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Tuesday 4 February 2020
Jury returns guilty verdict in case involving smuggled Chinese nationalRead the Press Release
CORPUS CHRISTI, Texas – A federal jury sitting in Corpus Christi has convicted a 45-year-old Houston man for transporting an undocumented Chinese national, announced U.S. Attorney Ryan K. Patrick today.
The jury deliberated for approximately two hours before convicting Torrie Franklin following a one-day trial.
On Nov. 12, 2019, Franklin drove a blue four-door sedan into the primary inspection lane at the Border Patrol (BP) Checkpoint located near Falfurrias. Upon his arrival, authorities conducted a routine inspection, at which time a K-9 alerted to the trunk of the vehicle. There, they found an undocumented Chinese national.
At the time of his arrest, Franklin told authorities he had encountered the man at a gas station. Franklin claimed the Chinese national asked for a ride to Houston, despite not knowing any English. He also said the man asked to ride in the trunk as opposed to inside the vehicle.
At trial, the jury heard from the Chinese national who said that Franklin was the person who placed him inside the trunk. They also heard excerpts of Franklin’s phone calls in which he admitted his role in the offense.
The defense attempted to convince the jury that Franklin was merely a good Samaritan just providing a ride. They did not believe his claims and ultimately found him guilty as charged.
U.S. District Judge David S. Morales presided over the trial and set sentencing for May 7. At that time, Franklin faces up to five years in federal prison and a possible $250,000 maximum fine.
Franklin will remain in custody pending sentencing.
BP conducted the investigation. Assistant U.S. Attorney Neel Kapur and Barbara DePena are prosecuting the case.
Johnstown Man Charged with Drug OffensesRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The two-count Superseding Indictment named Nathaniel Jackson, 44, as the sole defendant.
According to the Superseding Indictment presented to the court, on or about April 29, 2019, and on May 1, 2019, Jackson distributed and possessed with intent to distribute a quantity of fentanyl.
The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien sentenced for reentry chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Franklin Israel Reyes-Zelaya, a citizen of El Salvador, was sentenced today to time served for a reentry charge, U.S. Attorney Bill Powell announced.
Reyes-Zelaya, age 30, pled guilty to one count of “Reentry of Removed Aliens” in January 2020. Reyes-Zelaya admitted to being in Berkeley County in September 2019 after being removed once before from the United States illegally.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Department of Homeland Security Immigration and Customs Enforcement investigated.
Chief U.S. District Judge Gina M. Groh presided.
Illegal Alien charged with drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Hashim Hussein, a citizen of Kuwait, was indicted today on drug charges, U.S. Attorney Bill Powell announced.
Hussein, also known as “Kuwait,” age 21, is charged with two counts of “Distribution of Cocaine Hydrochloride within 1000 Feet of Protected Location.” Hussein is accused of selling cocaine hydrochloride, also known as “Coke,” in October and December 2019 near the campus of West Virginia University in Monongalia County.
Hussein faces at least one and up to 40 years incarceration and a fine of up to $2,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The FBI and Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hill City Woman Sentenced for Illegal Possession of FirearmsRead the Press Release
United States Attorney Ron Parsons announced that a Hill City, South Dakota, woman convicted of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Court Judge.
Julie Cagle, a/k/a Julie Davis, a/k/a Julie Dzuirman, was sentenced on January 31, 2020, to time served, 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Cagle, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a Raven Arms, .25 ACP caliber semi-automatic pistol and a Smith & Wesson, .38 Special caliber revolver at Rapid City in June 2019, which were found after Cagle came into contact with Rapid City police officers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Heyburn Man Pleads Guilty to Possessing Sexually Explicit Images of MinorsRead the Press Release
POCATELLO - John R. Godfrey, 52, of Heyburn, Idaho, pleaded guilty to possession of sexually explicit images of minors, U.S. Attorney Bart M. Davis announced today. Godfrey was indicted by a Pocatello federal grand jury on February 26, 2019.
According to court records, in April 2018, detectives with the Idaho Internet Crimes against Children (ICAC) Task Force interviewed Godfrey after receiving a cyber tip that he was in possession of child pornography. Godfrey admitted to receiving child pornography images and videos from other individuals in online chat groups. Godfrey also admitted that he possessed images of child pornography on his cell phone of children aged 9 to 11 years old. Investigators later searched Godfrey’s cell phone and a forensic analysis found the multiple images he admitted to possessing.
The charge of possession of sexually explicit images of minors is punishable by up to 20 years in prison, a maximum fine of $250,000, and a term of supervised release of 5 years to life.
Sentencing is set for April 20, 2020, before Chief U.S. District Judge David C. Nye at the federal courthouse in Pocatello.
This case was investigated by the Idaho Internet Crimes against Children Task Force, with the assistance of Heyburn Police Department, and 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.”
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Hartford Man Pleads Guilty to Fentanyl Distribution and Gun Possession OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ARCADIO DONES, also known as “Gordo,” 45, of Hartford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, law enforcement received information that Dones was distributing fentanyl from a restaurant parking lot in Hartford’s North Meadows neighborhood. On three occasions in September 2018, investigators conducted controlled purchases of fentanyl from Dones.
Dones was arrested on September 27, 2018. On that date, a court-authorized search of his residence revealed a loaded Smith and Wesson .40 caliber pistol, more than 200 rounds of ammunition, approximately 200 grams of fentanyl, more than one kilogram of cocaine, a drug ledger, numerous items used in the processing and packaging of narcotics for street sale, $2,110 in cash, and other items. Investigators also seized more than $2,200 in cash from Dones’ person and vehicle.
Dones’ criminal history includes state felony convictions for narcotics, firearm, aggravated battery, robbery and larceny offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Dones pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years.
Judge Arterton scheduled sentencing for April 29, 2020.
Dones has been detained since his arrest.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Hartford Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, announced that RODNEY BECKMAN, 44, of Hartford, pleaded guilty today in New Haven federal court to distributing crack cocaine.
According to court documents and statements made in court, on July 17, 2019, Beckman sold approximately 11 grams of crack in exchange for $750 to an ATF special agent working in an undercover capacity in Hartford. Beckman was arrested on July 26, 2019, in Hartford after he sold the undercover agent an additional 40 grams of crack for $2,100.
Beckman pleaded guilty to one count of possession with intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack”), an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Beckman, who is released on a $50,000 bond, is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on April 28, 2020.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Assistant U.S. Attorney Ray Miller.
Guilty plea in two gun store burglariesRead the Press Release
Seattle – The suspect in the theft of nearly 40 firearms from two different gun stores pleaded guilty today in U.S. District Court in Seattle to two counts of theft of firearms from a federal firearms licensee, announced U.S. Attorney Brian T. Moran. 39-year-old JOEY A. MAILLET faces up to ten years in prison when sentenced by U.S. District Judge Richard A. Jones on May 8, 2020.
In May 2019, MAILLET was identified as the suspect in the April 13, 2019, burglary of Fred’s Guns in Sequim, Clallam County, and in the May 3, 2019, burglary of All American Armory in Bow, Skagit County. According to records filed in the case, forensic evidence, including blood and fingerprints, as well as surveillance video, link MAILLET to the crimes. In Sequim, MAILLET used a backhoe to ram the doors of the store and then broke glass display cases to steal 26 firearms. MAILLET cut his arm on the glass case and left blood and fingerprints at that scene. At All American Armory in Bow, surveillance video showed MAILLET used a stolen pick-up truck to back into the doors of the store, shattering them. MAILLET then used a garbage can, stolen from the neighboring post office, to load up 13 rifles from the store and drove away with them in the stolen pick-up.
The pick-up truck was ultimately found abandoned in Birch Bay State Park in Whatcom County, Washington. Shattered glass was in the truck bed, as well as a stolen boat motor and battery. The truck was reported stolen from an agricultural operation not far from the Bow gun store, and the boat motor and battery were reported stolen by a resident of Ferndale, Washington.
On May 10, 2019, a Ferndale Police Officer encountered MAILLET and arrested him on an outstanding warrant for an Everett, Washington, burglary. After obtaining a court-authorized search warrant, investigators determined items in MAILLET’s backpack linked him to the thefts at the Bow gun store. Additionally, video from the boat motor and battery theft clearly showed MAILLET was the thief.
Four of the stolen firearms have been recovered. All were found in British Columbia, Canada, either at crime scenes or on criminal suspects.
Under the terms of the plea agreement, MAILLET is to pay restitution to both stores for the damages to the buildings and the value of the guns. MAILLET is also responsible for damages to the businesses from which he stole the truck and backhoe used in the burglaries. He also will pay restitution to the owner of the stolen boat motor and battery.
Prosecutors have agreed to recommend a sentence of no more than 6 years in prison. However, the ultimate sentence is up to the judge and could be up to the statutory maximum of 10 years in prison.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Clallam County Sheriff’s Office, Sequim Police Department, Washington State Patrol, Skagit County Sheriff’s Office, Ferndale Police Department, and Washington State Parks Rangers.
The case is being prosecuted by Assistant United States Attorney Erin H. Becker.
Generic Drug Executive Indicted on Antitrust and False Statement ChargesRead the Press Release
UPDATE
The indictment described in the press release below was dismissed with prejudice by the court on November 29, 2023.
A federal grand jury in the U.S. District Court for the Eastern District of Pennsylvania returned an indictment against a former senior executive for his role in conspiracies to fix prices, rig bids, and allocate customers for generic drugs, and for making a false statement to federal agents who were investigating those conspiracies, the Department of Justice announced today.
The three-count indictment, filed today in Philadelphia, charges Ara Aprahamian, a former top executive at a generic pharmaceutical company, with participating in two conspiracies to fix prices, rig bids, and allocate customers for generic drugs. Aprahamian is charged with participating in the conspiracies when he was the Vice President of Marketing, and then the Vice President of Sales and Marketing at a corporation headquartered in New York engaged in the marketing and sale of generic drugs in the United States.
