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14 May 2020
Arizona Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Scott Carl Mangum, age 40, of Tucson, Arizona, was sentenced today to 120 months in federal prison followed by five years of supervised release on one count of Possession with Intent to Distribute more than 5 Kilograms of Cocaine. The Honorable Judge P. K. Holmes III presided over the sentencing hearings today in the United States District Court in Fort Smith.
On October 27, 2019, an Arkansas State Police Trooper conducted a traffic stop on a tractor-trailer traveling on Interstate 40 in Crawford County, Arkansas, which is located in the Western District of Arkansas. The Trooper made contact with Mangum, who was the driver and sole occupant of the tractor-trailer. Mangum consented to a search of the tractor-trailer, which resulted in Troopers locating a 9mm handgun and a meth pipe. During the search of Magnum’s person Troopers located a small baggie of methamphetamine in his pocket. A search of the trailer resulted in Troopers locating approximately 15 kilograms of suspected cocaine, which was concealed with the produce that Mangum was transporting.
The suspected cocaine was submitted to the DEA lab for testing and tested positive as cocaine with a total weight of 15.04 kilograms.
Mangum was indicted by a federal grand jury in November 2019 and entered a guilty plea in December 2019.
This case was investigated by the Arkansas State Police and the Drug Enforcement Administration. Assistant United States Attorney Kenneth Elser prosecuted the case for the Western District of Arkansas.
13 May 2020
Utica Drug Trafficker Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Clifford Billins, 41, of Utica, New York, pleaded guilty before Chief U.S. District Court Judge Frank P. Geraci, Jr. to conspiring to possess with intent to distribute, and distributing fentanyl, crack cocaine, and heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that between September 2017 and August 2018, the defendant conspired with others to sell fentanyl, crack cocaine, cocaine, and heroin. Billins routinely trafficked bulk quantities of illegal narcotics, which were then redistributed to individual drug users in the Rochester and Utica areas.
The plea is the result of an investigation by Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Monroe County District Attorney’s Office, under the direction of the District Attorney Sandra Doorley; and the Rochester Police Department, under the direction of Chief La’Ron D. Singletary.
Sentencing is scheduled for August 6, 2020, at 11:00 a.m. before Chief Judge Geraci.
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U.S. Attorney’s Office thanks law enforcement and honors fallen officers during national police weekRead the Press Release
Indianapolis – In honor of National Police Week, U.S. Attorney Josh J. Minkler recognizes the service and sacrifice of federal, state, local, and tribal law enforcement officers who lost their lives in the line of duty.
“Each year, during National Police Week we take time to honor and say thank you to those who have chosen law enforcement as their profession,” said Minkler. “Sadly, it also marks a time to honor and pay tribute to the men and women whose names were engraved in 2020 on the National Law Enforcement Officers Memorial. So today, I honor those who have lost their lives in service, send gratitude to their families, and thank the men and women of law enforcement who are doing great work throughout our state and country. We cannot maintain the rule of law without them.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. This year, National Police Week is Sunday May 10th through Saturday May 16th, and Peace Officers Memorial Day is Friday May 15th.
This year, the National Law Enforcement Officers Memorial Fund approved the inclusion of an additional 135 names representing those killed in the line of duty in 2019. Of those, two Hoosier heroes who served our communities were added to the memorial wall. Rising Sun Police Chief David Paul Hewitt, EOW February 13th, 2019 and Indiana State Police Trooper Peter Richard Stephen, EOW October 11th, 2019.
The names of all fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read today, Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 p.m. EDT. To view this free online event, please visit: https://www.youtube.com/user/TheNLEOMF .
U.S. Attorney’s Office Announces Commitment to Investigating Sexual Harassment in Housing Amid COVID-19 PandemicRead the Press Release
CHICAGO – John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced a commitment to investigating reports of housing-related sexual harassment resulting from the COVID-19 pandemic. The initiative is consistent with recent direction from Attorney General William P. Barr.
As the country adopts measures to slow the spread of COVID-19, many Americans have lost their jobs or had wages curtailed. These losses have forced some to seek abatements or suspensions of rent. According to a recent memo from the Attorney General, there have been reports of landlords demanding sexual favors and other acts of unwelcome sexual conduct to defer rent payments. Such behavior is illegal under the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.
“Sexual harassment in housing is illegal and despicable,” said U.S. Attorney Lausch. “No one should have to tolerate this behavior under normal circumstances, and particularly not during a public health crisis. My office will aggressively investigate these cases and bring action when warranted.”
U.S. Attorney Lausch this month sent a letter to fair housing advocacy groups, domestic violence organizations, and state and local law enforcement agencies, asking them to contact the U.S. Attorney’s Office if they receive complaints of sexual harassment in housing. The letter renewed the U.S. Attorney’s commitment to deploying all available federal enforcement tools against anyone who engages in housing-related sexual harassment.
Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often impacts society’s most vulnerable populations. Attorney General Barr’s directive reaffirmed the commitment the Department of Justice made in 2017 when it launched the Sexual Harassment in Housing Initiative. The initiative works to identify barriers to reporting sexual harassment in housing, increase awareness of enforcement efforts, improve collaboration between federal, state, and local partners to increase reporting, and help survivors quickly and easily connect with valuable resources.
Anyone who believes they may have been a victim of housing-related sexual harassment is encouraged to contact the Department of Justice via phone: (844) 380-6178, email: [email protected], or mail: U.S. Attorney’s Office, Attention: Patrick Johnson, Civil Rights Coordinator, 219 S. Dearborn St., Suite 500, Chicago, Ill. 60604.
U.S. Attorney Peter M. McCoy, Jr. to Join Federal, State, and Local Law Enforcement Officers for a Press Conference Tomorrow in Mt. Pleasant at 3:00 p.m.Read the Press Release
Mt. Pleasant, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that a press conference will be held tomorrow, May 14, 2020, at 3 p.m., outside the Mount Pleasant Police Headquarters, 100 Ann Edwards Lane, Mount Pleasant, SC 29464.
Represented at the press conference will be U.S. Attorney for the District of South Carolina Peter M. McCoy, Jr., and representatives of the following law enforcement agencies: Federal Bureau of Investigation (FBI); South Carolina Law Enforcement Division (SLED); Berkeley County Sheriff’s Office; Charleston City Police Department; Charleston County Sheriff’s Office; Charleston County Aviation Authority; Dorchester County Sheriff’s Office; Mount Pleasant Police Department; and North Charleston Police Department.
WHEN: Thursday, May 14, 2020, at 3 p.m.
WHERE: Outside the Mount Pleasant Police Headquarters
100 Ann Edwards Lane
Mount Pleasant, South Carolina 29464
NOTE: Press inquiries regarding logistics should be directed to Derek A. Shoemake, 843-813-0982. Members of the media wishing to attend the remarks should gather outside the Mount Pleasant Police Headquarters at 2:30 p.m., 30 minutes in advance.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney John Lausch Recognizes the Contributions of Law Enforcement During National Police WeekRead the Press Release
CHICAGO – In honor of National Police Week, U.S. Attorney John Lausch recognized the service of federal, state, and local law enforcement, especially those officers who have made the ultimate sacrifice.
“National Police Week presents a special opportunity to acknowledge the courageous work of law enforcement officers,” said U.S. Attorney Lausch. “All of us at the U.S. Attorney’s Office consider it a privilege to work with brave officers who serve our communities with honor and integrity. To them, I say thank you for your valor and your commitment to justice.”
“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
While most National Police Week events this year have been suspended due to the COVID-19 pandemic, the National Law Enforcement Officers Memorial Fund will host a virtual Candlelight Vigil tonight at 7:00 p.m. central time. During the vigil, the names of fallen officers who are being added to the wall of the National Law Enforcement Memorial will be read aloud. The vigil can be viewed live on YouTube by clicking here.
Unfortunately, 89 law enforcement officers died nationwide in the line of duty in 2019, according to the FBI’s Law Enforcement Officer Killed and Assaulted Program. Five of those officers served in Illinois:
- Gerald Ellis, Illinois State Police
- Nicholas Hopkins, Illinois State Police
- Brooke Jones-Story, Illinois State Police
- Christopher Lambert, Illinois State Police
- Jacob Keltner, McHenry County Sheriff’s Office
This year, the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering service to the communities they swore to serve. According to the Fraternal Order of Police and media reports, 101 law enforcement officers have died as a result of duty-related complications from the virus.
“There is no higher calling than to be willing to die for the safety of others,” said U.S. Attorney Lausch. “We pay a special tribute to those officers who have lost their lives in the line of duty. We will never forget their courage and their sacrifice.”
U.s. Attorney Drew H. Wrigley Recognizes National Police WeekRead the Press Release
Virtual Annual Candlelight Vigil
BISMARCK - In honor of National Police Week, U.S. Attorney Drew H. Wrigley, recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.
"There is no more noble profession than serving as a police officer," said Attorney General William P. Barr. "The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted."
"Law enforcement officers swear a solemn oath to the selfless pursuit of these ideals: public safety, community order, and justice," said United States Attorney Drew Wrigley, "and we are profoundly grateful to each officer for the daily sacrifices they and their loved ones endure in the cause of preserving our communities and our nation."
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.
Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019.
Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 PM (EDT). The online event can be viewed at https://www.youtube.com/user/TheNLEOMF.
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Two South King County men charged with drug trafficking for selling deadly fentanyl to Navy sailorRead the Press Release
Tacoma - Two South King County men have been charged with federal drug crimes in connection with their trafficking in counterfeit pills laced with deadly fentanyl, announced U.S. Attorney Brian T. Moran. CHASE FRIEDRICH, 28, was arrested April 21, 2020, at his Des Moines, Washington, apartment. His drug supplier, RAOUL V. NORMANDIA, JR., 28, was arrested April 24, 2020, near his Federal Way, Washington, residence. FRIEDRICH sold counterfeit Percocet pills to a Navy sailor – that sailor provided them to another sailor who died of a drug overdose. The pills are presumed to have been tainted with deadly fentanyl.
The investigation began April 18, 2020, when a Navy sailor was found dead in his workspace aboard a Navy ship. In his pocket were two counterfeit pills presumed to be laced with fentanyl. The Naval Criminal Investigative Services (NCIS) were able to identify the sailor who provided the pills to the victim and identified FRIEDRICH as his supplier. A search of FRIEDRICH’s apartment revealed cocaine, a handgun, and a bag of approximately 100 counterfeit pills.
Investigators were able to trace the pills and cocaine to NORMANDIA. He was arrested a few blocks from his home. In the vehicle was cocaine. During a court‑authorized search of NORMANDIA’s residence, law enforcement recovered firearms, ammunition, body armor, narcotics, and various signs of the drug trade, including scales, baggies, heat sealers, Moneygram receipts, and twenty cell phones.
Both men made their initial appearances and are being held on a federal charge of possession of controlled substances with intent to distribute.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by NCIS and the Kitsap County Sheriff’s Office as a part of the West Sound Narcotics Enforcement Team (WestNET) and is being prosecuted by Assistant United States Attorney Lyndsie Schmalz.
Two Queens Men Charged After Buying Three Illegally Defaced Firearms and Two Assault RiflesRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Daniel Jou and Joseph Miner with receiving and possessing multiple firearms with obliterated serial numbers. The defendants were arrested Tuesday night and made their initial appearances via teleconference this afternoon before United States Magistrate Judge Robert M. Levy. The defendants were ordered detained pending trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, after Joseph Miner praised extremist violence and expressed racist and anti-Semitic hatred on the internet, he and his co-defendant bought a collection of illegal firearms capable of inflicting mass bloodshed,” stated United States Attorney Donoghue. “What the defendants did not know was that they were buying the guns from an undercover federal agent who had been investigating their plan to buy weapons that would be impossible to trace. This Office, together with our law enforcement partners, will continue to exercise extreme vigilance to protect our communities by preventing individuals from purchasing illegal weapons.”
“As alleged, Joseph Miner and Daniel Jou sought to acquire illegal firearms with serial numbers that were known to have been removed. The social media posts from one of the defendants expressing support of a racial civil or holy war make the behavior alleged here even more alarming. The actions of the subjects presented a clear danger to the community. The FBI is focused on preventing violent acts before they occur, and I would like to thank the dedicated members of the New York Joint Terrorism Task Force who moved swiftly in addressing the threat posed by these individuals,” stated FBI Assistant Director-in-Charge Sweeney.
“Seeking to buy illegal weapons after one defendant has at times advocated for racially motivated violence constitutes a very real threat to the citizens of New York,” stated NYPD Commissioner Shea. “I commend the work of the agents and detectives of the Joint Terrorism Task Force on this investigation. The case demonstrates again that we will seek out those advocating violent extremism no matter what the brand or twisted ideology.”
As alleged in public filings, law enforcement authorities began investigating Miner in late 2019 when he posted on social media accounts his interest in obtaining assault weapons and other firearms for a racial civil war or racial holy war. For example, Miner posted on his Instagram account the following content in December 2019 and January 2020:
• A photograph of himself giving a Nazi salute and writing, “God I hate women jews and n-----rs.” In another post, Miner is depicted giving a Nazi salute as he displays a large knife and adds, “overthrowing [Jews] is our Christian duty;”
• In response to a bloody crime scene photograph from the December 2019 machete attack at a synagogue in Monsey, New York, Miner commented, “ngl [not gonna lie] this is pretty f-----g exciting;”
• A photograph of a Planned Parenthood location being blown up by the comic book character The Joker.
• On or about January 22, 2020, Miner posted a photograph of the entrance to a Jewish community center in Queens.
Although Miner at times disavowed interest in conducting an attack himself, he also posted Instagram messages displaying suicidal ideations and fantasizes about “martyring” himself and “go[ing] out in a blaze of glory” in a mass shooting.
In April 2020, Miner initiated contact with an undercover law enforcement agent posing as a firearms dealer and reviewed with the agent a list of handguns and a shotgun that he wanted to purchase for himself and Jou. Thereafter, Miner and Jou purchased numerous firearms from the undercover agent knowing that the serial numbers that would allow the weapons to be traced had been removed. On April 26, 2020, the defendants met the undercover agent at a hotel in Queens and indicated they were willing to spend thousands of dollars to purchase firearms and ammunition, including AR-15 assault rifles
In the days following the April 26, 2020 meeting, the defendants used an encrypted messaging service to request additional firearms from the undercover agent. For example, Jou offered to spend up to $5,000 to purchase eight firearms, including a Colt M4 assault style rifle and multiple handguns. Similarly, Minor offered $2,000 to purchase two handguns, a shotgun and a “Ghost AR” – an assault-style firearm made from different gun parts and without serial numbers or other identifying markings – and a “suppressor,” or silencer.
