD vehicle.
If convicted, each defendant faces on each of the conspiracy and arson counts: (a) a mandatory minimum sentence of five years; (b) a mandatory maximum sentence of 20 years in prison; and (c) up to a $250,000 fine. The minimum and maximum statutory sentences are prescribed by Congress, and are provided here for informational purposes only. If convicted of any offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was the product of an investigation by the ATF, the Las Vegas Metropolitan Police Department, Las Vegas Fire & Rescue, and the FBI-led Criminal Apprehension Team in conjunction with the Joint Terrorism Task Force. Assistant U.S. Attorneys Lisa Cartier-Giroux and Stephanie Ihler are prosecuting the case.
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Three Individuals Indicted & Arrested for Health Care FraudRead the Press Release
SAN JUAN, Puerto Rico – On June 17, 2020, a Federal Grand Jury in the District of Puerto Rico returned a 43-count indictment charging Sophia Piñeiro-Ruscalleda, Dr. Alice Ruscalleda-Lebrón and Juan José Ruscalleda, former officials of New Health Med Group, Inc. (NHMG), with health care fraud, aggravated identity theft, conspiracy to commit health care fraud and obstruction of a criminal investigation related to health care offenses. The defendants were arrested today, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Office of Inspector General for the United States Department of Health and Human Services (HHS-OIG) was in charge of the investigation. The indictment was unsealed today upon the arrest of the three defendants by HHS-OIG agents.
According to the indictment, from in or about July 2015 through in or about March 2017, Sophia Piñeiro-Ruscalleda, Dr. Alice Ruscalleda-Lebrón and Juan José Ruscalleda enriched themselves by submitting or causing to be submitted false and fraudulent claims to the Medicare program. The claims submitted by the defendants were for services purportedly rendered by various providers on behalf of NHMG, when said providers did not render any such services and never worked for NHMG on the dates of service listed on the claims submitted.
Defendants submitted and/or caused to be submitted to Medicare a total of 2,711 claims using various rendering providers’ identifiers totaling $194,960. The defendants are facing a health care fraud forfeiture allegation of $85,422, which constitutes the amount of money Medicare paid the defendants.
“Defrauding the Medicare program by submitting false claims will not be tolerated and we will continue to work with our law enforcement partners to hold those responsible for their criminal actions,” said U.S. Attorney Muldrow. “Medical professionals who steal federal health care funds divert scarce resources that are needed to deliver essential services to beneficiaries. This case demonstrates our resolve in attacking fraud and restoring confidence in federal programs intended to benefit the citizens of Puerto Rico.”
If found guilty, the defendants face maximum sentences of: (a) up to ten years in prison for charges relating to health care fraud and conspiracy to commit health care fraud; (b) up to five years’ imprisonment for the obstruction of a criminal investigation related to health care offenses; and (c) a mandatory two-year consecutive term in prison for aggravated identity theft.
The case was investigated by the HHS-OIG and was prosecuted by Assistant U.S. Attorney José Ruiz Santiago, Criminal Health Care Fraud Coordinator at the United States Attorney’s Office.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Three Defendants Plead Guilty in $65 Million Health Care Fraud; Additional Charges Brought Against Alleged RingleadersRead the Press Release
Assistant U. S. Attorney Mark Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – June 23, 2020
SAN DIEGO – Three former U.S. service members pleaded guilty in federal court today, admitting their roles in a fraud scheme that bilked the military healthcare program known as TRICARE out of more than $65 million.
Kyle Adams, Daniel Castro and Jeremy Syto are scheduled to be sentenced September 11, 2020 before U.S. District Court Judge Janis L. Sammartino.
At the same time, the alleged ringleaders of this scheme were charged with additional crimes. Jimmy and Ashley Collins, a civilian married couple living in Cleveland, Tennessee, were originally charged in January 2018. They were charged on June 9, 2020 with additional crimes related to their operation of the scheme that cheated the health care program that covers United States military service members, retirees, and their dependents.
As Adams, Castro, and Syto admitted today, the defendants illegally recruited TRICARE patients to receive extraordinarily expensive and largely unnecessary prescription compounded drugs—which cost TRICARE an average of more than $14,500 per medication per month. They induced the patients to sign up by offering monthly payments to participate in a bogus “medical evaluation,” when, in fact, no medical evaluation was taking place.
“The military is very important to San Diego, and the U.S. Attorney’s Office and its law enforcement partners will ensure that military dollars are legally spent on necessary goods and services for military personnel,” said U.S. Attorney Robert Brewer. “Fraudsters, scammers, charlatans and thieves beware, there is no free passage through San Diego.”
“The theft of military health care dollars directly harms our Warfighters and will not be tolerated,” said Michael Mentavlos, Special Agent in Charge, Southwest Field Office, Defense Criminal Investigative Service. “Today’s guilty pleas demonstrate that DCIS, in partnership with NCIS, IRS, and the FBI, will aggressively pursue those who pillage DOD resources.”
“NCIS and our law enforcement partners began to uncover this multimillion dollar scheme to defraud the military thanks to a tip from a single service member,” said NCIS Marine Corps West Field Office Special Agent in Charge Amy Murphy. “These results highlight how critically important it is for our military personnel and family members to remain vigilant and always report suspected fraud. NCIS is grateful to the Defense Criminal Investigative Service, the Internal Revenue Service, and the FBI for their exceptional efforts during this extensive investigation.”
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient requires a particular dosage or application or is allergic to a dye or other ingredient.
Adams, Castro, and Syto admitted today that between October 2014 and July 2015, they worked as recruiters for Jimmy and Ashley Collins. At the Collins’ direction, the defendants recruited TRICARE beneficiaries by promising to pay them to evaluate the medications as part of an ongoing medical study, when in reality, no study was taking place. Once a recruiter convinced a TRICARE beneficiary to sign up to receive the compounded medications, the straw beneficiary’s information was sent to Choice MD, a Tennessee medical clinic co-owned and operated by Jimmy and Ashley Collins. Doctors and medical professionals employed by the Collinses at Choice MD, including Dr. Susan Vergot, Dr. Carl Lindblad, and Candace Craven, then wrote prescriptions for the TRICARE beneficiaries, despite never conducting a medical review or examination of the patients in person. Once signed by the doctors, these prescriptions were not given to the straw beneficiaries, but sent directly to The Medicine Shoppe, a pharmacy in Bountiful, Utah, which filled the prescriptions and received massive reimbursement from TRICARE.
Between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – the doctors working for the Collinses at Choice MD authorized 4,442 prescriptions and billed TRICARE $65,679,512.00 for these prescriptions.
The owners of The Medicine Shoppe then paid kickbacks to the Collinses based on a percentage of the TRICARE reimbursement paid for the prescriptions referred by the Collinses’ recruiter network. Between February and July 2015, these kickback payments to the Collinses totaled at least $45.7 million dollars. The Collinses, in turn, paid kickbacks to the recruiters working as part of their network, including Adams, Castro, and Syto, among others.
The Superseding Indictment also includes a lengthy list of forfeitable funds, property, and items purchased by the Collinses and others with the proceeds of the scheme, all of which has been previously seized or restrained by the United States. Included among these items is an 82-foot yacht, multiple luxury vehicles, including two Aston-Martins, dozens of pieces of farm equipment and tractor-trailer trucks, and three pieces of Tennessee real estate.
In addition to today’s guilty pleas from Adams, Castro, and Syto, both Dr. Vergot and Dr. Lindblad as well as Candace Craven, a nurse practitioner at Choice MD, have previously pleaded guilty for their roles in the conspiracy to commit healthcare fraud. CFK, Inc., the corporate owner of the Medicine Shoppe, has also pleaded guilty and paid a fine as part of this investigation.
Josh Morgan, another patient recruiter and former Marine from San Diego, pleaded guilty in March 2018 for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions, as did another former Marine, Bradley White, who admitted in July 2019 that he recruited patients who billed TRICARE over $7.6 million, for which he was paid over $195,000.
The next court date for defendants Jimmy and Ashley Collins is July 2, 2020.
DEFENDANTS
Case Number 18CR0432
Jimmy D. Collins Age: 56 Cleveland, TN
Ashley Collins Age: 33 Cleveland, TN
Kyle Adams Age: 33 Victoria, TX
Daniel Castro Age: 32 Oak Lawn, IL
Jeremy Syto Age: 26 Chula Vista, CA
SUMMARY OF CHARGES
Count 1:
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C §§ 1349, 1347
Maximum Penalty: Ten years’ in prison and fine of higher of $250,000 or twice loss amount
Counts 2:
Conspiracy to Pay and Receive Illegal Remunerations
Conspiracy to Defraud the United States
Maximum Penalty: Five years in prison and fine of higher of $250,000 or twice loss amount
Counts 3-7:
Receipt of Illegal Remunerations – Title 42 U.S.C. § 1320(a)-7b(b)(1)
Maximum Penalty (per count): Five years in prison; $250,000 fine
Counts 8-13:
Payment of Illegal Remunerations -- Title 42 U.S.C. § 1320(a)-7b(b)(2)(A)
Maximum Penalty (per count): Five years in prison; $250,000 fine
AGENCY
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Texas Man Charged with COVID Relief FraudRead the Press Release
A Houston funeral director has been taken into custody on allegations he fraudulently sought over $13 million in Paycheck Protection Program (PPP) loans.
Jase DePaul Gautreaux, aka Jase Dixon, 38, is charged in a criminal complaint, unsealed today upon his arrest, with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He is expected to make his initial appearance before U.S. Magistrate Frances H. Stacy in Houston at 2 p.m. CDT today.
Gautreaux allegedly perpetrated a scheme to file fraudulent loan applications seeking more than $13 million in forgivable loans. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The complaint alleges Gautreaux allegedly submitted several fraudulent PPP loan applications to federally insured banks, including applications on behalf of a business that did not exist and other applications on behalf of a business with which he had no affiliation. In these applications, Gautreaux allegedly falsified his identity, misrepresented the number of employees and payroll expenses of the putative companies and made numerous other inaccurate statements. According to the complaint, Gautreaux also submitted falsified tax documents and bank account information in support of these applications. He submitted fraudulent applications for over $13 million in PPP funds and ultimately received over $1.6 million in PPP funds, according to the charges.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
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.