Count One charges Aprahamian for his role in a conspiracy with a generic drug company based in New Jersey and other individuals, from at least as early as March 2013 and continuing until at least June 2015. Count Two charges Aprahamian for his role in a conspiracy with a generic drug company based in Pennsylvania and other individuals, from at least as early as May 2013 and continuing until at least December 2015. According to the indictment, the defendant and his co-conspirators agreed to increase prices and allocate customers for numerous drugs, including, but not limited to, medications used to treat and manage arthritis, seizures, pain, various skin conditions, and blood clots.
In addition, Count Three of the indictment charges Aprahamian with making a false statement to an FBI agent when the FBI executed a search warrant at Aprahamian’s employer’s headquarters in September 2016. According to the indictment, Aprahamian falsely stated to the FBI that he never had a conversation with a competitor about the pricing of a product before that product was launched.
“Today’s charges demonstrate the Antitrust Division’s resolve in rooting out collusion that corrupted the marketplace for generic drugs and led to higher prices for critical medications used by millions of Americans,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Along with our law enforcement partners, the Division will ensure that executives who cheat consumers are not immune from our antitrust laws, and that those who seek to impede or obstruct our investigations are prosecuted to the full extent of the law.”
“The U.S. Postal Service Office of Inspector General is committed to ensuring that any activity related to price-fixing, bid-rigging and/or market allocation in the generic drugs industry is identified and aggressively investigated,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “The U.S. Postal Service spends hundreds of millions of dollars every year on health care costs, including expenses related to prescription drugs. This indictment is a testament to the dedication and determination of the legal and investigative teams and sends a clear message to anyone who would participate in this sort of activity. Along with our colleagues at the Department of Justice Antitrust Division and the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General stands ready to support these critical inquiries going forward.”
“Americans suffering from chronic health problems and pain conditions should not have to be concerned about collusion by pharmaceutical executives that could increase the price of their essential medications,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “The FBI is dedicated to investigating and bringing those responsible for these crimes to justice, on behalf of the American public.”
“My Office is proud to announce yet another enforcement action in this ongoing criminal investigation with the Antitrust Division,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “This is the third pharmaceutical price fixing case announced in our District in just the last year, following cases against Rising Pharmaceuticals in December 2019, and Heritage Pharmaceuticals in May 2019. Along with our partners at the Antitrust Division, we remain heavily focused on illegal price fixing and market allocation in generic drugs and on addressing the impact those practices have on federal healthcare programs like Medicare and Medicaid. These criminal charges against a former top corporate executive are yet another important step in that fight.”
Aprahamian is the third executive charged for his participation in conspiracies to fix prices, rig bids, and allocate customers for generic drugs. The two individuals previously charged entered guilty pleas in January 2017. To date, two companies have also been charged. Both corporate charges were resolved by deferred prosecution agreement.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The offense charged in Counts One and Two carries a statutory maximum penalty of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million. The offense charged in Count Three is punishable by imprisonment for not more than five years, and a fine of not more than $250,000.
This case is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the FBI’s Washington Field Office, the FBI’s Philadelphia Field Office, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
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.
indictment_-_updated_03.14.2024.pdfFour Indicted in Compound Cream Prescription Scam that Cost Government and Union Health Plans over $22 MillionRead the Press Release
LOS ANGELES – Federal authorities this morning arrested two defendants charged in a scheme that generated millions of dollars through an Orange County compound pharmacy that submitted fraudulent bills to the military’s TRICARE health plan and a labor union health plan for medically unnecessary compound cream prescriptions. Two other defendants named in a 48-count grand jury indictment are expected to surrender tomorrow.
The indictment – which contains charges of health care fraud, mail fraud, illegal kickbacks and money laundering – outlines a scheme in which the Orange County-based Professional Compounding Pharmacy (PCP), its team of marketers and a collusive physician made millions of dollars in illegal profits by fraudulently generating prescriptions for custom-made compound cream medications, some of which led to bills for as much as $15,000 per tube.
The scheme was fueled in part by the participation of two bogus “pain clinics” in Lawndale and National City, which recruited beneficiaries of TRICARE and the International Longshore and Warehouse Union’s (ILWU) Pacific Maritime Association Welfare Plan. The defendants allegedly paid beneficiaries $200 each to receive treatment by doctors who supposedly were conducting “pain studies” to evaluate the effectiveness of the compound pain creams.
PCP, which operated in La Habra and Brea, allegedly used a network of marketers and one principal doctor to locate beneficiaries of the TRICARE and ILWU plans. PCP and its marketers also enlisted the participation of other doctors and a nurse practitioner to write prescriptions for pain-relief creams, and PCP ultimately filled prescriptions – including myriad refills – that were not medically necessary.
The scheme’s participants allegedly provided the $200 payments to the “patients” for agreeing to show up at the clinics for the bogus pain studies. They also paid kickbacks to medical marketers and professionals in exchange for generating a large volume of compound prescriptions, the indictment alleges.
PCP paid marketers approximately 50 percent of the payments it received from TRICARE and ILWU Plan manager to provide the marketers with ongoing incentives to find doctors and patients willing to write or accept the medically unnecessary compound cream prescriptions, according to the indictment. Health care professionals engaged to work at these bogus “pain clinics” were encouraged to write prescriptions for medically unnecessary compounded creams to keep the revenue stream flowing to PCP and its marketers, the indictment alleges.
The four defendants named in the indictment are:
- James Nate Bell, 38, of Anaheim Hills, the owner of PCP and two medical marketing companies that were allegedly used to funnel kickbacks to PCP marketers;
- Regina Piehl, 66, of Pacific Palisades, who was affiliated with several companies that allegedly received and paid kickbacks to refer and obtain prescriptions for PCP;
- Dr. Michael Edwards, 52, of Huntington Beach, a physician who allegedly worked with Piehl to set up clinics to study the efficacy of compound creams, but which in reality served as prescriptions mills that generated millions of dollars in profits for PCP and its marketers; and
- Sara Samhat, 45, of Huntington Beach, who allegedly worked with Dr. Edwards to route prescriptions to PCP and other companies involved in the health care fraud scheme in exchange for receipt of kickbacks from the referral of the prescriptions.
Bell and Piehl were arrested this morning by federal agents and are expected to be arraigned on this indictment this afternoon in United States District Court, with Bell appearing in Santa Ana and Piehl appearing in Los Angeles. Edwards and Samhat are expected to surrender tomorrow morning at the federal courthouse in Santa Ana.
The indictment, which was returned by a federal grand jury in Santa Ana on January 29 and unsealed today, alleges that the scheme peaked in the first half 2015 and continued into 2016. The fraudulent billings to TRICARE, in particular, dropped significantly in the second half of 2015 when TRICARE, and then later the ILWU Plan, reduced reimbursement rates for compounded creams.
As result of the scheme, TRICARE sustained losses of approximately $19 million, and the ILWU Plan sustained additional losses of approximately $3 million.
In relation to this morning’s arrests, federal agents obtained warrants to seize a Cadillac Escalade and two of Bell’s brokerage accounts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The ongoing investigation in this case is being conducted by the Department of Defense Office of Inspector General, the Defense Criminal Investigative Service, the FBI, IRS Criminal Investigation, the United States Department of Labor’s Office of Inspector General and the U.S. Department of Labor’s Employee Benefits Security Administration. The California Department of Insurance and the Office of Personnel Management’s Office of the Inspector General have provided substantial assistance.
This matter is being prosecuted by Assistant United States Attorney Paul G. Stern of the Environmental and Community Safety Crimes Section. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture Section is also working on the case.
Four Illegal Aliens indicted on reentry chargesRead the Press Release
WHEELING, WEST VIRGINIA – Three Mexican citizens and a Guatemalan citizen were indicted today on reentry charges, U.S. Attorney Bill Powell announced.
The four are accused of reentering the country illegally after being removed at least once before. Each is charged with one count of “reentry of a Removed Alien.” They are:
• Pedro Celestino Lunez-Gomez, citizen of Mexico, age 38
• Jose Luis Lunez-Gomez, a citizen of Mexico, age 25
• Rafael Rosales-Flores, a citizen of Mexico, age 28
• Fredy Evaristo Cortez-Cahuec, a citizen of Guatemala, age 30The four were found in January 2020 in Lewis County.
Each man faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Detroit-Area Physicians Found Guilty of Health Care Fraud Charges for Role in over $150 Million Health Care Fraud SchemeRead the Press Release
A federal jury found four Detroit-area physicians guilty today of health care fraud charges for their roles in a scheme to administer unnecessary back injections to patients in exchange for prescriptions of over 6.6 million doses of medically unnecessary opioids. Patients were required to get the injections in order to get the prescriptions, some of which were resold on the street by drug dealers, the evidence at trial showed.
After a four-week trial, Spilios Pappas, 62, of Lucas County, Ohio, Joseph Betro, 59, of Oakland County, Michigan, Tariq Omar, 62, of Oakland County, Michigan, and Mohammed Zahoor, 53, of Oakland County, Michigan, were each found guilty of one count of conspiracy to commit health care fraud and wire fraud, and one count of health care fraud. Sentencing has been scheduled for July 16 for Pappas, July 17 for Betro, July 24 for Zahoor and July 30 for Omar before Chief U.S. District Judge Denise Page Hood of the Eastern District of Michigan, who presided over the trial. Seventeen other defendants, including eight other doctors, previously pled guilty in connection with the investigation.
“These physicians subjected patients to medically unnecessary injections to reap millions in fraudulent billings. Worse still, they incentivized those treatments by offering opioid prescriptions in sky-high dosages meant for the terminally ill,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s verdict shows that the Department will root out physicians who let dollar signs rather than medical need drive their treatment of patients.”
“These doctors sought to enrich themselves by performing unnecessary back injections in exchange for highly addictive opioids, violating their Hippocratic Oath to do no harm,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “Our office will continue to prioritize the prosecution of doctors whose criminal behavior puts patients at risk.”