On the evening of May 12, 2020, Jou and Miner met the undercover agent at a hotel in Queens. During the meeting, the undercover agent showed Jou and Miner several firearms, many with the serial numbers obliterated. Jou purchased a Glock 19 handgun with an obliterated serial number and a fully automatic assault rifle with a silencer attachment and high capacity magazine. Jou also expressed his interest in buying additional firearms from the undercover agent at a later date. Miner purchased a handgun and shotgun, both with obliterated serial numbers, and an AR-15 style assault rifle “ghost” gun with a silencer attachment and high capacity magazine. Miner also bought more than 200 rounds of ammunition, which he planned to share with Jou.
The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Josh Hafetz are in charge of the prosecution.
The Defendants:
DANIEL JOU
Age: 40
Bayside, QueensJOSEPH MINER
Age: 29
Bayside, QueensE.D.N.Y. Docket No. 20-MJ-368
Two Individuals Charged with Carjacking, Murder, Firearms Offenses, and Destruction of PropertyRead the Press Release
SAN JUAN, Puerto Rico – Today, a federal grand jury in the District of Puerto Rico returned an indictment against two defendants charged with the murder of two transgender women, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The four-count indictment includes charges for using a firearm in relation to crimes of violence, carjacking resulting in death, and destruction of property using explosive materials. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) were in charge of the investigation.
The indictment alleges in Counts One and Two, that from April 21 until April 22, 2020, defendants Sean Díaz De León and Juan Carlos Pagán Bonilla, aiding and abetting each other, knowingly used and carried a firearm during and in relation to crimes of violence and in the course of those crimes, caused the deaths of two transgender women, S.A.V.R., and L.P.S., through the use of a firearm, in violation of 18 U.S.C. §§ 924(c) and 924(j). The crimes of violence underlying the firearms offense charged in Counts One and Two, were a carjacking and a hate crime based on gender, sexual orientation or gender identity, in violation of 18 U.S.C. §§ 2119(3) and 249(a)(2)(A).
The indictment further alleges that defendants Díaz de León and Pagán Bonilla shot victims S.A.V.R. and L.P.S., and took their motor vehicle, a white Hyundai Accent, which had been transported, shipped and received in interstate and foreign commerce, by force, violence and intimidation, resulting in death, in violation of 18 U.S.C. §§ 2119(3) and 2. The indictment includes a charge of destruction of property using explosives for maliciously damaging and destroying the vehicle by means of fire, all in violation of 18 U.S.C. §§ 844(i) and 2.
Assistant U.S. Attorney José A. Contreras of the District of Puerto Rico, Special Litigation Counsel Rose Gibson and Trial Attorney Laura Gilson, of the Civil Rights Division of the U.S. Department of Justice are in charge of the prosecution of the case. If convicted, the defendants face up to life in prison or the death penalty. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office sue Atlanta-based property owners and management company for housing discrimination against African-AmericansRead the Press Release
ATLANTA - The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia have filed a lawsuit against Crimson Management LLC, Benefield Housing Partnership d/b/a Cedartown Commons, and Cedartown Housing Associates, d/b/a Cedarwood Village, alleging housing discrimination against African-American applicants who are elderly or have a disability, in violation of the Fair Housing Act.
“More than 50 years after the passage of the Fair Housing Act, cases like this demonstrate that there is still work to be done to ensure that all people, regardless of race and color, have equal access to housing,” said U.S. Attorney Byung J. “BJay” Pak. “My office will continue to devote resources to investigate and eradicate housing discrimination.”“Congress enacted the Fair Housing Act in 1968 to protect Americans from the racially motivated violence and discrimination that has stained our nation’s history. More than five decades later, our nation regrettably continues to suffer the scourge of racial bias,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to fight to protect the rights of all Americans to rent and own their homes without regard to their race.”
The lawsuit alleges that from at least 2012 to 2018, the defendants steered African-American housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a predominantly African-American housing complex, which is inferior in appearance, location, and amenities to Cedarwood Village. Both complexes are located in Cedartown, Georgia. The complaint also alleges that the defendants subjected African-American residents who are elderly or have a disability to less favorable rental terms, conditions, and privileges as compared to similarly situated white tenants, and denied these African-American applicants more desirable units at the Village.
This lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct, which must be proven in federal court.
Fighting illegal housing discrimination is a priority for the U.S. Attorney’s Office for the Northern District of Georgia. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination at the defendants’ properties may contact the U.S. Attorney’s Office by calling (404) 581-4626 and email any questions to [email protected]. You can also report complaints to the by calling 1-800-896-7743, and select option number 1 to leave a message, or sending an e-mail to [email protected].
Assistant U.S. Attorney Aileen Bell Hughes, Civil Rights Enforcement Coordinator, is handling this matter for the Northern District of Georgia.
The year 2020 marks the 150th anniversary of the Justice Department. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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.
Ten Arrested and Charged following Greater Pittsburgh Safe Streets Task Force Investigation into Drug Trafficking in Pittsburgh and BeyondRead the Press Release
PITTSBURGH, PA – Ten residents of Allegheny County, Pennsylvania, have been charged in four separate, but related, Criminal Complaints with violations of the federal narcotics and firearms laws, following a months-long investigation into narcotics trafficking in the City of Pittsburgh and greater Allegheny County region, United States Attorney Scott W. Brady announced today. The complaints detail the narcotics trafficking activities of several associates of a neighborhood street gang, known as "11 Hunnit" operating in the Hill District neighborhood of Pittsburgh and beyond.
"Today’s actions reflect our ongoing, sustained focus on stopping the drug traffickers who prey upon our citizens, pollute our communities and poison our neighbors," said U.S. Attorney Brady. "Federal, state and local law enforcement are united in our efforts and undeterred in our resolve to make our streets safe for all law-abiding citizens. Our resolve is unchanged by the current pandemic."
"These arrests reflect the continuing impact federal, state and local partnerships have on eradicating violent, dangerous offenders from our community," said FBI Pittsburgh Special Agent in Charge Michael Christman. "I want to commend the work of the FBI's Greater Pittsburgh Safe Streets Task Force, which is focused on stopping violent street gangs and their movement and sale of drugs and illegal guns on our streets. We want all gang members and drug dealers out there to know our commitment to keeping our communities safe from dangerous drugs and guns will not stop."
"Drug trafficking organizations and the violence associated with those groups threaten the community," said ATF Philadelphia Field Division Special Agent in Charge Donald Robinson. "ATF is committed to keeping the public safe from the senseless violence employed by these groups, and we will always team up with our law enforcement partners to address that violence. We appreciate the dedication of our federal, state and local partners who worked tirelessly to thoroughly investigate this group and to hold the responsible individuals accountable."
The first Criminal Complaint charges the following individuals with conspiring to distribute and to possess with intent to distribute 28 grams or more of cocaine base (in the form commonly known as "crack") in the Western District of Pennsylvania, from in and around January 2020, and continuing thereafter until in and around May 2020:
• Phillip Robinson (aka "Pape"), age 30, of Pittsburgh, PA;
• Joseph Clancy, age 46, of Pittsburgh, PA;
• Tyree Campbell, age 29, of Pittsburgh, PA;
• Tracy Bullock, age 51, of McKees Rocks, PA; and
• Sanzio Williams, age 31, of Pitcairn, PA.
According to this Criminal Complaint, through Title III intercepted communications, extensive physical and electronic surveillance, and other investigative techniques, beginning in January 2020, and continuing until May 2020, Robinson, Clancy, Campbell, Bullock, and Williams, and others both known and unknown, conspired to distribute crack cocaine throughout Pittsburgh, including in areas such as Pittsburgh’s Hill District neighborhood, McKees Rocks, and other areas of Allegheny County. The investigation revealed that Clancy, identified as this organization’s source of supply of crack cocaine, directly supplied Robinson, who redistributed these narcotics, in turn, to the remaining charged co-conspirators. According to the Criminal Complaint, each of the charged Defendants has at least one prior conviction involving narcotics distribution.
The second Criminal Complaint charges the following individuals with conspiring to distribute and to possess with intent to distribute a quantity of heroin in the Western District of Pennsylvania from in and around February 2020, and continuing thereafter until March 2020:
• Andre Moore-Coleman (aka "Drizz"), age 31, of Pittsburgh, PA;
• James Bryant Jr., age 52, of McKees Rocks, PA.
According to the Criminal Complaint, through Title III intercepted communications, physical and electronic surveillance, and other investigative techniques, agents learned that Moore-Coleman – a source of supply of heroin – conspired with James Bryant Jr., and others both known and unknown to distribute heroin in Pittsburgh and McKees Rocks, PA. Similarly, both Moore-Coleman and Bryant Jr. have prior convictions involving narcotics trafficking.
The third Criminal Complaint charges the following individuals with conspiring to distribute and to possess with intent to distribute 28 grams or more of crack cocaine in the Western District of Pennsylvania, from in and around December 2019, and continuing thereafter until January 2020:
• Ronald Lewis III, age 32, of Turtle Creek, PA; and
• Victor Simmons, age 24, of Pittsburgh, PA.
According to the Criminal Complaint, through Title III intercepted communications, extensive physical and electronic surveillance, and other investigative methods, agents determined that Lewis III – a source of supply of crack cocaine – conspired with Simmons who, in turn, redistributed the crack cocaine he obtained from Lewis III in Pittsburgh and the greater Allegheny County area. Both Lewis III and Simmons have at least one prior conviction involving narcotics trafficking.
The fourth Criminal Complaint charges the following defendant with possession of a firearm and ammunition by a convicted felon:
• Derek Calloway, age 26, of Pittsburgh, PA,
According to the Criminal Complaint, on May 13, 2020, a search warrant was executed at the defendant’s residence resulting in the location of a semi-automatic Taurus, Model: G2C, 9mm pistol, bearing SN: TLU75088, which was loaded with 9mm caliber ammunition. Calloway has previously been convicted of multiple crimes punishable by a term of imprisonment exceeding one year. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from lawfully possessing a firearm or ammunition.
With respect to Defendants Robinson, Clancy, Campbell, Bullock, Williams, Lewis III, and Simmons, each of whom is charged with conspiring to distribute and possess with intent to distribute 28 grams or more of crack cocaine, the law provides for a maximum total sentence of not less than five years and up to 40 years of imprisonment, a fine up to $5,000,000, or both. With respect to Defendants Moore-Coleman and Bryant Jr., both of whom are charged with conspiring to distribute and possess with intent to distribute a quantity of heroin, the law provides for a maximum sentence of not more than 20 years imprisonment, a fine not to exceed $1,000,000 or both. With respect to Defendant Calloway, the law provides for a maximum today sentenced of not more than 10 years and a fine of not to exceed 250,000 or both. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Pittsburgh Bureau of Police (Bureau of Narcotics Investigations) led the multi-agency investigation that also included the Allegheny County Sheriff’s Office and the Pennsylvania Office of the Attorney General. This Greater Pittsburgh Safe Streets Task Force investigation was funded by the federal Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.
Storm Lake, Iowa, Man Sentenced to Federal Prison for Child PornographyRead the Press Release
A man who possessed child pornography was sentenced on May 12, 2020, to 5 years in federal prison.
Ariya Mangsanhanh., age 24, from Storm Lake, Iowa, received the prison term after a November 8, 2019, guilty plea to one count of possession of child pornography.
In a plea agreement, Mangsanhanh admitted that between January 2, 2017 and August 23, 2018, in the Northern District of Iowa, he knowingly possessed visual depictions of minors engaged in sexually explicit conduct, some of which included visual depictions of minors under the age of 12. A search warrant served on Mangsanhanh’s residence led to the seizure of Mangsanhanh’s cell phones and computers. A subsequent forensic examination of those devices revealed that Mangsanhanh used a computer, cell phones, and Dropbox, to acquire and possess child pornography. Over 100 videos of child pornography were discovered in Mangsanhanh’s possession.
Mangsanhanh was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mangsanhanh was sentenced to 60 months’ imprisonment. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
Mangsanhanh is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Timothy Duax and investigated by the Iowa Division of Criminal Investigation, the Iowa Internet Crimes Against Children Task Force, the FBI Child Exploitation Task Force, the U.S. Marshal’s Service, and the Storm Lake Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4031.
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Six Texas Pharmacy Owners and Marketers Charged in $14 Million Kickback SchemeRead the Press Release
Six Dallas, Texas-area pharmacy owners and marketers were charged in a superseding indictment today for their roles in a scheme involving compound drug claims to TRICARE and the U.S. Department of Labor (DOL), the vast majority of which were the product of over $14 million in illegal kickbacks and bribes.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS) Southwest Field Office and Special Agent in Charge Steven Grell of the U.S. Department of Labor - Office of Inspector General’s (DOL-OIG) Dallas Region made the announcement.
Richard Hall, 50; Scott Schuster, 48; Dustin Rall, 45; and George Lock Paret, 36, all of Fort Worth, Texas; Johnathan Le, 44, of Dallas, Texas; and Quintan Cockerell, 38, of Manhattan Beach, California, were each charged in a superseding indictment filed May 13 in the Northern District of Texas with the following: conspiracy to defraud the United States and pay and receive kickbacks (Hall, Schuster, Rall, Paret, Le and Cockerell); paying and/or receiving kickbacks (Hall, Schuster, Rall, and Le with four counts, Cockerell with one count); conspiracy to commit money laundering by concealing proceeds of the unlawful kickbacks (Schuster and Rall); conspiracy to commit money laundering by engaging in monetary transactions in criminally derived property (Hall, Schuster, Rall, and Cockerell); and engaging in monetary transactions in criminally derived property (Hall with one count, Schuster and Rall with two counts and Cockerell with three counts).
Two co-defendant marketers, Turner Luke Zeutzius, 38, of Horseshoe Bay, Texas, and Michael Ranelle, 50, of Fort Worth, Texas, previously pleaded guilty to one count of conspiracy to defraud the United States and pay and receive kickbacks.