The Office of the Inspector General (OIG) - Federal Housing Finance Agency, Federal Deposit Insurance Corporation – OIG, SBA – OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James McAlister of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case. The case team would also like to recognize the invaluable assistance of the Houston Police Department.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Tennessee Man Sentenced for Traveling to Virginia to Sexually Abuse MinorsRead the Press Release
RICHMOND, Va. – A Tennessee man was sentenced today to 16 years in prison for traveling from Tennessee to Henrico County in order to meet up with and sexually abuse two minor children.
According to court documents, Thomas Monti, 73, of Murfreesboro, used the moniker “Master Thorn” to reach out online to an undercover FBI agent posing as an adult with access to two minor children. Monti detailed his interest in engaging in sexual acts with the children, to include graphic and violent sadomasochistic conduct. The explicit chats continued for approximately two months until October 2019, when Monti made the 10-hour trip from Tennessee to Virginia to meet the purported woman and the children in Henrico County. His intent was to live with the woman and the children for a time in order to engage in various forms of sexual abuse.
Upon arriving at a restaurant in Henrico County on the afternoon of October 3, agents with the FBI Child Exploitation Task Force arrested Monti. In his car were handcuffs, plastic ties, chains, metal skewers, ball gags, various sex toys, and candy.
Monti previously worked as a teacher since 1972 and served as an assistant principal from 1996 to 2007 in the Nashville, Tennessee area.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Special Assistant U.S. Attorney Samuel E. Fishel 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. 3:19-cr-154.
Tahlequah Man Sentenced to 12 Months 1 Day for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Haskell Doak Willis, age 65, of Tahlequah, Oklahoma was sentenced to 12 months and 1 day of imprisonment, and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Willis was also ordered to resign as a member of the Oklahoma Bar Association. The charges arose from an investigation by the Tahlequah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on August 26, 2019, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, knowingly possessed in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “The Department of Justice is committed to working with state, local, and tribal law enforcement agencies to make communities safer. Enforcing federal gun laws is an effective strategy to do that.”
“ATF is committed to keeping illegal firearms and Narcotics off the streets of Tahlequah. Mr Willis, as a practicing attorney, knew these risks better than anyone. He will now know what it feels like to be on the other side of the law,” stated ATF Special Agent in Charge Jeffrey C. Boshek II.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States at the sentencing hearing.Syracuse-Area Brothers Plead Guilty to Conspiracy to Traffic in Contraband CigarettesRead the Press Release
SYRACUSE, NEW YORK – Jamal Hassan, age 42, of Liverpool, New York, and Saddam Hassan, age 39, of East Syracuse, New York, pled guilty yesterday to conspiracy to traffic in contraband cigarettes, announced United States Attorney Grant C. Jaquith. Jamal Hassan also pled guilty to one count of a money laundering conspiracy.
“Contraband cigarette dealers cheat state and local governments of tax revenue, and that lost revenue undercuts vital government programs,” said U.S. Attorney Grant C. Jaquith. “These illegal sales also put honest businesses at a disadvantage. Jamal and Saddam Hassan will now be held accountable for their efforts to line their pockets with unpaid taxes including forfeiture of $400,000.”
“Illicit cigarette smuggling is a highly profitable crime that steals from the taxpayer and funds other criminal activity," said Kevin Kelly, HSI Buffalo special agent in charge. “HSI, with our law enforcement partners, is committed to dismantling these criminal organizations that exploit our borders for profit.”
New York State Commissioner of Taxation and Finance Michael Schmidt said, “When individuals knowingly sidestep their tax obligation everyone suffers. These blatant acts rob the local community of funding for valuable public programs and services in addition to placing honest business owners at a massive disadvantage. We’ll continue to work with law enforcement, from the federal level on down to ensure those responsible are held accountable.”
As part of their guilty pleas, the Hassan brothers admitted that they conspired to possess, sell, distribute, and purchase contraband cigarettes. During searches at their residence and at a storage facility rented by Jamal Hassan and used by Saddam Hassan, law enforcement officers seized over 250,000 contraband cigarettes and over 760 counterfeit New York State tax stamps. The Hassan brothers admitted that they sold the contraband cigarettes to markets and delis in the Syracuse area. Jamal Hassan faces a maximum sentence of 20 years in prison, a fine of up to $500,000, and a term of 3 years of supervised release for his plea to conspiracy to commit money laundering. Jamal Hassan and Saddam Hassan face a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release for their plea to conspiracy to traffic in contraband cigarettes. 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 is being investigated by Homeland Security Investigation Buffalo Field Office; Internal Revenue Service Criminal Investigation; New York Police Department Intelligence Bureau-Strategic Intelligence Unit; New York State Department of Taxation and Finance; Oswego County Drug Task Force; and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara B. Thomson.
Statement from Assistant Attorney General Beth A. Williams on the Senate’s Confirmation of 200 JudgesRead the Press Release
Assistant Attorney General Beth A. Williams issued the following statement today on the Senate’s confirmation of the 200th Article III judge under the Trump Administration. Earlier this week, Williams penned an op-ed noting that the administration’s judicial appointments have earned the American Bar Association’s “Well Qualified” rating at nearly the highest rate in five decades.
“The Department of Justice is pleased that today the Senate confirmed the 200th Article III judge since President Trump took office, including two Supreme Court justices, 53 Circuit Court judges, 143 District Court judges, and two Court of International Trade judges. These judges are among the most qualified in history and — in committing to rule faithfully and impartially, to follow the law and not personal preference — they embody the highest ideals of our legal system. We are proud of this historic milestone and grateful to these remarkable individuals for their willingness to serve our country, protect our Constitution, and uphold the rule of law. The Department looks forward to their years of future service, and to the continued confirmation of principled and well-qualified jurists to our nation’s courts.”
Seven Members and Associates of Elite Assassin Millas Gang Charged with Racketeering Conspiracy, Murder, Attempted Murders and Firearms OffensesRead the Press Release
Defendants Used GPS Tracking Device to Stalk and Target a Shooting Victim
An indictment was unsealed today in federal court in Brooklyn variously charging seven members and associates of the Elite Assassin Millas (“EAM”), a subset of the Bloods street gang, with racketeering conspiracy, murder in-aid-of racketeering, attempted murder in-aid-of racketeering, conspiracy to commit murder in-aid-of racketeering, assault in-aid-of racketeering, interstate stalking, accessory after-the-fact to attempted murder and assault and related firearms offenses. Five defendants were arrested last night and will make their initial appearance via videoconference this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak. The two remaining defendants, who are in federal custody, will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges and arrests.
“Gang-related violence begets more violence, and we will not tolerate the violent crimes allegedly committed by these defendants in our communities,” stated United States Attorney Donoghue. “Thanks to the hard work of federal and local law enforcement officers, the defendants will now face prosecution for the charged crimes. The Eastern District will continue working tirelessly to dismantle and eradicate violent street gangs like EAM that have turned streets into lethal shooting galleries in the neighborhoods of East New York.”
“Members of the FBI New York Metro Safe Streets Task Force work long, hard hours diligently investigating gang members who hold no regard for life, and who let a twisted turf war over drugs dictate who dies and who lives. We are out every day, doing our best to protect communities being terrorized by violent gangs, and the FBI agents and NYPD detectives should be commended for their commitment,” stated FBI Assistant Director-in-Charge Sweeney.
“Everything the NYPD does is geared toward preventing crime and keeping people safe. This indictment represents the coordinated work our detectives and federal partners do together to arrest those accused of inflicting violence in our neighborhoods,” stated NYPD Commissioner Shea.
As detailed in the government’s detention letter filed earlier today, the EAM set of the Bloods street gang follows many of the rules and the hierarchical structure of other Bloods sets, earning money through drug-trafficking and fraud, and protecting their reputation through violent crimes and firearms offenses.
In recent years, Quandel Smothers has held EAM’s highest-ranking position of “Godfather.” On April 30, 2011, Smothers allegedly shot a fellow EAM member whom he believed intended to harm another member of the gang over a drug-related dispute. As a result of the shooting, the victim’s leg was amputated.
On March 25, 2015, another member of EAM was shot and killed in East New York, Brooklyn. Almost immediately, EAM members and associates sought to retaliate by locating and killing those they believed to be responsible. On April 21, 2015, Tyshawn Corbett allegedly shot and killed Michael Tenorio on McKinley Avenue in East New York. Surveillance video of the murder shows that Corbett chased Tenorio down the residential block while firing at him, then continued shooting the victim after he fell to the ground.
On March 7, 2016, Corbett shot an individual (identified as “John Doe #1” in the indictment) on Shepard Avenue in East New York. Surveillance video shows Corbett — who appears to have been lying in wait near a parked vehicle — run down the sidewalk and shoot John Doe #1 from close range. John Doe #1 survived that attempt on his life, but on June 28, 2018, Corbett again shot John Doe #1 as he sat in a car parked in Jamaica, Queens, paralyzing him. Corbett fled in a car driven by defendant Desmon Beckett. This shooting was the result of extensive efforts by Corbett and brothers Marlon and Devon Bristol to stalk and kill their victim, including the use of a GPS tracking device that law enforcement officers subsequently recovered from John Doe #1’s car.
In the spring of 2018, a feud developed between members of EAM and another individual (identified as “John Doe #2” in the indictment). Surveillance video from June 10, 2018, shows defendant Corbett and John Doe #2 in a fistfight. A short time later, the two shot at each other, but no one was hit. Law enforcement officers later recovered one of the firearms used in the shooting incident from a storage unit maintained by Corbett under a false name. The feud continued, and EAM members Qawon Allen and Andrew Campbell conspired with others to kill John Doe #2. On July 28, 2018, a member of EAM repeatedly shot John Doe #2 on Glenmore Avenue in East New York using a firearm provided by Allen. John Doe #2 was left paralyzed by the shooting.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted of murdering Tenorio, Corbett faces a mandatory sentence of life in prison, and is eligible for the death penalty. If convicted of the firearms offenses, Allen faces a mandatory minimum sentence of 15 years in prison and a maximum of life in prison, and Smothers, Marlon Bristol and Devon Bristol each face a mandatory minimum sentence of five years in prison and a maximum of life in prison. If convicted of the conspiracy to commit murder in-aid-of racketeering, Campbell faces up to 10 years in prison, and Beckett faces up to 10 years in prison if convicted as an accessory after-the-fact to the assault in-aid-of racketeering.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy and Jonathan Siegel are in charge of the prosecution.