“Physicians take an oath that obligates them to do no harm to their patients. These four men willingly broke that oath – by providing unnecessary drugs and conducting unnecessary procedures – solely to line their pockets,” said Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office. “This guilty verdict sends a message to any doctor or healthcare professional who prioritizes profit or does harm to their patients under the guise of providing health care will be subject to the full investigative resources of the FBI and our law enforcement partners.”
“The public trusts that physicians will put patients’ health and safety first. These defendants violated that trust in pursuit of their own financial gain,” said Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General Chicago Region. “The OIG takes matters of this nature very seriously and will continue to work with our law enforcement and prosecutorial partners to hold individuals who commit these kinds of criminal acts accountable.”
According to evidence presented at trial, from 2008 to 2016, Pappas, Betro, Omar and Zahoor worked at numerous medical clinics in Michigan and Ohio, which were operated under the name of the Tri-County Group (Tri-County) and owned by co-conspirator Mashiyat Rashid. While the defendants worked at Tri-County, they engaged in a scheme to defraud Medicare of over $150 million by billing for medically unnecessary facet joint injections, unnecessary urinary drug screens, home health and a myriad of other unneeded ancillary services. The evidence showed that patients, some of whom were suffering from legitimate pain and others of whom were drug dealers or opioid addicts, were offered prescriptions of oxycodone 30 mg by the defendants, but were forced to submit to unnecessary facet injections in exchange for the prescriptions.
Testimony at trial established that the patients experienced more pain from the shots, in some case, than from the pain they had purportedly come to have treated, and that some patients developed adverse conditions, including open holes in their back. Patients, including patients who were addicted to opioids, who told the doctors that they did not want, need or benefit from the injections, were denied medication by the defendants and their co-conspirators until they agreed to submit to the expensive and unnecessary injections.
The evidence further established that the defendants repeatedly performed these unnecessary injections on patients, as Tri-County was paid more for facet joint injections than any other medical clinic in the United States. The four defendants were all ranked in the top 25 doctors for dollars paid by Medicare for facet joint injections, even though they only worked a few hours a week. The defendants practice was described during trial as an assembly line, where the four defendants earned anywhere from $1,100 to $3,500 an hour for performing the same injections on nearly every patient.
In addition to the unnecessary injections, the defendants signed a standing order for urine tests for each patient and for every visit to be sent to National Laboratories, also owned by Rashid, in exchange for tens of thousands of dollars in illegal kickbacks, the evidence showed. The evidence further established that the physicians performed a quantitative test for 56 different drugs for every patient at every visit, regardless of whether the patients presented any reason for the test.
The evidence further established that the physicians provided prescriptions for narcotics, including opioids and benzodiazepines, as an incentive to patients who received the injections. Moreover, the evidence established that the dosage of opioids being provided to patients was suitable only for terminally ill cancer patients. Evidence from Michigan Automated Prescription System showed that the four defendants were among some of the top prescribers of oxycodone 30mg in the state of Michigan.
In 2015, Pappas was the number seven prescriber of oxycodone 30mg in the state of Michigan; Betro 18; Omar 16; and Zahoor 38 the evidence showed. At trial, oxycodone 30mg was described as the “gold standard” of drugs diverted to illegal purposes on the street. Evidence showed that all four defendants were in the top 40 out of 50,000 Michigan prescribers even though they had conspired with Rashid to “stay under the radar” of the U.S. Drug Enforcement Administration by working only a few hours a week. The doctors would see anywhere from 15-25 patients in a two to four hour shift, and then bill Medicare for office visits and procedure codes suggesting that they spent as much as two hours and 22 minutes with each patient. Every piece of the fraud was consistently implemented and applied to over 94 percent of the patients in the clinic.
The FBI and HHS-OIG investigated this case. Assistant Chief Jacob Foster and Trial Attorneys Tom Tynan and Anthony Burba of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former financial officer of Big Island charter school pleads guilty to wire fraudRead the Press Release
HONOLULU, Hawaii – Kelaukila Estabilio, 39, of Hilo, Hawaii, pleaded guilty today in federal court to one count of wire fraud by embezzling funds from the charter school where she worked. Sentencing is scheduled for May 19, 2020, before U.S. District Judge Derrick K. Watson.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, from 2006 through January 2019, Estabilio worked for the Kua O Ka Lā Public Charter School. The charter school also had a financial support entity, Ho’oulu Lahui. Estabilio was the financial officer of the charter school and responsible for managing the books and records. From approximately 2012 through 2019, Estabilio misused the charter school’s funds to pay for her and her family’s personal credit card bills totaling around $628,835. Estabilio falsified the books and records of the charter school to conceal her embezzlement activities for years.
The case was investigated by the U.S. Secret Service and the State of Hawaii Attorney General’s Office. It is being prosecuted by Assistant U.S. Attorney Rebecca Perlmutter for the District of Hawaii.
Former PNC Bank Employee Pleads Guilty to Multiple Bank RobberiesRead the Press Release
PITTSBURGH, PA- A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court related to a series of bank robberies that occurred in West Mifflin, McCandless, Penn Hills and Bloomfield, United States Attorney Scott W. Brady announced today.
Jasmine Parrish, 30, pleaded guilty to five counts before United States District Nora Barry Fischerfull name of Judge.
In connection with the guilty plea, the Court was informed that Parrish, a former employee of PNC bank, met her co-defendant, Donna Poremski, while the two worked together in the home-healthcare industry.
Parrish admitted, during her change of plea, that she and Poremski conspired together to commit three bank robberies on June 23, 2018, September 6, 2018, and October 18, 2018, and that she, additionally, drove a juvenile to the Liberty Avenue area and wrote the demand note for the juvenile to use to rob the PNC Bank located on Liberty Avenue in Bloomfield, on November 21, 2018.
The Court was informed during the hearing that during the first bank robbery, on June 23, 2018, Parrish and Poremski entered the PNC Bank, located in West Mifflin, and attempted to conceal their identities by dressing in traditional Middle Eastern attire, including wearing hijabs that covered their faces. Additionally, Parrish carried a cane and wore a surgical mask over her face with a tube that connected to an oxygen tank. The women approached the teller station and handed one of the tellers a note as well as threatened that they had a bomb. The Court also was informed that Poremski was observed on surveillance footage brandishing what appeared to be a firearm, and that the two women then directed the bank employees to empty their cash drawers and enter the bank vault where he bank employees were forced to put the money into the suitcase. Parrish admitted that the women stole $61,124.00 from this bank.
Parrish admitted, in conjunction with her guilty plea, that during the second and third bank robberies, on September 6, 2018, and October 18, 2018, the two women wore disguises and that she entered the banks, located on McKnight Road in McCandless, and on Rodi Road in Penn Hills, to scope the bank out prior to Poremski entering the bank and robbing them.
During the September bank robbery, the Court was also informed that Poremski brandished what appeared to be a .9mm pistol and demanded money from the tellers. After obtaining the money from the teller’s cash drawer, Poremski directed the bank employees into the bank vault where the bank employees were forced to put money into Poremski’s bag. While the bank robbery was underway, Parrish was observed driving Poremski’s vehicle near the bank. Parrish admitted that the women stole $35,500.00 from this bank.
During the October bank robbery, the Court was further informed that Poremski demanded money from the tellers and threatened to use a firearm but never brandished one. Parrish admitted that the women stole $350.00 from this bank.
A total of $97,004.00 was taken from the West Mifflin, McCandless and Penn Hills PNC banks, during these robberies.
Parrish also admitted that she drove a juvenile to the Liberty Avenue area and wrote the demand note for the juvenile to use during a bank robbery at the PNC Bank located on Liberty Avenue in Bloomfield, on November 21, 2018. The Court also was informed that this was the branch that Parrish had previously worked at and that while the juvenile gave one of the tellers the demand note, that she left the bank before obtaining any money.
Judge Fischer scheduled sentencing for July 2, 2020 at 11:30 a.m. As to each of the armed bank robbery counts, the law provides for a maximum total sentence of not more than 25 years in prison, a fine of not more than $250,000, or both. As to each of the unarmed bank robbery counts, the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Additionally, the law provides for a minimum sentence of not less than five years in prison and up to life, a fine of $250,000, or both, for the conspiracy offense. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Parrish remains incarcerated pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, West Mifflin Borough Police Department, the McCandless Police Department, the Penn Hills Police Department and the City of Pittsburgh Police Department conducted the investigation leading to the Superseding Indictment in this case.
Former Dental Clinic Owner Sentenced for Payroll Tax Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A Marshfield, Missouri, man whose wife was sentenced earlier for her role in a Medicaid fraud scheme involving their dental clinics was sentenced in federal court today for failing to pay over payroll taxes and collecting unemployment benefits he wasn’t entitled to receive.
Lorin G. Van Drie, 61, was sentenced by U.S. District Judge M. Douglas Harpool to two years and eight months in federal prison without parole. The court also ordered Van Drie to pay restitution in an amount yet to be determined.
Van Drie and his wife, Pamela M. Van Drie, 60, were convicted at trial on Feb. 20, 2019, of all 40 counts contained in a federal indictment. Lorin Van Drie was convicted of stealing public money, participating in a conspiracy to defraud the government, and 18 counts of failing to pay over employment taxes. Pamela Van Drie was sentenced on Oct. 9, 2019, to four years and nine months in federal prison without parole. The court also ordered her to pay $1,139,794 in restitution.
Lorin and Pamela Van Drie were the owners of All About Smiles, LLC, a Springfield company that provided dental services at clinics in Springfield (until it closed in November 2015), Mountain Grove, Missouri (until it closed in October 2014), and Bolivar, Missouri (until it closed in March 2014). They also owned PL Family Management Company, LLC, which managed the staff for those clinics.