According to the superseding indictment, from May 2014 to September 2016, Hall, Schuster, Rall, Paret, Le and their co-conspirators allegedly engaged in a scheme to pay kickbacks and bribes for the referral of TRICARE and DOL beneficiaries to obtain expensive compound drugs. Hall, Shuster and Rall were co-owners of Rxpress Pharmacy and Xpress Compounding, compound pharmacies located at 1000 W. Weatherford St. in Fort Worth.
As alleged in the superseding indictment, Rxpress and Xpress were separate in name only; Rxpress Pharmacy and Xpress Compounding employed the same staff and operated out of the same building. The superseding indictment alleges that both companies utilized the same marketers but paid them differently depending on whether they were receiving a commission on a federal or private prescription, in order to disguise the illegal kickback payments on federal prescriptions. Specifically, Hall, Schuster, Rall, Paret and Le allegedly devised a scheme to make kickback payments to marketers through Xpress Compounding for the referral of federal prescriptions. These marketers were allegedly set up as sham “W-2” employees to appear as though they were bona fide employees of Xpress Compounding. At the same time, these marketers were paid as 1099 contractors by Rxpress Pharmacy, the superseding indictment alleges.
According to the superseding indictment, Hall, Schuster, Rall, and Cockerell engaged in monetary transactions in criminally derived property, spending proceeds of the fraud to further enrich themselves and others through the purchase of luxury vehicles and chartered vessels, among other property.
The superseding indictment alleges that as a result of the scheme, Xpress Compounding paid Cockerell approximately $2.4 million, Zeutzius approximately $7.6 million and Ranelle approximately $4.1 million in illegal kickbacks, for a total of approximately $14.1 million in illegal kickbacks.
The charges in the superseding indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DCIS, DOL-OIG, the U.S. Department of Health and Human Services Office of Inspector General, the FBI and the U.S. Department of Veterans Affairs Office of Inspector General investigated the case. Assistant Chief Adrienne Frazior and Trial Attorney Brynn Schiess of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
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.
Sergeant Bluff Man Sentenced to Federal Prison for Child Pornography ConvictionRead the Press Release
A man who received child pornography was sentenced May 11, 2020, to more than 5 years in federal prison.
Alec Gibson, 25, from Sergeant Bluff, Iowa, received the prison term after a December 17, 2019, guilty plea to receipt of child pornography.
Evidence at the plea hearing and sentencing showed that between October 2016 and August 24, 2017, Gibson possessed visual depictions of minors engaged in sexually explicit conduct, including a depiction involving a minor who had not attained 12 years of age. During the execution of a search warrant at Gibson’s residence on August 24, 2017, officers seized items belonging to Gibson. A forensic examiner found child pornography on some of these items, including depictions of adult males sexually penetrating prepubescent children. Evidence also showed that Gibson made contact with children via online platforms, and admitted that some of the minors sent him nude photographs.
Gibson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Gibson was sentenced to 70 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Gibson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.” The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by the Iowa Division of Criminal Investigation, Iowa Internet Crimes Against Children Task Force, FBI Child Exploitation Task Force, Sergeant Bluff Police Department, and U.S. Marshal's Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4040.
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San Francisco-Based Restauranteur Agrees to Cooperate with Government Investigation and Agrees to Plead Guilty to Honest Services Wire Fraud ChargesRead the Press Release
SAN FRANCISCO – San Francisco restauranteur Nick James Bovis has agreed to cooperate with a federal investigation and to plead guilty to honest services wire fraud and wire fraud charges alleged in a newly-filed criminal information, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett of the San Francisco Division. The parties have requested that a hearing be scheduled on Thursday, May 21, 2020, before the Hon. William H. Orrick, United States District Judge, to allow the defendant to plead guilty to the charges by videoconference.
Originally, Bovis, 56, of San Mateo, was charged in a criminal complaint filed January 15, 2020. The original complaint alleged that Bovis and San Francisco Director of Public Works Mohammed Colin Nuru, 57, of San Francisco, attempted to bribe an unnamed San Francisco Airport Commissioner. Specifically, the complaint charged that beginning in January of 2018, and until April of 2018, Nuru and Bovis attempted to use cash and free travel to bribe the airport commissioner. Nuru and Bovis allegedly were involved in a scheme to offer bribes in exchange for assistance from the commissioner to win a bid for the right to run a restaurant in the San Francisco International Airport.
The new information filed by the government today charges Bovis with two separate crimes: honest services wire fraud and wire fraud. Bovis has signed a plea agreement indicating that he wishes to plead guilty to both crimes.
The terms of the plea agreement would require Bovis to cooperate with an ongoing investigation and to surrender assets acquired as a result of his illegal conduct.
The conduct underlying the crimes to which Bovis has admitted were submitted to the court in a separate “Exhibit A” that was filed under seal and thus is not available to the public. Although the factual basis of the plea agreement is not public, the information filed today provides details about the crimes to which Bovis has pleaded guilty. For example, the alleged honest services wire fraud began years prior to the fraud alleged in the original complaint. Specifically, the information alleges that Bovis began participating in the honest services wire fraud scheme “at an unknown date, but at least as early as in or about 2015, and continuing through on or about January 28, 2020.” Further, the information alleges Bovis “participated in . . . a scheme to defraud the public of its right to the honest services of public officials, through bribery and kickbacks . . .” and that Bovis transmitted a wire communication on March 22, 2018, in connection with the scheme.
With respect to the wire fraud count, the information alleges that Bovis participated in the scheme beginning April of 2018 and that the he used wire communications in furtherance of the scheme.
Bovis faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count to which he has agreed to plead guilty. In addition, the court may order additional terms of supervised release and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI.
Reality TV personality charged with bank fraudRead the Press Release
ATLANTA – Maurice Fayne, who stars in Love & Hip Hop: Atlanta, has been arrested on federal bank fraud charges arising from a Paycheck Protection Program (“PPP”) loan that he obtained in the name of Flame Trucking.
“The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus,” said U.S. Attorney Byung J. “BJay” Pak. “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”
“The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”
“At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended.”“The defendant allegedly egregiously sought personal gain from a program intended to assist hardworking Americans in this challenging time,” said Special Agent-in-Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region. “SBA OIG and its law enforcement partners will aggressively pursue allegations of wrongdoing to maintain the integrity of SBA’s programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Maurice Fayne is the sole owner of a Georgia corporation called Flame Trucking. On April 15, 2020, Fayne signed and submitted to United Community Bank (“UCB”) a PPP loan application in the name of Flame Trucking stating that the business had 107 employees and an average monthly payroll of $1,490,200. In seeking a loan in the amount of $3,725,500, Fayne certified that the loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.”UCB ultimately funded the loan for $2,045,800. Within days, Fayne allegedly used more than $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet, and a 5.73 carat diamond ring for himself, to lease a 2019 Rolls Royce Wraith, to make loan payments, and to pay $40,000 for child support. Such payments are not an authorized use of PPP funds under the CARES Act.
On May 6, 2020, Fayne was interviewed by federal agents and admitted that he submitted a PPP loan application on behalf of Flame Trucking. Fayne claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking and denied using any of the PPP loan proceeds to pay his personal debts and expenses.
On May 11, 2020, agents executed a search at Fayne’s residence in Dacula and seized approximately $80,000 in cash, including $9,400 that Fayne had in his pockets, and the jewelry he purchased with the PPP funds. Agents also executed seizure warrants for three bank accounts that Fayne owned or controlled and seized approximately $503,000 in PPP funds.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
Maurice Fayne, a/k/a Arkansas Mo, 37, of Dacula, Georgia, was charged with bank fraud. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.This case is being investigated by the Federal Bureau of Investigation in conjunction with the Atlanta Complex Financial Crimes Task Force supported by the Gwinnett County Sheriff's Office, and the Small Business Administration-Office of the Inspector General.
Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown are prosecuting the case.
Georgia’s COVID-19 Task Force warns the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price gouging and fair housing violations. The public can report potential scams to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]. The public can also file complaints with the Attorney General’s Office by calling 800-869-1123 (toll-free) or at www.consumer.ga.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.
Reality TV Personality Charged with Bank FraudRead the Press Release
A reality TV personality who stars in Love & Hip Hop: Atlanta, has been arrested on federal bank fraud charges arising from a Paycheck Protection Program (PPP) loan that he obtained in the name of Flame Trucking.
Maurice Fayne, aka Arkansas Mo, 37, of Dacula, Georgia, was charged with bank fraud and made his initial appearance this afternoon before U.S. Magistrate Judge Justin S. Anand.
“The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”
“The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”
“At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “The FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended.”
“The defendant allegedly egregiously sought personal gain from a program intended to assist hardworking Americans in this challenging time,” said Special Agent in Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region. “SBA OIG and its law enforcement partners will aggressively pursue allegations of wrongdoing to maintain the integrity of SBA’s programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to the charges and other information presented in court, Fayne is the sole owner of a Georgia corporation called Flame Trucking. On April 15, 2020, Fayne signed and submitted to United Community Bank (UCB) a PPP loan application in the name of Flame Trucking stating that the business had 107 employees and an average monthly payroll of $1,490,200. In seeking a loan in the amount of $3,725,500, Fayne certified that the loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.”
UCB ultimately funded the loan for $2,045,800. Within days, Fayne allegedly used more than $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet, a 5.73 carat diamond ring for himself, and to pay $40,000 for child support. Such payments are not an authorized use of PPP funds under the CARES Act.
On May 6, 2020, Fayne was interviewed by federal agents and admitted that he submitted a PPP loan application on behalf of Flame Trucking. Fayne claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking and denied using any of the PPP loan proceeds to pay his personal debts and expenses.
On May 11, 2020, agents executed a search at Fayne’s residence in Dacula and seized approximately $80,000 in cash, including $9,400 that Fayne had in his pockets, and the jewelry he purchased with the PPP funds, and further discovered a 2019 Rolls-Royce Wraith, which still had a temporary dealer tag on it. Agents also executed seizure warrants for three bank accounts that Fayne owned or controlled and seized approximately $503,000 in PPP funds.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
The charges are merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and SBA OIG are investigating the case.
Assistant Chief L. Rush Atkinson of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown of the Northern District of Georgia are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Pittsburgh Felon with Nazi Obsession Pleads Guilty to Illegal Possession of a Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh’s North Side has waived indictment and pleaded guilty to violating federal firearms law, United States Attorney Scott W. Brady announced today.
Dennis Alan Riggs, 51, pleaded guilty to one count of possession of firearms and ammunition by a convicted felon before U.S. District Judge Robert J. Colville. Riggs has been detained since his arrest in January 2020 and will remain detained pending sentencing.
"Each day, our office and our federal partners investigate and prosecute people who represent threats to our communities," said U.S. Attorney Brady. "Riggs is a felon with a history of violence who espoused white supremacist ideology, who illegally possessed multiple firearms and ammunition. Pittsburgh is safer today because Dennis Riggs is behind bars."
"The FBI is committed to keeping our community safe," said FBI Pittsburgh Special Agent in Charge Michael Christman. "This case was a joint effort with our local, state and federal partners on the FBI's Joint Terrorism Task Force (JTTF). Today's change of plea should send a message to everyone that the FBI will use all resources to make sure firearms are kept out of the hands of those prohibited from having them."
According to information provided to the court, on January 22, 2020 the defendant knowingly possessed seven firearms: a Ruger .223 Caliber AR-15 style rifle; a Ruger .22 caliber revolver; a Harrington & Richardson shotgun; a .38 special revolver; a Colt .38 Caliber revolver; a US revolver, 32 Caliber, which was loaded and with the hammer cocked; a Harrington & Richardson shotgun; and more than 1,000 rounds of ammunition. Riggs is prohibited from possessing a firearm because he was convicted on March 30, 1994, of Aggravated Assault in the Court of Common Pleas of Allegheny County. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
According to information presented at the detention hearing, Riggs was aware that he was prohibited from possessing a weapon due to a prior felony conviction. Agents found on his phone a video depicting Riggs wearing Nazi apparel, offering Nazi salutes and loading and unloading an AR-15 style rifle; a video of the 2019 Christchurch, New Zealand mosque shootings which killed 51; images of the defendant with firearms; and a photograph of convicted killer Dylann Roof with his current Bureau of Prisons contact information. Riggs decorated his house with Nazi
and Hitler posters and pictures, and possessed numerous other weapons, knives and daggers.
Judge Colville scheduled sentencing for September 17, 2020 at 10 a.m. The law provides for a maximum term of imprisonment of 10 years, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica L. Smolar is prosecuting this case on behalf of the government.
The FBI Pittsburgh Joint Terrorism Task Force conducted the investigation leading to the conviction in the case. Members of the FBI’s Joint Terrorism Task Force who were directly involved in this investigation include: FBI, Pennsylvania State Police, Allegheny County Police Department, Allegheny County Probation, and the Pittsburgh Bureau of Police.
This case was brought as part of Project Guardian. Reducing gun violence and enforcing federal firearms laws have always been among the Department of Justice’s highest priorities. Project Guardian serves as a complementary effort to the success of Project Safe Neighborhoods (PSN).
Pandemic Shutdown Not Stopping Child Exploitation Cases, According to Utah Federal Prosecutors, FBIRead the Press Release
SALT LAKE CITY – While many Utahns have spent the last two months staying home and staying safe as a result of COVID-19, online predators are threatening the safety of our children as they continue to exploit children in Utah and around the country.
Federal prosecutors and the FBI saw the potential risk coming in March. “Due to school closings as a result of COVID-19, children will potentially have an increased online presence and/or be in a position that puts them at an inadvertent risk. Due to this newly developing environment, the FBI is seeking to warn parents, educators, caregivers, and children about the dangers of online sexual exploitation and signs of child abuse,” an FBI national press release cautioned.
“During the pandemic, parents have taken on more and more during stay at home directives. Work, school, and parenting blend into demanding days. With everyone at home together, we may expect that the threat of child sexual exploitation would diminish. Unfortunately, that does not appear to be the case,” U.S. Attorney John W. Huber said today.
As a parent himself, Huber understands parents are focused on many things. However, it is important for them to remain vigilant in protecting their children from sexual predators. “I can also assure parents, who are feeling the strain in many areas that my office and our law enforcement partners are working as aggressively as ever to target these criminals and keep them away from our children,” Huber said.
