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Wednesday 4 March 2020
Pottawattamie County Man Sentenced for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa – On February 28, 2020, United States District Court Chief Judge John A. Jarvey sentenced Jason Eric Leinen, age 46, of Council Bluffs, to 97 months in prison for possession of child pornography, announced United States Attorney Marc Krickbaum. Leinen was ordered to serve five years of supervised release to follow his prison term, pay $500 in restitution to each victim seeking restitution, and to comply with sex offender registry requirements upon release.
The investigation began in April 2018, when a Pottawattamie County Sheriff’s Department Deputy was working undercover investigating users sharing child pornography on a peer-to-peer file sharing network. The program identified an IP address sharing known images and videos of child pornography. A search warrant was executed on Leinen’s residence and a desktop drive and PC were seized. The forensic exam produced numerous links to the peer-to-peer file sharing networks, child erotica, and child pornography.
This matter was investigated by the Pottawattamie County Sheriff’s Department and the Council Bluffs Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Pickens Drug Trafficker Sentenced to 300 MonthsRead the Press Release
Greenville, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Bruce Allen Howland, 58, of Easley, South Carolina, was sentenced to 25 years in federal prison after pleading guilty to violating federal drug distribution laws.
Evidence presented at the change of plea hearing showed that on February 28, 2019, in Pickens County, two confidential sources under the supervision of law enforcement placed recorded calls to Howland and arranged a meet at his trailer. On the call, Howland told the confidential sources that he was “good,” meaning that he had drugs available to be purchased. The confidential sources were searched and equipped with recording devices before going to Howland’s property. They purchased two grams of methamphetamine using funds provided by law enforcement. They left the trailer, turned over the drugs to law enforcement, and were searched again.
Based on this controlled purchase, law enforcement obtained a search warrant and executed it. Howland was in the trailer and refused to open the door, and thus forced entry was made. Investigators seized three pounds of crystal meth and one pound of liquid meth. Howland had a lengthy history of drug distribution dating back to 1992.
The case was investigated by the Pickens County Sheriff’s Office and Homeland Security Investigations. Senior United States District Judge Henry M. Herlong, Jr., sentenced Howland to 300 months in federal prison, to be followed by 10 years of supervised release. There is no parole in the federal system. Assistant United States Attorney Bill Watkins prosecuted the case on behalf of the Government.
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Northern Air Cargo LLC, Agrees to Pay $4.7 Million for Allegedly Falsely Reporting Delivery of U.S. Mail Transported InternationallyRead the Press Release
The Justice Department announced today that Northern Air Cargo LLC, has agreed to pay $4.7 million to resolve its potential liability under the False Claims Act for falsely reporting information regarding the delivery of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS). Northern Air Cargo is a cargo airline headquartered in Anchorage, AK.
“Government contractors must abide by their contractual commitments to the United States,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Those who knowingly misrepresent compliance with their contractual obligations will face appropriate consequences.”
USPS contracted with Northern Air Cargo to take possession of receptacles of United States mail at six locations in the United States or at various Department of Defense and Department of State locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, Northern Air Cargo was required to submit electronic scans of the mail receptacles to USPS that confirmed the time and delivery of the mail at the specified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. Today’s settlement resolves allegations that Northern Air Cargo submitted scans that falsely reported the time that possession of the mail was transferred.
“The safeguarding and timely delivery of the U.S. Mail to both international and domestic venues is of critical importance to the U.S. Postal Service,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by promptly investigating allegations of contractual malfeasance, including instances of delivery falsification. Working closely with the Department of Justice’s Civil Division, our special agents worked diligently to ensure an appropriate resolution.”
This matter was handled by the Civil Division’s Commercial Litigation Branch, in coordination with the USPS Office of the Inspector General and the USPS Office of General Counsel.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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.
Nevada Fraudster Sentenced to More Than Five Years in Prison for Role in Scheme to File False Tax Returns Using Stolen IdentitiesRead the Press Release
A Las Vegas resident was sentenced to 65 months in prison today for his role in a stolen identity tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents and statements made in court, Josiah Ntekume engaged in a scheme to file false tax returns using stolen identities in order to obtain tax refunds. Coconspirators provided Ntekume with names, addresses, dates of birth, and social security numbers, and Ntekume used these stolen identities to establish prepaid debit card accounts. The coconspirators then caused refunds fraudulently obtained from the Internal Revenue Service (IRS) to be deposited into those accounts.
When Ntekume was arrested on March 13, 2012, he had in his backpack approximately 250 prepaid debit cards in the names of other individuals, on which more than more than $200,000 in fraudulent refunds had been loaded. The backpack also contained stolen identities for nearly 200 other individuals that were used either to file false returns or to establish additional prepaid debit cards.
On Dec. 4, 2019, Ntekume pleaded guilty to aggravated identity theft, wire fraud, theft of government property, and fraud in connection with access devices.
In addition to the term of imprisonment, U.S. District Judge James C. Mahan ordered Ntekume to serve three years of supervised release and to pay approximately $221,599 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas W. Flynn, Stephen K. Moulton, and Arthur Ewenczyk, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Missouri Man Sentenced to 19 Years for Attempting to Provide Material Support to ISISRead the Press Release
A Columbia, Missouri, man was sentenced to 236 months in prison in federal court today for his role in making preparations to launch a terrorist attack with persons he believed were members of the Islamic State of Iraq and al-Sham (ISIS), but who were actually undercover law enforcement employees, announced Assistant Attorney General for National Security John C. Demers and U.S. Attorney Timothy A. Garrison for the Western District of Missouri.
Robert Lorenzo Hester Jr., 28, was sentenced by U.S. District Judge Greg Kays to 236 months in federal prison without parole. The court also sentenced Hester to a lifetime of supervised release following incarceration.
Hester pleaded guilty on Sept. 24, 2019, to attempting to provide material support to ISIS from October 2016 to Feb. 17, 2017, knowing that it was a designated foreign terrorist organization that engages in terrorist activity. Hester actively attempted to plot a mass casualty attack with others that he believed were acting on behalf of ISIS. Hester drew the attention of law enforcement through advocating violence on social media, and when contacted by undercover officers, he immediately showed that he wanted action in addition to words. Law enforcement engaged Hester to see if he was truly committed to an act of terrorism, and his responses left no doubt that he was.
Hester, who has been in federal custody since his arrest in February 2017, is a U.S. citizen. He was enlisted in the U.S. Army for less than a year, receiving a general discharge from service in mid-2013.
According to the plea agreement, multiple confidential sources reported to the FBI that Hester had posted a variety of material on multiple social media accounts. Hester indicated that he had converted to Islam, expressed animus toward the United States, and posted photos of weapons and the ISIS flag, among other material, suggesting an adherence to radical Islamic ideology and a propensity for violence. In order to assess whether Hester posed a security threat, the FBI undertook a series of investigative steps, beginning with an examination of whether and to what extent Hester would engage directly online with confidential sources working for the FBI and, later, with FBI employees working in an undercover capacity.
FBI employees using undercover identities communicated with Hester via social media, texting and personal meetings on several occasions. In those conversations, Hester said, for example, that the U.S. government should be “overthrown,” and he suggested “hitting” the government “hard,” while noting that it would not be “a one man job.” Hester identified categories of potential targets for attack, including “oil production,” “military bases,” “federal places,” “government officials,” and “Wall Street.” Hester specified that “[a]ny government building in DC would get attention of everyone.” He said he wanted a “global jihad.” Citing his brief enlistment in the U.S. Army, Hester also claimed proficiency with “assault weapons” and said that his favorite firearm was the AK-47 rifle. Hester spoke about the perceived ease in which one could gain access to a military base.
Hester established an apparent willingness to act on the statements that he made online. An undercover FBI employee conversing online with Hester offered an in-person meeting with a like-minded “brother.” Hester agreed to meet and subsequently did meet on numerous occasions with a person who was described as, and Hester believed was, a terrorist operative – but who, in reality, was an employee of the FBI working in an undercover capacity. Throughout their conversations, the undercover employee provided Hester a number of opportunities to dissociate with no questions asked, but Hester repeatedly reaffirmed his commitment to their plot.
In the meetings, the FBI undercover made clear to Hester that the undercover was representing a foreign terrorist organization (ISIS) and that the undercover was planning an attack that would involve multiple operatives, deploy bombs and guns, and result in mass casualties. Hester indicated through his statements and actions that he was ready and willing to participate and assist in the “plot.”
Hester obtained, at the undercover’s request, items that he was told would be used as bomb components, including boxes of roofing nails. The undercover made clear to Hester that the nails’ purpose was to maximize the number of casualties. In addition, Hester did not hesitate when the undercover showed him a cache of three machine guns and two handguns that would be used in the “attack,” and two pipes that would be used to construct the “bombs.” In fact, in the days after seeing this display, which was arrayed in the rear compartment of the undercover’s SUV, Hester provided information on storage units that could be used to hold the weapons and agreed to obtain additional supplies for the operation.
As the plea agreement cites in greater detail, throughout the investigation, Hester expressed his interest in and exhibited his willingness to commit violence in support and on behalf of ISIS.
This case was prosecuted by Assistant U.S. Attorneys Brian P. Casey and David Raskin and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section. It was investigated by the FBI.
Meridian Man Found Guilty under Project EJECT for Possessing Ammunition and a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Dominique Dontona Ashford, 36, of Meridian, was found guilty yesterday, after a one day trial before Senior U.S. District Judge Tom S. Lee, of one count of being a convicted felon in possession of ammunition, and one count of being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ashford has previous convictions for robbery, possession of cocaine, burglary and sale of cocaine within 1,500 feet of a church. Due to the number and nature of Ashford’s prior convictions he faces a minimum of fifteen years in prison, and a maximum potential sentence of life in prison, as to each of the two counts. He will be sentenced by Judge Lee on June 11, 2020.
On March 18, 2019, officers with the Meridian Police Department responded to a 911 call reporting a domestic disturbance. Upon arriving at the residence, the officers spoke with the complainant who told them she wanted her boyfriend, Ashford, out of her house. Officers spoke with Ashford and told him they would need to pat him down for weapons. Ashford was found to be in possession of suspected narcotics during the pat down search. When officers began to take Ashford into custody due to the suspected narcotics, he struggled, and the officers had to take him to the ground in order to complete the arrest.
Once Ashford was in handcuffs, the officers searched his pockets. Three .38 caliber bullets were found in Ashford’s left front pants pocket. A body camera recording made by one of the officers showed the discovery of the ammunition. The complainant told officers that she did not own any firearms and that she wanted all of Ashford’s belongings out of her house. The complainant testified at trial that Ashford threatened to beat her with a handgun earlier that day.
Meridian Police officers searched the house and located a .38 caliber Taurus revolver, loaded with five .38 caliber bullets, in a closet in a back bedroom. The complainant identified the revolver as the pistol with which she had been threatened. Officers with the Meridian Police Department, the Lauderdale County Sheriff’s Office and an ATF agent testified at trial in addition to Ashford’s ex-girlfriend.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
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.
Marion County man guilty of firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – After a two-day trial, Oneil Wayne South, of Fairmont, West Virginia, was found guilty today by a federal jury of a firearms charge, U.S. Attorney Bill Powell announced.
After deliberating for two hours, the jury found South, age 45, guilty of one count of “Unlawful Possession of a Firearm as Drug User.” South is prohibited from having a firearm because of drug use, and has a 9mm pistol in March 2019 in Marion County.
South pled guilty to one count of “Reckless Flight from a Law Enforcement Officer” in February 2020. South admitted to fleeing from law enforcement after being asked to stop when on the property of the FBI Criminal Justice Information Services Division in Harrison County in March 2019.