Lorin and Pamela Van Drie participated in a conspiracy to defraud the government by failing to pay over to the IRS payroll taxes from Jan. 31, 2013, to Jan. 31, 2015. Although payroll taxes were withheld from the paychecks of employees at All About Smiles and PL Family Management Company, the Van Dries failed to pay over to the IRS approximately $194,751 in payroll taxes.
The Van Dries diverted a substantial amount of money from their businesses during this period. According to court documents, they lived a lavish lifestyle while some of their employees’ paychecks bounced. Rather than paying the payroll taxes due and owing, the Van Dries purchased and made payments on a 2013 Tracker boat and trailer, a recreational vehicle, multiple vehicles (including a 2010 Hummer and a 2009 Mercedes), several utility trailers, two golf carts, a motorcycle, expensive diamond jewelry, expenses associated with two homes and family vacations in Florida, and a pulling truck called “Momma’s Money,” which their son used in pulling competitions throughout Missouri.
In addition to the payroll tax conspiracy, Lorin Van Drie was found guilty of 18 counts of failure to pay over employment tax. Lorin Van Drie also was found guilty of one count of theft of public money related to $26,880 in unemployment benefits that he was not entitled to receive from October 2010 through June 2012. During that time, he was working at his own construction company (LVD Construction) and being paid to do maintenance at their dental clinics.
Lorin Van Drie was not charged with health care fraud like his wife, but he was aware of the schemes and that the billing practices of his companies violated Medicaid regulations. He made no efforts to correct the unlawful situation.
$885,748 Health Care Fraud Conspiracy
Pamela Van Drie participated in a conspiracy to commit health care fraud from Oct. 6, 2010, to Aug. 19, 2015. This conspiracy consisted of two fraud schemes. Pamela Van Drie and Dr. James R. Dye, a dentist at the clinics, conspired to fraudulently bill Medicaid for speech aid prosthetics they did not provide to Medicaid beneficiaries. They also conspired to bill Medicaid for dentures and other dental services for beneficiaries who were ineligible to receive such services because the services were not medically necessary.
In addition to these two criminal conspiracies, Pamela Van Drie was found guilty of eight counts of health care fraud related to fraudulent claims for speech aid prosetheses and 10 counts of health care fraud related to fraudulent claims for dentures and other dental services.
Pamela Van Drie also was found guilty of one count of theft of public money related to $3,520 in unemployment benefits that she was not entitled to receive while working full-time at All About Smiles. From June 2012 through the end of December 2012, Medicaid paid into Pamela and Lorin Van Drie’s business bank account $750,000. Also during that time period, Pamela Van Drie took a weeklong vacation to a resort in Florida. Nonetheless, from June 2012 through January 2013, Pamela Van Drie falsely certified to the Missouri Department of Employment Security 31 times that she was not employed, was available and searching for work, and was not receiving any type of employment income.
Dye pleaded guilty on Feb. 11, 2016, to health care fraud in a separate but related case. According to court documents, the Missouri Dental Board suspended Dye’s license, a suspension that arose from his substandard care for patients at the Van Dries’s clinics.
This case was prosecuted by Assistant U.S. Attorneys Cindi S. Woolery and Steve Mohlhenrich and Special Assistant U.S. Attorney Shannon Kempf of the Missouri Attorney General’s Office. It was investigated by Health and Human Services – Office of Inspector General, the Missouri Attorney General’s Office Medicaid Fraud Control Unit and IRS-Criminal Investigation.
Former City Honors Teacher Indicted on Child Pornography ChargesRead 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 a federal grand jury has returned a three count indictment charging Peter Hingston, 59, of Amherst, NY, with two counts of production of child pornography and one count of possession of child pornography. The charges carry a maximum penalty of 70 years in prison.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that according to the indictment, between September 2018, and June 17, 2019, the defendant used two minor victims to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. In addition, Hingston possessed a GoPro HERO4 digital camera containing an SD card that contained images of child pornography.
According to a previously filed complaint in the case, in June 2019, the Federal Bureau of Investigation learned the Buffalo Police Department was investigating an incident related to the possible production of child pornography involving Hingston. The report alleged that the middle school technology teacher was observed using a GoPro camera to photograph or record female students in a sexually inappropriate way. Multiple students came forward regarding Hingston’s use of the GoPro during class.
The defendant was arraigned this morning before U.S. Magistrate Judge Michael J. Roemer and continues to be detained.
The indictment is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Gary Loeffert, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Town of Tonawanda Police Department, under the direction of Acting Chief James P. Stauffiger.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Five Jersey City Men Charged for Conspiracy to Distribute Heroin and CocaineRead the Press Release
NEWARK, N.J. – Five men from Jersey City, New Jersey have been charged with conspiracy to distribute and possess with intent to distribute narcotics, U.S. Attorney Craig Carpenito announced today.
Jerome Powell, 40, Raheem Rogers, 28, Karee Cunningham, 24, Rafiq Holmes, 40, and Matthew Collier, 36, are charged by criminal complaint with one count of conspiracy to distribute and possess with intent to distribute quantities of both heroin and cocaine. Rogers and Powell were arrested this morning. The other defendants remain at large.
The two defendants appeared on February 4, 2020, before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Raheem Rogers and Jerome Powell were both detained.
According to the documents filed in this case and statements made in court:
From in or about August 2019 through on or about February 2, 2020, law enforcement observed Jerome Powell, Raheem Rogers, Karee Cunningham, Rafiq Holmes, and Matthew Collier working together to possess and distribute controlled substances on and around Bartholdi Avenue in Jersey City.
The conspiracy to distribute and possess with intent to distribute heroin and cocaine charge has a maximum sentence of 20 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division; and members of the Jersey City Police Department, under the direction of Chief of Police Michael Kelly, with the investigation leading to the charges.
This investigation was part of the Jersey City Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Jersey City.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Felon with Extensive Criminal History Sentenced to Prison for Selling a Loaded Firearm and MethamphetamineRead the Press Release
LAS VEGAS, Nev. – A felon who pleaded guilty to selling a loaded firearm and methamphetamine outside a fast-food restaurant was sentenced today to 10 years in prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Michael Villareal, 42, of Las Vegas, pleaded guilty to one count of distribution of a controlled substance and one count of unlawful possession of a firearm by a convicted felon. Villareal has four prior felony convictions between 1996 and 2010, and he is prohibited from legally possessing a firearm.
According to court documents, on May 28, 2019, Villareal met a buyer outside a fast food restaurant and sold the buyer a loaded Glock 19 handgun and 27.4 grams of methamphetamine for $580. The handgun was loaded with 15 rounds.
In addition to the term of imprisonment, U.S. District Judge Andrew P. Gordon sentenced Villareal to four years of supervised release.
The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Shaheen Torgoley is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Fayette County man admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Keith Edward Ross, of Oak Hill, West Virginia, has admitted to heroin distribution, U.S. Attorney Bill Powell announced.
Ross, age 45, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Ross admitted to working with another to distribute heroin in March 2019 in Harrison County.Ross faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Eight defendants in drug-trafficking operation targeted in 12-count federal indictmentRead the Press Release
DUBLIN, GA: Eight people have been charged in a 12-count federal indictment alleging a brazen drug-trafficking conspiracy in and around Laurens County.
The defendants, named in an indictment returned by a federal grand jury and unsealed in U.S. District Court in Dublin, Ga., on Tuesday, Feb. 4, were taken into federal custody at the culmination of Operation “The Hole,” named for the shack the conspirators used for extensive narcotics distribution, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
“The Laurens County Sheriff’s Office’s association with the Drug Enforcement Administration (DEA), Ocmulgee Drug Task Force, and numerous local and state law agencies brought this organization down,” said Laurens County Sheriff Larry Dean. “A criminal organization such as this one takes time, teamwork and perseverance to dismantle, and we are thankful to the citizens of Laurens County for their patience during this investigation. My deputies and I will not stop this fight against drugs as long as I am your sheriff.”
The operation, coordinated by agents of the DEA, along with the Laurens County Sheriff’s Office and the Ocmulgee Drug Task Force, targeted a drug-trafficking ring moving large quantities of methamphetamine, cocaine, crack cocaine and marijuana into the Laurens County starting as early as 2013. The investigation identified a shack called “The Hole” as the “trap house,” or central distribution site, complete with a retail-like service counter for drug transactions, along with other Dublin-area locations.
During the execution of multiple federal search warrants, agents seized significant quantities of narcotics, including pounds of methamphetamine, cocaine and marijuana, along with 24 firearms, nearly $37,000 in cash, gold and silver with an estimated value of $90,000, devices for pressing bricks of cocaine, pill presses, a stolen vehicle, and two stolen generators with lights. Additional drugs, firearms and cash also were discovered during arrests of the defendants.
“Our office is committed to reducing illegal drugs and violent crime in every part of the Southern District, and that includes Dublin and Laurens County,” said U.S. Attorney Christine. “With our law enforcement partners, we will weed out these peddlers of poison who fuel a significant part of every community’s misery.”
Those named in the indictment are:
- Quaveris Leshaun Mims, a/k/a “Strong,” 48, of Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances; Possession with Intent to Distribute Controlled Substances; Possession of Firearms in Furtherance of a Drug Trafficking Crime; and two counts of Possession of a Firearm by a Convicted Felon;
- Rodney Jarrod Denson, a/k/a “RD,” 43, of Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances; Possession with Intent to Distribute Controlled Substances; Conspiracy to Possess Firearms in Furtherance of a Drug-Trafficking Crime; two counts of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime; and two counts of Possession of a Firearm by a Convicted Felon;
- Anthony Michael Denson, 48, of Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances; Possession with Intent to Distribute Controlled Substances; and, Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime;
- Nicholas Turner, 24, of East Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances; and Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime;
- Brandon Payne, a/k/a “Tre,” 25, of Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances; Possession with Intent to Distribute Controlled Substances; Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime; and Possession of Firearms in Furtherance of a Drug Trafficking Crime;
- Desergio Kates, a/k/a “Serg,” 25, of Dublin, Ga., charged with charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances; Possession with Intent to Distribute Controlled Substances; Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime; and Possession of Firearms in Furtherance of a Drug Trafficking Crime;
- Constance Victoria Moore, 32, of Helena, Ga., charged with charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances; and,
- Zandera Finney, 33, of Warner Robins, Ga., charged with charged with charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances.