"Kids should be aware that the idea of "stranger danger" also applies when they go online because predators will misrepresent themselves to gain their trust," said Paul Haertel, Special Agent in Charge of the FBI in Salt Lake City. "When a child is sexually exploited, there can be life-long consequences, but the crime is preventable. The FBI will do our part to go after those who hurt society's most vulnerable, and we urge parents and caregivers to do their part too through education and awareness."
Online sexual exploitation comes in many forms, according to the FBI national release. Individuals may coerce victims into providing sexually explicit images or videos of themselves. Other offenders may make casual contact with children online, gain their trust, and introduce sexual conversation that increases in egregiousness over time. Ultimately, this activity may result in maintaining an online relationship and the exchange of illicit images, the release says. Others may try to entice minors to meet them for sexual activity. A list of recommendations for parents and guardians is included with this press release.
Examples of recent cases:
Michael L. Travers, age 53, a long-haul trucker from Diberville, Mississippi, was sentenced Tuesday to 17½ years in federal prison by U.S. District Judge Ted Stewart in Salt Lake City. Travers pleaded guilty to one count of production of child pornography in December. As a part of the plea agreement, he admitted that between January and April of 2019, he produced sexually explicit images of Minor A, who was 8 years old at the time. Distribution of child pornography, coercion and enticement, and possession of child pornography counts were dismissed Tuesday as a part of the plea agreement.
The Travers case was investigated by the West Valley City Police Department.
Federal complaints filed on April 27, 2020, charge three individuals with possession of child pornography. The cases include:
Scott Andrew Clark, age 44, of Ogden faces possession of child pornography charges following an investigation by the Riverdale Police Department, the Weber County Sheriff’s Office, and a special agent with the U.S. Department of Homeland Security Investigations, who is assigned to the FBI’s Child Exploitation Task Force (CETF) and the Utah Internet Crimes Against Children Task Force (ICAC).
Clark came to the attention of law enforcement officers on April 7, 2020, when officers of the Riverdale Police Department responded to a call reporting a suspicious individual sitting in a parked vehicle next to a retail business. An employee of the business made the call after observing the same individual and vehicle the previous day. Officers approached the car and identified Clark, who admitted he was a registered sex offender. He also admitted he was in possession of child pornography. A forensic analysis conducted by the Weber County Sheriff’s Office revealed child pornography on two of the six devices located in Clark’s vehicle. The complaint alleges that there were more than 5,000 images and 200 videos of child pornography recovered on the devices, including images of infants and other children. Clark has a 2003 state court conviction in Utah for attempted sexual abuse of a minor.
Michael W. Fritchen, age 64, of North Salt Lake City, also charged with possession of child pornography, came to attention of law enforcement through a tip from the National Center for Missing and Exploited Children (NCMEC). The CyberTip reported an image depicting the sexual exploitation of a child approximately 4-6 years old.
An investigation by a Layton City police officer, working as a task force officer with the FBI’s task force, led law enforcement officers to Fritchen, whose criminal history includes a 1993 conviction on several counts of committing an indecent liberties on children. The case was conducted before a United States Air Force general court martial. He received a 10-year sentence.
A forensic review of a desktop seized from Fritchen’s home in North Salt Lake City uncovered more than 13,000 possible images depicting the sexual exploitation of children.
Miguel Angel Jimenez, age 24, of Magna, is charged with possession of child pornography following an investigation by a Layton City police officer working as a task force officer with the FBI’s task force. On Feb. 2, 2020, the Layton officer was conducting an undercover operation portraying himself as a 13-year-old girl when a chat began with an individual later identified as Jimenez. According to the complaint, Jimenez engaged in sexual conversation with someone he believed to be a 13-year-old child and arranged to meet the child for sex on multiple occasions; however, he never appeared at the meeting location.
The investigation continued leading law enforcement to an address in Magna where they found the defendant, a registered sex offender, who was on probation for enticing a minor and possessing child pornography in Salt Lake County. Jimenez was taken into custody when he appeared for a meeting with a probation officer. Numerous files of child pornography were found on his phone, including 773 images of child pornography and 507 videos, according to the complaint.
Clark, Fritchen, and Jimenez each face up to 20 years in prison, with a 10-year minimum mandatory sentence, if convicted of the charges in the complaint. They are currently in state custody.
Complaints are not findings of guilt. Individuals charged in complaints are presumed innocent until proven guilty in court.
Recommendations from the FBI’s National Press Office release issued March 23, 2020:
Parents and guardians can take the following measures to help educate and prevent children from becoming victims of child predators and sexual exploitation during this time of national emergency:
Online Child Exploitation
- Discuss Internet safety with children of all ages when they engage in online activity.
- Review and approve games and apps before they are downloaded.
- Make sure privacy settings are set to the strictest level possible for online gaming systems and electronic devices.
- Monitor your children’s use of the Internet; keep electronic devices in an open, common room of the house.
- Check your children’s profiles and what they post online.
- Explain to your children that images posted online will be permanently on the Internet.
- Make sure children know that anyone who asks a child to engage in sexually explicit activity online should be reported to a parent, guardian, or other trusted adult and law enforcement.
- Remember that victims should not be afraid to tell law enforcement if they are being sexually exploited. It is not a crime for a child to send sexually explicit images to someone if they are compelled or coerced to do so.
Child Abuse Awareness
- Teach your children about body safety and boundaries.
- Encourage your children to have open communication with you.
- Be mindful of who is watching your child for childcare/babysitting, playdates and overnight visits.
- If your child discloses abuse, immediately contact local law enforcement for assistance.
- Children experiencing hands-on abuse may exhibit withdrawn behavior, angry outbursts, anxiety, depression, not wanting to be left alone with a specific individual, non-age appropriate sexual knowledge, and an increase in nightmares.
Victim Reporting
Reporting suspected sexual exploitation can help minimize or stop further victimization, as well as lead to the identification and rescue of other possible victims. If you believe you are—or someone you know is—the victim of child sexual exploitation:
- Contact your local law enforcement agency.
- Contact your local FBI field office or submit a tip online at tips.fbi.gov.
- File a report with the National Center for Missing & Exploited Children (NCMEC) at 1-800-843-5678 or online at www.cybertipline.org.
When reporting, be as descriptive as possible in the complaint form by providing as much of the following as possible:
- Name and/or user name of the subject.
- Email addresses and phone numbers used by the subject.
- Websites used by the subject.
- Description of all interaction with the subject.
- Try to keep all original documentation, emails, text messages, and logs of communication with the subject. Do not delete anything before law enforcement is able to review it.
- Tell law enforcement everything about the online encounters—we understand it may be embarrassing for the parent or child, but providing all relevant information is necessary to find the offender, stop the abuse, and bring him/her to justice.
More information about the FBI’s guidance on child sexual exploitation and protecting your kids
Operation Relentless Pursuit initiative in Cleveland to receive $10 million in awards to support efforts to combat violent crimeRead the Press Release
The U.S. Attorney’s Office for the Northern District of Ohio announced that the Justice Department’s Office of Community Oriented Policing Services (COPS Office) and the Office of Justice Programs’ Bureau of Justice Assistance have awarded more than $61 million in grant funding to support the Attorney General’s Operation Relentless Pursuit (ORP) initiative. Of that $61 million, Cleveland area law enforcement will receive approximately $10 million in awards.
Launched on Dec. 18, 2019, ORP aims to intensify federal law enforcement resources into seven American cities with violent crime levels several times the national average - Albuquerque, Baltimore, Cleveland, Detroit, Kansas City, Memphis, and Milwaukee.
The award breakdown for Cleveland area law enforcement is as follows:
- Cleveland Division of Police– $7,968,944 for funding 30 position.
- Ohio State Highway Patrol & Ohio Investigative Unit – $1,281,658 for funding 5 positions.
- Ohio Division of Adult Parole Authority – $752,014 for funding 4 positions.
These awards will allow for the hiring of additional law enforcement officers to combat violent crime through the Operation Relentless Pursuit initiative.
“While violent crime is down across the country as a whole, some communities remain caught in the grips of violent actors,” said Attorney General William P. Barr. “That’s why I launched Operation Relentless Pursuit last December – an initiative to combat violent crime in seven cities where it remains stubbornly high. Today’s grant awards are critical to our mission. We cannot succeed in eradicating crime without resources – the most vital of which are the brave men and women who serve and protect our communities each day. These funds will boost the forces that need them most.”
“This funding from the Department of Justice is an important commitment in our continued fight against violent crime in Cleveland’s neighborhoods,” said U.S. Attorney Justin Herdman. “These awards will help hire more police officers, highway patrol, adult parole officers, and investigators to help combat violent crime on the streets of our city. Operation Relentless Pursuit will enable us to continue building partnerships between multiple law enforcement divisions in order to better serve the public and bring dangerous, violent criminals to justice.”
The COPS Office, through its COPS Hiring Program (CHP), awarded a total of $51 million to be used to hire 214 sworn law enforcement officers for state and local law enforcement task forces. The recipients of the funding will deploy existing veteran officers to task force duties and use the CHP funding to hire new recruits to backfill those positions, as practical. Officers deployed to
Operation Relentless Pursuit task forces as a result of CHP funding must be sworn, career law enforcement officers of the awarded agency, and their work on the task force must benefit their jurisdiction. In addition, they are required to work with their respective U.S. Attorney’s Office (USAO) and relevant federal agencies to investigate and prosecute suspects involved in gangs, drug trafficking, and other violent crime– related issues.
“Successful strategies to target and reduce violent crime are extremely resource intensive,” said COPS Office Director Phil Keith. “There is no greater resource than additional men and women on the front lines of relentless fight against gangs, drug traffickers and those that mean harm to our nation’s communities. The funding announced today is greatly needed for the Operation Relentless Pursuit jurisdictions and the COPS Office is honored to dedicate resources for this effort.”
For more information on the COPS Hiring Program ORP grants, please visit: https://cops.usdoj.gov/pdf/2020AwardDocs/chp/FY20_Relentless_Pursuit_Fact_Sheet.pdf
The Office of Justice Programs’ Bureau of Justice Assistance (BJA) is making $10 million available to support Operation Relentless Pursuit. BJA funds will support efforts such as the hiring of additional prosecutors, overtime expenses for task force members, multi-agency investigations, mobile data terminals and modern technological platforms, and development of strategic plans to address gaps in combating violent crime.
“The responsibility for fighting crime and violence belongs to agencies at every level of government, and winning that fight turns on our ability to deploy our collective resources wisely and effectively,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are eager to make these funds available so that our federal, state and local partners can continue the vital and noble work of protecting America’s most dangerous communities.”
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.
Omnicare Inc. Agrees to Pay over $15M to Resolve Allegations It Improperly Dispensed Narcotics at Long-Term Care FacilitiesRead the Press Release
SACRAMENTO, Calif. — Omnicare Inc., a subsidiary of CVS Health and a leading provider of pharmacy services to long-term care facilities, has agreed to pay the United States a $15.3 million civil penalty to resolve allegations that it violated federal law by allowing opioids and other controlled substances to be dispensed without a valid prescription, U.S. Attorney McGregor W. Scott announced today.
Omnicare operates “closed door” pharmacies, which are pharmacies that are not open to the public, that deliver controlled substances to nursing homes and other long-term care facilities. Omnicare makes daily deliveries of prescription medications to residents of long-term care facilities; but it also pre-positions limited stockpiles of controlled substances at long-term care facilities in “emergency kits,” which are to be dispensed to patients on an emergency basis. These emergency kits, which often include opioids and other controlled substances that are commonly abused and diverted, remain part of Omnicare’s inventory and must be tightly controlled and tracked. The controlled substances may be dispensed only pursuant to a valid prescription.
“Omnicare failed in its responsibility to ensure proper controls of medications used to treat some of the most vulnerable among us,” said DEA Acting Administrator Uttam Dhillon. “DEA is committed to keeping our communities safe by holding companies like Omnicare accountable for such failures, while ensuring continuity of care and necessary access to emergency prescription drug supplies.”
“When controlled substances are diverted from their intended lawful purpose, whether from a large ‘closed door’ pharmacy chain like Omnicare or a pharmacy open to the public, there is a substantial danger to public health and safety,” U.S. Attorney Scott stated. “That is why the United States Attorney’s Office, together with our law enforcement partners, will continue to enforce the Controlled Substances Act against pharmacies of any size or type that violate the Act and will seek substantial civil penalties when warranted.”
“Failure to control access to prescription drugs can lead to the diversion of medication that could fall into the wrong hands with potentially devastating consequences,” stated DEA Special Agent in Charge Daniel C. Comeaux. “Today’s settlement demonstrates DEA’s commitment in protecting the health and safety of the public by ensuring all entities involved in the distribution of controlled substances follow the law.”
The United States alleged that Omnicare violated the federal Controlled Substances Act in its handling of emergency prescriptions, its controls over the emergency kits, and its processing of written prescriptions that had missing elements. The federal investigation found that Omnicare failed to control emergency kits by improperly permitting long-term care facilities to remove opioids and other controlled substances from emergency kits days before doctors provided a valid prescription. The investigation also revealed that Omnicare had repeated failures in its documentation and reporting of oral emergency prescriptions of Schedule II controlled substances.
As part of the settlement agreement announced today, Omnicare agreed to pay the $15.3 million civil penalty and entered into a Memorandum of Agreement with the Drug Enforcement Administration that will require Omnicare to increase its auditing and monitoring of emergency kits placed at long-term care facilities.
This matter was investigated by the DEA’s Field Divisions in Denver, Los Angeles, San Francisco and Seattle, in conjunction with five U.S. Attorney’s Offices: the Central District of California, the Eastern District of California, the District of Colorado, the District of Oregon, and the District of Utah. The settlement agreement, which was finalized on May 6, resolves Omnicare’s civil liability for the alleged Controlled Substances Act violations in those five districts.
The claims settled by this civil agreement are allegations. In entering into this settlement agreement, Omnicare did not admit to any liability.
The United States Attorney’s Office for the Eastern District of California was represented in this matter by Assistant U.S. Attorneys Colleen M. Kennedy and Geoffrey D. Wilson.
Omnicare Agrees to Pay over $15 Million to Resolve Allegations it Improperly Dispensed Opioids at Long-Term Care FacilitiesRead the Press Release
PORTLAND, Ore.—Omnicare, Inc., a subsidiary of CVS Health and a provider of pharmacy services to long-term care facilities, has agreed to pay the United States a $15.3 million civil penalty to resolve allegations that it violated federal law by, among other things, allowing opioids and other controlled substances to be dispensed without a valid prescription, United States Attorney Billy J. Williams announced today.