The Defendants:
TYSHAWN CORBETT (also known as “Reck”)
Age: 30
Brooklyn, New YorkQAWON ALLEN (also known as “40” and “Phorty Wap”)
Age: 26
Brooklyn, New YorkDESMONN BECKETT (also known as “Des”)
Age: 27
Brooklyn, New YorkDEVON BRISTOL (also known as “D”)
Age: 29
Brooklyn, New YorkMARLON BRISTOL (also known as “Marlo”)
Age: 32
Brooklyn, New YorkANDREW CAMPBELL (also known as “Phaze”)
Age: 24
Brooklyn, New YorkQUANDEL SMOTHERS (also known as “Chucky”)
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-213 (KAM)
Rochester Man Going to Prison for 21 Months for Attempting to Transfer Obscene Images to A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Anthony M. Girolamo, 43, of Rochester, NY, who was convicted of transferring obscene material to a person he believed to be a minor, was sentenced to serve 21 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Girolamo established a texting relationship with “Liz,” whom he believed to be a 14-year old minor female. In fact, “Liz” was an undercover law enforcement officer. During the course of their text exchanges, Girolamo told “Liz” that he wanted to have sex with her, and sent “Liz” images of adult females performing oral sex on adult males.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Robert Guyton.
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Reality TV star indicted on federal chargesRead the Press Release
ATLANTA - Maurice Fayne, who stars in Love & Hip Hop: Atlanta, has been indicted by a federal grand jury. Fayne is charged with bank fraud, making a false statement to a federally-insured financial institution, and money laundering, all in connection with a Paycheck Protection Program (PPP) loan. In addition, Fayne is charged with wire fraud in connection with a Ponzi scheme.
“The emergency lending provisions of the Paycheck Protection Program were intended to help small businesses survive the COVID-19 pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “Fayne allegedly used PPP loan proceeds to live a luxurious lifestyle that included leasing a Rolls Royce and purchasing expensive jewelry, as well as making payments to individuals involved in a Ponzi scheme. We intend to investigate and charge anyone who inappropriately diverts these critical funds for personal gain.”
“Despite the difficult times the recent Coronavirus pandemic has caused, the FBI and our federal partners continue to be vigilant in making sure funds provided by programs like PPP are used as intended,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We won't allow anyone's personal greed to misdirect federal emergency assistance to their own pockets, rather than go to the businesses who need it to stay afloat.”
“The Paycheck Protection Program is intended to keep the nation’s small businesses afloat during these unprecedented times,” said Inspector General Hannibal “Mike” Ware of the Small Business Association Office of Inspector General. “It is unconscionable to fraudulently attempt to gain access to PPP funds at the expense of those who need it most. Our office and its law enforcement partners will aggressively investigate false statements made in attempt to receive funds from SBA’s programs . I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: From approximately August 2014 through approximately May 2020, Fayne posed as the owner of a profitable trucking business. In truth, Fayne’s trucking business never generated enough revenue to cover its expenses. Nevertheless, Fayne caused approximately 20 individuals to invest over $5 million in his trucking business. Fayne promised that he would use the investors’ money to purchase and operate trucks. Instead, Fayne used the investors’ money to pay his personal debts and expenses, and to fund an extravagant lifestyle for himself. During the wire fraud scheme, Fayne transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses.
On April 15, 2020, Fayne signed and submitted to United Community Bank (UCB) a PPP loan application in the name of his trucking business, Flame Trucking, stating that the business had 107 employees and an average monthly payroll of $1,490,200. In seeking a loan in the amount of $3,725,500, Fayne certified that the loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.”
As soon as Fayne took control of the PPP loan proceeds, he began using the PPP loan proceeds for improper purposes, including the following:
- $40,000 for past-due child support;
- $50,000 for restitution owed in a previous fraud case;
- $65,000 in cash withdrawals;
- $85,000 for custom-made jewelry;
- $136,000 to lease a 2019 Rolls-Royce;
- $230,000 to associates who helped him run a Ponzi scheme;
- $907,000 to help an associate start a new business.
Fayne allegedly structured those financial transactions to conceal and disguise the nature, location, source, ownership, and control of the proceeds, which raised red flags at UCB. When UCB asked Fayne to provide additional information about Flame Trucking’s finances, Fayne responded by sending UCB what he represented to be October, November, and December 2019 bank statements for Flame Trucking’s account at Arvest Bank. As Fayne knew, however, those bank statements were fraudulent, because Arvest Bank had shut down Flame Trucking’s account in September 2019.
- When Fayne was interviewed by federal agents, he claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking. Fayne expressly denied using any of the PPP loan proceeds for personal purposes.
During the investigation, federal agents seized the following proceeds of Fayne’s bank fraud scheme:
- $617,000 seized from seven bank accounts;
- $136,000 used as a down payment on the 2019 Rolls-Royce;
- $79,482 in cash seized at Fayne’s residence;
- eight Kenworth T-680 trucks;
- six Great Dane refrigerated trailers;
- a $3,750 diamond ring;
- a $24,500 diamond bracelet; and
- a $52,000 Rolex watch.
Maurice Fayne, a/k/a Arkansas Mo, 37, of Dacula, Georgia, was indicted on June 24, 2020. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation in conjunction with the Atlanta Complex Financial Crimes Task Force supported by the Gwinnett County Sheriff’s Office, and the Small Business Administration-Office of the Inspector General are investigating this case.
Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown are prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Previously convicted sex offender pleads guilty to federal child pornography and international kidnapping chargesRead the Press Release
ALBUQUERQUE, N.M. – Clarence Michael Ransom, 52, of Las Cruces, New Mexico pleaded guilty in federal court in Las Cruces on June 23 to one count of attempted production of child pornography, two counts of international parental kidnapping and one count of failure to report international travel as a sex offender.
In Ransom’s plea agreement, he admitted having at least ten sexually explicit conversations over an online social networking and dating platform in May 2019. Ransom believed he was chatting with a 14-year-old girl. The other party to the conversations was actually an undercover law enforcement officer. Ransom used extremely sexual and coercive language to try to obtain sexually explicit photographs of the person he though was a child. Ransom engaged in these conversations in Doña Ana County, New Mexico.
Ransom also admitted kidnapping his two children from their mother, who he shared custody with, and fleeing with them to Mexico on Oct. 8, 2019. Mexican law enforcement later arrested Ransom and transported him back to the United States for prosecution.
Ransom is required to register as sex offender based on a conviction in 1991 for engaging in an unlawful sexual act with a child under 12. Ransom violated federal requirements to update his sex offender registration and to notify the proper authorities when he left the United States.
Ransom is currently in custody awaiting sentencing. He faces from 25 to 50 years in prison.
The FBI and United States Marshal Service investigated this case with the assistance of the Las Cruces Police Department. Assistant U.S Attorney Matilda M. Villalobos and Mark A. Saltman are prosecuting the case.
Petal Woman Sentenced to 15 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss – Cheri Jessica Cox, 39, of Petal, was sentenced today by Senior U.S. District Judge Keith Starrett to 180 months in prison, followed by 5 years of supervised release and a $5,000 fine, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. Cox’s federal sentence was ordered to run concurrent with the balance of her Forrest and Lamar County sentences.
From September 2018 through November 2018, in Hattiesburg, Cox sold methamphetamine on four separate occasions. During a traffic stop on December 7, 2018, by a Forrest County Sheriff’s Deputy, Cox was in possession of 2 ounces of methamphetamine. At sentencing, Cox was held responsible for 149.5 grams of methamphetamine.
Cox was originally indicted on July 24, 2019 and pled guilty before Judge Starrett on November 26, 2019.
The case was investigated by the 12th Circuit Court Narcotics Enforcement Team, the Forrest County Sheriff’s Department and the Federal Bureau of Investigation. Assistant United States Attorney Annette Williams prosecuted the case.
Paving Company Owner Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of a Chelmsford paving company pleaded guilty last week to a payroll tax scheme resulting in a $300,000 tax loss.
Robert W. Joyce, 59, of Carlisle, pleaded guilty on Friday, June 19, 2020 to one count of willful failure to collect and pay over taxes. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 20, 2020.
For tax years 2012 through at least 2014, Joyce paid a portion of the wages to employees of his two companies, Allied Paving and Allied Equipment, “under the table.” He did so by paying them from his own personal bank account, rather than through the business accounts. In doing so, Joyce did not collect, account for, or pay the IRS the income withholding and FICA taxes that he, as the employer, was required to. Joyce also caused Allied Paving and Allied Equipment to file false returns with the IRS which underreported the actual wages he paid his employees, as well as the employment taxes due to the IRS. In total, Joyce caused a loss to the IRS of at least $331,060.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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 Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Sara Miron Bloom of Lelling’s Criminal Division are prosecuting the case.
Owner of Construction Company Sentenced to 18 Months in Prison for Tax Evasion and Bankruptcy FraudRead the Press Release
NEWARK, N.J. – A Bayonne, New Jersey, man was sentenced today to 18 months in prison for tax evasion and bankruptcy fraud, U.S. Attorney Craig Carpenito announced.
Patrick Franconeri, 57, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of tax evasion and one count of concealment of assets in bankruptcy. Judge Martinotti imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Franconeri was the owner and operator of several construction businesses that performed work for a major insurance company in New Jersey. During tax year 2014, as a result of the operation of the construction companies, Franconeri earned taxable income of $1,362,950, on which there was an income tax owing to the United States of $558,439. However, Franconeri failed to file a tax return or request an extension for that year.
Franconeri took actions to conceal and attempt to conceal his income so that he would not have to pay taxes on it, including cashing checks at check-cashing facilities so that the money would not come to the attention of the IRS.