“RD” Denson and Anthony Michael Denson are brothers; Brandon Payne and Desergio Kates are stepsons of “RD” Denson.
The charges for Mims, RD Denson, Anthony Michael Denson, Kates and Payne carry penalties of up to life in prison; the charges for Turner, Moore, and Finney carry penalties of up to 20 years in prison on each count. Each of the defendants, if convicted, also would be subject to substantial fines and would serve a period of supervised release after completion of any prison sentence. There is no parole in the federal system.
“These indictments are a direct result of the dedicated efforts between local, state and federal law enforcement and the subsequent prosecution by the U.S. Attorney’s Office,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “The distribution of dangerous drugs continues to ravage many communities, but the Dublin community is safer because these defendants have been removed from the streets.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations. Agencies involved in the investigation include the DEA; the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF); the FBI; the U.S. Postal Inspection Service; the Laurens County Sheriff’s Office; Ocmulgee Drug Task Force; the Twiggs County Sheriff’s Office; the Wilkinson County Sheriff’s Office; the Baldwin County Sheriff’s Office; the Washington County Sheriff’s Office; the Johnson County Sheriff’s Office; and the Warner Robins Police Department, and is being prosecuted for the United States by Assistant U.S. Attorneys Patricia Rhodes and Henry W. Syms Jr.
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.
Eight Miami-Dade Residents Plead Guilty to Offenses Related to Computer Fraud and Embezzlement Scheme Targeting Miccosukee Resort & GamingRead the Press Release
MIAMI – On February 4, 2020, Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Division, and Roland D. Pandolfi, Chief of Police, Miccosukee Police Department, announced the convictions of all eight (8) defendants in United States v. Michel Aleu, et al. Case No. 19-20435-Cr-Gayles.
Four of the defendants, Michel Aleu, Lester Lavin, Yohander Jorrin Melhen, and Leonardo Betancourt, all former employees and licensees of Miccosukee Gaming, pled guilty and were convicted of conspiracy to steal funds in excess of $1,000 from Miccosukee Gaming, conspiracy to commit computer fraud, and money laundering conspiracy. Their respective spouses, defendants Maria Del Pilar Aleu, Anisleydi Vergel Hermida, and Milagros Marile Acosta Torres, pled guilty and stand convicted of conspiracy to commit money laundering offenses. Yohander Jorrin Melhen and Milagros Acosta Torres were the last defendants to plead guilty, when they appeared in Court on Friday, January 31, 2020.
As stated in court documents, from January 2011 to May 2015, Michel Aleu, Lavin, Jorrin Melhen, Betancourt, and other co-conspirators, who were employed in the video game department at the Miccosukee Casino, tampered with the computers in electronic gaming machines, causing those machines to generate false and fraudulent credit vouchers or tickets. They then enlisted other conspirators to exchange the vouchers for cash at ATMs located on the casino floor, at floor cashiers, or the casino treasury. Casino records disclose that the defendants and their co-conspirators stole approximately $5.3 million in cash from Miccosukee Gaming. The defendants used the stolen funds to purchase and maintain residences and investment properties, to purchase vehicles, vessels, and Florida Prepaid College Plans for certain of their children, and to pay for travel and household expenses.
The defendants are now awaiting sentencing before United States District Judge Darrin P. Gayles. Each defendant faces a maximum term of 20 years’ imprisonment for money laundering conspiracy. Michel Aleu, Lavin, Jorrin Melhen, and Betancourt face maximum terms of five years on their convictions for conspiracy to steal from Miccosukee Gaming and conspiracy to commit computer fraud.
U.S. Attorney Fajardo-Orshan commended the investigative efforts of FBI and Miccosukee Police Department. This case was prosecuted by Assistant U.S. Attorney Dwayne Williams and Asset Forfeiture Assistant U.S. Attorney Nicole Grosnoff.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Doctor Sentenced to Probation and Home Confinement for Health Care FraudRead the Press Release
PITTSBURGH, PA - A resident of DuBois, Pennsylvania has been sentenced for health care fraud, United States Attorney Scott W. Brady announced today.
In March 2019, David James Girardi pleaded guilty to one count of health care fraud. In connection with the guilty plea, Girardi admitted to committing health care fraud by submitting fraudulent claims to Highmark for six Oxycodone and Hydrocodone prescriptions that Girardi wrote for his wife, but which were in fact intended for his own use.
On January 30, 2020, United States District Judge Kim R. Gibson sentenced Girardi to five years’ probation and six months’ home confinement. Judge Gibson further ordered that Girardi pay a $5,000 fine and restitution to Highmark, Inc.
Assistant United States Attorneys Rachael L. Mamula and Cindy K. Chung prosecuted this case on behalf of the government.
The Department of Health and Human Services, Office of Inspector General conducted the investigation that led to the prosecution of David James Girardi.
District Man Convicted of Sexually Assaulting Multiple Victims in Dupont Circle AreaRead the Press Release
WASHINGTON – Jamar Tillman, 36, of Washington, D.C., was convicted on Friday, January 31, 2020, by Judge Neil E. Kravitz of the Superior Court of the District of the Columbia for assaulting seven different female victims in less than an hour, including sexual assaults against six of those victims, U.S. Attorney Timothy J. Shea announced.
According to the government’s evidence—as presented to Judge Kravitz following the defendant’s waiver of his right to a jury trial—on April 3, 2019, the defendant assaulted his first victim in a parking garage near Dupont Circle by grabbing her hair and trying to pull her to the ground. The victim resisted, and the defendant fled the scene after bystanders responded to the victim’s cries. Over the course of the next forty-five minutes, the defendant sexually assaulted five additional women in the Dupont Circle area, grabbing or slapping their buttocks as he walked passed them. The defendant then sexually assaulted his final victim in a stairwell, pinning her to the ground and grabbing her vaginal area over her clothes. A police officer was alerted to that victim’s cries and interrupted the assault. The defendant then fled with the victim’s cellular phone and was arrested seconds later.
Judge Kravitz convicted the defendant of one count each of third degree sexual abuse, kidnapping, and robbery for the final victim, misdemeanor assault for attacking the first victim, and four counts of misdemeanor sexual abuse and one count of attempted misdemeanor sexual abuse for the other five victims. The defendant remains detained pending sentencing, which is scheduled for May 1, 2020.
In announcing the verdict, U.S. Attorney Shea stated that “Due to the swift action of police officers on the scene and the outstanding work of the investigative and prosecutorial teams, a dangerous predator has been taken off of the streets of D.C. The residents of the District are safer as a result of their efforts.” U.S. Attorney Shea specifically commended the work of the Metropolitan Police Department, including detectives with the Sexual Assault Unit, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle and Victim/Witness Advocates Lorraine Chase, Karen Giannakoulias, Juanita Harris, and Tracy Owusu. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Ryan Creighton and Jocelyn Bond, who investigated and prosecuted the case, and Grace Richards, who assisted in investigating the case.
Court of Appeals Rejects Bala’s Request for a Certificate of InnocenceRead the Press Release
On February 4, 2020, the United States Court of Appeals for the Eighth Circuit rejected Susan Bala’s second attempt to obtain a “certificate of innocence,” based on the Court’s previous decision finding that Bala was “not truly innocent of state criminal gaming law violations.” United States v. Bala, No. 18-2849 (8th Cir. Feb. 4, 2020); United States v. Racing Servs., Inc., 580 F.3d 710 (8th Cir. 2009).
This matter arose from a jury’s 2005 conviction of Bala for running an illegal gambling operation. In 1989, North Dakota legalized parimutuel wagering on horse races conducted outside of North Dakota and simulcast to a licensed off-track betting operator within the state. State law allowed only licensed charitable organizations to conduct simulcast parimutuel wagering. In 1993, Bala’s company, Racing Services, Inc. (“RSI”), was authorized to simulcast horse races to licensed off-track betting locations in North Dakota. RSI also established and maintained the combined parimutuel pools of North Dakota bets on behalf of licensed off-track betting operators.
North Dakota amended its parimutuel laws in 2001 to permit a form of betting called account wagering, which allowed a bettor to deposit funds in an account and use those funds to pay for parimutuel wagers, either in person, by telephone, or through electronic communication. Parimutuel wagers previously had to be made in person. In the wake of the 2001 amendments, RSI became the sole entity in North Dakota through which parimutuel bettors could conduct account wagering bets. State law required an entity conducting account wagering to pay some portion of the account wagering proceeds to a charitable organization. RSI set up a call center to conduct account wagering at its Fargo headquarters where RSI employees processed bets from bettors with wagering accounts.
In 2002, without notifying state regulators, RSI moved some of its equipment and tellers to an undisclosed call site in Fargo and began conducting account wagering there. Over the course of several months, RSI processed “off book” account wagering bets at the undisclosed site totaling over $99,000,000. Contrary to state law, RSI and Bala paid no part of these wagering proceeds to the state or to the charities licensed as off-track bettor operators. RSI and Bala also hid the gambling occurring at this undisclosed site from the state by not licensing the site and the tellers working there, using a bookkeeping system that disguised the gambling activities occurring there, and omitting those activities from RSI’s required weekly reports of all parimutuel bets placed in North Dakota. After an RSI employee reported to the state that RSI was conducting rogue parimutuel gambling at the undisclosed site, the state shut it down.