The Cincinnati-based Omnicare operates “closed door” pharmacies – meaning they were not open to the public – that deliver controlled substances to nursing homes and other long-term care facilities (LTCFs). Omnicare makes daily deliveries of prescription medications to residents of LTCFs, and it also pre-positions limited stockpiles of controlled substances at LTCFs in “emergency kits,” which are to be dispensed to patients on an emergency basis. These emergency kits, which often include opioids and other controlled substances that are commonly abused and diverted, remain part of Omnicare’s inventory and must be tightly controlled and tracked. The controlled substances may be dispensed only pursuant to a valid prescription.
The United States alleged that Omnicare violated the federal Controlled Substances Act in its handling of emergency prescriptions, its controls over the emergency kits, and its processing of written prescriptions that lacked required elements such as the prescriber’s signature or DEA number. The federal investigation found that Omnicare failed to control emergency kits by improperly permitting LTCFs to remove opioids and other controlled substances from emergency kits days before doctors provided a valid prescription. The investigation also revealed that Omnicare had repeated failures in its documentation and reporting of oral emergency prescriptions of Schedule II controlled substances.
As part of the settlement agreement announced today, Omnicare agreed to pay the $15.3 million civil penalty and entered into a Memorandum of Agreement with the Drug Enforcement Administration that will require Omnicare to increase its auditing and monitoring of emergency kits placed at LTCFs.
“At a time when the opioid abuse and addiction crisis continues to ravage communities across the country, vulnerable Americans must be able to trust that health care providers have their best interest in mind when administering care,” said U.S. Attorney Williams. “The Department of Justice and U.S. Attorney’s Office is committed to holding accountable companies like Omnicare who dispense powerful opioids without valid prescriptions.”
“Omnicare failed in its responsibility to ensure proper controls of medications used to treat some of the most vulnerable among us,” said DEA Acting Administrator Uttam Dhillon. “DEA is committed to keeping our communities safe by holding companies like Omnicare accountable for such failures, while ensuring continuity of care and necessary access to emergency prescription drug supplies.”
This matter was investigated by the DEA’s Field Divisions in Seattle, Denver, Los Angeles, and San Francisco, in conjunction with five United States Attorney’s Offices: the District of Oregon, the Central District of California, the Eastern District of California, the District of Colorado, and the District of Utah. The settlement agreement, which was finalized on May 6, resolves Omnicare’s civil liability for the alleged CSA violations in those five districts.
The claims settled by this civil agreement are allegations. In entering into this settlement agreement, Omnicare did not admit to any liability.
The United States Attorney’s Office for the District of Oregon was represented in this matter by Assistant United States Attorneys Clem Ashley and Alexis Lien from the Affirmative Civil Enforcement Unit.
Omnicare Agrees to Pay over $15 Million to Resolve Allegations It Improperly Dispensed Opioids at Long-Term Care FacilitiesRead the Press Release
LOS ANGELES – Omnicare, Inc., a subsidiary of CVS Health and a provider of pharmacy services to long-term care facilities, has agreed to pay the United States a $15.3 million civil penalty to resolve allegations that it violated federal law by, among other things, allowing opioids and other controlled substances to be dispensed without a valid prescription, United States Attorney Nicola T. Hanna announced today.
The Cincinnati-based Omnicare operates “closed door” pharmacies – meaning they were not open to the public – that deliver controlled substances to nursing homes and other long-term care facilities (LTCFs). Omnicare makes daily deliveries of prescription medications to residents of LTCFs, and it also pre-positions limited stockpiles of controlled substances at LTCFs in “emergency kits,” which are to be dispensed to patients on an emergency basis. These emergency kits, which often include opioids and other controlled substances that are commonly abused and diverted, remain part of Omnicare’s inventory and must be tightly controlled and tracked. The controlled substances may be dispensed only pursuant to a valid prescription.
The United States alleged that Omnicare violated the federal Controlled Substances Act in its handling of emergency prescriptions, its controls over the emergency kits, and its processing of written prescriptions that lacked required elements such as the prescriber’s signature or DEA number. The federal investigation found that Omnicare failed to control emergency kits by improperly permitting LTCFs to remove opioids and other controlled substances from emergency kits days before doctors provided a valid prescription. The investigation also revealed that Omnicare had repeated failures in its documentation and reporting of oral emergency prescriptions of Schedule II controlled substances.
As part of the settlement agreement announced today, Omnicare agreed to pay the $15.3 million civil penalty and entered into a Memorandum of Agreement with the Drug Enforcement Administration that will require Omnicare to increase its auditing and monitoring of emergency kits placed at LTCFs.
“Omnicare dispensed powerful opioids without valid prescriptions and failed to inform federal authorities of significant losses of opioids and other drugs,” United States Attorney Hanna stated. “With the opioid crisis still a very real concern, every entity that handles dangerous drugs will be held accountable to ensure powerful narcotics are properly dispensed and not diverted to the black market.”
“Omnicare failed in its responsibility to ensure proper controls of medications used to treat some of the most vulnerable among us,” said DEA Acting Administrator Uttam Dhillon. “DEA is committed to keeping our communities safe by holding companies like Omnicare accountable for such failures, while ensuring continuity of care and necessary access to emergency prescription drug supplies.”
This matter was investigated by the DEA’s Field Divisions in Denver, Los Angeles, San Francisco and Seattle, in conjunction with five United States Attorney’s Offices: the Central District of California, the Eastern District of California, the District of Colorado, the District of Oregon, and the District of Utah. The settlement agreement, which was finalized on May 6, resolves Omnicare’s civil liability for the alleged CSA violations in those five districts.
The claims settled by this civil agreement are allegations. In entering into this settlement agreement, Omnicare did not admit to any liability.
The United States Attorney’s Office for the Central District of California was represented in this matter by Assistant United States Attorney Charles E. Canter of the Civil Division's Civil Fraud Section.
Omnicare Agrees to Pay over $15 Million to Resolve Allegations It Improperly Dispensed Opioids at Long-Term Care FacilitiesRead the Press Release
SALT LAKE CITY – Omnicare, Inc., a subsidiary of CVS Health and a provider of pharmacy services to long-term care facilities, has agreed to pay the United States a $15.3 million civil penalty to resolve allegations that it violated federal law by, among other things, allowing opioids and other controlled substances to be dispensed without a valid prescription, United States Attorney John W. Huber announced today.
The Cincinnati-based Omnicare operates “closed door” pharmacies – meaning they are not open to the public – that deliver controlled substances to nursing homes and other long-term care facilities (LTCFs). Omnicare makes daily deliveries of prescription medications to residents of LTCFs, and it also pre-positions limited stockpiles of controlled substances at LTCFs in “emergency kits,” which are to be dispensed to patients on an emergency basis. These emergency kits, which often include opioids and other controlled substances that are commonly abused and diverted, remain part of Omnicare’s inventory and must be tightly controlled and tracked. The controlled substances may be dispensed only pursuant to a valid prescription.
The United States alleged that Omnicare violated the federal Controlled Substances Act in its handling of emergency prescriptions, its controls over the emergency kits, and its processing of written prescriptions that lacked required elements such as the prescriber’s signature or DEA number. The federal investigation found that Omnicare failed to control emergency kits by improperly permitting LTCFs to remove opioids and other controlled substances from emergency kits days before doctors provided a valid prescription. The investigation also revealed that Omnicare had repeated failures in its documentation and reporting of oral emergency prescriptions of Schedule II controlled substances.
The Omnicare pharmacies in Utah are Omnicare of Salt Lake City and Omnicare of St. George.
As part of the settlement agreement announced today, Omnicare agreed to pay the $15.3 million civil penalty and entered into a Memorandum of Agreement with the Drug Enforcement Administration that will require Omnicare to increase its auditing and monitoring of emergency kits placed at LTCFs.
“In Utah, we understand the dangers involved with opioids. We understand how carefully they must be managed and accounted for. Omnicare failed on several fronts, including dispensing opioids without a valid prescription and failing to report losses of opioids and other drugs,” U.S. Attorney John W. Huber said today. “Controls are in place to make sure that companies dispensing these drugs are doing it correctly and safely. When these controls are not followed, penalties like we see in this case will be imposed.”
“Omnicare failed in its responsibility to ensure proper controls of medications used to treat some of the most vulnerable among us,” said DEA Acting Administrator Uttam Dhillon. “DEA is committed to keeping our communities safe by holding companies like Omnicare accountable for such failures, while ensuring continuity of care and necessary access to emergency prescription drug supplies.”
This matter was investigated by the DEA’s Field Divisions in Denver, Los Angeles, San Francisco and Seattle, in conjunction with five United States Attorney’s Offices: the District of Utah, the Central District of California, the Eastern District of California, the District of Colorado, and the District of Oregon. The settlement agreement, which was finalized on May 6, resolves Omnicare’s civil liability for the alleged CSA violations in those five districts.
The claims settled by this civil agreement are allegations. In entering into this settlement, Omnicare did not admit to any liability.
Assistant United States Attorneys Carra Cadman and Sandra Steinvoort of the Affirmative Civil Enforcement section in the U.S. Attorney’s Office in Salt Lake City represented Utah in the matter.
North Country Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Dean Brooks, age 40, of Hammond, New York, pled guilty today to one felony count charging receipt of child pornography and one felony count charging possession of child pornography, announced United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Brooks admitted that he used his Yahoo e-mail account to request and receive seven sexually explicit images from a 14-year old Alabama girl during a two-week period in December 2017. A subsequent federal search warrant executed at his residence uncovered an additional nine child pornography images that Brooks downloaded from the internet to his cellular telephone.
Brooks remains detained pending his sentencing on August 13, 2020, in Utica, New York. He faces a minimum of five years and up to 20 years of imprisonment for his receipt of child pornography, and up to 20 years of imprisonment for his possession of child pornography. Brooks also faces a fine of up to $250,000.00 per count of conviction, as well as a term of supervised release of between five (5) years and life, and he will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court
Brooks’s case was investigated by Homeland Security Investigations (HSI), and the Baldwin County (Alabama) Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Nashua Man Sentenced to 15 Months for Participating in Drug Trafficking Conspiracy in Nashua AreaRead the Press Release
CONCORD – Marvin Morrison, 37, of Nashua, was sentenced to 15 months in federal prison and 4 months home confinement for participating in a conspiracy to distribute crack cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Morrison was a member of a drug trafficking organization that distributed crack cocaine and other drugs to various customers in the Nashua area.
Morrison previously pled guilty on February 18, 2020.
In addition to Morrison, six defendants in this case have pleaded guilty. Three of the defendants have been sentenced: Donald Johnson was sentenced to 42 months in prison; Melvin Nooks was sentenced to 120 months in prison; and Mallory Nooks received 60 months in prison. Three defendants still await sentencing. Three other defendants are awaiting trial.
“Drug trafficking threatens the safety of the citizens of Nashua and other communities throughout New Hampshire,” said U.S. Attorney Murray. “Through our close collaboration with our law enforcement partners, we will continue to combat the organizations that are responsible for distributing drugs in the Granite State. We will continue to protect our citizens by investigating, prosecuting, and incarcerating the drug dealers who endanger our communities.”
“Today’s sentence shows that Marvin Morrison’s efforts to further the success of this drug trafficking organization held no reward, and ultimately cost him his freedom,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The hard work of the FBI New Hampshire Safe Streets Gang Task Force in dismantling this organization and disrupting the flow of illegal narcotics to the Nashua area has paid off, but there is much more work to be done to ensure that other drug-trafficking networks don’t try to fill the void left by this one.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the New Hampshire State Police, Nashua Police Department, Manchester Police Department, Dover Police Department and Portsmouth Police Department. The case was prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Anna Krasinski.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Local Man Pleads Guilty to Possessing and Transporting a Firearm with an Obliterated Serial Number and Leaving a Designated Customs Facility Without AuthorizationRead the Press Release
St. Thomas, USVI – Javier Enrique Lima pled guilty on Tuesday to: 1) possessing and transporting a firearm with an obliterated serial number; and 2) departing a customs facility without authorization, United States Attorney Gretchen C.F. Shappert announced.
According to information provided in court and in court documents, on February 3, 2020, defendant presented himself at Customs and Border Protection (CBP) in the Red Hook ferry terminal after returning from Tortola, British Virgin Islands. A CBP Officer working the x-ray machine noticed a firearm in the backpack Lima brought with him, and called for another officer. Lima immediately fled the facility on foot, leaving his backpack. The backpack contained a firearm with an obliterated serial number. Law enforcement agents made multiple efforts to locate Lima, but were unable to do so. He later turned himself in.
The defendant was remanded to the custody of the U.S. Marshals Service and will be sentenced at a later date.
The case is being investigated by the Department of Homeland Security, Homeland Security Investigations, and by Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Donna Rainwater.
Local Firm Ordered to Pay More Than $150,000 for Hazardous Waste ViolationsRead the Press Release
Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – May 13, 2020
SAN DIEGO – Curtis Technology Inc., a San Diego firm that makes specialized coatings, was sentenced in federal court today to pay a $45,000 fine and $114,297 in clean-up costs for illegally transporting hazardous waste from its facility without a manifest.
Curtis Technology Inc. (CTI) pleaded guilty in February, admitting that it conducted metal finishing operations at its location on Sorrento Valley Road, which generated various wastes, including ferric chloride, alkaline, waste filter cake, solvents and other chemicals. The company admitted that between December 12, 2015 and August 22, 2019, the CTI owner and a maintenance employee transported chemicals, including waste ferric chloride, waste filter cake, waste alkaline, waste solvents and other chemical wastes, from the CTI location on Sorrento Valley Road to the CTI owner’s three residences located on Wrelton Drive, Corte Morea, and Bourgeois Way, without an accompanying hazardous waste manifest.
On November 8, 2019, a maintenance worker for CTI told the FBI that beginning in 2017, at the direction of the company owner, he transported various chemicals (both unused and waste) to be stored at the owner’s three residences in San Diego. The employee stated that the chemicals were hazardous, and that some could react with others stored at the same location if they were to come in contact with each other, potentially resulting in explosion. The employee further stated that he had been to the residences prior to 2017 with the owner and had observed containers of unknown chemicals at the residences prior to his first deliveries at each location. The chemicals he delivered were stored in five-gallon buckets with lids and jars with lids, and included selenium, cesium, ferric chloride, alkaline and filter cake (solids strained from liquids or sludges). All three residences where the chemicals were stored were unoccupied, and none of the chemicals were labeled as hazardous waste. None of the chemicals transported to the residences by the employee were accompanied by a hazardous waste manifest.