Franconeri also filed a Chapter 7 bankruptcy petition in U.S. District Court in Newark on March 11, 2010, but knowingly and fraudulently concealed property belonging to his bankruptcy estate from the United States Trustee. Franconeri concealed and failed to disclose his ownership and operation of his construction companies, as well as $965,575 in income he had received in the prior two years as the owner and operator of his construction companies.
In addition to the prison term, Judge Martinotti sentenced Franconeri to three years of supervised release and ordered him to pay restitution of $716,569 to the victims of his bankruptcy offense and $558,349 in restitution to the IRS.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.
Owner and Operator of Tennessee Drug Screening Lab Plead Guilty to Health Care FraudRead the Press Release
ABINGDON, VIRGINIA – Michael Norman Dube, 59, who operated American Toxicology Labs, pleaded guilty today in the Western District of Virginia to health care fraud charges. Dube’s wife, Regan Gran Dube, 40, also pleaded guilty. United States Attorney Thomas T. Cullen of the Western District of Virginia, United States Attorney Robert M. Duncan, Jr. of the Eastern District of Kentucky, and Virginia Attorney General Mark G. Herring made the announcement.
The Dubes, of Johnson City, Tennessee, pleaded guilty today in U.S. District Court in Abingdon. Michael Dube pleaded guilty to two counts of health care fraud (one filed in the Western District of Virginia and one filed in the Eastern District of Kentucky). Regan Dube pleaded guilty to one count of health care fraud in the Western District of Virginia. At sentencing, each defendant faces a maximum statutory term of imprisonment of up to 10 years. Regan Dube will be sentenced September 15, 2020 at 2:30 p.m. Michael Dube will be sentenced September 17, 2020 at 2:30 p.m.
“The Dubes preyed upon a healthcare system that is supposed to help those in need. This is particularly egregious, given Michael Dube’s prior exclusion from federal health care programs,” First Assistant United States Attorney Daniel P. Bubar said today. “I am proud of the collaboration between our federal and state partners in Virginia, Kentucky, and Tennessee, which produced this just result.”
“Michael Dube defrauded Medicaid programs in two states, taking public money that he was not entitled to receive and furthering his own interests,” stated Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Today’s guilty pleas are the product of close cooperation between two United States Attorney’s Offices and several law enforcement agencies and show our resolve in preventing fraud, waste, and abuse of the essential resources of government programs.”
“Healthcare fraud not only wastes hundreds of thousands of taxpayer dollars, but it also undermines an important system that provides thousands of Virginians with critical medical services,” said Attorney General Mark Herring. “I am incredibly proud of the work my nationally-renowned Medicaid Fraud Control Unit has done and we will continue to work with our federal partners to pursue these egregious cases of fraud and abuse.”
“Opioid addiction continues to be a public health emergency and it is important that treatment providers act with honesty and integrity in combatting the crisis. In cooperation with our federal and state law enforcement partners, we will continue to investigate and bring to justice those who defraud federal programs of resources to fight this epidemic,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office.
“The Medicare and Medicaid programs require providers to be truthful on all documents and claims submitted,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “HHS-OIG will continue to work with our Federal and State partners to hold providers accountable for fraudulent actions and safeguard the Medicare and Medicaid programs from fraud, waste and abuse.”
According to court documents, in March 2011, Michael Dube pleaded guilty in the Eastern District of Tennessee to one count of intentionally omitting information from reports as required under the Controlled Substances Act. As a result of his conviction, the Department of Health and Human Services [HHS] informed Dube in a letter dated June 29, 2012, that he was excluded from participating in any federal health care program.
Nonetheless, in May 2013, Michael and Regan Dube established American Toxicology Labs [ATL] in Johnson City, Tennessee, with Regan Dube serving as the company’s registered agent, and using the couple’s home address as the principal office and mailing address. ATL then applied to participate in Medicare and Medicaid. On the applications, Regan Dube was listed as the owner of ATL, and Michael Dube’s name and participation in ATL was omitted.
ATL conducted urine screens for various entities who represented themselves to be opioid treatment facilities. Between May 1, 2014, and January 31, 2020, Medicare, Virginia Medicaid, Kentucky Medicaid and TennCare made payments to ATL that totaled approximately $8.5 million. During this time, Michael Dube made employment decisions, negotiated business arrangements with providers, and otherwise participated in the management of ATL.
In addition, Michael Dube also received kickback payments from third-parties for referring individuals to those third-parties for services for which payment was made (in whole or in part) by federal health care programs. These payments were deposited in Michael and Regan Dube’s personal checking account in a total amount of $441,646.
As a result of their guilty pleas, Michael and Regan Dube will pay a total of $9,015,046, plus interest, to be divided between special assessments, fines, restitution, and forfeiture. They will have to repay all of the money they received from Medicare and Medicaid programs.
The investigation of the case was conducted by the Food and Drug Administration Office of Criminal Investigations, Virginia Medicaid Fraud Control Unit of the Office of the Attorney General, the Department of Health and Human Services Office of the Inspector General, the Drug Enforcement Administration, the Virginia State Police, and Internal Revenue Service – Criminal Investigations, and the Tennessee Bureau of Investigation. The prosecution of the case was conducted by the United States Attorneys’ Offices for the Western District of Virginia (by Special Assistant United States Attorney and Assistant Attorney General Janine Myatt, Assistant United States Attorneys Whit Pierce, Krista Frith, and Randy Ramseyer) and the Eastern District of Kentucky (by Andrew Smith and Gregory Rosenberg). The United States Attorney’s Office for the Eastern District of Tennessee provided valuable assistance.
Oregon Man Pleads Guilty to Role in Tax Refund Fraud SchemeRead the Press Release
An Oregon resident pleaded guilty today to conspiracy to defraud the United States by filing false claims, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Lawrence Collins conspired with others to file false tax returns that claimed more than $400,000 in fraudulent refunds from the Internal Revenue Service (IRS). From 2009 through 2014, Collins obtained names, Social Security numbers, and dates of birth from other persons, including from inmates from a state penitentiary in Salem, Oregon, and provided that information to co-conspirators who used this information to seek fraudulent refunds from the IRS. Collins also provided bank account information and third-party mailing addresses for use on the returns in order to direct receipt of the fraudulent refunds. Once the refunds were received from the IRS, Collins divided the funds among the co-conspirators.
U.S. Chief Judge Marco A. Hernandez scheduled sentencing for Sept. 14, 2020. At sentencing, Collins faces a maximum of 10 years in prison. Collins also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Stephen K. Moulton and Leslie A. Goemaat, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Ophthalmologist Previously Charged with Healthcare Fraud Indicted for Defrauding SBA Program Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that AMEET GOYAL, M.D., an ophthalmologist in Rye, New York, previously indicted in this District for healthcare fraud offenses in November 2019, has been charged in a Superseding Indictment with fraudulently obtaining Government-guaranteed loans intended to help small businesses during the COVID-19 pandemic while he was on pretrial release.
Under the rules of the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration (“SBA”), GOYAL and the ophthalmology practice he owned (the “Practice”) were ineligible for PPP relief due to GOYAL’s pending criminal charges. In April 2020, in order to gain access to PPP funding, GOYAL falsely represented on two separate applications to the SBA and a financial institution headquartered in New York, New York (“Bank-1”), that he was not subject to any pending indictment. The PPP also limited each business to one loan, with a maximum loan amount, and required applicants to certify that they have not and will not receive another PPP loan until December 31, 2020. While making that certification, GOYAL circumvented the single-loan requirement by submitting two separate applications, with different business names, email addresses, business identification numbers, and loan amounts, for the same underlying Practice, while disclaiming on each application that he owned any other business. Due to these misrepresentations, GOYAL successfully obtained two PPP loans totaling over $630,000. GOYAL will be arraigned on June 26 in White Plains federal court before U.S. District Judge Cathy Seibel.
Acting U.S. Attorney Audrey Strauss said: “While already facing charges for allegedly defrauding patients and insurers of millions of dollars, GOYAL allegedly used his practice to commit a new fraud in the midst of the COVID-19 pandemic. As alleged, Goyal blatantly lied on multiple loan applications that he was not subject to any indictment, and on top of that, fraudulently double-dipped into the limited assets of the Paycheck Protection Program by pretending to apply on behalf of two separate businesses. In so doing, Goyal allegedly looted over $630,000 in federal funds earmarked for legitimate small businesses in dire financial straits.”
According to the allegations contained in the Superseding Indictment[1] filed today in White Plains federal court:
During the relevant time period, GOYAL owned and operated Ameet Goyal, M.D. P.C., an ophthalmology practice doing business as Eye Associates Group, Rye Eye Associates, and other business names. On November 21, 2019, an indictment (the “Indictment”) was returned in the action United States of America v. Ameet Goyal, 19 Cr. 844 (CS) (S.D.N.Y.), charging GOYAL with healthcare fraud, wire fraud, and making false statements relating to healthcare matters. On November 22, 2019, GOYAL was arraigned on the Indictment and placed on pretrial release pursuant to an order that notified GOYAL of the potential effect of committing a criminal offense while on pretrial release.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP.
Applicants with pending criminal charges are ineligible for PPP loans. One question on the PPP borrower application form (the “Pending Charges Question”) requires the applicant to answer “Yes” or “No” and put their initial next to the response to the following question: “Is the Applicant (if an individual) or any individual owning 20% or more of the equity of the Applicant subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction, or presently incarcerated, or on probation or parole?” The application expressly advises that if the Pending Charges Question is answered “Yes,” then “the loan will not be approved.”
The PPP also limits each eligible borrower to one loan, and a maximum loan amount calculated based on a business’s average monthly payroll expenses. The PPP application requires the applicant to certify and initial the representation that “During the period beginning on February 15, 2020 and ending on December 31, 2020, the Applicant has not and will not receive another loan under the Paycheck Protection Program.”
In or about April 2020, GOYAL applied to the SBA and Bank-1, a federally insured institution, for over $630,000 in Government-guaranteed loans through the SBA’s PPP. Specifically, on or about April 21, 2020, GOYAL applied for a loan (“Loan-1”) in the amount of $358,700 for the business “Ameet Goyal,” doing business as “Eye associates.” GOYAL represented the applicant as a C-corporation with a business address in Rye, New York (“Business Address-1”), and supplied his own social security number as the applicant’s business identification number.