The state referred the matter to the Federal Bureau of Investigation. Following an investigation, a federal grand jury indicted Bala on charges of conspiring to conduct an illegal gambling business and to commit money laundering, among others. Bala proceeded to trial. Bala’s co-defendants—a vice president of RSI and the chief financial officer of RSI—acknowledged the illegal nature of the unreported account wagering conducted at the undisclosed site, pleaded guilty, and testified against Bala. The jury convicted Bala, and the district court sentenced her to 27 months in prison. The Eighth Circuit later reversed her convictions on the grounds that, although Bala committed the acts alleged, insufficient evidence supported the guilty verdicts beyond a reasonable doubt. United States v. Bala, 489 F.3d 334 (8th Cir. 2007).
Bala filed her first petition for a certificate of innocence in 2008. To obtain a certificate of innocence, an individual must prove she is actually innocent, a different determination from the Eighth Circuit’s ruling that the evidence of criminality did not support a finding of guilt beyond a reasonable doubt. The district court concluded that Bala could not meet her legal burden and was not actually innocent. The district court reasoned that, not only had Bala likely violated multiple provisions of North Dakota law, but she also brought about her prosecution through her actions. As the district court held, “a certificate [of innocence] . . . is appropriate only when ‘no offense’ was committed and the defendant did not contribute to his or her prosecution. Clearly, this is not the case here.” On appeal, the Eighth Circuit “agree[d] with the [district] court’s assessment” that Bala was not truly innocent of all state law offenses and thus did not qualify for a certificate of innocence. United States v. Racing Servs., Inc., 580 F.3d 710 (8th Cir. 2009); United States v. Racing Servs., Inc., No. 3:03-cr-00112, Doc. 202 (D.N.D. Sept. 19, 2008).
Nine years later, Bala filed another petition for a certificate of innocence, claiming that other parties in ongoing bankruptcy proceedings used her overturned convictions and the denial of a certificate of innocence against her. The district court denied her petition, concluding again that Bala was not actually innocent and that Bala could not revisit the prior denial of a certificate of innocence. United States v. Bala, No. 3:03-cr-00112, Doc. 234 (D.N.D. Aug. 8, 2018).
The Eighth Circuit today agreed, holding that the Court’s prior conclusion that Bala was “not truly innocent of state criminal gaming law violations” barred her second attempt to obtain a certificate of innocence. A certificate of innocence is available only to “the truly innocent, making it necessary to separate from the group of persons whose convictions have been reversed, those few who are in fact innocent of any offense whatever.” The Court rejected Bala’s argument that circumstances had changed since the Court rejected her first petition for a certificate of innocence. The Court thus concluded he legal doctrine of res judicata barred her second petition.
Assistant United States Attorney Megan A. Healy represented the United States.
Coos Bay Man Sentenced to Federal Prison for Distributing Methamphetamine and Possessing Sawed-off ShotgunsRead the Press Release
EUGENE, Ore.—Theron Gilbert Gerber, 36, a resident of Coos Bay, Oregon, was sentenced to five years in federal prison followed by a four-year term of supervised release for distributing methamphetamine and unlawfully possessing sawed-off shotguns.
According to court documents, in March 2019, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) learned that Gerber, who had prior state felony convictions, was selling firearms and methamphetamine in the Coos Bay area.
On April 4, 2019, an undercover ATF agent met with Gerber for a firearms purchase. Upon entering Gerber’s home, the agent saw drug paraphernalia and approximately 20 to 25 firearms displayed for sale. During the meeting, Gerber stated, “everything’s for sale for the right price.” Gerber then sold the agent a short-barreled shotgun, a Glock pistol, three magazines, three drum magazines, and 91 rounds of ammunition—all for $600.
The agent arranged a second purchase the following week. On April 11, 2019, the agent again met with Gerber inside his residence. This time, the agent purchased an AK-style rifle for $500 and asked if Gerber would sell methamphetamine. Gerber agreed to sell the agent approximately 13 grams of methamphetamine for $240.
Finally, on April 25, 2019, the agent brokered a third firearm purchase from Gerber. Gerber sold the agent a second sawed-off shotgun, an AR-style pistol, 181 rounds of assorted ammunition, six 30-round AR-style magazines, and a Colt .45 caliber “Night Defender” pistol for $1,500. A short time later, ATF agents executed a search warrant on Gerber’s residence and arrested him.
As part of his plea agreement, Gerber agreed to forfeit the firearms described in the indictment.
On January 6, 2020, Gerber pleaded guilty to one count each of unlawful possession of a short-barreled firearm and distribution of methamphetamine.
This case was investigated by ATF and prosecuted by Nathan J. Lichvarcik and William McLaren, Assistant U.S. Attorneys for the District of Oregon.
The case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Collection of handguns Collection of Firearms Shotgun with Shortened Barrel and Stock Shotgun with Shortened BarrelChild Predator Sentenced to 262 Months for Production and Possession of Child PornographyRead the Press Release
Knoxville, Tenn. - On February 4, 2020, George Robert Everhart, 31, of Maryville, was sentenced by the Honorable Thomas A. Varlan, in the United States District Court at Knoxville. Everhart will serve 262 months in federal prison for producing and possessing child pornography. Following his imprisonment, Everhart will be supervised by the United States Probation Office for 10 years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
The investigation began when a tip came in from the National Center for Missing and Exploited Children. Law enforcement quickly identified Everhart and insured that the victims were no longer in peril. Through the execution of federal search warrants, law enforcement discovered child pornography on Everhart’s phone, computer, and in his online file storage account.
“I want to commend the dedicated investigators and forensic examiners of the Knoxville Police Department who immediately took action to protect children from the defendant.” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. U.S. Attorney Overbey emphasized, “We will continue to work closely with law enforcement to pursue child sexual predators and vigorously prosecute them and protect our children from them.”
The case was investigated by the Knoxville Police Department’s Internet Crimes Against Children Unit, with assistance from the Maryville Police Department.
Assistant U.S. Attorney Matthew T. Morris represented the United States.
This case was brought forward as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.projectsafechildhood.gov
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Cedar Rapids Man Sentenced to Two Years in Federal Prison for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced today to two years in federal prison.
Troy French, age 29, of Cedar Rapids, received the sentence after a July 8, 2019, guilty plea to one count of possession of child pornography. At the plea hearing, French admitted that, between 2012 and 2017, he knowingly possessed child pornography, including one or more depictions of prepubescent children.
French was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. French was sentenced to 24 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $3,000 in restitution to victims depicted in images he possessed. French must also serve a ten-year term of supervised release, and he must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation.
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.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 19-5.
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Cedar Rapids Man Pleads Guilty to Sexual Exploitation of ChildrenRead the Press Release
A man who sexually exploited children in the Philippines pled guilty today in federal court in Cedar Rapids.
William Meyer, age 64, from Cedar Rapids, was convicted of one count of sexual exploitation of children. At the plea hearing, Meyer admitted that, between 2012 and 2019, he persuaded, induced, or enticed one or more minors to engage in sexually explicit conduct for the purpose of producing visual depictions or for the purpose of transmitting live visual depictions of this conduct. The live visual depictions included Skype video transmissions from minors in the Philippines.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Meyer remains in custody of the United States Marshal pending sentencing. Meyer faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation and the Iowa Division of Criminal Investigation.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 19-105.
Follow us on Twitter @USAO_NDIA.
Cass County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
MARSHALL, Texas – A 41-year-old Hughes Springs, Texas man has pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Oscar Dean Davis pleaded guilty to conspiracy to distribute and distribution of methamphetamine today before U.S. Magistrate Judge Roy S. Payne.
According to information presented in court, Davis was the leader of an illegal drug distribution network responsible for obtaining multiple-kilogram quantities of methamphetamine from a Mexican-based supplier and selling them throughout East Texas. Davis admitted to acquiring large numbers of firearms, including pistols, rifles, and high-caliber weapons, and transporting them to the U.S.-Mexico border as a medium of exchange for methamphetamine. Finally, Davis admitted to directing others to use money services businesses to wire transfer proceeds from methamphetamine sales to his supplier in Mexico.
Fourteen other individuals have previously entered pleas of guilty for their involvement in the drug and firearms trafficking organization. Stephanie Bennett Mata, 35, of Daingerfield; Gary O'Neal Gibson, 62, of Henderson; Felix Antonio Jaime, 37, of Mt. Pleasant; Charlie Jake Porter, 34, of Marietta; Tony King, 41, of Daingerfield; and Gerald Wayne Furlow, 55, of Hughes Springs; each pleaded guilty to possessing or conspiring to possess with the intent to distribute methamphetamine. Raymond Danny Moore, 43, of Avinger; Jennifer Michelle Kirkham, 39, of Jena, Louisiana; Donna Gail Sertuche, 53, of Hughes Springs; Jamie Nicole Browning, 40, of Gilmer; Joshua Nickie Soto, 35, of Leesville, Louisiana; and James Drakeford Scholl, 41, of Naples; pleaded guilty to either unlawfully obtaining firearms from licensed dealers or transporting firearms to the U.S.-Mexico border in furtherance of the drug trafficking conspiracy. Christina Felipe, 37, of Hughes Springs, and Angelica Arreola, 28, of El Paso, have pleaded guilty to conduct including transferring or transporting money from the U.S. to Mexico.
Under federal statutes, Davis faces a minimum of 10 years and up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Davis was indicted by a federal grand jury on Oct. 10, 2018 and charged with drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Lucas Machicek.
Browning woman sentenced in DUI crash that injured passengerRead the Press Release
GREAT FALLS—A Browning woman who admitted being intoxicated when the vehicle she was driving on the Blackfeet Indian Reservation crashed and rolled twice, seriously injuring a passenger, was sentenced today to 16 months in prison and three years of supervised release, U. S. Attorney Kurt Alme said.
Mary Marie Oldchief, 35, pleaded guilty in October to assault resulting in serious bodily injury.
U.S. District Judge Brian M. Morris presided. Oldchief was detained.