South faces up to 10 years incarceration and a fine of up to $250,000 for the firearms charge. South faces up to five years incarceration and a fine of up to $2,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Andrew R. Cogar and Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, and the Fairmont Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.Manhattan U.S. Attorney Announces Guilty Plea of Correctional Officer at Metropolitan Correctional Center for Engaging in Abusive Sexual Contact with InmatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that COLIN AKPARANTA, a correctional officer at the Metropolitan Correctional Center (“MCC”), which houses federal inmates in Manhattan, pled guilty before United States Magistrate Judge Kevin Nathaniel Fox to one count of abusive sexual contact of an inmate, in violation of Title 18, United States Code, Section 2244(a)(4), and one count of deprivation of the civil rights of that inmate, in violation of Title 18, United States Code, Section 242. In connection with the plea, AKPARANTA also admitted that he engaged in abusive sexual contact with six additional victims, and engaged in sexual acts with all seven of the victims.
U.S. Attorney Geoffrey S. Berman said: “As he has now admitted, Colin Akparanta abused his position of authority as a correctional officer at the MCC to sexually abuse at least seven inmates whose safety and security he was duty-bound to protect. This Office has prosecuted, and will continue to prosecute, correctional officers who use their positions to engage in criminal conduct, and I encourage anyone with knowledge of this or similar criminal conduct involving correctional officers at the MCC to contact my Office.”
According to the Indictment, other filings in this case, and statements during court proceedings, including AKPARANTA’s guilty plea hearing:
AKPARANTA has been employed as a correctional officer at the MCC since 2004.
Between in or about late 2012 and in or about April 2018, AKPARANTA used his official position to engage in sexual acts and contact with at least seven female inmates at the MCC while they were under AKPARANTA’s custodial, supervisory, and disciplinary authority. AKPARANTA digitally penetrated the victims’ vaginas and touched their breasts, buttocks, and/or genitalia. AKPARANTA also had some of the victims touch his penis over his pants. In addition, AKPARANTA smuggled contraband, including, but not limited to, personal hygiene items, makeup, and food into the MCC for some of the victims, and, with respect to at least one of the victims, explicitly conditioned his provision of contraband on the inmate’s continued performance of sexual acts with him. AKPARANTA also asked the victims for their contact information in order to reach them after their release.
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COLIN AKPARANTA, 43, of Irvington, New Jersey, pled guilty to one count of abusive sexual contact, which carries a maximum sentence of two years in prison, and one count of deprivation of civil rights, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. AKPARANTA is scheduled to be sentenced by the Honorable Lorna G. Schofield on July 8, 2020.
Any individuals who believe they have information concerning COLIN AKPARANTA or any criminal conduct involving correctional officers at the MCC should contact the United States Attorney’s Office at (866) 874-8900.
Mr. Berman praised the investigative work of the DOJ Office of the Inspector General and the special agents of the United States Attorney’s Office.
The prosecution is being handled by the Office’s Public Corruption, Violent and Organized Crime, and Civil Rights Units. Assistant U.S. Attorneys Lara Pomerantz, Sarah Krissoff, and Rachael Doud are in charge of the prosecution.
Lecanto Medical Biller Sentenced in Large Healthcare Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Teresa Johnson (53, Lecanto) to five years’ probation, with four months of home detention, for conspiring with a local doctor to commit health care fraud. As part of her sentence, the court also ordered Johnson to pay restitution to the defrauded federal health care programs and, entered a money judgment of more than $5,700, representing a portion of Johnson’s health care fraud proceeds.
Johnson had pleaded guilty on October 10, 2019.
According to court documents, Johnson owned and operated a medical billing company, Tri-County Billing, which submitted mostly false and fraudulent claims for three clinics owned and operated by Doctor 1 (recently deceased). The clinics were located in Crystal River, Spring Hill, and Celebration. Most of the false claims from Doctor 1’s clinics were submitted to government healthcare programs including Medicare, Medicaid, TRICARE, and CHAMPVA. Johnson had previously worked for Doctor 1 in several different capacities before Doctor 1 financially assisted her in opening Tri-County Billing. Doctor 1 filed bankruptcy on behalf of his medical practice in April 2019.
As part of the scheme, Doctor 1 employed numerous health care providers, many who were not authorized to perform, and prohibited from, billing for medical services. Doctor 1 directed Johnson to bill claims performed by these prohibited health care providers as if they were rendered by Doctor 1, when they were not. One of these providers was a pain management doctor who had been denied enrollment in the Medicare and Medicaid program. Another doctor had been excluded from billing, directly or indirectly, any government healthcare programs. Doctor 1 also hired nurse practitioners to perform medical services, and directed Tri-County to submitted claims as if a doctor had performed those services. Both Johnson and Doctor 1 knew all of these claims were false and fraudulent.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, the Department of Defense, Office of Inspector General, the Department of Veterans Affairs, Office of Inspector General, and the Florida Office of Attorney General’s Medicaid Fraud Control Unit. It was prosecuted by Assistant U.S. Attorney Kelley Howard-Allen.
Last of Defendants Convicted in Pensacola-Based Dogfighting InvestigationRead the Press Release
PENSACOLA, FLORIDA – A federal jury in Pensacola, Florida, convicted Shane Patrick Sprague, 35, of Pensacola, Florida, of felony conspiracy to violate the dogfighting prohibitions of the federal Animal Welfare Act. Co-defendants James "Tommy" Peek, 67, and Haley Cook Murph, 24, both of Milton, Florida, and David Lee Moser, 36, of Waynesboro, Tennessee, had previously pleaded guilty to seven federal felonies for their involvement with Sprague and others in a dogfighting operation centered in Pensacola. The jury acquitted co-defendant Derek Jedidiah Golson, 38, also of Pensacola.
Evidence at trial, along with admissions made by the pleading defendants in conjunction with their plea agreements, established that Sprague operated C Wood Kennels, a dogfighting operation that arranged dogfights and trafficked in fighting dogs with Moser and others outside of Florida. Moser admitted that he and Sprague agreed to fight their dogs against one another and to prepare a dog for a dogfight, and that they had discussed concealing evidence that one of Moser’s dogs had killed another dog.
Murph pleaded guilty to unlawfully conspiring with the co-defendants to violate the dogfighting prohibitions of the federal Animal Welfare Act, traveling to Steele, Alabama, to purchase a fighting dog from a known dogfighter, and possessing that dog for purposes of using the dog in an animal fighting venture. Peek pleaded guilty to unlawfully conspiring with the co-defendants to violate the dogfighting prohibitions of the federal Animal Welfare Act, delivering a dog to defendant Sprague for purposes of having the dog participate in an animal fighting venture, and possessing a dog for purposes of having the dog participate in an animal fighting venture. Moser pleaded guilty to conspiring with the co-defendants to violate the dogfighting prohibitions of the federal Animal Welfare Act.
Each of the eight counts of conviction in the case carries a maximum of five years in prison and a criminal fine of up to $250,000.
Peek was one of the sources of supply of fighting dogs to C Wood Kennels. He admitted to having sold dogs to Sprague, believing that the dogs would be used for fighting purposes. He also admitted to having sold a dog to an undercover agent after making representations about the fighting "bloodlines" as well as prior and upcoming dogfights of some of the dogs on his yard.
Murph’s role was that of a makeshift "veterinarian" for C Wood Kennels. Although Murph at no time possessed a veterinary license, she admitted to offering and performing veterinary and surgical procedures on dogs belonging to members of the conspiracy, including by treating dogs injured in a dogfight and by surgically removing dogs’ ears, including for the purpose of dogfighting. Two dogs in her "care" died from their fighting injuries. Murph also admitted to supplying a "bait" animal to test the fighting abilities of one of the co-defendant’s dogs. Finally, Murph admitted to traveling to Alabama on two occasions to receive dogs from a known dogfighter, and to keeping one of the dogs for herself for the purposes of having the dog participate in an animal fighting venture.
"These barbaric acts of animal cruelty have no place in a civilized society, and the U.S. Attorney’s Office will pursue and prosecute these criminals to the fullest extent of the law," said U.S. Attorney Lawrence Keefe of the Northern District of Florida. "Societies are measured in part by how well they treat their domestic animals, and these defendants failed that test miserably – and now will pay the consequences."
"The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling," said Special Agent-in-Charge Jason M. Williams of the U.S. Department of Agriculture-Office of Inspector General. "Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures."
Assistant United States Attorney Ryan Love and Department of Justice Trial Attorney Ethan Eddy prosecuted the case. The matter was investigated by the U.S. Department of Agriculture, Office of the Inspector General.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Las Vegas Fraudster Sentenced to More Than Five Years in Prison for Role in Scheme to File False Tax Returns Using Stolen IdentitiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident was sentenced to 65 months in prison today for his role in a stolen identity tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.
According to court documents and statements made in court, Josiah O. Ntekume engaged in a scheme to file false tax returns using stolen identities in order to obtain tax refunds. Co-conspirators provided Ntekume with names, addresses, dates of birth, and social security numbers, and Ntekume used these stolen identities to establish prepaid debit card accounts. The co-conspirators then caused refunds fraudulently obtained from the IRS to be deposited into those accounts.
When Ntekume was arrested on March 13, 2012, he had in his backpack approximately 250 prepaid debit cards in the names of other individuals, on which more than more than $200,000 in fraudulent refunds had been loaded. The backpack also contained stolen identities for nearly 200 other individuals that were used either to file false returns or to establish additional prepaid debit cards.
On December 4, 2019, Ntekume pleaded guilty to aggravated identity theft, wire fraud, theft of government property, and fraud in connection with access devices.
In addition to the term of imprisonment, U.S. District Judge James C. Mahan ordered Ntekume to serve three years of supervised release and to pay approximately $221,599 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas W. Flynn, Stephen K. Moulton, and Arthur Ewenczyk, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Kenton County Man Sentenced to 207 Months for Armed Drug TraffickingRead the Press Release
LONDON, Ky. - An Independence, Kentucky man, Larry Coots, 54, was sentenced in federal court on Tuesday, to 207 months in prison, by U.S. District Judge Claria Horn Boom, for conspiring to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
Coots admitted that beginning in May 2017 and continuing through December 2017, he conspired with Cynthia Burkhart, 38, to distribute methamphetamine in Perry County.
According to his plea agreement, Coots admitted that, on December 20, 2017, law enforcement executed a traffic stop on a vehicle driven by Burkhart, with Coots as a passenger. Coots fled on foot, but was eventually apprehended. Burkhart left the scene and was later located at a hotel, where she and Coots were staying. In their room, officers found two loaded firearms, drug paraphernalia, marijuana, pills, and six ounces of methamphetamine. Coots further admitted that he possessed one of the firearms for protection, in furtherance of his drug trafficking. Coots also had a prior felony conviction and was prohibited from possessing a firearm.
Coots pleaded guilty to the charges in July 2019.
Under federal law, Coots must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Brett R. Pritts, Acting Special Agent in Charge for DEA, Louisville Field Division; and Rodney Brewer, Commissioner of the Kentucky State Police, jointly made the announcement.
The investigation was directed by the DEA and KSP. The United States was represented by Assistant U.S. Attorney Sam Dotson.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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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Jury convicts Billings man in meth trafficking trialRead the Press Release
BILLINGS – A jury on Tuesday convicted a Billings man accused of bringing large quantities of methamphetamine to the community for redistribution and possessing firearms to further the crime, U.S. Attorney Kurt Alme said.
The jury found Maurice Joseph Fregia, 33, guilty of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possessing a firearm in furtherance of a drug trafficking crime.
The two-day trial began on Monday.
Fregia faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crimes and a mandatory consecutive five years to life in prison, a $250,000 fine and five years of supervised release on the firearm possession crime.
U.S. District Judge Susan P. Watters presided. Sentencing is set for July 23. Fregia was detained.