On or about April 29, 2020, GOYAL applied for a second loan (“Loan-2”) from Bank-1 under the PPP, this time in the amount of $278,500. On this application, GOYAL listed the applicant’s name as “Rye eye associates,” a sole proprietorship also located at Business Address-1. For the applicant’s business identification number, GOYAL reported the Employer Identification Number for Ameet Goyal, M.D. P.C. To substantiate each loan, however, GOYAL submitted the exact same underlying payroll expense report, showing the same employees and payroll costs.
On each application, GOYAL stated that he was the president and 100% owner of the respective applicant, and that he did not own any business other than the listed applicant. On both applications, GOYAL falsely answered “No” to the Pending Charges Question, and electronically placed his initials “AG” directly under his “No” response. GOYAL also falsely certified, among other things, that the applicant will not receive another PPP loan until the end of the year.
After processing each of GOYAL’s signed and certified applications, which used different business names, business identification numbers, email addresses, and loan amounts, Bank-1 advised GOYAL that the respective application was approved by the SBA, and that the applicant would need to execute a loan note in order for the loan to be funded. Bank-1’s signing instructions to each loan note advised, “REMINDER: The Small Business Administration, in consultation with the Secretary of the Treasury, has determined that no eligible borrower may receive more than one PPP loan. A one loan per borrower limitation is necessary to help ensure that as many eligible borrowers as possible obtain PPP loans. If you have already received a PPP loan, you may not execute a loan note for another.”
On or about May 3, 2020, GOYAL executed the Loan-1 loan note for $358,700, and received the funds in full on or about May 4, 2020. On or about May 2 and 4, 2020, GOYAL executed multiple identical versions of the loan note for Loan-2 for $278,500, and received those funds in full on or about May 11, 2020.
* * *
GOYAL, 57, of Rye, New York, is charged with six counts in the Superseding Indictment. The first count charges healthcare fraud, which carries a maximum sentence of 10 years in prison; the second count charges wire fraud, which carries a maximum sentence of 20 years in prison; and the third count charges making false statements relating to health care matters, which carries a maximum sentence of five years in prison. Counts four, five, and six charge that while on pretrial release, the defendant committed the following offenses, respectively: bank fraud, which carries a maximum sentence of 30 years in prison; making false statements on a loan application, which carries a maximum sentence of 30 years in prison; and making false statements in a matter within the jurisdiction of the executive branch of the Government of the United States, which carries a maximum sentence of five years in prison. Additionally, a conviction under counts four, five, and six, if committed while on pretrial release, provides for an additional maximum sentence of 10 years in prison consecutive to any other sentence of imprisonment.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the work of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the Office of the Inspector General of the SBA in connection with this investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Vladislav Vainberg, David Felton, and Margery Feinzig are in charge of the prosecution. A civil fraud lawsuit relating to healthcare fraud under the False Claims Act is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the civil case.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Ontario Man Sentenced for Harboring an Illegal AlienRead 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 Jason O. Garcia, 42, of Vaughn, Ontario, who was convicted of harboring an illegal alien, was sentenced to time served (100 days) by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on August 5, 2019, the defendant attempted to enter the United States in a commercial truck at the Lewiston Bridge Port of Entry. When asked if anyone else was present in the truck, Garcia stated “no.” Following a primary inspection, the truck was to the Vehicle and Cargo Inspection System for a scan. As the defendant appeared headed toward the scanning area, Garcia instead drove the truck in front of a warehouse. A second individual got out of the truck and walk directly into the entrance of the warehouse. The truck then turned around in the parking lot and headed towards the scanning area. Customs and Border Protection Officers located the individual in the hallway of the warehouse. The individual had a Chilean passport concealed in his pants. A records check determined the individual was refused entry into the United States under the Visa Waiver Program for failing to disclose a previous arrest in Chile.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
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Omaha Woman Sentenced for Possession of Methamphetamine with Intent to Distribute while ArmedRead the Press Release
United States Attorney Joe Kelly announced that Jessica Kleckner, 38, of Omaha, Nebraska, was sentenced today by United States District Judge Robert F. Rossiter, Jr. for possession of methamphetamine with intent to distribute and carrying a firearm in furtherance of a drug trafficking crime. She received a total sentence of 137 months with a five-year term of supervised release to follow. There is no parole in the federal system.
On August 15, 2019, Omaha Police Department officers executed a search warrant at a residence. Officers observed Kleckner standing by the passenger side of a silver Jeep Nitro. Officers detained her and deployed a drug detection canine that alerted to the odor of narcotics emanating from the vehicle. Inside of the vehicle, officers found Kleckner’s purse. In it, officers located 16.9 grams of lab-confirmed actual methamphetamine, numerous narcotic pills, baggies, a scale, drug ledgers, and a loaded 9mm Arsenal handgun.
This case was investigated by Omaha Police Gang Unit as part of Project Safe Neighborhoods, which is a national initiative of the Department of Justice that was announced in 2001 to reduce and prevent violent crime and make the nation’s neighborhoods safer.
Ohio County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Michael Shawndale Davis, of Wheeling, West Virginia, was sentenced today to 24 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Davis, age 36, pled guilty to one count of “Unlawful Possession of a Firearm” in January 2020. Davis, having been convicted of two prior felonies and prohibited from having firearms, admitted to having a .45 caliber revolver in October 2019 in Ohio County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Ocean County Man Charged with Receipt and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was arrested today on charges that he received and possessed images and videos of child sexual abuse downloaded from the internet, U.S. Attorney Craig Carpenito announced.
Joseph J. Punderson, 31, of Island Heights, New Jersey, is charged in a criminal complaint with one count of receipt of child pornography and one count of possession of child pornography. Punderson appeared this afternoon by videoconference before U.S. Magistrate Judge Tonianne J. Bongiovanni and detained without bail.
According to documents filed in this case:
In investigating leads provided by the National Center for Missing and Exploited Children (NCMEC) and others, law enforcement uncovered evidence that e-mail and social media accounts associated with Punderson were used and were linked to accounts that were used in the commission of suspected child pornography offenses between May 2019 and November 2019.
The charge of knowingly receiving child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, and a statutory maximum fine equal to $250,000 or twice the gross pecuniary gain or loss, whichever is greater. The charge of knowingly possessing child pornography carries a maximum of 10 years in prison, and a statutory maximum fine equal to $250,000 or twice the gross pecuniary gain or loss, whichever is greater.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Atlantic City, under the direction of Special Agent in Charge Jason Molina in Newark, the Ocean County Prosecutors Office, under the direction of Prosecutor Bradley D. Billhimer, and the Island Heights Police Department, under the direction of Acting Chief Paul Rutledge, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Nine arrested, charged federally in connection to human trafficking operation involving drugs exchanged for sexual access to childrenRead the Press Release
COLUMBUS, Ohio – A federal grand jury has indicted a Scioto County man and several of his family members and associates with charges related to a child sex trafficking operation. The man allegedly exchanged drugs obtained in Columbus and elsewhere for sexual access to the children of drug-addicted mothers.
Larry Porter
According to court documents unsealed today, agents with the FBI’s Child Exploitation Task Force began investigating Larry Dean Porter, 69, of Wheelersburg, Ohio, in April 2019 following reports from several sources that Porter was involved in sexually abusing male and female minors with consent of the minors’ parents in exchange for illegal drugs from Porter.
In March 2020, Porter was arrested on local charges during a human trafficking sting operation by the Jackson County Sheriff’s Office. In Facebook messages coordinated by law enforcement, Porter allegedly offered to pay $80 in exchange for access to a 7-year-old girl. He was arrested after arriving at a pre-arranged meeting location and allegedly stating he would “be done around midnight” and could return the girl then.
According to victims and sources in the ongoing investigation by the FBI and the Ohio Bureau of Criminal Investigations (BCI), Porter sexually abused children and produced child pornography kept on flash drives that Porter used extreme methods to conceal.
He would give illegal narcotics to drug-addicted parents in exchange for sexual access to the minor victims. It is alleged he often instructed the parents to sexually abuse their own children and recorded it to use as blackmail.
Additionally, according to the criminal complaint, Larry Porter made numerous recorded phone calls and mailed three letters while incarcerated in Jackson County in an attempt to have his family members and associates lie under oath, convince other witnesses to lie to law enforcement, or to convince sources not to provide information to law enforcement.
Porter is charged in a 13-count indictment with conspiring to sex traffic children (15 years up to life in prison), attempting to sex traffic children (15 years up to life), producing child pornography (15 to 30 years), possessing child pornography (up to 10 years), conspiring to obstruct a child sex trafficking investigation (up to 25 years) and conspiring to witness tamper (up to 20 years).
Denna Sue and Crystal D. Porter
It is alleged that in the days immediately following Porter’s arrest in Jackson County, two of Porter’s daughters and two of his friends were seen making numerous trips to Porter’s residence and property. Denna Sue, 32, of Wheelersburg, Ohio, and Crystal D. Porter, 39, of Columbus, were seen digging holes in the ground on the property.
On March 20, 2020, officers and agents searched the area in which the daughters were seen digging. They discovered an SD memory card buried inside a glass jar. Court documents allege the memory card contained images of child pornography taken in Porter’s bedroom.
Denna Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), destroying or removing evidence (up to five years), and making false statements to law enforcement (up to eight years).
Crystal Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), destroying or removing evidence (up to five years), and making false statements to law enforcement (up to eight years).
Porter’s associates Frank E. Andrews, 68, of Wheelersburg, Ohio, and W. David Cole, 62, of Portsmouth, Ohio were also seen on Porter’s property.
Frank Andrews
Frank Andrews is charged with conspiring to sex traffic children (15 years up to life in prison), possessing child pornography involving a prepubescent child (up to 20 years), conspiring to obstruct a child sex trafficking investigation (up to 25 years), and destroying or removing evidence (up to five years).
Agents recovered eight DVDs from Andrews’ residence that contained multiple videos of child pornography. Forensic evidence indicated the file titles match those on Porter’s computer.
David Cole
Cole is charged with conspiring to sex traffic children (15 years up to life in prison), conspiring to obstruct a child sex trafficking investigation (up to 25 years), and destroying or removing evidence (up to five years).