In court documents filed in the case, the prosecution said the single-vehicle crash occurred on June 12, 2018 on U.S. Highway 2 near Browning on the Blackfeet Reservation. Oldchief was driving when the vehicle crashed and rolled twice. The victim, a passenger, was ejected and pinned under the car. The victim suffered serious injuries, including a brain injury and spinal and rib fractures. Oldchief was intoxicated at the time and had a breath sample of .133 percent at the Blackfeet Detention Center after the crash.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by Blackfeet Law Enforcement Services, the Montana Highway Patrol and the FBI.
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Brockton Man Sentenced for Second Time to Federal Prison for Distributing FentanylRead the Press Release
BOSTON - A Brockton man was sentenced yesterday in federal court in Boston for fentanyl distribution.
Jeffrey Oliveira, 24, was sentenced by U.S. District Court William G. Young to 33 months in prison and six years of supervised release. In June 2019, Oliveira pleaded guilty to distributing fentanyl.
In May 2018, a cooperating witness made a controlled purchase of fentanyl from Oliveira. This marks Oliveira’s second federal conviction; in 2016 he was indicted with distributing fentanyl in Brockton, and after pleading guilty was sentenced to 18 months in prison.
This case was part of Operation Landshark, a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, each of whom had prior convictions for acts of violence, firearm offenses, and/or drug trafficking. It is alleged that many of the Operation Landshark’s targets are among the top 30 criminal offenders responsible for violent acts and firearms in Brockton.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachael Rollins; Boston Police Commissioner William G. Gross; and Brockton Police Chief John Crowley made the announcement. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Services; and the U.S. Secret Service. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Operation Landshark is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Berkeley County woman sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Cassandra Elaine Riggs, of Hedgesville, West Virginia, was sentenced today to 57 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Riggs, age 30, pled guilty to one count of “Unlawful Possession of a Firearm” in September 2019. Riggs, who is prohibited from having a firearm or ammunition because of previous felony convictions, admitted to having a .223 caliber semi-automatic rifle in October 2018 in Berkeley County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Herman Lee Brown, Jr., of Inwood, West Virginia, was sentenced to 51 months incarceration for a firearms violation, U.S. Attorney Bill Powell announced.
Brown, age 52, pled guilty to one count of “Unlawful Possession of a Firearm” in August 2019. Brown, a person prohibited from having a firearm, admitted to having a .380 caliber pistol in July 2018 in Berkeley County.Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Armed Career Criminal Sentenced to 15 Years for Shoot-Out with Memphis PoliceRead the Press Release
Memphis, TN – Quinton Yates, 50, has been sentenced to 188 months in federal prison for being a convicted felon in possession of a firearm and for Possession of an Unregistered Shotgun with a Barrel Less Than 18 Inches. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on August 23, 2018, detectives from the Memphis Police Department, Organized Crime Unit (OCU) were conducting a drug investigation on Young Street. While detectives were standing outside of their vehicles, Quinton Yates exited a residence and began firing shots at them. Detectives leapt into their vehicles to clear the line of fire. As one of the detectives returned fire, Yates retreated inside the house. A SWAT team set up a barricade/perimeter around the house and a standoff ensued.
Several hours later, Yates and three other individuals who were in the home surrendered. Law enforcement recovered three firearms, including an assault rifle, a sawed-off barrel shotgun and a .22 long rifle caliber revolver. Yates admitted to opening fire on the detectives from the residence but stated he did not know they were police officers. He also stated the three individuals at his home had nothing to do with the shooting.
Yates is a convicted felon, having prior convictions for robbery, aggravated assault, and carjacking, and was still on parole at the time of this shooting incident. As a result of these previous violent felony convictions, Yates was determined to be an armed career criminal under the federal sentencing guidelines, and subject to a mandatory minimum sentence of 180 months.
On February 3, 2020, U.S. District Court Judge Jon P. McCalla, sentenced Yates to 188 months in federal prison followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, as seen in this case. Yates was an armed career criminal who continued to possess and use multiple firearms while on parole for violent felonies. This sentence is just punishment for such a brazen attack on police, and will incapacitate him from committing additional gun violence for a significant period of time, making us all safer. Gun Crime is Max Time."
This case was investigated by the Memphis Police Department’s Organized Crime Unit (OCU), Project Safe Neighborhoods (PSN) Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Acupuncturist Sentenced to 2½ Years in Federal Prison for Defrauding Amtrak’s Health Care Plan out of Millions of DollarsRead the Press Release
LOS ANGELES – A licensed acupuncturist was sentenced late this afternoon to 30 months in federal prison for fraudulently billing Amtrak’s health care plan for $7.1 million in acupuncture, massages and facials that either were medically unnecessary or were never provided.
Guiqiong Xiao Gudmundsen, 53, a.k.a. “Kimi” Gudmundsen, of Anaheim Hills, was sentenced by United States District Judge Dolly M. Gee. Judge Gee also ordered her to pay $2,683,903 in restitution to Amtrak.
In October 2019, Gudmundsen pleaded guilty to one count of health care fraud and one count of money laundering.
Gudmundsen owned Healthy Life Acupuncture Center, which operated in Riverside and Los Angeles. From January 2008 until December 2015, Gudmundsen recruited Amtrak employees to visit Healthy Life and then, among other things, billed the Amtrak health care plan for acupuncture, which she knew wasn’t being provided.
She billed the health plan for medically unnecessary services such as massages and facials, as well as for work-related injuries she knew the Amtrak plan did not cover. Gudmundsen also provided medical services to non-Amtrak health care plan participants and then billed the plan for it under the name of an actual Amtrak plan participant.
Gudmundsen regularly waived co-payments, co-insurance, and deductibles for Amtrak health care plan participants, something the plan did not permit. She double billed to other insurance plans, and she provided services to returning patients falsely billed as “new patients” in order to take advantage of higher reimbursement rates.
During the course of the scheme, Gudmundsen billed Amtrak’s health care plan in amounts comparable to large research hospitals and medical institutions that dwarfed other acupuncturists, court papers state. In 2013, Gudmundsen was ranked 32nd in the United States among health care providers for the amount billed to the Amtrak health care plan – above Johns Hopkins Hospital in Baltimore, which was ranked 39th, according to court documents.
Finally, she knowingly and routinely funneled her ill-gotten gains through bank accounts opened in the names of a shell company and her relatives.
Gudmundsen’s “entire business model was based on fraud, infiltrating all the services that she provided (and those she did not provide),” prosecutors wrote in their sentencing memorandum. “The Amtrak health care plan provides much-needed health care services to Amtrak union employees and their dependents. These types of fraud schemes increase the costs of such health insurance plans.”
This matter was investigated by Amtrak Office of Inspector General, IRS Criminal Investigation, and the U.S. Department of Labor’s Employee Benefits Security Administration.
This case was prosecuted by Assistant United States Attorneys Scott D. Dubois and Jenna G. Williams of the General Crimes Section.
Monday 3 February 2020
Woman Orchestrated Scheme to Obtain U Visas, Charged with Visa FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging YURIDIA HERNANDEZ LINARES, 36, with conspiracy to commit visa fraud. LINARES made her initial appearance earlier today before Magistrate Judge Tony N. Leung in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the indictment, between August 20, 2019, and September 30, 2019, LINARES conspired with other individuals to defraud the United States by making false statements to fraudulently obtain U Nonimmigrant Visas (“U-Visas”), for four individuals. Victims of certain criminal activities that occur in the United States may be eligible to apply for and obtain a U Visa. A victim who obtains a U Visa may subsequently apply to U.S. Citizenship and Immigration Services (USCIS) to adjust their status to become a lawful permanent resident of the United States.
According to the allegations in the indictment, LINARES devised and participated in a detailed scheme, whereby the four individuals each falsely reported to the Eden Prairie Police Department that they were victims of robberies committed in Eden Prairie, Minnesota. LINARES directed the individuals to file a police report stating that they were a victim of a fabricated assault, and to corroborate each other’s account of the assault. LINARES used a box cutter or other sharp object to cut the four individuals before they filed their false report with the Eden Prairie Police Department. In exchange, LINARES collected a $2,000 fee from each individual.
This case is the result of an investigation conducted by Homeland Security Investigations and the Eden Prairie Police Department.
Assistant U.S. Attorney Angela M. Munoz is prosecuting the case.
Defendant Information:
YURIDIA HERNANDEZ LINARES, 36
City of residence unknown
Charges:
- Conspiracy to commit visa fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Winona Man Sentenced to 38 Years in Prison for Producing Images of Child Sexual AbuseRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of RYAN THOMAS FEINE, 35, to 456 months in prison for production and attempted production of child pornography, followed by 20 years of supervised release. FEINE, who pleaded guilty on October 7, 2019, was sentenced today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. During the sentencing hearing, Judge Tunheim described FEINE’s criminal conduct as “certainly horrendous,” and further noted that the case was, “among the worst I’ve ever seen.”
“This is one of the most egregious cases of child sexual abuse my office has prosecuted,” said U.S. Attorney Erica MacDonald. “We will never shy away from difficult cases such as this, we are committed to pursuing justice for innocent children.”
According to the defendant’s guilty plea and documents filed in court, between February 10, 2013, and September 10, 2013, FEINE created multiple video recordings of his sexual abuse of Minor A, who was less than one year old at the time. During the same time period, FEINE also produced sexually explicit images of Minor B, who was approximately five years old at the time. FEINE came to the attention of law enforcement in August 2018, based on an allegation of ongoing sexual abuse.
According to the defendant’s guilty plea and documents filed in court, in August 2018, law enforcement executed a search warrant on several of FEINE’s electronic devices, which revealed more than 1,000 images and 150 videos of child pornography. The National Center for Missing or Exploited Children subsequently identified the defendant as the creator of a multi-part child pornography series that has been distributed across the country.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case was the result of an investigation conducted by the FBI, the Winona Police Department, and the Winona County Sheriff’s Office.
Assistant U.S. Attorneys Jordan L. Sing and Melinda A. Williams prosecuted the case.