“Meth dealers with firearms are causing violence in our communities and pushing Montanans toward addiction. We will continue to prosecute dealers like Fregia and his co-conspirators to the full extent of the law. I want to thank Assistant U.S. Attorneys Colin Rubich and Julie Patten, along with the Eastern Montana High Intensity Drug Trafficking Area Task Force, the FBI and the Billings Police Department for their good work investigating and prosecuting this case,” U.S. Attorney Alme said.
The prosecution presented evidence at trial that Fregia, along with co-defendant Chad Beres, headed a large drug trafficking organization that brought large quantities of meth and other drugs into Montana from California. In April 2018, law enforcement officers with the Eastern Montana High Intensity Drug Trafficking Area Task Force served three search warrants on three Billings residences, including a house where Fregia and Beres lived. Both Fregia and Beres were present during the search. Officers found almost 700 grams of meth, which is about 1.5 pounds and about 5,600 doses, sticking out of a clothes dryer vent, $14,538 in currency, jewelry, including a Rolex watch in Beres’ room, other drugs and various firearms and ammunition. Beres pleaded guilty to charges and was sentenced to 15 years in prison.
During the search of a second residence, occupied by co-defendant Larry Barnett, agents found meth and a handgun. Barnett, who pleaded guilty and was sentenced to seven years in prison, admitted he had received multiple pounds of meth from Fregia and Beres and had seen both men with firearms.
Assistant U.S. Attorneys Colin Rubich and Julie Patten are prosecuting the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the FBI and the Billings Police Department.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Joint Investigation Nets Multiple Arrests in Undercover Sex Trafficking OperationRead the Press Release
Jacksonville, FL – United States Attorney Maria Chapa Lopez announces the arrests of Justin Latronica (30, Orange Park), James Allen Shook (48, Weeki Wachee), and Timothy Veres, III (Jacksonville, 24) for attempted online enticement of a minor to engage in sexual activity. Veres was also charged with soliciting for images depicting the sexual abuse of a child. Each faces a minimum mandatory penalty of 10 years, and up to life, in federal prison.
According to court records, in January 2020, Latronica, Shook, and Veres each traveled to an undercover location for the purpose of engaging in sexual activity with individuals they believed to be between 12 and 14 years old.
These arrests were part of a joint operation conducted between January 24 and January 27, 2020, in Orange Park Florida. The agencies involved include the Clay County Sheriff’s Office, the Naval Criminal Investigative Service, and Homeland Security Investigations, with assistance from the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, and the North Florida ICAC task force. The proactive operation was conducted to identify and arrest those who perform predatory acts and exploit children online.
As part of the operation, the Clay County Sheriff’s Office also arrested two individuals, Abhishek Shah (30, Jacksonville) and Che’ Jenkins Jr. (22, Jacksonville), who have each been charged in state court with violating state law by traveling to meet a minor to engage in an unlawful sex act, soliciting a child for unlawful sexual conduct using computer services or devices, and the unlawful use of a two-way communications device.
The federal cases are being prosecuted by Assistant United States Attorneys Kelly S. Karase and Ashley Washington.
These cases are brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Tax Return Preparer Indicted on Federal Tax Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Kenyan Shondre Scott with 55 counts of aiding and assisting others with the filing of false tax returns and 4 counts of filing false tax returns on his own behalf. Each count carries a maximum penalty of three years’ imprisonment. The United States also seeks restitution for the tax losses arising out of the alleged criminal conduct.
According to the
indictment , Scott owned and operated a tax preparation business in Jacksonville and began preparing tax returns for others in 2009. Between February 2014 and April 2018, Scott defrauded the IRS by filing returns for clients in which he falsely claimed, among other things, that the clients were eligible for certain itemized deductions for which they were not eligible. In addition, he falsely claimed that some clients had incurred business losses when they did not in fact own a business. Scott also fraudulently claimed general business credits and education credits that reduce a taxpayer’s tax liability or increase a taxpayer’s tax refund on a dollar for dollar basis. The indictment specifically alleges the filing of 55 false returns on behalf of 13 taxpayers for the tax years 2013 through 2017.The indictment further alleges that Scott filed personal returns for the years 2013 through 2016 in which he fraudulently and substantially reduced the amount of his net business income and the amount of taxes owed on that income by claiming false business expenses and other false deductions and credits. The indictment also alleges that Scott fraudulently reported fake wages and a disproportionate amount of taxes being withheld from those purported wages in an attempt to lower the amount of taxes owed.
“This time of year all Americans are thinking about taxes, and the last thing they want to worry about is if their return preparer might be a crook,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “Unfortunately, every year, we see shady return preparers take advantage of taxpayers trying to do the right thing. Don’t fall into that trap! Education is key, and we urge taxpayers to use extra caution, starting by visiting www.irs.gov to learn of criteria to consider when selecting a return preparer.”
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Indictment: Inmate Ran Wichita Drug Ring from A Cell in Oklahoma PenitentiaryRead the Press Release
WICHITA, KAN. – A 55-count federal indictment with 24 defendants unsealed here today alleges that an inmate ran a drug ring in Wichita from a prison cell in the Oklahoma State Penitentiary, U.S. Attorney Stephen McAllister said.
McAllister said federal agents began investigating in April 2019 and reviewed thousands of intercepted messages among the alleged traffickers.
“A large scale criminal drug conspiracy operating in Kansas whose shot caller is behind bars in another state talking on a cell phone makes this a unique case in my experience,” McAllister said. “To the alleged traffickers, I think I would say: Can you hear us now?”
The indictment contains detailed descriptions of defendants going about their daily chores, negotiating prices, handling hundreds of thousands of dollars in cash and trying to do business without drawing attention.
“Today’s arrests and indictments send a clear message: whether you are behind bars or on the street, you will be held accountable. Today, over a 100 federal, state and local officers, working together executed dozens of arrests. The impact of these arrests will be immediate, and our community will be safer due largely in part to the tireless work and dedication of our law enforcement partners. I applaud their dedication and commitment to the community we are sworn to serve,” said Timothy Langan, Special Agent in Charge of the FBI in Kansas City, Missouri.
CALLING THE SHOTS
Travis Knighten, 47, who is being held at the Oklahoma State Penitentiary in McAlester, Okla., is alleged to have been the brains behind a criminal organization that distributed methamphetamine, heroin, cocaine powder, crack cocaine and marijuana in Wichita.
Communicating by cell phone calls and text messages, Knighten is alleged to have directed the movements of almost two dozen conspirators. The indictment alleges Knighten used cell phones obtained while in custody to receive information and to coordinate times and locations for meetings with suppliers. Knighten put together deals with the assistance of a co-defendant who also is an inmate in the same prison, Armando Luna, 39. Knighten also worked with a treasurer outside the prison walls, co-defendant Travis Vontress, 43, Wichita, Kan., as well as other close associates who collected funds to pay suppliers. Lower ranking conspirators were responsible for maintaining stash houses, cutting, packaging and storing drugs, reselling the final products and other duties.
90-YEAR SENTENCE
Although Knighten is being held in Oklahoma, he is still under the authority of the Kansas Department of Corrections. He is serving a 90-year sentence for killing a corrections officer at Lansing Correctional Facility on May 22, 1993. The victim, Officer Mark Avery, died of head injuries received during a fight in the prison recreation building.
In text messages and in phone calls, Knighten and the co-conspirators avoided using words that anyone overhearing them might too easily recognize. They used a variety of slang terms instead. For instance, they might call methamphetamine “ice hockey.” Heroin could be called “Jordan.” Cocaine could be “soda.” Sometimes crack cocaine was “hard” and “gorilla” could be the word for marijuana.
During the conspiracy, many of the co-defendants were known to one another by their street names instead of their given names. Examples include Bizz, P-Boy, E, Booty, YT, Troub, Diablo, Wack, Shot, Leggs, Gray, Bink, Funk, Godfather and Punch.
The conspirators are alleged to have maintained five properties in Wichita as stash houses for processing and storing drugs, including 930 N. Yale, 2548 Somerset, 245 N. Chautauqua, 1411 N. Holyoke and 429 N. Green.
CHARGES AND PENALTIES
Charges and potential penalties include:
- Operating a continuing criminal enterprise (count 1): Not less than 20 years and a fine up to $2 million.
- Conspiracy to distribute methamphetamine (count 2): Not less than 10 years and a fine up to $10 million.
- Conspiracy to distribute marijuana (count 3): Up to five years and a fine up to $250,000.
- Conspiracy to distribute heroin (count 4): Not less than 15 years and a fine up to $20 million.
- Conspiracy to distribute cocaine powder (count 5): Not less than 10 years and a fine up to $8 million.
- Conspiracy to distribute crack cocaine (count 6): Not less than 10 years and a fine up to $8 million.
- Maintaining drug involved premises (counts 7, 8, 9 and 10, 54, ):
- Unlawful use of a telephone in furtherance of drug trafficking (counts 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 38, 40, 41, 42, 43, 44, 45, 46 and 47): Up to four years and a fine up to $250,000.
- Possession with intent to distribute powder cocaine (count 23): Up to 20 years and a fine up to $1 million)
- Possession with intent to distribute methamphetamine (count 36, 39, 49): Not less than 10 years and a fine up to $10 million.
- Possession with intent to distribute heroin (count 37): Not less than five years, not more than 40 years, and a fine up to $5 million.
- Possession of firearms in furtherance of drug trafficking (count 50, 51, 52, 53, 55): Not less than five years and a fine up to $250,000.
DEFENDANTS
Here is a list of the defendants:
Richard Adams, 27, Wichita, Kan., counts 2, 3, 9, 48, 49 and 52.
David Bell, 46, Wichita, Kan., counts 5, 6, 40 and 50)
Frederick Collins, 47, Wichita, Kan.,counts 2, 5, 6 and 33.
Byron Fitchpatrick, 45, Wichita, Kan., counts 5 and 42.
Eric Goodwin, 53, Wichita, Kan., counts 4, 29 and 30.
Dorzee Hill, 40, Wichita, Kan., counts 3, 4, 5, 24, 25, 26, 28, 31, 32, 35, and 45.
Satoria Hill, 33, Wichita, Kan., counts 5 and 45.
Orlando Hogan, 44, Wichita, Kan., counts 2, 4, 9 and 27.
Derek Hubbard, 44, Wichita, Kan., counts 3 and 24.
Travis Knighten, 47, Oklahoma State Penitentiary, counts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 21, 22, 24, 25, 38, 40, 44, 47 and 54.
Kevin Lewis, 56, Wichita, Kan., counts 2, 4, 5, 6, 8, 12, 16 and 17.
Armando Luna, 39, Oklahoma State Penitentiary, counts 2, 9, 18, 19, 20 and 54.
Trey Martin, 27, Wichita, Kan., counts 3 and 26.
Mario Ponds, 39, Wichita, Kan., counts 5 and 42.
Otis Ponds, 41, Wichita, Kan., counts 2, 8 and 41.
Robert Richmond, 48, Wichita, Kan., counts 5, 6 and 46.
Kimberly Schmidtberger, 38, Wichita, Kan., counts 2, 4, 6 and 47.
Shantus Smallwood, 46, Wichita, Kan., counts 2, 43 and 44.
Travis Vontress, 43, Wichita, Kan., counts 2, 4, 5, 10, 21, 22, 23 and 51.
Kevin Walker, 54, Wichita, Kan., counts 4 and 28.
Tia Ward, 40, Wichita, Kan., counts 2, 3, 8, 38, 39 and 53.
Eddie Washington, 60, Wichita, Kan., counts 5, 31, and 32.
Trevor Wells, 39, Wichita, Kan., counts 2, 3, 4, 7, 35, 36 and 37 and 55.
Dallas Williams, 38, Wichita, Kan., counts 2 and 34.