Facebook messages allegedly show conversations between Cole and Porter discussing child sex trafficking victims. Cole also allegedly removed and destroyed evidence from Porter’s home.
Wayne Porter
During a recorded jail call, Porter and his cousin, Erroll Wayne Porter, Sr. (Wayne), 69, of Wheelersburg, Ohio, discussed an individual they believed was a source for law enforcement. Wayne Porter said he “got some things working there, trying to take him down.” In a later call, Porter told Wayne, “Go out and make sure that idiot don’t do something. If you have to put a slug in that son-of-a-bitch.”
Wayne Porter is charged with conspiring to obstruct a child sex trafficking investigation (up to 25 years), and conspiring to tamper witnesses (up to 20 years).
Joshua Aldridge
Joshua David Aldridge, 36, of South Webster, Ohio, is charged with conspiring to sex traffic children (15 years up to life in prison) and sex trafficking children (15 years up to life in prison).
It is alleged that Aldridge transported minor victims to Porter’s home and received drugs from Porter in return.
Charity and Ronnie Rawlins
Charity Ann Rawlins, 41, of South Webster, Ohio, and Ronnie L. Rawlins, 47, of Oak Hill, Ohio, are also charged with conspiring to sex traffic children (15 years up to life in prison) and sex trafficking children (15 years up to life in prison).
The couple allegedly took a seven-year-old child to Porter’s residence on a regular basis to traffic the child sexually in exchange for pills. This alleged abuse occurred a few times per week for up to five years.
A number of other adult women allegedly involved in this conspiracy have been charged locally.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost; Jackson County Sheriff Tedd E. Frazier; Jackson County Prosecutor Justin Lovett; Scioto County Sheriff Marty V. Donini and Scioto County Prosecutor Shane A. Tieman announced the charges. Assistant United States Attorneys Heather A. Hill and Jessica W. Knight, as well as Special Assistant United States Attorney Jennifer Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, are representing the United States in this case.
Criminal complaints and indictments merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
If you believe you may be a victim, or have information related to this case, please call the FBI at 614-315-4923.
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Nine Indicted for Dealing Multiple Drugs in Butler County, including near Schools and PlaygroundsRead the Press Release
PITTSBURGH – Nine Pennsylvania residents have been indicted by a federal grand jury in Pittsburgh for fentanyl, acetyl fentanyl, heroin, cocaine, and crack cocaine trafficking in the Butler County area, United States Attorney Scott W. Brady announced today.
"Today, we dismantled a significant Philadelphia-to-Butler drug organization whose pipeline brought fentanyl, heroin and cocaine into Butler communities, including near neighborhood playgrounds and schools," said U.S. Attorney Brady. "Our successful partnerships with the Pennsylvania State Police and Butler County District Attorney Richard Goldinger and his Drug Task Force have allowed us to take the fight against illegal drugs to all of our communities, including our small towns and rural communities. We want drug dealers to know there is nowhere for them to set up shop in western Pennsylvania."
Major Stephen K. Eberle of the Pennsylvania State Police said, "This was a lengthy investigation involving a partnership between the Pennsylvania State Police, the Federal Bureau of Investigation, the Butler County Drug Task Force and the United States Attorney’s Office. The involved troopers, agents, officers and attorneys worked tirelessly to disrupt and ultimately dismantle a large drug trafficking network responsible for distributing a significant quantity of heroin, fentanyl and cocaine throughout the Butler County region. The Pennsylvania State Police, along with our federal and local partners, remain committed to combating this type of illegal drug activity plaguing our neighborhoods and communities."
"These arrests send a clear message to all of those involved in illegal drug activity," said FBI Pittsburgh Special Agent in Charge Mike Christman. "The FBI will never stop investigating and arresting those responsible for harming our communities. The drugs seized today can and do lead to dangerous consequences. I commend the work of our Opiate Overdose Task Force, along with our federal, state and local partners, who are committed to eradicating drugs and the violence they bring with them. It doesn't matter whether it's a major metropolitan area or a rural neighborhood, drug dealers don't have a place in our community."
"Thanks to a joint investigation between the FBI, the Pennsylvania State Police, and the Butler County Drug Task Force, high level suppliers of heroin and cocaine were indicted and arrested today in Butler County and other areas in Western Pennsylvania," added Butler County District Attorney Richard Goldinger. "This collaborative effort will put a serious dent in drug trafficking in Butler County, making our community a safer place to live and work. I want to thank all of the law enforcement officers who were part of this investigation. These officers selflessly placed themselves in harm’s way for the overall betterment of Butler County."
The 27-count Indictment, returned on June 9 and unsealed today, charges Qureem Overton, Bobby Askew, Jasmine Cook, Damion Fray, Ricardo Glenn, Jamir Hughes, Nasir Sharpe, Dwayne Smallwood, and Braden Yartz in Count 1 with conspiring to distribute 40 grams or more of fentanyl, 100 grams or more of heroin, 10 grams or more of acetyl fentanyl, a quantity of cocaine, and a quantity of cocaine base from January 2017 to June 2020. Counts 2, 7-12, 19, and 21-27 charge the defendants with distributing those controlled substances. Counts 3-6, 13-18, and 20 of the Indictment charge several of the defendants with distributing the controlled substances within 1,000 feet of schools and playgrounds.
Overton, age 39, Askew, age 38, Fray, age 22, Glenn, age 28, Hughes, age 19, Sharpe, age 22, and Smallwood, age 41, have had Philadelphia, Pennsylvania, and Butler, Pennsylvania, residences. Cook, age 30, has resided in New Kensington, Pennsylvania. Yartz, age 28, has resided in Lyndora, Pennsylvania.
The law provides for a maximum total sentence of at least five years and up to 40 years in prison for the conspiracy crime charged in Count 1 of the Indictment and a fine of up to $5,000,000. The law also provides for a maximum total sentence for each of Counts 2, 7-12, 19, and 21-27 of up to 20 years in prison and a fine of up to $1,000,000. In addition, the law provides for a maximum total sentence for each of Counts 3-6, 13-18, and 20 of at least one year and up to 40 years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories of the defendants.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller are prosecuting this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation’s Opiate Overdose Task Force and the Butler County District Attorney’s Drug Task Force led the investigation leading to the return of the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York City Businessman Pleads Guilty to Tax EvasionRead the Press Release
PITTSBURGH – An Edgeworth, Pennsylvania resident pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
"The Department of Justice and my office are strongly committed to promoting compliance with federal tax laws," said U.S. Attorney Brady. "The IRS undertook significant efforts to bring Britton into compliance with the tax laws and to collect his unpaid tax liabilities. Britton’s conviction and potential penalties should serve as a stern warning to would-be offenders that violations can and will lead to consequences, including fines and potentially jail time."
According to court documents and statements made in court, Dean Britton worked in the New York City real estate industry negotiating high-dollar-value commercial ground leases. After Britton was contacted by the IRS regarding unfiled tax returns, from 2013 to 2017, Britton delinquently filed several years’ worth of returns reporting that he owed more than $1.1 million in outstanding taxes. Britton did not pay the taxes he acknowledged he owed. Instead, he evaded his taxes by placing the title to his personal residence in his wife’s name, using business bank accounts to pay his personal expenses, and directing income into new personal bank accounts he established after the IRS levied his prior account. During these years, Britton spent more than $1.46 million on personal expenses, including approximately $770,000 on real estate purchases, $240,000 in home rentals, $165,000 on financing an art gallery operated by his wife, $ 96,000 in home renovations, $74,000 in travel, $65,000 in country club expenses, and $50,000 in private school tuition.
U.S. District Judge Nora Fischer scheduled sentencing for Nov. 5, 2020. At sentencing, Britton faces a maximum sentence of five years. Britton also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kimberly Ang of the Tax Division and Assistant U.S. Attorney Carolyn Bloch, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website
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.
New York City Businessman Pleads Guilty to Tax EvasionRead the Press Release
An Edgeworth, Pennsylvania resident pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
According to court documents and statements made in court, Dean Britton worked in the New York City real estate industry negotiating high-dollar-value commercial ground leases. After Britton was contacted by the IRS regarding unfiled tax returns, from 2013 to 2017, Britton delinquently filed several years’ worth of returns reporting that he owed more than $1.1 million in outstanding taxes. Britton did not pay the taxes he acknowledged he owed. Instead, he evaded his taxes by placing the title to his personal residence in a nominee name, using business bank accounts to pay his personal expenses, and directing income into new personal bank accounts he established after the IRS levied his prior account. During these years, Britton spent more than $1.46 million on personal expenses, including approximately $770,000 on real estate purchases, $240,000 in home rentals, $96,000 in home renovations, $74,000 in travel, $65,000 in country club expenses, and $50,000 in private school tuition.
U.S. District Judge Nora Fischer scheduled sentencing for Nov. 5, 2020. At sentencing, Britton faces a maximum sentence of five years. Britton also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kimberly Ang of the Tax Division and Assistant U.S. Attorney Carolyn Bloch, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Moss Point Man Sentenced to 7 Years in Prison under Project EJECT for Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Gulfport, Miss. – Keswick Cardero Titus, 28, of Moss Point, was sentenced Monday by U.S. District Judge Sul Ozerden to 84 months in prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Titus also was ordered to pay a $3,000 fine.
On April 10, 2019, a Moss Point Police officer approached a vehicle at a car wash in Moss Point whereupon the officer smelled marijuana coming from the vehicle. There were two men standing near the vehicle. As the officer approached, the men ran to the vehicle and drove away rapidly. The officer gave chase in his police car, and attempted a traffic stop by activating his blue lights. After pulling into a restaurant parking lot, the driver fled on foot. The passenger, who did not flee, was Keswick Cardero Titus. The South Mississippi Metro Enforcement Team arrived to provide back-up. The vehicle’s window was down and the officer, who continued to smell marijuana, looked inside and saw a firearm and marijuana protruding from a bag in the front passenger’s area.