On November 14, 2019, federal search warrants were executed at the three residences identified by the employee as places where the hazardous waste was being stored. Collectively, at the three sites, over 300 containers of waste chemicals were discovered. At one of the locations, chemicals deemed too unstable to transport were discovered. The area was evacuated, the San Diego Fire Department Bomb Squad arrived, and the chemicals were detonated on site. The remaining chemicals were removed from the sites, and disposed of as hazardous waste through the EPA Superfund program at a cost of approximately $114,000. The illegal activity occurred after the company had been subject to an adverse administrative action relating to its management of its hazardous waste.
“This company was so cavalier and irresponsible about the storage of chemicals that it knowingly put an entire neighborhood at risk,” said U.S. Attorney Robert Brewer. “This sentence holds the company accountable for its illegal actions.” Brewer also commended the prosecution team headed by AUSA Melanie Pierson for their diligence in this case.
“The illegal transportation and storage of dangerous chemicals and hazardous waste could have easily resulted in a serious injury or death,” said San Diego FBI Acting Special Agent in Charge Omer Meisel. “Today’s conviction demonstrates the FBI's commitment to working with our law enforcement partners to hold accountable those individuals who do not follow proper hazardous waste protocol and put the community at risk.”
“The defendant illegally stored chemicals in a residential area that were too unstable to safely transport for disposal,” said Acting Special Agent in Charge Scot Adair of EPA’s criminal enforcement program in California. “These actions required the evacuation of a neighborhood to allow local law enforcement officials to detonate the chemicals safely. EPA and our law enforcement partners are committed to addressing these risks and enforcing our environmental laws.”
DEFENDANT Case Number 20cr0715-JAH
Curtis Technology Inc. Incorporated: 1981 San Diego, CA
SUMMARY OF CHARGES
Transportation of Hazardous Waste Without a Manifest – Title 42, U.S.C., Section 6928(d)(5)
Maximum penalty for corporation: Five years of probation and a fine of the greater of $500,000 or $50,000 per day of violation and a minimum fine of $5000 per day of violation
AGENCY
U.S. Environmental Protection Agency, Criminal Investigation Division
Federal Bureau of Investigation
Leader of Townsend Street Drug Trafficking Organization Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lamario Mills, a/k/a Rio, 32, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to possessing with intent to distribute, and distributing, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a $5,000,000 fine.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Joshua A. Violanti, who are handling the case, stated that in August 2018, investigators began looking into the drug trafficking activities of the defendant and multiple co-defendants, which were focused in the area of 67 Townsend and 76 Townsend Street in Buffalo. Between August 2018 and June 18, 2019, Mills and his co-defendants sold cocaine and crack cocaine in that area. Investigators conducted a total of 27 controlled purchases of crack cocaine and 12 purchases of cocaine.
Mills was an organizer in the drug trafficking organization, responsible for supplying members on a near-daily basis with crack cocaine, which they in turn sold on behalf of the organization. On June 18, 2019, investigators executed a search warrant at the defendant's Delaware Avenue residence, and seized a quantity of cocaine and marijuana, and utensils used to cook the cocaine into crack cocaine, such a pan, spatula, tongs, and plates. They also seized $35,562.00 in cash.
Mills was arrested in June 2018 along with nine other defendants, he is the second to be convicted.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major James Hall; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; and the Erie County Crime Analysis Center.
Sentencing is scheduled for August 17, 2020, at 12:30 p.m. before U.S. District Judge Richard J. Arcara.
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Lawrence Man Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday for selling fentanyl to an undercover officer.
Jonathan Marquez, 32, was sentenced by U.S. District Court Judge Leo T. Sorokin to 33 months in prison and 36 months of supervised release. In January 2020, Marquez pleaded guilty to one count of distributing fentanyl. Marquez was arrested in September 2019 and has been detained since October 2019.
In September 2019, an undercover officer placed an order with a fentanyl dealer, and Marquez then met the undercover officer at an arranged location in Lawrence. Marquez handed the officer 11 individually-wrapped bags containing brownish powder in exchange for cash. Laboratory results later determined that the brownish powder contained fentanyl.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, prosecuted the case.
Lame Deer man admits beating girlfriendRead the Press Release
BILLINGS – A Lame Deer man today admitted he hit his girlfriend repeatedly in the face, causing facial and dental injuries, U.S. Attorney Kurt Alme said.
Anfernee Jamal Whiteman, aka Anfernee Jamal Limberhand, 21, pleaded guilty to assault resulting in substantial injury to a dating partner. Whiteman faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Whiteman was detained pending further proceedings. A sentencing date has not yet been set.
In court documents filed by the prosecution, the assault occurred on Sept. 14, 2019 near the commodities building in Lame Deer, on the Northern Cheyenne Indian Reservation. A Bureau of Indian Affairs law enforcement officer responded to a report of a woman being beaten up and heard the victim scream as he neared the area. The officer saw Whiteman standing over the victim.
The victim was upset, bloody and screaming at Whiteman. Whiteman attempted to flee and was arrested. Whiteman's knuckles were swollen and there was blood on his pants and shirt. The victim was taken to the Lame Deer Indian Health Service where she said her "boyfriend hit her repeatedly in the face." The victim had abrasions on her head and face and dental injuries from the assault.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
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KC Police Department Receives $5 Million in Federal Grants to Reduce Violent CrimeRead the Press Release
KANSAS CITY, Mo. – The Kansas City, Missouri, Police Department has received more than $5 million in federal grants from the U.S. Department of Justice to support the city’s efforts to reduce violent crime, announced U.S. Attorney Tim Garrison.
“Operation Relentless Pursuit surges federal resources to help our state and local partners in their fight to drive down violent crime in Kansas City,” Garrison said. “Providing the resources to deploy additional police officers with a strategic focus will help us fight violent crime by investigating, arresting, and prosecuting drug traffickers and criminals with guns.”
The Office of Community Oriented Policing Services (COPS Office) and the Office of Justice Programs’ Bureau of Justice Assistance this week announced a total of more than $61 million in grant funding to support Operation Relentless Pursuit in seven cities. Launched on Dec. 18, 2019, Operation Relentless Pursuit aims to intensify federal law enforcement resources into seven American cities with violent crime levels several times the national average – the Kansas City metropolitan area (including both Kansas City, Missouri, and Kansas City, Kansas), Albuquerque, Baltimore, Cleveland, Detroit, Memphis, and Milwaukee.
In addition to the $3,675,522 COPS grant announced this week, the Kansas City, Missouri, Police Department recently received a $1,428,571 grant through the Bureau of Justice Assistance. Grant funding will be used to hire 18 additional positions, including nine police officers to replace experienced officers deployed to the Operation Relentless Pursuit task force. Grant funding also will be used for technological enhancements.
“While violent crime is down across the country as a whole, some communities remain caught in the grips of violent actors,” said Attorney General William P. Barr. “That’s why I launched Operation Relentless Pursuit last December – an initiative to combat violent crime in seven cities where it remains stubbornly high. Today’s grant awards are critical to our mission. We cannot succeed in eradicating crime without resources – the most vital of which are the brave men and women who serve and protect our communities each day. These funds will boost the forces that need them most.”
The COPS Office, through its COPS Hiring Program (CHP), awarded a total of $51 million to hire 214 sworn law enforcement officers for state and local law enforcement task forces. The recipients of the funding will deploy existing veteran officers to task force duties and use the CHP funding to hire new recruits to backfill those positions. Officers deployed to Operation Relentless Pursuit task forces as a result of CHP funding must be sworn, career law enforcement officers of the awarded agency. In addition, they are required to work with their respective U.S. Attorney’s Office and relevant federal agencies to investigate and prosecute suspects involved in gangs, drug trafficking, and other violent crime-related issues.
“Successful strategies to target and reduce violent crime are extremely resource intensive,” said COPS Office Director Phil Keith. “There is no greater resource than additional men and women on the front lines of the relentless fight against gangs, drug traffickers, and those that mean harm to our nation’s communities. The funding announced today is greatly needed for the Operation Relentless Pursuit jurisdictions and the COPS Office is honored to dedicate resources for this effort.”
For more information on the COPS Hiring Program ORP grants, please visit: https://cops.usdoj.gov/pdf/2020AwardDocs/chp/FY20_Relentless_Pursuit_Fact_Sheet.pdf
The Office of Justice Programs’ Bureau of Justice Assistance is making $10 million available to support Operation Relentless Pursuit. These funds will support efforts such as the hiring of additional prosecutors, overtime expenses for task force members, multi-agency investigations, mobile data terminals and modern technological platforms, and development of strategic plans to address gaps in combating violent crime.“The responsibility for fighting crime and violence belongs to agencies at every level of government, and winning that fight turns on our ability to deploy our collective resources wisely and effectively,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are eager to make these funds available so that our federal, state, and local partners can continue the vital and noble work of protecting America’s most dangerous communities.”
Justice Department Sues Atlanta-Based Property Owners and Management Company for Housing Discrimination Against African AmericansRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Crimson Management LLC, Benefield Housing Partnership d/b/a Cedartown Commons, and Cedartown Housing Associates, d/b/a Cedarwood Village, alleging that they violated the Fair Housing Act by intentionally discriminating on the basis of race against African-American applicants for housing.
“Congress enacted the Fair Housing Act in 1968 to protect Americans from the racially motivated violence and discrimination that has stained our nation’s history. More than five decades later, our nation regrettably continues to suffer the scourge of racial bias,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to fight to protect the rights of all Americans to rent and own their homes without regard to their race.”
“More than 50 years after the passage of the Fair Housing Act, cases like this demonstrate that there is still work to be done to ensure that all people, regardless of race and color, have equal access to housing,” said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. “My office will continue to devote resources to investigate and eradicate housing discrimination.”
The lawsuit, filed in the U.S. District Court for the Northern District of Georgia, alleges that from at least 2012 to 2018, the defendants steered African-American housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a predominantly African-American housing complex, which is inferior in appearance, location, and amenities to Cedarwood Village. Both complexes are located in Cedartown, Georgia. The complaint also alleges that the defendants subjected African-American residents who are elderly or have a disability to less favorable rental terms, conditions, and privileges as compared to similarly situated white tenants, and denied these African-American applicants more desirable units at the Village.
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct, which must be proven in federal court.
Fighting illegal housing discrimination is a top priority for the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination at the defendants’ properties may contact the Justice Department by calling 1-833-591-0294 to leave a message, or sending an e-mail to [email protected].
Greene County Man Pleads Guilty to Drug Trafficking Charge as Part of Investigation into DS44 Neighborhood GangRead the Press Release
PITTSBURGH, PA – A former resident of Waynesburg, Pennsylvania pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Robert Hartlaub, 33, pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Hartlaub is one of 36 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Mr. Hartlaub was involved in the distribution of heroin and fentanyl, including purchasing distribution level quantities of heroin and fentanyl from co-conspirator Ronald Williams, and redistributing the drugs to others.
Judge Stickman scheduled sentencing for October 1, 2020, at 10:30 am. The law provides for a total sentence of not more than twenty years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each defendant. Hartlaub remains on bond pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Fort Wayne Man Sentenced to over 17 Years in PrisonRead the Press Release
FORT WAYNE – Edwin Calligan, age 42, of Fort Wayne, Indiana, was sentenced before U.S. District Court Judge Holly A. Brady following his conviction by a jury in January 2020 for being a felon in possession of a firearm, importing a detectible amount of 5F-ADB (synthetic cannabinoid) into the United States and attempted possession with intent to distribute 5F-ADB, announced U.S. Attorney Kirsch.
Calligan was sentenced to 210 months in prison followed by 3 years of supervised release.
According to documents presented in this case, in June of 2017, a federal search warrant was executed at Calligan’s residence in Fort Wayne where a firearm was found in addition to ammunition. Calligan has prior felony convictions for Attempted Murder and Criminal Reckleness, that prohibit him from legally possessing a firearm or ammunition. Over the course of the investigation, several parcels were seized by Custom Border Protection, which contained the illegal substance, 5f-ADB that been imported from China/Hong Kong.
“Due to his extensive criminal history, Mr. Calligan was sentenced to a significant prison sentence,” said U.S. Attorney Thomas L. Kirsch II. “This type of sentence should send a message, that if you have a long violent criminal history and are still involved in criminal dealings, you will be held accountable. We have a strong coordinated team of law enforcement professionals that will find, arrest and prosecute you.”
The case was investigated by the Department of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and United States Custom and Border Protection, with the assistance of United States Postal Inspection Service, Allen County Drug Task Force, Allen County SWAT team, and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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Fort Wayne Man & Woman ChargedRead the Press Release
FORT WAYNE – Horia Malutan, age 43 and Kelly Krieger, age 35, both of Fort Wayne, Indiana were charged in a criminal complaint with armed bank robbery, announced U.S. Attorney Kirsch.
According to documents in this case, on December 24, 2019, Malutan, armed with a dangerous weapon, allegedly forced his way into a bank located on Lower Huntington Road. Once inside, he demanded to be taken to the vault where he had employees fill a bag with money. Once the bag was filled with cash, he ordered the employees to lay down in the vault while he exited the bank. He was later identified through a tip that was received by police. It is also alleged that, Kelly Krieger, the bank manager, had assisted in the planning, thus aiding and abetting the robbery. Over $220,000.00 was taken during the robbery.
US Attorney Kirsch said, “I commend the efforts of the FBI along with our state and local law enforcement partners in solving this case. Our law enforcement partners are dedicated professionals that work in unison to bring cases like this to justice.”
The United States Attorney’s Office emphasizes that a Criminal Complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The case is being investigated by the Federal Bureau of Investigation Safe Streets Gang Task Force which is comprised of the Fort Wayne Police Department, the Indiana State Police Organized Crime and Corruption Unit and the Allen County Sheriff’s Department. Also assisting in the investigation was the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Wilkinsburg Man Caught in Drug Trafficking Conspiracy Sentenced to 5 Years in PrisonRead the Press Release
PITTSBURGH – A former resident of Wilkinsburg, Pennsylvania, has been sentenced in federal court to five years’ (60 months’) imprisonment on his conviction of conspiracy to possess with intent to distribute fentanyl, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Jeremy Fooks, 33.