The FBI and the Wichita Police Department investigated. Special Assistant U.S. Attorney Katherine Andrusak and Assistant U.S. Attorney Matt Treaster are prosecuting. The following agencies assisted with taking defendants into custody: the FBI, the Wichita Police Department, the Drug Enforcement Administration, the Sedgwick County Sheriff’s Office, Homeland Security Investigations and the U.S. Marshals Service.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct,
Illegal alien sentenced for possessing with intent to distribute heroin, fentanyl, carfentanil, and methamphetamineRead the Press Release
ATLANTA - Nicholas Hernandez-Gonzalez has been sentenced for possessing with intent to distribute multiple kilograms of fentanyl and other opioids on May 16, 2019 when agents with Homeland Security Investigations (“HSI”) and Georgia State Patrol (“GSP”) seized one kilogram of fentanyl during a traffic stop and more than ten kilograms of heroin, fentanyl, and carfentanil from his apartment in Duluth, Georgia.
“Hernandez-Gonzalez endangered countless people with the quantity of extremely dangerous drugs he was mixing and storing in his apartment,” said U.S. Attorney Byung J. “BJay” Pak. “This case highlights the risks for drug users and their families – you do not know what is in the drugs sold on the street. Fortunately, our law enforcement partners work tirelessly to remove these dangerous products from our streets.”
“The reckless manner in which Hernandez-Gonzalez mixed and sold his illegal drugs placed the entire community at risk. Powerful opioids like fentanyl have the potential to kill just by contact. I’m relieved that this defendant’s days of poisoning our community are over,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “Combatting the importation of fentanyl into the country and its distribution remains a top priority for HSI and its partners across Georgia.”
According to U.S. Attorney Pak, the charges and other information presented in court: In April 2019, HSI agents identified Hernandez-Gonzalez as a drug dealer selling what he claimed was simply heroin, but which actually contained a mixture of significantly more potent synthetic opioids - fentanyl and carfentanil. Fentanyl is 50 times more potent than heroin, and carfentanil is 100 times more potent than fentanyl.
On May 16, 2019, a GSP trooper stopped Hernandez-Gonzalez shortly after he left his apartment, and seized a cellophane-wrapped bundle that contained one kilogram of fentanyl from the backseat of his car. Hernandez-Gonzalez claimed the bundle contained heroin that he was delivering to a customer. Later that day, HSI agents searched Hernandez-Gonzalez's apartment and found nearly 10.5 kilograms of heroin, fentanyl, and carfentanil, a gun, and evidence that Hernandez-Gonzalez had been mixing various substances in the sparsely-furnished apartment. Specifically, one large plastic box in the master bedroom contained three kilograms of heroin and another box contained nearly four kilograms of a mixture of fentanyl and carfentanil. Agents also found ten bundles of powder containing methamphetamine and another kilogram of mixtures of fentanyl and carfentanil hidden inside a hole that had been cut into the master bedroom closet.
According to immigration records, Hernandez-Gonzalez had previously been deported to Mexico on two occasions in 2013.
Nicholas Hernandez-Gonzalez, 36, of Duluth, Georgia, was sentenced by U.S. District Judge Orinda D. Evans to 17 years, six months in prison to be followed by five years of supervised release. Hernandez-Gonzalez was convicted on these charges on August 29, 2019, after he pleaded guilty. Hernandez-Gonzalez will be deported to Mexico following his sentence of imprisonment.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated this case.
Assistant U.S. Attorney Nicholas Hartigan prosecuted the case.
This case is presented as a part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), which is an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl have on our neighborhoods.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hospice to pay $1.75 million to resolve false claims act allegationsRead the Press Release
ATLANTA - STG Healthcare of Atlanta, Inc. (“STG Healthcare”) and two of its senior executives, Paschal “Pat” Gilley and Mathew Gilley, have agreed to pay $1.75 million to resolve allegations that STG Healthcare, operating as Interim Healthcare of Atlanta, submitted or caused the submission of false claims to Medicare and Medicaid for patients who were not eligible for the hospice benefit and that resulted from STG Healthcare’s provision of unlawful payments to a referring physician in violation of the Anti-Kickback Statutes.
“Hospice is not a blank check for unscrupulous medical providers willing to admit patients who are not terminally ill,” said U.S. Attorney Byung J. “BJay” Pak. “It is reserved for those who truly need it. We will also continue to prioritize cases where it appears that a medical decision, especially the decision to forego curative treatment, has been influenced by a kickback.”
“When healthcare providers put their financial interests above the needs of patients the federal funds are diverted from where they are truly needed, putting our most vulnerable citizens at risk,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The message is clear; the FBI will not tolerate companies who file false claims to generate more corporate revenue and take advantage of programs like Medicare & Medicaid.”
“As more Americans choose hospice care, more government funding is being provided to this critical service. Unfortunately, scammers are seizing an opportunity to steal precious funding by enrolling ineligible patients in hospice care,” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With our law enforcement partners, we will continue to protect patients and the programs on which they depend.”
“The hospice benefit provided by Medicaid is especially reserved for terminally ill Georgians at a critical time of transition in their care,” said Attorney General Chris Carr. “Our office is proud to have worked alongside the U.S. Attorney’s Office for the Northern District of Georgia in this effort, and we will continue to ensure the hospice benefit is not exploited and abused by health care providers to the detriment of Georgia taxpayers.”The Medicare and Medicaid hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain, symptoms, or stress) for terminal illness and who have a life expectancy of six months or less if their illness runs its normal course. Before billing government healthcare programs, a hospice provider must comply with Medicare and Medicaid’s requirements and ensure that patients who are foregoing curative care are in need of end-of-life care.
The government alleges that, between 2013 and 2017, STG Healthcare submitted claims for patients who were not terminally ill. Specifically, the government contends that STG Healthcare’s business practices—setting aggressive goals for enrolling patients and failing to supervise properly the admission practices of its staff and medical directors—resulted in the submission of claims for ineligible patients. The government also alleges that STG Healthcare submitted or caused the submission of claims to Medicare and Medicaid for services provided to individuals referred by a physician who STG Healthcare paid to be a “back up” medical director, but who did not serve as a legitimate hospice physician.
The settlement resolves allegations filed by Serita Samuel and Miranda Eskridge, former STG Healthcare employees, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States and State of Georgia ex rel. Eskridge v. STG Healthcare of Atlanta, Inc. et al., No. 1:16-cv-0688-LMM (N.D. Ga.). Ms. Samuel and Ms. Eskridge will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The U.S. Attorney’s Office for the Northern District of Georgia, the FBI, the U.S. Department of Health & Human Services Office of Inspector General, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.The civil settlement was reached by Assistant U.S. Attorney Austin Hall and Georgia State Assistant Attorneys General Sara Vann and Rick Tangum.
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.Hiawatha Cocaine User Pleads Guilty to Illegally Possessing a GunRead the Press Release
A man who unlawfully possessed a handgun pled guilty today in federal court in Cedar Rapids.
Guillermo Legarrea, age 50, from Hiawatha, Iowa, was convicted of one count of being an unlawful user of cocaine in possession of a firearm.
At the plea hearing, Legarrea admitted that he illegally possessed the firearm in December 2018. Evidence at a prior hearing showed that Legarrea was stopped by a Hiawatha Police Officer on suspicion of driving with a suspended license. During the encounter, the officer noticed the odor of alcohol coming from Legarrea’s breath and could tell that he was intoxicated. Another officer observed beer bottles inside Legarrea’s van. After placing Legarrea under arrest for suspicion of drunk driving, the officers located a baggie containing cocaine in Legarrea’s sock. During a search of Legarrea’s van, officers located a black backpack that contained a loaded handgun and over $9,000 in cash.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Legarrea remains free on bond previously set pending sentencing. Legarrea faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case was investigated by the Hiawatha Police Department and Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19‑CR‑00100‑CJW‑MAR.
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Hazleton Man Indicted for Cocaine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ricardo Jimenez-Rodriguez, age 34, of Hazelton, Pennsylvania, was indicted on March 3, 2020, by a federal grand jury on drug trafficking charges.
According to United States Attorney David J. Freed, the indictment alleges that Rodriguez possessed with the intent to distribute over five kilograms of cocaine on February 23, 2020, in Conyngham, Pennsylvania.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant's educational, vocational, and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hartford Gang Member Pleads Guilty to Drug and Firearm ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RICARDO REYES, also known as “Rick the Ruler,” 40, of Hartford, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to offenses related to the possession and trafficking of narcotics and firearms.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Violent Crimes Gang Task Force began investigating Reyes, a member of the Los Solidos street gang, who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. On September 9, 2018, Reyes was arrested by Hartford Police on state charges after they found him in possession of a firearm and approximately 250 bags of heroin/fentanyl. Between January and June 2019, while Reyes was released on bond in his state case, investigators conducted multiple controlled purchases of narcotics from Reyes. Court authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates who sold drugs on his behalf.
Intercepted communications also revealed that Norman Klosek of Enfield was acting as a “straw purchaser” of firearms for Reyes. On April 22, 2019, Reyes picked up Klosek in Enfield and drove to a licensed gun dealer in Newington, where Klosek, who had a valid state firearm permit, purchased two handguns. Klosek then provided the guns to Reyes after the purchase. Later that day, investigators conducted a traffic stop of Reyes’ vehicle in New Britain and seized the two firearms. A search of the vehicle also revealed approximately 450 bags of suspected heroin/fentanyl, more than one pound of marijuana, and $1,160 in cash. Reyes was charged with state offenses, released on bond, and resumed his drug trafficking activity.
Reyes and several co-defendants were arrested on a federal criminal complaints on June 17, 2019. On that date, investigators seized two additional guns that had been purchased by Klosek, one that was in Reyes’ car and one that was in a Rowe Avenue residence that Reyes’ used as a stash location. Investigators also seized approximately 3,500 bags of fentanyl from the stash house, and approximately $6,000 from Reyes’ residence.
Reyes has been detained since his federal arrest. On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Reyes and 14 associates with various narcotics trafficking and firearm possession offenses.
Reyes pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 40 grams or more of fentanyl and 28 grams or more of cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Shea scheduled sentencing for June 5, 2020, at which time Reyes faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Reyes’ criminal history includes state drug convictions, and a federal conviction for dealing firearms without a license. The previous federal case involved Reyes and an associate, who had a valid state firearm permit, purchasing at least 13 firearms and selling them to drug dealers. Reyes was sentenced to 60 months in federal prison for that offense.
On March 2, 2020, Klosek pleaded guilty to one count of dealing firearms without a license, and one count of making a false statement during the acquisition of a firearm. Klosek, who was addicted to heroin/fentanyl, admitted that he had purchased a total of 47 handguns, and that he had sold or “loaned” the guns he had purchased to support his drug addiction. To date, approximately 10 of the 47 guns purchased by Klosek have been recovered by law enforcement. One gun was recovered after it was used in a shooting in Hartford on August 22, 2019.
The FBI’s Northern Connecticut Violent Crimes Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the New Britain Police Department have provided valuable assistance to the investigation. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hannibal Man Sentenced to 84 Months in Prison for Possessing over 50 Grams of MethamphetamineRead the Press Release
St. Louis, MO –Cody Wayne Seabaugh, 31, of Hannibal, MO, was sentenced to 84 months in prison for possession with the intent to distribute over 50 grams of methamphetamine. Seabaugh appeared in federal court today before United States District Judge Audrey G. Fleissig.
According to court documents, in July 2017, the Hannibal Missouri Police Department initiated an investigation into Seabaugh’s methamphetamine possession and distribution activities. As part of that active and on-going investigation, Hannibal police officers received information on October 4, 2017, that, among other things, Seabaugh had been involved in a vehicle accident, ran from the scene holding a bag, and was beating on residential doors in the area. When police eventually located Seabaugh, he was lying in the street. Officers observed plastic bags strewn about around Seabaugh in the roadway. Officers also saw a black and pink zip up bag lying in the street.
Inside the black and pink zip up bag, officers found and seized several bags containing approximately 126 grams of methamphetamine, a scale, more baggies, and U.S. currency. Seabaugh was arrested and a subsequent search of Seabaugh’s mobile phone discovered additional information confirming Seabaugh’s drug trafficking activities.