During a search of the vehicle, officials found a book bag on the front driver’s floorboard with about 51 grams of marijuana, two scales, and a Mississippi Identification Card registered to a person matching the description of the driver who fled. A nylon bag was found on the passenger side floorboard where Titus was seated and contained a Glock, Model 22, .40 caliber pistol, with a 50 round capacity drum magazine, about 42 grams of marijuana, a scale, and two rounds of ammunition. The firearm had been reported stolen by the George County Sheriff’s Office. The State Crime Lab confirmed that the substance seized was marijuana.
Records revealed Titus had previous convictions in 2015 in Jackson County for possession of controlled substance and possession of a weapon by a convicted felon. In 2014, he had been convicted of felony aggravated domestic violence.
Titus was indicted on August 6, 2019, and pled guilty before Judge Ozerden on December 13, 2019.
U.S. Attorney Hurst commended the coordinated investigation by ATF, the South Mississippi Metro Enforcement Team, the Jackson and George County Sheriff’s Offices, and the Moss Point Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Monett Man Sentenced to 27 Years for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Monett, Missouri, man was sentenced in federal court today for trafficking methamphetamine at a home with children present.
Victor M. De Santiago, 36, was sentenced by U.S. District Judge M. Douglas Harpool to 27 years and four months in federal prison without parole.
On Nov. 21, 2019, De Santiago pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing methamphetamine with the intent to distribute on premises in which children reside.
State troopers and DEA agents executed a search warrant at the residence of De Santiago, who was identified as a major distributor of methamphetamine, on Feb. 28, 2019. In addition to De Santiago and another adult, there were three children present in the residence.
Law enforcement officers found a safe in a bedroom closet that contained approximately two pounds (907 grams) of methamphetamine. De Santiago told officers he recently acquired approximately six pounds of methamphetamine from California and transported it to Monett with the intent to distribute it. The approximately two pounds of methamphetamine found in the bedroom was the remainder of what he had acquired from California.
This case was prosecuted by Assistant U.S. Attorneys Josephine L. Stockard and Byron Black. It was investigated by the Missouri State Highway Patrol, the Combined Ozarks Drug Enforcement Team (COMET), the Monett, Missouri, Police Department, and the Drug Enforcement Administration.
Milford Man Sentenced to 30 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Jerome Davis, 52, of Milford, was sentenced to 30 months in federal prison for fentanyl trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in October and November of 2018, Davis sold fentanyl on three separate occasions to an individual who was cooperating with law enforcement officers.
Davis previously pleaded guilty on February 13, 2020.
“Fentanyl trafficking continues to cause damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “In order to protect public health and safety, we will continue to work closely with our law enforcement partners to identify, prosecute, and incarcerate the fentanyl dealers whose actions are endangering the citizens of the Granite State.”
This matter was investigated by the Hillsborough County Street Crimes Task Force and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim Barth with assistance from Karinne Brobst, Esq., prosecutor for the Milford Police Department.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Member of Navajo Nation sentenced to 37 months in prison for federal assault charges in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Frank Howe Jr., 24, of Rock Springs, New Mexico was sentenced on June 23 in federal court in Albuquerque to 37 months in prison for assault resulting in serious bodily injury in Indian Country.
Howe previously pleaded guilty to this offense on Feb. 28. According to his plea agreement, Howe, an enrolled member of the Navajo Nation, admitted to physically assaulting his girlfriend in Indian Country on May 7, 2018, within the exterior boundaries of the Navajo Nation. He got into an argument with the victim while driving his vehicle. Howe pulled his vehicle over and assaulted the victim causing serious bodily injury.
Howe must also serve a three-year term of supervised release after completing his sentence.
The Navajo Nation Police Department and the Navajo Nation Division of Public Safety-Criminal Investigations Services investigated this case with the assistance from the McKinley County Sheriff’s Office. Assistant U.S. Attorney David P. Cowen prosecuted the case.
Member of Car Theft Ring Sentenced to Federal Prison for Selling Stolen FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAY QUAN SANTOS, 22, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 13 months of imprisonment, followed by three years of supervised release, for stealing and selling firearms.
According to court documents and statements made in court, this matter stems from an investigation of motor vehicle thefts and motor vehicle break-ins in and around Hartford County. The property stolen from vehicles included firearms, ammunition and firearm-related items. The investigation revealed that Santos and others stole firearms and other items from vehicles, including vehicles that were parked outside of residences in Newington and Ellington, and then sold the firearms to other individuals.
Santos was arrested on related state charges on May 1, 2019, and was charged by federal criminal complaint on May 22, 2020. Santos had been detained from the date of his state arrest until he was released on bond in his federal case on September 16. On December 19, he pleaded guilty in federal court to one count of possession of a stolen firearm.
On December 23, 2019, Santos was arrested in Rocky Hill after he crashed a stolen vehicle he was driving on I-91, and subsequently attempted to run from police. The vehicle had been reported stolen in East Hartford on December 22. Santos has been detained since January 29, 2020, when his bond was revoked.
State charges against Santos are pending.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Connecticut State Police, and the Hartford, Newington and Windsor Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Marshall County man sentenced for drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Michael J. Blake, of Moundsville, West Virginia, was sentenced today to 57 months incarceration for a drug charge, U.S. Attorney Bill Powell announced.
Blake, age 40, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in March 2020. Blake admitted to having methamphetamine in October 2019 in Marshall County.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Manager of Zebulon Credit Union Pleads Guilty to EmbezzlementRead the Press Release
WILMINGTON, N.C. – A Wake Forest man pleaded guilty today to theft and embezzlement from a credit union.
According to court documents, Johnnie Earl Harrell, 47, served as branch manager of a credit union located in Zebulon, NC. From 2008 to 2019, Harrell exploited his position to steal and embezzle at least $645,000 in funds belonging to the credit union and its customers. Among Harrell’s victims were individuals convinced by Harrell to rollover existing retirement accounts into annuities. Harrell never purchased the annuities, but instead converted the funds to personal use. Harrell prepared fraudulent annuity account statements that were periodically presented to victims to preclude detection of the theft.
Harrell pleaded guilty to theft and embezzlement from a credit union and faces up to thirty years in prison when he is sentenced during the court’s November or December term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Magistrate Judge Robert Jones accepted the plea. The United States Department of Homeland Security, the North Carolina Department of Insurance Criminal Investigations, and the Zebulon Police Department are investigating the case. Assistant U.S. Attorney Toby Lathan is prosecuting the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00152-FL.
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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.
Loomis Man Sentenced to 12 Years for Distributing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Trevor C. Maaske, age 21, of Loomis, Nebraska, was sentenced today by United States District Judge Robert F. Rossiter, Jr. to 144 months’ imprisonment for receipt and distribution of child pornography. There is no parole in the federal system. After his release from prison, Maaske will begin an 8-year term of supervised release and will be required to register as a sex offender. Judge Rossiter ordered Maaske to pay restitution in the amount of $9,000.
An investigation conducted by FBI determined that on July 19, 2019, an agent with the FBI, while working in an undercover capacity on the internet, received a private message from Maaske using Kik Messenger. Kik Messenger is an online application and website with servers located outside the State of Nebraska. During the course of the Kik Messenger conversation between Maaske and the FBI agent, Maaske sent the FBI agent a video of a minor child undressing and completely naked. Upon receipt of the video, the FBI immediately obtained and executed a federal search warrant of Maaske’s residence. The FBI seized a digital device from Maaske’s bedroom, which contained child pornography that had been sent and received through the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force
Las Vegas Man Pleads Guilty to Committing Bank Fraud by Cashing A Stolen Check Worth Nearly $400,000Read the Press Release
LAS VEGAS, Nev. — Jesse Caine Brocius, 40, of Las Vegas, pleaded guilty today to devising a bank fraud and money laundering scheme through which he stole nearly $400,000, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Brocius pleaded guilty before U.S. District Judge Jennifer A. Dorsey to an indictment charging him with one count of bank fraud and one count of money laundering. He is scheduled to be sentenced on September 21, 2020.
According to court documents and admissions that Brocius made in court, between January 12, 2015 and February 10, 2015, he obtained a stolen check made payable to a family trust, in the amount of $391,636. Before cashing the stolen check, Brocius had applied to the IRS for an employer identification number falsely claiming that he was a trustee of that family trust. He also created a false Living Trust Agreement identifying him as its trustee. On February 10, 2015, Brocius opened two bank accounts in the trust’s name, depositing the stolen check into those accounts. Within four months, Brocius depleted all of money he had stolen: between February 10, 2015 and June 8, 2015, he spent it on personal expenses, such as luxury hotels, or withdrew the funds as cash.
At sentencing, Brocius faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine for bank fraud, and 10 years in prison and a $250,000 fine for money laundering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Tony Lopez is prosecuting the case.
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Kansas Man Indicted on Drug Charges After Fleeing Arrest in Great BendRead the Press Release
TOPEKA, KAN. – A Kansas man who was arrested in Great Bend in September after fleeing from officers was indicted today on federal drug trafficking charges, U.S. Attorney Stephen McAllister said.
Roosevelt Tyree Henderson IV, 32, is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a felon.
The indictment alleges that on Sept. 30, 2019, Henderson was arrested with more than 3.8 pounds of pure methamphetamine and an Excam model GT 27 pistol in his possession. The Barton County Sheriff reported at the time that Henderson fled when the Sheriff attempted to stop his car. Henderson abandoned the car at a house in Great Bend. There was a short standoff before he surrendered.
If convicted, he could face a penalty of not less than 10 years in federal prison and a fine up to $4 million on the methamphetamine charge, not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking and up to 10 years and a fine up to $250,000 on the other count. The Barton County Sheriff and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
OTHER INDICTMENTS
Ashley M. George, 28, Kansas City, Mo., and Raul Camacho-Munoz, 38, Kansas City, Mo., are charged with one count of possession with intent to distribute methamphetamine (count one) and one count of unlawful possession of a firearm in furtherance of drug trafficking (count two). In addition, George is charged with one count of unlawful possession of a firearm by a felon (count three). In addition, Camacho-Munoz is charged with one count of unlawful possession of a firearm by a Mexican citizen who is in the United States unlawfully (count four), and one count of unlawfully reentering the United States after being deported (count five). The crimes are alleged to have occurred Oct. 25, 2019, in Wyandotte County, Kan.