According to information presented to the court, the charges resulted from a 12-month investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. Over the course of the investigation, law enforcement determined that Fooks was distributing fentanyl, and, as a condition of his guilty plea, accepted responsibility for the distribution of between 32 and 40 grams of fentanyl in the Pittsburgh area. The court was further informed that the defendant also accepted responsibility for ammunition that was seized during the execution of a search warrant at his residence. Fooks has two prior felony drug convictions and as such, is prohibited from possessing firearms or ammunition.
Assistant United States Attorney Robert C. Schupansky prosecuted this case on behalf of the government.
The FBI’s Greater Pittsburgh Safe Streets Task Force (GPSSTF) led the mulit-agency investigation that led to the successful prosecution of George. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. Additionally, the GPSSTF and the United Sates Attorney’s Office for theWestern District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United Sates Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department.
Former U.S. Marine Corps Subcontractor Pleads Guilty to Obstruction of JusticeRead the Press Release
A former subcontractor for the U.S. Marine Corps pleaded guilty today to destroying records in connection with a federal investigation of bribery and procurement fraud at Marine Corps Base Camp Lejeune (MCBCL), located in Jacksonville, North Carolina.
William J. Thompson, 56, of Sneads Ferry, North Carolina, pleaded guilty to one count of destruction of records in a federal investigation before U.S. District Chief Judge Terrence W. Boyle of the Eastern District of North Carolina. A sentencing date has not been set.
According to documents filed with the court, Thompson owned and operated C&D Painting and Construction, a construction company with its principal place of business in Sneads Ferry, North Carolina. Public Official 1 was a civilian employee of the U.S. Marine Corps who directed the procurement of information technology services and equipment to be used by the Marine Corps at MCBCL and elsewhere. Company A was an information technology services company and was owned and operated by Person 1.
On March 28, 2018, agents of the FBI, Naval Criminal Investigative Service (NCIS) and Internal Revenue Service-Criminal Investigations (IRS-CI) interviewed Thompson. During the interview, agents of the aforementioned agencies informed Thompson that they were investigating an alleged bribery conspiracy between Public Official 1, Person 1, Company A and Thompson. The agents questioned Thompson about work that C&D Construction completed as a subcontractor for Company A at MCBCL and about renovations that Thompson performed at Public Official 1’s residence. At the time of the interview, the investigation was covert and not known to all subjects, including Public Official 1.
On the same evening of the interview and the following morning, Thompson exchanged several text messages with Public Official 1 in which Thompson informed Public Official 1 that the FBI, NCIS, and IRS-CI were investigating Public Official 1’s involvement in contracting matters while Public Official 1 was employed by the Marine Corps. After informing Public Official 1 of the pending federal investigation, Thompson deleted the relevant text messages from his phone, despite knowing that the messages constituted evidence related to the federal investigation into bribery and procurement fraud at MCBCL.
This case was investigated by the FBI, Defense Criminal Investigative Service, NCIS, Naval Audit Service and IRS-CI. Trial Attorney Erica O’Brien Waymack of the Criminal Division’s Public Integrity Section is prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Monahans Police Officer Sentenced to 87 Months in Federal Prison on Child Pornography ChargeRead the Press Release
In Midland today, a federal judge sentenced former Monahans police officer Marshal Lacy Hobbs to 87 months in federal prison on a child pornography charge, announced U.S. Attorney John F. Bash and Texas Department of Public Safety Director Steven McCraw.
In addition to the prison term, U.S. District Judge David Counts ordered that Hobbs, age 36 of Andrews, TX, pay a $30,000 fine; a $5,000 assessment under the Amy and Vicky Child Pornography Victim Restitution Improvement Act; and, a $5,000 assessment under the Justice for Victims of Trafficking Act. Judge Counts also ordered that Hobbs be placed on supervised release for a period of five years after completing his prison term. Hobbs, who had been on bond during this litigation, was remanded into the custody of the U.S. Marshals Service following today’s hearing in order to begin serving his prison term.
On December 19, 2019, Hobbs pleaded guilty to one count receipt of child pornography. Court records reveal that in November 2019, Hobbs knowingly engaged in social media communications on his cell phone with a female he knew to be under 18 and that he received multiple videos and images of that minor female engaged in sexually explicit activity.
“When an officer who has sworn to protect his community instead decides to target a child for exploitation, we will be relentless in seeking justice. I am pleased with the sentence imposed today,” stated U.S. Attorney Bash.
The Texas Rangers investigated this case along with the Andrews Police Department. Assistant U.S. Attorney Shane A. Chriesman prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Clay County Sheriff’s Deputy Charged with Online Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the arrest and filing of a criminal complaint charging Travis Ryan Pritchard (36, Green Cove Springs) with online enticement of a minor and attempted online enticement of a minor to engage in sexual activity. If convicted, Pritchard faces a mandatory minimum penalty of 10 years, and up to a life, in federal prison.
According to the
complaint , Pritchard was employed as a deputy with the Clay County Sheriff’s Office. At the time of the alleged offense, he was assigned to the DUI unit. From December 2019 through May 2, 2020, Pritchard used an online chat application to communicate with a 15-year-old girl with whom he had engaged in sexual activity on a weekly basis. Beginning on April 29, 2020, an undercover detective from the Green Cove Springs Police Department assumed the child’s identity and continued chatting with Pritchard using the online chat application. Late in the night of May 1, 2020, and into the early morning hours of the next day, Pritchard encouraged the “child” to sneak out of her home to meet with him for a “quickie.” In anticipation of their meeting, he sent the “child” a photograph of himself from the waist down, wearing only boxer shorts. At approximately 2:00 a.m. on May 2, 2020, Pritchard arrived near the child’s home to pick her up in his patrol vehicle, and sent the “child” a message saying, “I’m here.” A short time later, Pritchard was arrested by officers from the Green Cove Springs Police Department.A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Green Cove Springs Police Department and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
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.
Florence Man Pleads Guilty to Possession of Firearm by Convicted FelonRead the Press Release
COVINGTON, Ky.- A Florence, Kentucky, man, Cordero D. Warren, 31, pled guilty in federal court on Wednesday, before U.S. District Judge David Bunning to being a convicted felon in possession of a firearm.
Warren admitted that on September 24, 2019, officers conducted a traffic stop on a vehicle in Florence. During the traffic stop, officers observed a loaded handgun on the floorboard at Warren’s feet. According to the plea agreement, Warren admitted that he knew he was a convicted felon and prohibited from possessing a firearm.
Warren was indicted in October 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Sheriff Michael A. Helmig, Boone County Sheriff’s Department, jointly announced the guilty plea.
The investigation was conducted by ATF and Boone County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney Elaine Leonard.
Warren is scheduled to be sentenced on August 18, 2020. He faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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 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. 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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Engineer Charged in Texas with COVID-Relief FraudRead the Press Release
An engineer has been charged in the Eastern District of Texas with allegedly filing bank loan applications fraudulently seeking more than $10 million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Shashank Rai, 30, of Beaumont, Texas, allegedly sought millions of dollars in forgivable loans guaranteed by the SBA from two different banks by claiming to have 250 employees earning wages when, in fact, no employees worked for his purported business.
Rai is charged by way of a federal criminal complaint with violations of wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA.
“As alleged, Rai fraudulently pursued millions of dollars in loans intended for legitimate small businesses suffering the economic hardships of the COVID-19 pandemic,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department and our law enforcement partners will remain vigilant in our efforts to protect critical CARES Act relief programs from fraud and abuse.”
“The behavior in this case was very brazen,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “Those who submit these applications for loans or other assistance need to understand that there are people checking on the representations made, and those representations are made under oath and subject to the penalties of perjury. Federal agencies are watching for fraud, and people who lie and try to cheat the system are going to be caught and prosecuted.”
“To support small and community banks, the Federal Home Loan Banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Richard Parker, Acting Deputy Inspector General for Investigations for the Federal Housing Finance Agency, Office of Inspector General. “The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”
“Today’s charges hold the defendant responsible for his actions to swindle money out of a federal program intended to help those in need during a pandemic crisis,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “When an individual cheats the Paycheck Protection Program out of money, it deprives hard-working Americans and deserving small businesses. The FDIC OIG is committed to working with our law enforcement partners to investigate financial crimes in order to preserve the integrity of the nation’s banking sector.”
“SBA OIG and its law enforcement partners will aggressively investigate fraud in the Paycheck Protection Program,” said SBA Inspector General Hannibal “Mike” Ware. “The nation’s small businesses are counting on this program, and we will safeguard it to maintain the public trust. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“While the government is trying to help out small businesses, scammers are out there trying to help themselves,” said Inspector in Charge Delany De Leon-Colon of the Criminal Investigations Group. “Postal Inspectors are proud to work alongside the Department of Justice and our other law enforcement partners to identify and investigate anyone who capitalizes on this pandemic to commit fraud. The U.S. Postal Inspection Service is committed to protecting small business owners, and the American public, from those who seek to do financial harm.”
According to court documents unsealed today in U.S. District Court in Beaumont, Rai allegedly made two fraudulent claims to two different lenders for seek loans guaranteed by the SBA for COVID-19 relief through the PPP. In the application submitted to the first lender, Rai allegedly sought $10 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of $4 million. In the second application, Rai allegedly sought approximately $3 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of approximately $1.2 million.
According to court documents, the Texas Workforce Commission provided information to investigators of having no records of employee wages having been paid in 2020 by Rai or his purported business, Rai Family LLC. In addition, the Texas Comptroller’s Office of Public Accounts reported to investigators that Rai Family LLC reported no revenues for the fourth quarter of 2019 or the first quarter of 2020.
According to court documents, materials recovered from the trash outside of Rai’s residence included handwritten notes that appear to reflect an investment strategy for the $3 million, which is the amount of money that Rai allegedly sought from the second lender.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant Chief L. Rush Atkinson and Trial Attorney Lou Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Frank Coan for the Eastern District of Texas are prosecuting the case.
The Justice Department acknowledges and thanks the FHFA Office of Inspector General, FDIC Office of Inspector General, SBA Office of Inspector General, and U.S. Postal Inspection Service for their efforts investigating this matter.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Durable medical equipment company owner charged in kickback schemeRead the Press Release
SAVANNAH, GA: A Florida man who operated a durable medical equipment company has been charged for his alleged participation in a Medicare kickback and telemedicine fraud scheme.
Patrick Wolfe, 48, of Belleair Beach, Fla., the operator of Wilmington Island Medical Inc., which does business as WI Medical Inc., a Georgia company, is accused of conspiring to pay kickbacks for “leads,” which were in actuality signed orders from physicians and nurse practitioners, and then billing those orders to Medicare Part B and Medicare Part C using WI Medical, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The financial total for orders facilitated through this scheme is alleged to be in the millions of dollars. Medicare beneficiaries were located in the Southern District of Georgia and elsewhere. The defendant was charged by way of an Information, filed in the U.S. District Court for the Southern District of Georgia.
“White collar crime – and particularly health care fraud – continues to be a priority for this office and we are proud to work with our dedicated law enforcement partners to aggressively pursue those who illegally exploit government safety-net programs for personal gain,” said U.S. Attorney Christine.
This prosecution, arising out of the related “Operation Brace Yourself” and “Operation Double Helix,” together with those previously announced, continue to add to the largest fraud operation prosecuted in the history of the Southern District of Georgia. Previous charges in this string of cases include eight physicians, two nurse practitioners, three operators of different telemedicine companies, two brokers of patient data, and several owners of durable medical equipment companies. The Medicare and Medicaid beneficiaries whose identities were used as part of the scheme are located throughout the country, including throughout the Southern District of Georgia.
The combined total of more than $475 million in fraud charged in the Southern District of Georgia is part of nationwide operations by the Department of Justice that thus far has included allegations involving billions of dollars in fraudulent claims for genetic testing, orthotic braces, pain creams, and other items.
“This is another in a long line of charges in a continuous investigation into fraud that hurts every taxpayer and steals money earmarked for those who need it to meet their healthcare issues,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our fellow federal partners will not rest until everyone involved in wrongdoing is brought to justice.”
“Now more than ever, it’s paramount that we safeguard the Medicare trust fund,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “We continue to work with our law enforcement partners to identify and hold responsible providers who perpetrate telemedicine fraud schemes.”
“This type of corruption involving health care fraud against Medicare and Medicaid has managed to defraud American taxpayers of millions upon millions of dollars,” said Resident Agent in Charge Glen M. Kessler of the U.S. Secret Service. “The U.S. Secret Service and our partners are always willing to take prompt and coordinated actions to hold these telemarketers and medical professionals responsible for placing personal greed above the good of the public, particularly in light of our nation’s current struggles with the COVID-19 pandemic.”
Indictments or criminal informations contain only charges; defendants are presumed innocent unless and until proven guilty.
This investigation is ongoing. As telemedicine becomes an increasing part of our healthcare system, particularly during the COVID-19 pandemic, vigilance in ensuring that fraud and kickbacks do not usurp the legitimate practice of medicine by electronic means is more important than ever. If you are aware of any fraud or kickbacks relating to telemedicine, including COVID-19 fraud, please call the FBI hotline at 1-800-CALL-FBI.
This particular prosecution resulted from a joint investigation of multiple agencies and offices. U.S. Attorney Christine acclaimed the hard work of the investigatory team, led by FBI - Savannah, the Department of Health and Human Services Office of Inspector General, and the United States Secret Service.
Assistant U.S. Attorneys J. Thomas Clarkson and Jonathan A. Porter are prosecuting these cases on behalf of the United States.
Couple Sentenced to More Than a Dozen Years in Federal Prison for Moore Armed Bank RobberyRead the Press Release
OKLAHOMA CITY – Duncan Eric Herron, II, 32, and Regenea Carol Berry, 31, of Oklahoma City, have been sentenced collectively to more than 12 years for their roles in an armed bank robbery, announced U.S. Attorney Timothy J. Downing.
"This case highlights the capabilities and collaboration of our federal, state, and local law enforcement officials," said U.S. Attorney Downing. "It also shows that those who menace our community, especially with firearms, will be held accountable. Simply put, this aggression will not stand."