The Hannibal Police Department investigated this case, assisted by the Illinois State Police and the Drug Enforcement Administration. Assistant U.S. Attorney Lisa Yemm is handling the case.
Hammond Man Sentenced for Theft of More Than $240,000.00 in Social Security FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that DANNY L. LETARD (“LETARD”), age 57, of Hammond, Louisiana, was sentenced today for Theft of Government Funds, announced United States Attorney Peter G. Strasser.
According to documents filed in federal court, beginning in 1989, LETARD filed for and later became eligible for Social Security Administration (“SSA”) disability benefits of approximately $2,177.30 per month. During this period, LETARD formed a number of businesses including, but not limited to, Excavation/Dozer Company, Virginia Shop Site Cleaning Services, Virginia’s Job Site Cleaning, Virginia Cleaning Services, and R & D Dozer Excavation & Pipe Fabr. LETARD’s businesses were registered in the names of LETARD’s family members rather than in his name to conceal his employment. LETARD’s businesses performed demolition work and the cleaning of job sites according to occupational license applications filed with Tangipahoa Parish. LETARD also operated heavy construction equipment as part of his businesses. On October 24, 2017, LETARD was interviewed by agents with the SSA Office of Inspector General and the Louisiana State Police. In his post-Miranda interview, LETARD told the agents he concealed his SSA benefits through third party companies “so y’all wouldn’t find out about it.” Accordingly, LETARD fraudulently received approximately $242,000.00 in Social Security Administration disability benefits he was not entitled to due to his employment.
U.S. District Judge Lance M. Africk sentenced LETARD to 5 years of probation and restitution to the Social Security Administration in the amount of $242,308.20.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Grandview Man Sentenced to 15 Years for Meth, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Grandview, Missouri, man was sentenced in federal court today for distributing methamphetamine and illegally possessing a firearm.
Jorge Omar Hernandez, also known as “Little Mexico,” 21, was sentenced by U.S. District Judge Greg Kays to 15 years and one month in federal prison without parole.
On April 11, 2019, Hernandez pleaded guilty to one count of distributing methamphetamine and one count of possessing a firearm in furtherance of a drug-trafficking crime. Hernandez admitted that he sold methamphetamine to an undercover federal agent on several occasions. Law enforcement apprehended a total of 833.9 grams of pure methamphetamine from Hernandez.
According to court documents, Hernandez concealed 108.9 grams of pure methamphetamine in a folded child’s diaper, which he sold to the undercover agent for $1,500, on Sept. 21, 2017. Hernandez met the undercover agent again on Sept. 28, 2017, and sold 201.5 grams of pure methamphetamine for $2,800. On Feb. 14, 2018, Hernandez sold the undercover agent 90.8 grams of pure methamphetamine for $1,200.
Hernandez agreed to meet again on Feb. 27, 2018, to sell a pound of methamphetamine. When Hernandez arrived at the meeting location, he was arrested. Agents searched his vehicle and found a plastic baggie that contained 432.7 grams of pure methamphetamine, a loaded Glock .40-caliber pistol, a loaded extended Glock magazine, a loaded shotgun magazine, and two cell phones.
This case was prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Drug Enforcement Administration, the Johnson County, Kan., Sheriff’s Department, the Kansas City, Kan., Police Department, and the Overland Park, Kan., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Marathon County Teacher Charged with Attempting to Produce Child Pornography
Travis. C. Greil, 38, Wausau, Wisconsin, is charged with six counts of attempting to use a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The indictment alleges that between August 2015 and February 2020, he attempted to use six minors to produce child pornography using an iPad. During this time, Greil was employed as a teacher at D.C. Everest High School.
Greil is in custody in Marathon County following the filing of a complaint charging him with related state offenses. The date for his initial appearance in U.S. District Court in Madison, Wisconsin has not been set.
If convicted, Greil faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each count. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation – Internet Crimes Against Children Task Force, the Everest Metro and Wausau Police Departments, the Marathon County Sheriff’s Office, and the Marathon County District Attorney’s Office, with the cooperation of the D.C. Everest Area School District. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
This indictment has been brought as part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Wisconsin Rapids Woman Charged with Stealing Mail, Wire Fraud & Identity Theft
Shelby Bottensek, 42, Wisconsin Rapids, Wisconsin, is charged with conspiring to steal mail, stealing mail, wire fraud, identity theft, and possessing a forged check. The indictment alleges that Bottensek conspired with others known and unknown to the grand jury to steal mail from mailboxes, use credit cards found in the stolen mail, and use the identity of another person in the commission of a felony.
The indictment alleges that Bottensek and others conspired to steal over 350 pieces of mail addressed to over 170 individuals and entities from mailboxes in Amherst, Wisconsin Rapids, Waupaca, Port Edwards, Nekoosa, Necedah, Plover, Portage, Wausau, Friendship, Janesville, Westfield, and Town of Saratoga, Wisconsin from August through October 2019. The indictment alleges that Bottensek and others would transport the stolen mail to Bottensek’s residence in Wisconsin Rapids, open the mail, and remove anything of value, including cash, uncashed checks, and credit cards.
The indictment also charges Bottensek with stealing and attempting to steal mail from two authorized depositories for mail in Wisconsin Rapids on January 19, 2020.
The indictment further charges Bottensek with four counts of wire fraud for allegedly using credit cards found in the stolen mail to put money in jail commissary accounts of an inmate in the Walworth County jail and an inmate in the Wood County jail, and to make online purchases and purchases at businesses in Portage and Wood Counties. The indictment also charges her with four counts of using the identification of another person during the alleged wire fraud violations.
The eleventh count of the indictment charges Bottensek with possessing and uttering a forged security by using two corporate checks that had been stolen from the mail and contained forged signatures on the payor signature line to pay for items purchased at a business in Beloit, Wisconsin.
If convicted, Bottensek faces a maximum penalty of five years in federal prison on the conspiracy charge, five years on the stealing mail charge, 20 years on each of the wire fraud charges, and 10 years in prison on the possession of a forged security charge. Each of the identity theft charges carries a mandatory minimum penalty of two years, which would be served consecutive to any sentence imposed on the wire fraud charges.
The charges against Bottensek are the result of an investigation by the U.S. Postal Inspection Service, Wood County Sheriff’s Department, and Plover and Grand Rapids Police Departments. Assistant U.S. Attorney Daniel J. Graber is handling the prosecution.
Sun Prairie Man Charged with Armed Robbery
Mekhi Moss, 19, Sun Prairie, Wisconsin, is charged with the robbery of a business in Sun Prairie and with brandishing a firearm during the robbery. The indictment alleges that on January 21, 2020, Moss robbed the Stop-N-Go on Tower Drive in Sun Prairie, and that he brandished a firearm during this crime of violence.
If convicted, Moss faces a maximum penalty of 20 years in federal prison on the robbery charge, and a mandatory minimum penalty of seven years on the brandishing a firearm charge. Federal law requires that any penalty imposed on the brandishing a firearm charge be served consecutive to any sentence imposed on the robbery charge. The charges against him are the result of an investigation by the Sun Prairie Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
Chicago Man Charged with Robbery of Madison Business
Bernard Thomas, 28, Chicago, Illinois, is charged with robbing a Madison, Wisconsin business. The indictment alleges that on December 28, 2019, Thomas and five accomplices robbed Rocky’s Liquor on the West Beltline Highway in Madison.
The indictment alleges that one of Thomas’s accomplices brandished a weapon at an employee and demanded money while Thomas and the four other accomplices stole cases of liquor.
If convicted, Thomas faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Madison, Town of Madison, and Fitchburg Police Departments. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Monticello Man Charged with Illegally Possessing Ammunition
Justin Wenger, 37, Monticello, Wisconsin, is charged with being a felon in possession of ammunition. The indictment alleges that he possessed .223 caliber ammunition on January 16, 2020.
If convicted, Wenger faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Monroe and Monticello Police Departments, Green County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
The indictments charging Moss, Thomas, and Wenger have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Crawford County Man Charged with Methamphetamine Crime
Travis Johnson, 31, Gays Mills, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on November 10, 2019.
If convicted, Johnson faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Crawford County Sheriff’s Office. Assistant U.S. Attorney Chadwick M. Elgersma is handling the prosecution.
Grand Island Woman Sentenced for Possession of Methamphetamine with Intent to DistributeRead the Press Release
United States Attorney Joe Kelly announced that Racquel Hamilton, 31, of Grand Island, was sentenced today in federal court in Lincoln, Nebraska for Possession with Intent to Distribute Methamphetamine. Senior United States District Judge Richard G. Kopf sentenced Hamilton to 9 years, 2 months’ imprisonment. There is no parole in the federal system. Hamilton will serve a four-year term of supervised release after completing her prison term.
In March, 2019, the Grand Island Police Department received a tip of Hamilton’s whereabouts. Hamilton had an active warrant for her arrest. The police located Hamilton and found her to have methamphetamine in her coat pocket and a large amount of U.S. currency. The methamphetamine was sent to the Nebraska State Crime Lab for testing. Results confirmed that the methamphetamine found on Hamilton was 11 grams of pure methamphetamine.
This case was investigated by the Grand Island Police Department and the Central Nebraska Drug and Safe Streets Task Force.
Fort Wayne Man Sentenced to 10 Years in PrisonRead the Press Release
FORT WAYNE – Demonta Huddleston, age 28, formerly of St. Joseph, Michigan was sentenced before U.S. District Court Judge Holly A. Brady to 120 months in prison upon his guilty plea to two distribution of a controlled substance charges, announced U.S. Attorney Kirsch.
According to documents in this case, in November 2017, the Fort Wayne Police Department began receiving anonymous tips regarding drug trafficking activity happening at a particular residence in Fort Wayne, Indiana. Demonta Huddleston as well as those specifically named in those anonymous tips were observed at that residence in January 2018.
Thereafter, on May 3, 2018, a confidential informant working with the Fort Wayne Police Department made a telephone call to Demonta Huddleston to arrange for the purchase of $600 of methamphetamine. Huddleston directed the confidential informant to nearby car wash in Fort Wayne, Indiana. Law enforcement followed the confidential informant to this location and thereafter observed a white vehicle with a Michigan license plate arrive at the car wash and park next to the confidential informant’s vehicle. Huddleston was the driver of the white SUV. The confidential informant met with Huddleston in the white SUV for approximately one minute. After meeting with Huddleston, the confidential informant turned over to law enforcement 26.9 grams of methamphetamine that he had received from Huddleston.
On July 11, 2018, the same confidential informant made a recorded telephone call to a known associate of Huddleston to arrange for the purchase of one ounce of methamphetamine and a quantity of heroin. During this recorded call, the associate instructed the confidential informant to go to a nearby store and wait and someone would be there soon with the drugs. A short time later, surveillance officers in the area of that store saw Huddleston arrive at the store and meet with the confidential informant. Huddleston gave the confidential informant one ounce of methamphetamine and a small amount of heroin. These were the same drugs and amounts negotiated earlier by the confidential informant and Huddleston’s associate.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fort Wayne Police Department Vice & Narcotics Unit. Assistant United States Attorney Lesley J. Miller Lowery handled this prosecution.
Former U.S. Marine and Registered Sex Offender Pleads Guilty to Coercing Minors to Produce Sex Abuse MaterialRead the Press Release
Tampa, Florida – Joshua Eugene Burton (34, Missouri) has pleaded guilty to coercing a minor to engage in sexually explicit activity and committing a child sex offense while registered as a sex offender. Burton faces a maximum penalty of life in federal prison.