Upon conviction, the crimes carry the following penalties:
Count one: Not less than 10 years in federal prison and a fine up to $20 million.
Count two: Not less than five years and a fine up to $250,000.
Counts three and four: up to 10 years and a fine up to $250,000.
Count five: Up to two years and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Mario A. Brown, 31, who is in federal custody, is charged with one count of escaping from federal custody at the Grossman Community Corrections Center in Leavenworth, Kan. The crime is alleged to have occurred Dec. 4, 2019.
If convicted, he could face up to five years in federal prison and a fine up to $250,000. The U.S. Marshals service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Karina Valdez, 31, Holcomb, Kan., and Anaben Esquivel, 31, Garden City, Kan., are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 30, 2019, in Finney County, Kan.
If convicted, they could face a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Finney County Sheriff’s Office investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Eugene C. Young Jr., 58, is charged with one count of unlawful possession of a firearm by a felon. The crime is alleged to have occurred Dec. 28, 2019, in Wyandotte County, Kan.
If convicted he could face up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
KC Resident Sentenced to 20 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, resident was sentenced in federal court today for possessing child pornography.
Raul E. Villalva, also known as Isabelle Villalva, a biological male who identifies as a female (transgender woman), 26, was sentenced by U.S. District Judge Stephen R. Bough to 20 years in federal prison without parole. The court also sentenced Villalva to 20 years of supervised release following incarceration.
On Oct. 9, 2019, Villalva pleaded guilty to possessing child pornography.
In July 2018, the National Center for Missing and Exploited Children received a report from an online file hosting service that a user of the service, later determined to live in the Kansas City area, had uploaded 42 files of child pornography. After further investigation, law enforcement officers executed a search warrant at Villalva’s residence on Oct. 3, 2018. Villalva disclosed that an adult male with whom he shared the residence had previously sent him, by cell phone, videos and pictures of the adult male sexually assaulting a child victim at the defendant’s residence. Investigators seized Villalva’s cell phone, which contained videos and images of child pornography. Some of the child pornography depicted in Villalva’s cell phone depicted the child victim being molested by the adult male, while a single video depicted Villalva also engaging in sexual contact with the same child victim.
Villalva will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Western Missouri Cyber Crimes Task Force, the Platte County, Mo., Sheriff’s Department, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jefferson County Doctor Indicted for Health Care Fraud ViolationsRead the Press Release
BEAUMONT, Texas — A 43-year-old physician practicing in Beaumont has been indicted on federal health care fraud violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Grigoriy T. Rodonaia, of Port Neches, Texas, was indicted on March 18, 2020 and charged with 35 counts of health care fraud and other related violations. Rodonaia appeared before U.S. Magistrate Judge Keith Giblin today for an initial appearance.
According to the indictment, beginning in January 2015, Rodonaia is alleged to have participated in a health care fraud scheme by issuing prescriptions for specially compounded scar creams using the names, dates of birth, and Health Insurance Claim Numbers of TRICARE beneficiaries and caused the prescriptions to be forwarded directly to Memorial Compounding Pharmacy in Houston, Texas without the specific knowledge of the beneficiary and without having examined or consulted with the beneficiary. The prescriptions were billed to the military health care program, TRICARE, by the pharmacy at the approximate cost of $9,000 - $13,000 per prescription and the prescriptions authorized multiple refills. Over 600 prescriptions in the names of approximately 140 beneficiaries were issued by Rodonaia in this manner outside the usual course of professional practice and without medical necessity. Before the scheme could be detected, TRICARE paid approximately $6.7 million in TRICARE funds to Memorial Compounding Pharmacy. The indictment also alleges Rodonaia created patient files and records of the TRICARE beneficiaries as though he had examined or consulted with those patients and submitted those false records to the Defense Health Agency as part of an audit of the prescription scheme.
The indictment also alleges the defendant violated the Anti-kickback statute by requiring Medicare and Medicaid beneficiaries seeking opioid treatment to pay cash for an office visit in excess of the amount which would have been reimbursed by the Medicare and Medicaid programs. The indictment further alleges that Rodonaia dispensed a Schedule IV controlled substance, Adipex-P or Phentermine, a weight control drug, outside the course of standard medical practice.
If convicted, Rodonaia faces up to 10 years in prison for each count of health care fraud and a mandatory 2 years in prison for each count of aggravated identity theft. A grand jury indictment is not evidence of guilt.
This case is being investigated by the Defense Criminal Investigative Service, the Drug Enforcement Administration, Health and Human Services – Office of Inspector General, and the Texas Medicaid Fraud Control Unit. Assistant U.S. Attorney Robert L. Rawls is prosecuting this case.
Jackson Man Pleads Guilty under Project EJECT to Methamphetamine TraffickingRead the Press Release
Jackson, Miss. – Cedrick Tillman, 36, of Jackson, pled guilty today before U.S. District Judge Henry T. Wingate to possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Between January and March 2019, an individual made three purchases of methamphetamine from Tillman. On August 6, 2019, Tillman was charged in a federal indictment with possessing with intent to distribute methamphetamine.
Tillman will be sentenced by Judge Wingate on September 22, 2020 at 1:30 p.m. by Judge Wingate, and faces a statutory maximum penalty of 40 years in federal prison and a $5 million fine.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Iowa Man Sentenced to 240 Months for Drug ConspiracyRead the Press Release
United States Attorney Joe Kelly announced that Travis Christopher Harvey, 42, of West Des Moines, Iowa, was sentenced on June 24, 2020 by United States District Judge Robert F. Rossiter, Jr. for conspiracy to distribute and for possessing with intent to distribute five hundred grams or more of methamphetamine. Harvey received a sentence of 240 months with a five-year term of supervised release to follow. There is no parole in the federal system.
In mid-2018, a Drug Enforcement Administration led task force initiated Operation Dog Pound, which was a drug interdiction effort focused on an Omaha, Nebraska, drug trafficking organization. Harvey was identified during the investigation as a distributor in the Des Moines, Iowa, area that was receiving multi-pound shipments of methamphetamine from his Omaha supplier. Investigators utilized phone and text messaging intercepts, vehicle trackers, and physical surveillance to establish Harvey’s involvement in the conspiracy.
A federal jury convicted Harvey in February of this year. Evidence at trial included $30,000 that was seized and intercepted phone calls between Harvey and his source. At sentencing, Judge Rossiter found Harvey responsible for at least 5.4 kilograms of methamphetamine. Harvey’s sentence of 240 months is noteworthy because of his extensive criminal history, which included several drug, firearm, assault, burglary, and domestic violence convictions, placing him in the highest possible category for criminal history.
The Drug Enforcement Administration, Nebraska State Patrol, U.S. Customs and Border Protection, Omaha Police Department, Bellevue Police Department, U.S. Postal Inspection Service, and U.S. Attorney’s Office were the investigating agencies.
Indiana State Police receive grants from Department of Justice to combat illegal manufacture and distribution of methamphetamine and opioidsRead the Press Release
Washington – The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil, and prescription opioids.
The Indiana State Police will receive over $2 million in funding to support investigations into trafficking in heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
“The Indiana State Police are so deserving of this grant money,” said Southern District of Indiana United States Attorney Josh J. Minkler. “They are on the front lines of this public health crisis by combating the scourge of opioid and methamphetamine use in Indiana. This is just another example of how the Indiana State Police and all law enforcement protect and serve Hoosiers on a daily basis.”
“Today, two grant awards totaling over $2.2 million were awarded to the Indiana State Police. The grant money will be used to focus on combating methamphetamine and heroin distribution in Indiana,” said Northern District of Indiana United States Attorney Thomas L. Kirsch II. “My Office has put a special emphasis on investigating and prosecuting individuals who distribute addictive drugs such as methamphetamine and heroin, along with other opioids, on the streets of Northern Indiana, and this funding will help continue those efforts. I am pleased to partner with the Indiana State Police and its dedicated troopers who put their lives on the line daily to provide safety for Indiana families.”
“We are extremely thankful and honored to be a recipient of these two grants, which will assist our investigators who work on the front lines of the opioid crisis every day. We are so very proud to collaborate with our law enforcement partners throughout the state in working to make our communities safer for everyone”, said Doug Carter, Superintendent of the Indiana State Police.
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdoses are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid. More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.
The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF). AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
The Indiana State Police will receive $1,285,080.00 through the AHTF Program.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.
The Indiana State Police will receive $1,000,000.00 through the CAMP.
The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work. During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms. Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.
The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/ahtf-award
The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/camp-award
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov .
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Indiana State Police Receive Department of Justice GrantsRead the Press Release
HAMMOND – The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil, and prescription opioids.
The Indiana State Police will receive over $2 million in funding to support investigations into trafficking in heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
“The Indiana State Police are so deserving of this grant money,” said Southern District of Indiana United States Attorney Josh J. Minkler. “They are on the front lines of this public health crisis by combating the scourge of opioid and methamphetamine use in Indiana. This is just another example of how the Indiana State Police and all law enforcement protect and serve Hoosiers on a daily basis.”
“Today, two grant awards totaling over $2.2 million were awarded to the Indiana State Police. The grant money will be used to focus on combating methamphetamine and heroin distribution in Indiana,” said Northern District of Indiana United States Attorney Thomas L. Kirsch II. “My Office has put a special emphasis on investigating and prosecuting individuals who distribute addictive drugs such as methamphetamine and heroin, along with other opioids, on the streets of Northern Indiana, and this funding will help continue those efforts. I am pleased to partner with the Indiana State Police and its dedicated troopers who put their lives on the line daily to provide safety for Indiana families.”
“We are extremely thankful and honored to be a recipient of these two grants, which will assist our investigators who work on the front lines of the opioid crisis every day. We are so very proud to collaborate with our law enforcement partners throughout the state in working to make our communities safer for everyone”, said Doug Carter, Superintendent of the Indiana State Police.
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdoses are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid. More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.
The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF). AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
The Indiana State Police will receive $1,285,080.00 through the AHTF Program.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.
The Indiana State Police will receive $1,000,000.00 through the CAMP.
The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work. During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms. Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.
The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/ahtf-award
The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/camp-award
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov .
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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