On May 20, 2019, Herron and Berry were charged by criminal complaint for the bank robbery. According to the affidavit submitted in support of the criminal complaint, Herron and Berry entered an International Bank of Commerce ("IBC") branch located in Moore, Oklahoma, wearing all black clothing and masks that covered their faces. As Heron entered the lobby of the bank, he racked the slide of a firearm. Herron and Berry then intimidated bank employees by ordering them to the ground and demanding money. They collected and ultimately made off with money that belonged to the bank. A search on May 18 at a residence linked to Herron and Berry turned up evidence that connected them to the robbery. Law enforcement arrested them thereafter on the criminal complaint.
On June 19, 2019, a federal grand jury indicted Herron and Berry for the bank robbery. On July 22, 2019, Herron and Berry appeared before the Honorable Charles B. Goodwin, U.S. District Judge, and pled guilty.
On April 3, 2020, Judge Goodwin sentenced Berry to 70 months in prison, followed by three years of supervised release. And earlier this week, on May 11, 2020, Judge Goodwin sentenced Herron to 84 months in prison, followed by three years of supervised release. Both defendants were also ordered to pay restitution to the bank.
This sentence is the result of an investigation by the Federal Bureau of Investigation–Oklahoma City Field Office and the Moore Police Department. Prosecuted by Assistant U.S. Attorneys Mary E. Walters and Wilson D. McGarry.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Convicted Felon Is Sentenced to Prison for Illegally Possessing GunsRead the Press Release
MACON, Ga. – A Macon County, Georgia resident with a criminal history was sentenced to prison for possessing guns, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. Joe Oliver Butler, III, 38, was sentenced by U.S. District Judge Marc Treadwell on Tuesday, May 12 during a video conference hearing to 46 months in prison and three years supervised release after pleading guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
Montezuma Police pulled Butler over after he failed to maintain his lane while driving on February 5, 2018. Butler admitted he had been drinking, and also told the officer he was a convicted felon who was currently on probation and had two firearms on him, one of which was stolen. The officer removed a Smith & Wesson M&P 22, .22 LR semi-automatic pistol from Butler’s waistband and a Raven Arms MP-25, .25 Auto semi-automatic pistol from Butler’s pocket. The officer also found multiple bags of various types of drugs that were packaged for distribution, including a bag of n-ethlypentylone, also known as bath salts, weighing 11.491 grams, plus multiple bags of crack cocaine, methamphetamine, powder cocaine and marijuana, as confirmed by scientific testing performed by the GBI and the Montezuma Police Department.
“Convicted felons will get hard time for gun crimes in the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “One way our office supports law enforcement in protecting the public is to prosecute convicted felons for illegally possessing firearms. I want to thank the Montezuma Police Department, GBI and ATF for their excellent work investigating this case.”
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), GBI and the Montezuma Police Department. Assistant U.S. Attorney Steven Ouzts prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Consultant Agrees to Plead Guilty to RICO Offense Related to Bribery Scheme that Enriched L.A. City Councilmember and AssociatesRead the Press Release
LOS ANGELES – A real estate development consultant has agreed to plead guilty to a federal racketeering offense for participating in a wide-ranging “pay-to-play” scheme in which developers bribed public officials – including a member of the Los Angeles City Council – to secure official acts that would benefit their projects.
George Chiang, 41, of Granada Hills, agreed to plead guilty to one count of conspiring to violate the Racketeer Influenced and Corrupt Organization (RICO) statute.
Chiang was charged with participating in the RICO conspiracy in a criminal information filed today in United States District Court. In conjunction with the charging document, federal prosecutors also filed a plea agreement in which Chiang agreed to fully cooperate in the government’s ongoing investigation into political corruption in the City of Los Angeles.
In the court documents, Chiang admitted that he participated in a criminal enterprise called the Council District A Enterprise (CD-A Enterprise). The enterprise was led by a member of the Los Angeles City Council and involved individuals engaged in a course of conduct – including bribery and honest services fraud – designed to enrich themselves, to conceal their activities from authorities and the public, and to maintain and advance their political power.
The public officials involved in the CD-A Enterprise received cash; consulting and retainer fees; political contributions; tickets to concerts, shows, and sporting events; and other gifts in exchange for affecting the success of development projects.
In early 2014, Chiang was a real estate broker who was recruited by “Individual 1” – a longtime employee of the City of Los Angeles, who eventually became the Deputy Mayor for Economic Development – to be a consultant who would interface with Chinese companies that were developing real estate projects in Los Angeles, according to court documents.
As he started providing consulting services, Chiang became a close political ally of “Councilmember A,” who was a member of the Planning and Land Use Management Committee and member of the Economic Development Committee, according to court documents. Chiang also became a close ally of Councilmember A’s special assistant. Through these relationships, Chiang developed a business relationship with Justin Jangwoo Kim, a fundraiser for Councilmember A. Kim previously agreed to plead guilty to a bribery offense involving Councilmember A and the special assistant.
“Members and associates of the CD-A Enterprise conspired with one another to facilitate bribery schemes that would provide Councilmember A and other City officials financial benefits and keep members in power to maintain the CD-A Enterprise’s political stronghold in the City,” according to Chiang’s plea agreement. “In exchange, Councilmember A, Individual 1, and members and associates of the CD-A Enterprise, would take official action to ensure certain development projects and CD-A Enterprise associates received favored treatment from the City and thereby secure their bribe-financed influence. In addition, members and associates of the CD-A Enterprise sought political contributions from developers and their proxies (e.g., lobbyists, consultants, etc.) to benefit Councilmember A and his allies in exchange for official acts to benefit those developers and their proxies, including defendant Chiang.”
Chiang’s plea agreement contains a 22-page “factual basis” that details certain activities of the CD-A criminal enterprise. According to the factual basis, Councilmember A accepted bribes from “Company D,” a China-based real estate development company, which employed Chiang as a consultant. Among other things, Company D funneled $66,000 to an associate of Councilmember A and pledged $100,000 to a political action committee to benefit a relative of Councilmember A running for the CD-A seat on the City Council. In exchange, Councilmember A filed motions and voted to approve Company D’s “Project D” at City hearings.
In addition, Chiang agreed to pay Individual 1 a share of the lucrative consulting proceeds he received from Company D in exchange for Individual 1 shepherding Project D through the approval process in Individual 1’s capacity as Deputy Mayor, according to the plea agreement’s factual basis. Individual 1 directly and indirectly accepted more than $100,000 from Chiang for assisting in obtaining approvals for Project D, including by exerting pressure on other City officials who could influence the project’s success, according to court documents.
The court has not scheduled a date for Chiang to enter his guilty plea. Once he does formally enter the guilty plea, he will face a statutory maximum sentence of 20 years in federal prison.
The case against Chiang is part of an ongoing public corruption investigation being conducted by the FBI and the U.S. Attorney’s Office.
Chiang is the third person to agree to plead guilty to a federal felony related to this ongoing investigation. In addition to Kim, former Los Angeles City Councilmember Mitchell Englander has agreed to plead guilty to a charge of scheming to falsify material facts related to his cover up of cash payments and other gifts offered from a Los Angeles businessperson. Kim is scheduled to enter his guilty plea on June 3, and Englander is set to plead guilty on June 4.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
The case against Chiang is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorney Veronica Dragalin of the Public Corruption and Civil Rights Section.
Coalition of U.S. Attorneys Announce $15.3 Million Settlement with Omnicare, Inc., a CVS Health Company, for Improper Dispensing of Controlled SubstancesRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Omnicare, Inc., a subsidiary of CVS Health and a provider of pharmacy services to long-term care facilities, has agreed to pay the United States a $15.3 million civil penalty to resolve allegations that it violated federal law by, among other things, allowing opioids and other controlled substances to be dispensed without a valid prescription.
Omnicare operates “closed door” pharmacies – meaning they are not open to the public – that deliver controlled substances to nursing homes and other long-term care facilities (LTCFs). Omnicare makes daily deliveries of prescription medications to residents of LTCFs, and it also pre-positions limited stockpiles of controlled substances at LTCFs in “emergency kits,” which are to be dispensed to patients on an emergency basis. These emergency kits, which often include opioids and other controlled substances that are commonly abused and diverted, remain part of Omnicare’s inventory and must be tightly controlled and tracked. The controlled substances may be dispensed only pursuant to a valid prescription.
The United States alleged that Omnicare violated the federal Controlled Substances Act in its handling of emergency prescriptions, its controls over the emergency kits, and its processing of written prescriptions that lacked required elements such as the prescriber’s signature or DEA number. The federal investigation found that Omnicare failed to control emergency kits by improperly permitting LTCFs to remove opioids and other controlled substances from emergency kits days before doctors provided a valid prescription. The investigation also revealed that Omnicare had repeated failures in its documentation and reporting of oral emergency prescriptions of Schedule II controlled substances.
As part of the settlement agreement announced today, Omnicare agreed to pay the $15.3 million civil penalty and entered into a Memorandum of Agreement with the Drug Enforcement Administration that will require Omnicare to increase its auditing and monitoring of emergency kits placed at LTCFs.
“The abuse of opioids and other controlled substances has taken a heavy toll in Colorado and our country,” said United States Attorney Jason Dunn. “It is critical that every company involved in the dispensing of these drugs strictly follows the controls required by law. And when they don’t, we will work to ensure that an appropriate penalty is imposed.”
“Omnicare failed in its responsibility to ensure proper controls of medications used to treat some of the most vulnerable among us,” said DEA Acting Administrator Uttam Dhillon. “DEA is committed to keeping our communities safe by holding companies like Omnicare accountable for such failures, while ensuring continuity of care and necessary access to emergency prescription drug supplies.”
This matter was investigated by the DEA’s Field Divisions in Denver, Los Angeles, San Francisco and Seattle, in conjunction with five United States Attorney’s Offices: the Central District of California, the Eastern District of California, the District of Colorado, the District of Oregon, and the District of Utah. The settlement agreement, which was finalized on May 6, resolves Omnicare’s civil liability for the alleged CSA violations in those five districts.
The Omnicare pharmacies in the District of Colorado are Omnicare of Pueblo, Omnicare of Grand Junction, and Omnicare of Golden.
The claims settled by this civil agreement are allegations. In entering into this settlement, Omnicare did not admit to any liability.
The United States Attorney’s Office for the District of Colorado was represented in this matter by Deputy Civil Chief Amanda Rocque and Assistant United States Attorney Andrea Wang.
Cincinnati Man Sentenced to 150 Months for Trafficking MethamphetamineRead the Press Release
COVINGTON, Ky. – A Cincinnati man, who admitted to conspiring with others to distribute methamphetamine and multiple sales of crystal methamphetamine was sentenced today to 150 months in prison.
U.S. District Judge David Bunning sentenced 35-year-old Michael Angelo Williams for conspiring to distribute 50 grams or more of methamphetamine and four counts of methamphetamine distribution.
Williams pled guilty in October of 2019.
Williams previously admitted to conspiring with others to distribute methamphetamine for several months in 2019. Williams sold a total of over 240 grams of substances containing methamphetamine on several occasions ranging from March through July of 2019 at locations in Northern Kentucky and Cincinnati. Agents arrested him on August 14, 2019, and seized a loaded handgun and ammunition. Williams has several prior convictions for offenses such as drug trafficking and illegally carrying firearms.
Under federal law, Williams must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years after his release from prison.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; William C. Hoffman, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office; and Christopher Conners, Director of the Northern Kentucky Drug Strike Force, jointly announced the sentence.
The investigation was conducted by the FBI and the Northern Kentucky Drug Strike Force. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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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Cincinnati Man Sentenced to 137 Months for Drug Trafficking ConspiracyRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Lucien J. Lanier, 35, was sentenced to 137 months in federal prison on Wednesday, by U.S. District Judge David L. Bunning, after previously pleading guilty to conspiracy to distribute 100 grams or more of heroin, 40 grams or more fentanyl, and 10 grams or more of acetylfentanyl.
Lanier admitted that, between May 23, 2018 and June 27, 2018, he conspired with Dante Martin and Tomorrow Tuggle to distribute heroin, fentanyl, and acefentanyl. According to court records, officers conducted a series of controlled buys from Martin, in 2018 in Kenton County. Martin was driven to each of the transactions by Tuggle. Lanier admitted that on each occasion he was a source of supply for the drugs and had instructed Martin on how to “cut” the drugs for distribution.
Lanier was arrested at a residence in Cincinnati on June 28, 2018. A search of the residence uncovered drug paraphernalia, drug packing materials, digital scales, marijuana, more than 100 grams of fentanyl, more than 100 grams of crack cocaine, four firearms and ammunition, and bundles of United States currency.,
At the time of his arrest for the drug trafficking conspiracy, Lanier was a fugitive wanted by the Cincinnati Police Department for the felonious assault of a female victim on June 10, 2018. According to court records, Lanier, in an unprovoked attack, punched the victim in the head, resulting in the victim having emergency brain surgery. Lanier was ultimately convicted on that charge in Hamilton County, Ohio, Court of Common Pleas and on sentenced to serve 5 years imprisonment.
Lanier pleaded guilty to the drug trafficking conspiracy charge in September 2019. Lanier has four prior felony drug trafficking convictions.
Lanier’s co-defendants were sentenced in March 2019. Martin received 84 months in prison and Tuggle received three months.Under federal law, Lanier and his co-defendants must serve 85 percent of their prison sentences. Judge Bunning ordered that Lainer’s sentence for the drug conspiracy charge be served consecutively to the sentence Lanier is serving for the felony assault. Lanier will be under the supervision of the U.S. Probation Office for 5years, following his release.
“The sentence imposed by the Court reflects the seriousness of Lanier’s offense, and the significance of his criminal history, which includes convictions for drug offenses and violent conduct,” said Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky. “Lanier was ultimately held accountable because of the dedicated work of the law enforcement officers involved in this investigation. I commend them for their efforts to protect the public.”
“The criminal history of Lanier shows his complete disregard for the lives of others,” said DEA Detroit Field Division Special Agent in Charge Keith Martin. “Because of the cooperation between DEA, local law enforcement counterparts, and the U.S. Attorney’s Office, this drug trafficker is out of the community and facing a significant sentence.”
U.S. Attorney Duncan, DEA Special Agent in Charge Martin, and Chris Conners, Director of the Northern Kentucky Drug Strike Force, jointly announced the sentence.
The investigation was conducted by the DEA and Northern Kentucky Drug Strike Force. The United States was represented by Assistant U.S. Attorney Wade Napier.
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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