According to the plea agreement, Burton engaged in sexually explicit online conversations with a 14-year-old individual ("Victim 1") while portraying himself as a teenage girl from California named “Becky Smith.” In his conversations, Burton persuaded, induced, enticed, and coerced Victim 1 to create and send him sexually explicit images and videos of himself/herself. Burton also coerced Victim 1 into creating a video of Victim 1 performing oral sex on a 16-year-old individual ("Victim 2") by threatening to publicly post the photos and videos that he had previously received. In order to add more credibility to his threat, Burton specifically referenced the schools that both victims attended. As a result of his threats, Victim 1 sent Burton multiple sexually explicit images and videos.
Burton is a former U.S. Marine who was convicted of possession of child pornography in 2008 during the time he served in the United States Marine Corps. As part of his conviction, Burton was required to register as a sex offender and was dishonorably discharged from the Marine Corps.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Candace Garcia Rich.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Roanoke Tax Preparer Sentenced to Prison for Filing False ReturnsRead the Press Release
ROANOKE – A former tax return preparer in Roanoke, Virginia, was sentenced to 12 months and one day in prison today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia.
According to documents and information provided to the court, Pierre owned and operated JP Tax Services LLC, a tax return preparation business in Roanoke, Virginia. From 2013 through 2014, Pierre falsified clients' tax returns by fraudulently claiming residential energy credits, fuel tax credits, and itemized deductions, in order to inflate his clients’ refunds. Pierre also fraudulently claimed the fuel tax credit on his own 2013 tax return.
In addition to the term of prison imposed, U.S. District Judge Urbanski ordered Pierre to serve one year of supervised release and pay $25,495 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cullen thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Lauren Archer and Kevin Schneider, and Assistant U.S. Attorney Charlene R. Day, who prosecuted 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.
Former Knox County Magistrate Sentenced to 18 Months for Selling Controlled SubstancesRead the Press Release
LONDON, Ky. - A Flat Lick, Kentucky man, Jerry Cox, 70, was sentenced in federal court on Tuesday, to 18 months in prison, by U.S. District Judge Claria Horn Boom, for distributing hydrocodone and oxycodone pills.
Cox previously admitted that, on two separate occasions in April 2018, he sold oxycodone and hydrocodone pills, from both his residence and business in Knox County. Cox pleaded guilty in September 2019. In addition to his prison sentence, Cox will serve six months of home detention.
Under federal law, Cox must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for two years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Brett R. Pritts, Acting Special Agent in Charge for DEA, Louisville Field Division; and Rodney Brewer, Commissioner of the Kentucky State Police, jointly made the announcement.
The investigation was directed by the DEA. The United States was represented by Assistant U.S. Attorney Jason Parman.
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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Former Forsyth County Commissioner Pleads Guilty to Tax FraudRead the Press Release
WASHINGTON – A former Forsyth County Commissioner pleaded guilty today to filing false tax returns and failing to file a tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents and statements made in court, Everette Witherspoon Jr., was a managing member of “Chris’s Rehablative [sic] Services” (CRS), a mental health services provider, in Greensboro, North Carolina. Witherspoon also co-owned and operated Quick Taxes LLC, and Fast Tax Inc., tax return preparation businesses in Greensboro and Winston-Salem, respectively. For 2013 through 2015, Witherspoon filed false tax returns with the Internal Revenue Service (IRS) that failed to report his county commissioner wages and underreported income he received from CRS. Witherspoon also failed to file a tax return for 2012.
U.S. District Judge Thomas D. Schroeder scheduled sentencing for May 26, 2020. At sentencing, Witherspoon faces a statutory maximum sentence of three years in prison for filing a false tax return and one year in prison for failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Witherspoon’s partner at CRS and Quick Taxes, Willie Lee Cole Jr., was sentenced in January 2020 to six months’ imprisonment for failing to file his tax returns.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Castaldi of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, 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.
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Former Forsyth County Commissioner Pleads Guilty to Tax FraudRead the Press Release
A former Forsyth County Commissioner pleaded guilty today to filing false tax returns and failing to file a tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents and statements made in court, Everette Witherspoon Jr., was a managing member of “Chris’s Rehablative [sic] Services” (CRS), a mental health services provider, in Greensboro, North Carolina. Witherspoon also co-owned and operated Quick Taxes LLC, and Fast Tax Inc., tax return preparation businesses in Greensboro and Winston-Salem, respectively. For 2013 through 2015, Witherspoon filed false tax returns with the Internal Revenue Service (IRS) that failed to report his county commissioner wages and underreported income he received from CRS. Witherspoon also failed to file a tax return for 2012.
U.S. District Judge Thomas D. Schroeder scheduled sentencing for May 26, 2020. At sentencing, Witherspoon faces a statutory maximum sentence of three years in prison for filing a false tax return and one year in prison for failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Witherspoon’s partner at CRS and Quick Taxes, Willie Lee Cole Jr., was sentenced in January 2020 to six months’ imprisonment for failing to file his tax returns.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Castaldi of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Former American Airlines Mechanic Sentenced to Prison for Attempting to Destroy an AircraftRead the Press Release
MIAMI−Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office announced that Abdul-Majeed Marouf Ahmed Alani, 60, of Tracy, California was sentenced today by U.S. District Judge Marcia G. Cooke to 37 months in prison, after previously pleading guilty to the federal charge of attempted destruction of an aircraft.
According to the court record, including the facts admitted at the change of plea hearing, on or about July 17, 2019, Alani, a mechanic then employed by American Airlines at Miami International Airport (MIA), tampered with the air data module (ADM) system of an aircraft that was scheduled to depart MIA for Nassau, Bahamas.
On or about July 17, 2019, approximately two hours after its arrival into MIA, the aircraft pulled out for its scheduled departure to the Bahamas. Passengers and crew members were aboard the aircraft. While on the departure runway, the flight crew increased power to the aircraft engines in preparation for take-off. This resulted in an error reading by the aircraft’s computer related to the ADM system and the take-off was aborted.
Prior to the aircraft’s scheduled take-off from MIA, it was discovered that Alani had inserted a foam substance into the ADM system and used super glue to hold the substance in place.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s South Florida Joint Terrorism Task Force (JTTF). She thanked the U.S. Federal Air Marshal Service, Miami-Dade Police Department’s Airport Division, U.S. Department of Homeland Security Transportation and Security Administration (TSA), U.S. Customs and Border Protection, Miami-Dade County Aviation Authority and Federal Aviation Administration (FAA) for their invaluable assistance. The case was prosecuted by Assistant U.S. Attorneys Randy A. Hummel and Maria K. Medetis.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Florida man admits to unlawfully downloading tax return transcripts from IRSRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ludrick Joseph, of Miami, Florida, has admitted to downloading taxpayer transcripts by unlawfully accessing Internal Revenue Service computers, U.S. Attorney Bill Powell announced.
Joseph, age 38, pled guilty this week to a one-count information charging him with “Accessing a Computer and Obtaining Information.” Joseph admitted to fraudulently accessing the Internal Revenue Service (IRS) eAuthentication online taxpayer system, which has servers located in Berkeley County, in April 2015. In order to pass IRS security protocols, Joseph unlawfully obtained the Electronic Filing Pin (EFP) for a taxpayer which allowed him access into the eAuthentication system. Once in the IRS eAuthentication system, Joseph fraudulently gained access to eight different tax return transcripts of an individual taxpayer. The tax return transcripts contained the taxpayer’s date of birth, social security number, and gross income, among other sensitive information.
Joseph faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Treasury Inspector General for Tax Administration Cybercrime Investigations Division investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Felon Pleads Guilty to Hampton Roads Cocaine ConspiracyRead the Press Release
NORFOLK, Va. – A Norfolk man with a previous federal drug-trafficking conviction pleaded guilty today to conspiring to traffic wholesale amounts of cocaine in and around Hampton Roads and to possessing several guns to protect his drug trade.
According to court documents, in 2014, Daryl Keith Sills, 56, completed a nine-year federal sentence for conspiring to distribute multiple kilograms of cocaine. Two years later, he started up his drug trafficking operation again, distributing at least one kilogram of powder cocaine a month until his October 2019 arrest on the charges in this case.
In 2018, DEA conducted three controlled buys from Sills, totaling 140 grams of cocaine. In 2019, informants observed Sills receive and store in his residence more than 10 kilograms of cocaine. At Sills’ arrest, law enforcement searched his Norfolk and Virginia Beach drug premises, recovering a total of nine firearms, hundreds of rounds of ammunition, 713 grams of cocaine, and 74 grams of marijuana. Sills admitted to his years-long conspiracy and attributed 20 kilograms of historical cocaine weight to himself.
Sills pleaded guilty to one count of conspiring to distribute and possess with intent to distribute 500 grams or more of cocaine, and two counts of possessing firearms in furtherance of drug-trafficking crimes. He faces a mandatory minimum of 15 years in prison and a maximum of life when sentenced on June 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; James A. Cervera, Chief of Virginia Beach Police; and Larry D. Boone, Chief of Norfolk Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-002.
Federal Jury in New Mexico convicts man from Minnesota of falsely impersonating Border Patrol agent at Southwest borderRead the Press Release
ALBUQUERQUE, N.M. – A federal jury in Las Cruces, New Mexico returned a guilty verdict on Mar. 3 convicting James Christopher Benvie, 45, of Albany, Minnesota, of two counts of false personation of a Border Patrol agent.
According to public court records and evidence at trial, Benvie was a leader and spokesperson for a group of vigilantes who established a “camp” at the Southwest border in Doña Ana County, New Mexico. Many members of the group wore badges, camouflage and other military-style clothing, often covered their faces with masks, and carried pistols and assault rifles. Benvie misrepresented himself as a Border Patrol Agent when stopping immigrants he suspected of crossing into the United States illegally.
“The jury’s verdict in this case affirms the principle that we are a nation of laws and do not tolerate vigilantes who take the law into their own hands by falsely impersonating Border Patrol agents,” said John C. Anderson, U.S. Attorney for the District of New Mexico.
“The men and women who earned the right to wear the badge of a Border Patrol agent put their lives on the line every day,” said James C. Langenberg, Special Agent in Charge of the FBI’s Albuquerque Division. “The FBI is proud to have worked on this case with these brave agents and will never let their honor be stolen by pretenders who scoff at the rule of law.”
The evidence at trial showed Benvie and other group members stopped six women and children from El Salvador on Apr. 15, 2019, without any legitimate law enforcement authority. Benvie misrepresented himself as a Border Patrol agent and interrogated the immigrants before turning them over to actual Border Patrol agents. On Apr. 17, 2019, Benvie stopped four adults and three children shortly after they crossed the border. Benvie ordered these immigrants to “stop” while misrepresenting himself as “Border Patrol.” Benvie later directed these immigrants to move toward the truck of another member of the group for further interrogation before eventually turning them over to Border Patrol.
Benvie is currently out of custody awaiting sentencing. He faces up to three years in prison for each offense.
The FBI and U.S. Border Patrol investigated this case. Assistant U.S. Attorneys from the Las Cruces Branch Office are prosecuting the case.
Federal Jury Convicts Man of Wire and Mail Fraud in Connection with Fraudulent Mortgage Debt Reduction SchemeRead the Press Release
HONOLULU, Hawaii – A federal jury yesterday found Anthony T. Williams, 48, of Nashville, Tennessee guilty of 32 counts of wire and mail fraud. The verdict followed a four-week trial before United States District Judge Leslie E. Kobayashi. Sentencing is scheduled for June 24, 2020
According to the evidence presented at trial, Williams marketed a fraudulent mortgage debt reduction scheme to distressed homeowners, who were mostly non-native English speakers in the Filipino immigrant community in Hawaii. Williams created two companies, Mortgage Enterprise Investments (MEI) and Common Law Office of America (CLOA), neither of which was licensed to service or modify mortgages. Through MEI, Williams made conflicting promises to clients that he could eliminate their existing mortgage obligations to their lenders, or reduce their mortgage obligations by half. Through CLOA, Williams promised legal representation in mortgage-related litigation and foreclosure proceedings. To give himself the appearance of credibility, Williams told prospective clients he was a “private attorney general” and brandished an official-looking law enforcement badge and credentials, despite not having a law license or any affiliation with law enforcement.
The evidence at trial demonstrated that Williams falsely promised victims that he could eliminate their existing home mortgage obligations by filing bogus documents with the Hawaii Bureau of Conveyances. These documents included new MEI mortgages and notes obligating homeowners to make monthly payments to MEI. Williams then advised homeowners to stop making their mortgage payments to their lenders and to pay him instead.
The government presented evidence that between 2012 and 2015,Williams enlisted 112 victims in Hawaii into his MEI program and fraudulently obtained over $218,000. Furthermore, several victims testified at trial that they relied upon Williams’s representations and went into foreclosure as a result of the MEI program and lost their homes.
The investigation was led by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kenneth M. Sorenson and Gregg Paris Yates handled the prosecution.
Engineering Grad Sentenced for Lying to FBIRead the Press Release
Aaron Fein concealed using and trying to make mass casualty weapons
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced that Aaron William Fein, 25 years old, of Grand Rapids, was sentenced today to 27 months’ imprisonment by U.S. District Judge Paul L. Maloney. Fein pled guilty in July to lying to FBI agents about renting and training with an AR-15. Upon his release, Fein will be confined to his home and closely supervised by the U.S. Probation Office for 3 years. Both in custody and after his release, Fein will receive mental health treatment and counseling. As a result of his conviction, he is barred from possessing firearms in the future.
Task Force Agents first became aware of Fein in August, 2018, when he attempted to cross into Canada without proper documentation. When he returned, U.S. Customs and Border Protection agents found documents and materials in his car relating to bomb making and jihadism. Fein admitted having bomb-making materials at his home, and told agents he was interested in mass shootings. During the following months, Task Force Agents kept close tabs on Fein, including encouraging him to seek counseling.
On several occasions last year, Fein obtained and attempted to obtain firearms and ammunition, but agents interceded. Agents eventually filed a petition for mental health treatment, and the Kent County Probate Court ordered Fein not to possess any firearms. In April, 2019, agents learned Fein had rented an AR-15 style semiautomatic assault rifle and trained with it at a firearms range in eastern Michigan. When they apprehended him soon after, he falsely stated he had not touched any guns. Video recordings from the range clearly showed him shooting the rifle. After additional investigation, agents learned Fein had bought metalworking tools. They arrested him at his residence, and found unassembled parts for multiple AR-15 rifles, as well as radio transmitters and electrical components for an improvised explosive device. Fein has a college degree in engineering.
District Judge Maloney imposed an enhanced sentence in this case based on several factors, including obstructing justice by asking a fellow inmate to help him dispose of evidence. Judge Maloney concluded a substantial term of incarceration was necessary because “Mr. Fein is a significant risk to the public.”
Aaron Fein's behavior dictated that law enforcement get involved so that he would not continue to pose a danger to our communities," said FBI Special Agent in Charge Steven M. D'Antuono. "Today's sentence reflects a balance of the need to protect the public - by preventing Mr. Fein from purchasing weapons - with the recognition that he should be afforded the opportunity to receive the mental health services he needs.
This investigation was a joint effort of the Federal Bureau of Investigation, Homeland Security Investigations, U.S. Customs and Border Protection, the Kent County Sheriff’s Office and the Michigan State Police.
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El Salvador citizen who helped local MS-13 members in jail sentenced to prison for reentering United States illegallyRead the Press Release
COLUMBUS, Ohio – A man who was in frequent communication with imprisoned members of the Columbus clique of MS-13 was sentenced in U.S. District Court today for reentering the United States illegally for the third time.
Fabian Posadas-Mejia, 44, was sentenced to 10 months in prison and one year of supervised release, and is subject to deportation following his prison sentence.
Posadas-Mejia was convicted by a jury following a one-day trial in October 2019.
According to court documents, Posadas-Mejia is a citizen of El Salvador with no legal status in the United States. Immigration officials initially encountered him nearly 25 years ago. Posadas-Mejia was first ordered to be removed from the United States in 1995. He was deported twice in 2014 and once in 2017.
Most recently, law enforcement officials encountered Posadas-Mejia as part of the prosecution of numerous members and associates of MS-13 in Columbus.
In the days and weeks following an August 2017 takedown of the transnational gang, investigators monitoring phone calls that MS-13 members were making from jail learned that multiple inmates were in frequent communication with Posadas-Mejia.
The defendant was depositing money in the gang members’ jail accounts, helping them retrieve and dispose of personal property and checking on inmates’ families.
In addition to being removed from the United States three times and being linked to the government’s ongoing prosecution of MS-13, Posadas-Mejia has a previous domestic violence conviction, among other state convictions.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations, announced the sentence imposed by U.S. District Court Judge Edmund A. Sargus, Jr. Deputy Criminal Chief Brian J. Martinez is representing the United States in this case.
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Dunedin Woman Pleads Guilty to Distributing Heroin and Fentanyl, Causing DeathRead the Press Release
Tampa, Florida – Heidi Kalous (39, Dunedin) today pleaded guilty to conspiring and distributing a substance that contained a mixture of heroin, fentanyl, and acetyl fentanyl, causing the death of an individual. She faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning no later than June 5, 2019, and continuing through June 28, 2019, Kalous conspired with other individuals to possess and distribute heroin, fentanyl, and acetyl fentanyl throughout Pinellas County.
On June 5, 2019, Kalous distributed two bags —which contained a substance composed of a mixture of heroin, and fentanyl—to an individual. The individual injected himself with the substance from the bags and died. A medical autopsy revealed that the cause of death was an accidental overdose caused by fentanyl toxicity.
Between June 5 and June 27, 2019, after the individual’s death, Kalous continued to distribute narcotics, including crack cocaine, fentanyl, acetyl fentanyl and heroin, out of a motel in Dunedin.
This case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. This case was investigated by the Drug Enforcement Administration and the Pinellas County Sheriff’s Office, with assistance from the Pinellas County Medical Examiner’s Office. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Drug Dealer Pleads Guilty in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorney David P. Finn (619) 546-7342
NEWS RELEASE SUMMARY – March 4, 2020
SAN DIEGO – Michael Steen pleaded guilty in federal court today, admitting that he supplied fentanyl that led to the fatal overdose of a 33-year-old Ramona woman on July 9, 2018.
According to his plea agreement, Steen sold more than 500 grams of what he knew to be fentanyl in 2018. He pleaded guilty before U.S. Magistrate Judge F. A. Gossett III to Conspiracy to Distribute Fentanyl and is scheduled to be sentenced on May 29, 2020 by U.S. District Judge Gonzalo P. Curiel.
“This case should put dealers on notice that every time we have an overdose death, we are going to come looking for you, because many lives are at stake,” said U.S. Attorney Robert Brewer. “We are using every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.”
“This case is an example of the DEA, the Sheriff’s Department and the U.S. Attorney’s office working together with one definitive goal: To put people responsible for drug deaths in jail,” said DEA Special Agent in Charge John W. Callery. “We will continue to aggressively pursue those who deal drugs and cause death in our community.”
“Sheriff's Deputies are on the front lines of combating the proliferation of illicit fentanyl,” said Sheriff’s said Captain Justin White. “There are many stories of lives stolen. In this case, the victim is a young woman from Ramona who was just starting off in life. The Sheriff's Department is dedicated to working with our federal, state and local partners in holding those accountable for the distribution, supply or manufacturing of this potent painkiller.”
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the San Diego County Sheriff’s Office, the Drug Enforcement Administration and our other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
U.S. Attorney Brewer praised prosecutor David Finn as well as the San Diego Sheriff’s Office and DEA agents for their hard work on the case.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 19-CR-0869-GPC
Michael Steen Age: 26
SUMMARY OF CHARGES
Conspiracy to Distribute Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Mandatory minimum 10 years in prison up to life
AGENCY
San Diego Sheriff’s Office
U.S. Drug Enforcement Administration, Narcotics Task Force
Doctor Pleads Guilty to Illegal Distribution of Adderall, OxycodoneRead the Press Release
ALEXANDRIA, Va. – A Fairfax medical doctor pleaded guilty today to illegally diverting Adderall and oxycodone to six different patients, including a patient who suffered from opioid addiction and later died of a drug overdose.
According to court documents, Dr. Gurpreet Singh Bajwa, 49, temporarily lost his medical license in 2012 following an investigation by the Virginia Department of Health Professions (DHP) into his prescription practices. After he license was reinstated, he significantly reduced the quantity of pain medications he prescribed, and switched over to stimulants, benzodiazepines, and sedatives.
Generally, at no point during any of his patients’ visits did Bajwa or any of his staff receive, review, or request prior medical files; obtain medical histories; conduct physical examinations; discuss the case of any attention disorder or what might properly address such a condition; discuss any alternatives to treatment; or obtain and analyze urine samples to ensure his patients were taking their medications as directed.
Beginning in summer 2018, two undercover law enforcement officers posed as patients and made appointments to see Bajwa. At each visit, Bajwa prescribed the undercover officers a 30-day supply of Adderall—despite the undercover officers showing up to two weeks prior to the end of the previous 30 day period. One of the officers told Bajwa that she was a fitness model and needed Adderall for her workouts, which is not a legitimate use for the substance. The undercover officer also asked Bajwa to prescribe her extra pills that she could give to a “friend” and he readily agreed.
One of the patients to whom Bajwa prescribed significant quantities of prescription drugs had a history of high blood pressure, among other health conditions. Nevertheless, Bajwa wrote her monthly prescriptions for the maximum dose of Adderall, a schedule II stimulant.
In 2016, the CDC and the FDA issued warnings cautioning against prescribing opioids and benzodiazepines (including Xanax) together because of the increased risk of fatal overdose. Nevertheless, on multiple occasions, Bajwa wrote prescriptions to patients for both oxycodone—a powerful Schedule II opioid—and Xanax.
One of Bajwa’s patients, N.J., suffered from heroin addiction. N.J.’s mother told Bajwa two or three times that N.J. was abusing drugs, and yet Bajwa continued to prescribe controlled substances to N.J. In November 2017, Bajwa prescribed both oxycodone and Xanax to N.J., despite knowing of N.J.’s drug addiction, and despite the increased danger of combining the two medications. In January 2018, N.J. was dismissed from a rehabilitation program after he was caught abusing drugs Bajwa prescribed him. N.J. died of a drug overdose a short time later.
Bajwa pleaded guilty to five counts of distribution of Adderall, and one count of distribution of oxycodone and faces a maximum penalty of 20 years in prison when sentenced on May 22. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-060.
District Man Pleads Guilty to Armed Robbery and Armed First Degree BurglaryRead the Press Release
WASHINGTON – Denzell Moore, 26, of Washington, D.C. pled guilty to a Hobbs Act robbery and a federal firearms charge stemming from an armed robbery of a CVS near American University in the Fall of 2017, as well as an armed first degree burglary of a Howard University student’s home that occurred in the Spring of 2012, announced U.S. Attorney Timothy J. Shea, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Moore pled guilty in the U.S. District Court for the District of Columbia to one count of Interference with Interstate Commerce by Robbery and one count of Using, Carrying, Possessing, and Brandishing a Firearm during a Crime of Violence for the October 25, 2017 CVS offense, and one count of D.C. Code First Degree Burglary While Armed for the May 16, 2012 offense. He will be sentenced on May 15, 2020, by the Honorable Judge Tanya S. Chutkan and is facing between eleven and fifteen years of imprisonment.
Moore was originally arrested in connection with the May 16, 2012, burglary after he forcibly entered the residence of a college student while wearing a black ski mask and carrying a gun. During a struggle in the residence between Moore and the victims, Moore shot two of the victims in the knee and foot. Moore left behind his black ski mask, yielding a DNA match.
While on pretrial release for the 2012 burglary, Moore and two accomplices participated in the armed robbery of the CVS. At approximately 11:30 p.m. on October 25, 2017, Moore and two accomplices drove to a CVS located at 4555 Wisconsin Avenue, Northwest, Washington, D.C. near American University. Moore and one of his accomplices entered the store, brandished firearms, and ordered store employees to provide access to the store’s safe, obtaining approximately $4,300 in cash before escaping in their accomplice’s getaway car. Within minutes, MPD officers who had responded to the 911 call from the store, observed the getaway car and attempted to pull it over. The vehicle fled at a high rate of speed, before it ultimately came to a stop in Northwest, D.C. Before the car stopped, Moore jumped out and fled on foot, dropping a bag full of money and two firearms.
In announcing the plea, U.S. Attorney Shea, and MPD Chief Newsham commended the work of those law enforcement officers who investigated the cases. They also cited the efforts of those who worked on the cases from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Lauren B. Goddard, Melissa Jackson, Gregory Rosen, Jason McCullough, and William Woodruff. They also thanked Paralegal Specialists Teesha Tobias and Katie Thomas, as well as Legal Assistants Kate Abrey and Emma Atlas.
Derby Man Sentenced to Prison for Possessing Images and Videos Depicting the Sexual Abuse of ChildrenRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL VADAKIN, 29, of Derby, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 12 months and one day of imprisonment, followed by five years of supervised release, for possessing child pornography. Vadakin must serve the first four months of his supervised release in home confinement.
According to court documents and statements made in court, Vadakin was arrested on December 13, 2018, after an investigation revealed that he had used the Kik smartphone application to possess and share images and videos of children being sexually abused. Forensic analysis of a tablet seized during a search of Vadakin’s residence revealed additional images of child pornography.
The investigation also revealed that, in an attempt to hide his criminal behavior, Vadakin regularly downloaded the Kik app and deleted the app after each use. He also used fake user names and switched user names in an effort to remain anonymous on Kik and the internet.
On September 6, 2019, Vadakin pleaded guilty to one count of possession of child pornography.
Vadakin, who was released on bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of today’s court proceeding.
This investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with assistance from the Derby Police Department. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Department of Justice Launches a National Nursing Home InitiativeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart joined Attorney General William P. Barr in announcing the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department has already initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
“West Virginia has a significant elder population and many families depend on nursing homes to provide excellent quality care to their loved ones,” said United States Attorney Mike Stuart. “We will bring all available federal resources to bear on nursing homes in the District that put greed before resident care. We are committed to protecting and ensuring justice for West Virginia seniors.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing and rodents found living in residents’ rooms. These are some of the actions and the inactions that the department intends to pursue.
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
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Department of Justice Launches A National Nursing Home InitiativeRead the Press Release
WASHINGTON – Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida joined Attorney General William P. Barr in announcing today the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department has already initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
“Senior American need to be cherished. Unfortunately, many nursing home operators forget that. Our Office pledges its strong commitment to the national nursing home initiative announced today,” say U.S. Attorney Fajardo Orshan. “We must make certain that our seniors receive the respect and care that they deserve and that substandard nursing homes pay for their unconscionable acts of neglect.”
“The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS. “Creating this Initiative sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing and rodents found living in residents’ rooms. These are some of the actions and the inactions that the department intends to pursue.
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
Seventeen Defendants Charged in the Southern District of Florida
MIAMI – United States Attorney Ariana Fajardo Orshan joined Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation Miami Field Office; Inspector in Charge Antonio J. Gomez of the United States Postal Inspection Service’s (USPIS) Miami Division; and Special Agent in Charge George L. Piro FBI Miami today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
United States v. Adrianzen, Case No. 1:19-CR-20658: Indictment
United States v. Bindranauth, Case No. 4:19-CR-10016: Indictment
United States v. Burchell, Case No. 0:19-CR-60313: Indictment
United States v. Grossman, Case No. 0:19-CR-60300
United States v. Marchena, Case No. 1:19-CR-20622: Indictment
United States v. Perez, Case No. 1:19-CR-20850: Indictment
United States v. Shapiro, Case No. 1:19-CR-20178: Indictment
United States v. Turk , Case No. 9:19-CR-80148: Information
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“Fraudsters who brazenly prey on our seniors will pay for their crimes. Protecting our seniors is top priority of our Office,” said U.S. Attorney Fajardo Orshan. “We will not cease in our efforts, both criminal and civil, to prevent the pernicious crimes and punish the perpetrators.”
“Elder abuse is a serious crime and IRS Criminal Investigation is committed to investigate individuals who perpetrate schemes against the elderly community and those exhibiting vulnerability in our society. IRS-CI will not stop its efforts as demonstrated in the United States v. Shapiro case until the fraudsters of such cold and calculated crimes are captured and sentenced” said Special Agent in Charge Michael J. De Palma. “With the support and assistance from the U.S. Attorney’s Office in the Southern District of Florida, IRS-CI will continue to enforce the law and foster public trust as an active agency in the Transnational Elder Fraud Strike Force.”
“The U.S. Postal Inspection Service has a long tradition of protecting the American consumer from these types of predatory schemes and bringing those responsible to justice particularly when they target the elderly,” said Inspector in Charge Antonio J. Gomez. “Every day we protect our postal customers and the general public from falling victim to these scams.”
“The greed of fraudsters who target senior citizens knows no bounds. Using a variety of tactics such as false romance and law enforcement impersonation, these scam artists bilk hard earned money from their aging marks – leaving many so financially devastated that they cannot recover because of their stage of life,” said Special Agent in Charge George L. Piro. “The FBI is doing everything we can to be sure our elder fellow citizens are protected and not defrauded.”
This interactive map provides state by state information on the elder fraud cases and education and prevention community outreach efforts highlighted by today’s sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Watch USA Fajardo Orshan’s related public service announcement here:
For English Speakers
For Spanish Speakers
Transnational Elder Fraud Strike Force
The Transnational Elder Fraud Strike Force prosecuted more than one quarter of the defendants charged as part of the announced sweep. Established in June 2019, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Prosecutors in Strike Force districts brought cases against more than 140 sweep defendants. FBI and the Postal Inspection Service served as lead agencies in the Strike Force and committed substantial investigative resources to pursuing elder fraud cases as part of Strike Force efforts. The Strike Force has held dozens of meetings with industry, victim groups, and law enforcement at the federal, state, and local levels to identify the most harmful schemes victimizing American seniors and to bolster preventive measures against further losses.
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Antitrust Division Announces Agenda and Panelists for Workshop on Proposed Vertical Merger GuidelinesRead the Press Release
The Department of Justice has released the agenda and list of participants for its March 11, 2020, public workshop to solicit public dialogue on the proposed vertical merger guidelines. The workshop will be the first in a two-part series hosted together with the Federal Trade Commission. The two half-day workshops will allow for a dynamic discussion about the proposed guidelines to complement the written public comments about the proposed guidelines that were submitted to the agencies.
The proposed guidelines describe how the federal antitrust agencies review vertical mergers to evaluate whether they violate antitrust law. Vertical mergers combine two or more companies that operate at different levels of the supply chain. The proposed guidelines outline the agencies’ principal analytical techniques, practices, and enforcement policy for vertical mergers. The Department of Justice and the FTC cooperated closely in preparing the proposed guidelines, which reflect the agencies’ significant experience in analyzing vertical mergers. The guidelines are intended to assist the business community and antitrust practitioners by providing transparency about the agencies’ antitrust enforcement practices with respect to vertical mergers.
The agencies will consider both public comments and workshop discussions before issuing final vertical merger guidelines. A copy of the public comments received by the agencies are available here.
The agenda for the workshop includes a session from 9:00 a.m. to 1:00 p.m. EDT. Details are as follows:
Welcome Address
- Makan Delrahim, Assistant Attorney General for Antitrust, U.S. Department of Justice
Opening Remarks
- Christine Wilson, Commissioner, Federal Trade Commission
Panel 1: Former Enforcer and Practitioner Perspectives
- Moderators: David Shaw, Counsel to the Assistant Attorney General for Antitrust, U.S. Department of Justice & Heather Johnson, Senior Counsel to the Director, Bureau of Competition, Federal Trade Commission
- Renata Hesse, Partner, Sullivan & Cromwell, former Acting Assistant Attorney General for Antitrust, U.S. Department of Justice
- Jonathan Jacobson, Partner, Wilson Sonsini
- Robert Majure, Ph.D., Vice President, Cornerstone Research, former Director of Economics for the Antitrust Division of the U.S. Department of Justice
- Jonathan Sallet, Senior Fellow, Benton Institute for Broadband & Society, former Deputy Assistant Attorney General for Antitrust, U.S. Department of Justice
- Craig Waldman, Partner, Jones Day
Panel 2: Public Interest and Academic Perspectives
- Moderators: David Lawrence, Chief, Competition Policy & Advocacy Section, Antitrust Division, U.S. Department of Justice & Andrew Sweeting, Director, Bureau of Economics, Federal Trade Commission
- Avery Gardiner, Senior Fellow for Competition, Data, and Power, Center for Democracy & Technology, former Counsel to the Assistant Attorney General for Antitrust, U.S. Department of Justice
- Aviv Nevo, Ph.D., Professor, University of Pennsylvania, former Deputy Assistant Attorney General for Economic Analysis, Antitrust Division, U.S. Department of Justice
- Steven Salop, Ph.D., Professor, Georgetown Law Center, former Associate Director for Special Projects, Bureau of Economics, Federal Trade Commission
- Charlotte Slaiman, Competition Policy Director, Public Knowledge
- Christopher Yoo, Professor, University of Pennsylvania Carey Law School
The workshop is free and open to the public. The March 11, 2020 workshop will take place at the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, D.C., from 9:00 a.m. to 1:00 p.m. EDT. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available prior to each workshop on the event webpage. Attendees are encouraged, but not required, to register in advance for the workshop. Registration for the workshop may be completed on Eventbrite. Members of the press should also copy [email protected] on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the Antitrust Division at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
The second workshop will be hosted on March 18, 2020, by the Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C., from 1 p.m. to 5 p.m. EDT. The Federal Trade Commission will announce the agenda for the second workshop at www.ftc.gov.
Department of Justice Launches A National Nursing Home InitiativeRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, joined Attorney General William P. Barr in announcing today the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country, and the Department has already initiated investigations into approximately 30 individual nursing facilities in nine states as part of this effort.
"Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable," said Attorney General William P. Barr. "Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents and help to ensure residents receive the care to which they are entitled."
"With the largest per-capita population of seniors in the country, Florida puts a premium on caring for nursing homes residents," U.S. Attorney Keefe said. "This state has some of the finest nursing homes in the country, but the Department of Justice is targeting those operators whose disregard for the health and well-being of their residents puts our most vulnerable citizens at risk."
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to great indignities. Care failures cause residents to develop pressure sores down to the
bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays, and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing, and rodents are found living in residents’ rooms. These are some of the actions and the inactions the department intends to pursue.
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect, and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative https://www.justice.gov/elderjustice .
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
Four Defendants Charged in Northern District of Florida
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
In the Northern District of Florida, four individuals were charged with criminal offenses. All were prosecuted as part of the Department’s Elder Fraud sweep.
"Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens," said Attorney General William P. Barr. "This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The Department is committed to stopping the full range of criminal activities that exploit America’s seniors."
"With its large elder population, Florida experiences far too many instances of fraud against unsuspecting, vulnerable seniors," U.S. Attorney Keefe said. "This nationwide sweep against the predators who perpetrate such fraud will send a loud signal across the Northern District of Florida that we will pursue then, we will prosecute them, and we will punish them to the fullest extent of the law."
This interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a "money mule" to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal districts participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.