Defendant Information:
RYAN THOMAS FEINE, 35
Winona, Minn.
Convicted:
- Production and attempted production of child pornography, 2 counts
Sentenced:
- 456 months in prison
- 20 years of supervised release
- Restitution payable to each minor victim
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wichita Man Sentenced for CarjackingRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced today to 70 months in federal prison on a federal carjacking conviction, U.S. Attorney Stephen McAllister said.
Zachary Ausdemore, 30, Wichita, Kan., pleaded guilty to one count of carjacking. In his plea, he admitted that on Sept. 10, 2019, he confronted an elderly couple and threatened to kill them unless they gave him the keys to their car.
The incident began earlier that day when Wichita police responded to a report of a stolen Jeep. Ausdemore was a passenger in the stolen jeep with two other people. When police tried to stop the Jeep, the driver accelerated toward an officer. An officer fired at the car, wounding Ausdemore and the driver. When the car stopped, Ausdemore fled on foot. He ran to the house of the elderly couple, who were outside watching the chase, and took the keys to their Honda CRV. Police pursued Ausdemore until he ran the car into a muddy ditch.
McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Mona Furst for their work on the case.
Wichita Man Pleads Guilty to Two Armed RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty today to two armed robberies at local hotels, U.S. Attorney Stephen McAllister said.
Darrell E. Black, 26, Wichita, Kan., pleaded guilty to two counts of commercial robbery. In his plea, he admitted that on May 27, 2017, he robbed the Extended Stay America at 9450 E. Corporate Hills, and on May 29, 2017, he robbed the Days Inn and Suites at 7321 E. Kellogg, both in Wichita.
In both robberies, he held a clerk at gunpoint while demanding money from the hotel cash drawer.
Sentencing is set for May 1. Black could face a sentence of up to 20 years in federal prison and a fine up to $250,000 on each count.
McAllister commended the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Lanny Welch for their work on the case.
Waterbury Man Guilty of Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal jury in New Haven today found FRANCISCO LOPEZ, 33, of Waterbury, guilty of heroin distribution offenses. The trial before U.S. District Judge Janet C. Hall began on January 28.
According to the evidence disclosed during the trial, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury and Naugatuck Police Departments. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that a Waterbury-based drug trafficking organization was receiving large quantities of heroin and cocaine from various suppliers and distributing narcotics in and around Waterbury. Intercepted communications indicated that, on two occasions in December 2018, Lopez ordered 150 grams of heroin from two other members of the conspiracy.
Three hundred grams of heroin is enough to produce 12,000 individual bags of heroin that can be sold for approximately $5 each on the street.
The jury found Lopez guilty of one count of conspiracy to distribute, and to possess with intent to distribute, 100 grams or more of heroin, and one count of using a telephone to facilitate a drug trafficking crime.
On March 13, 2019, a grand jury in Hartford returned an indictment charging Lopez and 28 other individuals with various offenses related to the distribution of heroin, cocaine and crack cocaine. Lopez has been detained since his arrest on March 20, 2019.
On March 21, 2019, in association with the arrests of several of Lopez’s codefendants, investigators seized approximately 3,000 bags of heroin, 400 grams of cocaine, 350 grams of fentanyl/heroin mixed, 400 grams of heroin, 10 grams of crack, 20 pounds of marijuana, fentanyl patches, a one-kilogram press, four handguns, approximately $120,000 in cash and four vehicles.
Judge Hall scheduled sentencing for April 27, 2020, at which time Lopez faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 44 years.
All 29 defendants in this case have been convicted.
This investigation is being conducted by the Drug Enforcement Administration New Haven Task Force, Waterbury Police Department and Naugatuck Police Department, with the critical assistance of the U.S. Secret Service, New York Field Office. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Nathaniel J. Gentile.
Virginia man sentenced to more than 27 years for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Alan Williams, of Hillsboro, Virginia, was sentenced today to 327 months incarceration for producing child pornography, U.S. Attorney Bill Powell announced.
“The production of child pornography is a heinous act and victims our most vulnerable—our children. The sentence is warranted and demonstrates our commitment to aggressively prosecuting these crimes,” said Powell.
Williams, age 55, pled guilty to one count of “Production of Child Pornography by Person Having Custody or Control” on September 2019. Williams admitted to permitting a minor to engage in sexually explicit conduct to produce child pornography to be shared in February 2019 in Jefferson County.
Williams was also ordered to pay $30,000 in restitution to the victim in this case.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Department of Homeland Security Investigations investigated.
Chief U.S. District Judge Gina M. Groh presided.
Victim Advisory – Aleksei Burkov Case UpdatesRead the Press Release
CASE NAME: United States v. Aleksei Burkov, Criminal Case No. 1:15-cr-245
COURT: U.S. District Court for the Eastern District of Virginia, Alexandria Division
CASE SUMMARY: On January 23, Aleksei Burkov pleaded guilty to access device fraud and conspiracy to commit computer intrusion, identity theft, wire and access device fraud, and money laundering. He faces a maximum penalty of 15 years in prison when sentenced on May 8.
According to court documents, Burkov operated a website called “Cardplanet” that sold payment card numbers (e.g., debit and credit cards) that had been stolen primarily through computer intrusions. Many of the cards offered for sale belonged to United States citizens. The stolen credit card data sold on Burkov’s site has resulted in over $20 million in fraudulent purchases made on United States credit cards. Additionally, Burkov ran another website that served as an invite-only club where elite cybercriminals could advertise stolen goods, such as personal identifying information and malicious software, and criminal services, such as money laundering and hacking services.
CASE STATUS: Burkov is scheduled to be sentenced on May 8.
VICTIM RESPONSE: To ensure that members of the public, including potential victims of Burkov’s fraud, are informed of developments in this ongoing case, the U.S. Attorney’s Office has established a page on its website, available at the following link: https://www.justice.gov/usao-edva/united-states-v-aleksei-burkov.
The website currently includes a copy of the superseding indictment, plea agreement, and statement of facts filed in this case. Victims with questions can call 1-844-527-5299 and reference the above case name and docket number. Victim impact statements can be emailed to EDVA Victim Witness, or mailed to:
U.S. Attorney’s Office
Attn: Victim Witness
2100 Jamieson Avenue
Alexandria, VA 22314
Vallejo Man Pleads Guilty to Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Matthew Core, 38, of Vallejo, pleaded guilty Monday to bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced.
According to court documents, between February and August 2018, Core participated in a scheme to defraud banks in which he and others used counterfeit U.S. Postal Service keys to break into residential mailboxes throughout Northern California. The scheme participants stole U.S. Mail from these mailboxes and pulled out bankcards, personal and business checks, and government-issued IDs, all belonging to the mail-theft victims. They then altered some of the checks and bankcards with the intent to use them to defraud financial institutions.
In one instance, in April 2018, Core deposited an altered check issued by JP Morgan Chase Bank into his own bank account at an ATM in Vallejo. By depositing the altered check, Core knowingly used the identity of a mail-theft victim without legal authority. Core committed these acts with the intent to defraud JP Morgan Chase, which was insured by the Federal Deposit Insurance Corporation.
On Aug. 29, 2018, Core and others were arrested in Granite Bay. At that time, Core possessed at least four counterfeit U.S. Postal Service keys and two U.S. Postal Service locks. Core possessed these items with the intent to commit identity theft and bank fraud, including using them to steal U.S. Mail. On that same date, Core also possessed at least 15 unauthorized bankcards.
This case is the product of an investigation by the U.S. Postal Inspection Service. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Core is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on April 27. Core faces a maximum statutory penalty of 30 years in prison and a fine of up to $1 million for the bank fraud, 10 years in prison and a fine of up to $250,000 for possession of mail keys, and a mandatory sentence of two years in prison consecutive to any other sentence imposed a fine of up to $250,000 for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
U.S. Enters into Trilateral Agreement with Nigeria and Jersey to Repatriate over $300 Million to Nigeria in Assets Stolen by Former Nigerian Dictator General Sani AbachaRead the Press Release
The Department of Justice, on behalf of the U.S. government, has executed a trilateral agreement with the governments of the Federal Republic of Nigeria (Nigeria) and the Bailiwick of Jersey (Jersey) to repatriate to Nigeria approximately $308 million traceable to the kleptocracy of former Nigerian dictator Sani Abacha and his co-conspirators.
In 2014, U.S. District Judge John D. Bates for the District of Columbia entered judgment forfeiting approximately $500 million located in accounts around the world, as the result of a civil forfeiture complaint the Department of Justice filed against more than $625 million traceable to money laundering involving the proceeds of Abacha’s corruption. After appeals in the United States were exhausted in 2018, the government of Jersey enforced the U.S. judgment against over $308 million located in that jurisdiction.
“General Abacha and his cronies robbed Nigerians of vast public resources and abused the U.S. and international financial systems to launder their criminal proceeds,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s landmark agreement returns to the people of Nigeria hundreds of millions of the embezzled monies through a lawful process that ensures transparency and accountability.”
The forfeited assets represent corrupt monies laundered during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and the purchase of bonds backed by the United States. Jersey’s cooperation in the investigation, restraint and enforcement of the U.S. judgment, along with the valuable contributions of Nigeria and other law enforcement partners around the world, have been instrumental to the recovery of these funds.
Under the trilateral agreement signed today, the United States and Jersey will transfer 100 percent of the net forfeited assets to the Federal Republic of Nigeria to support three critical infrastructure projects in Nigeria that were previously authorized by Nigerian president Muhammadu Buhari and the Nigerian legislature. Specifically, the laundered funds under this agreement will help finance the construction of the Second Niger Bridge, the Lagos-Ibadan Expressway and the Abuja-Kano road – investments that will benefit the citizens of each of these important regions in Nigeria.
The agreement includes key measures to ensure the transparency and accountability, including administration of the funds and projects by the Nigeria Sovereign Investment Authority (NSIA), financial review by an independent auditor, and monitoring by an independent civil society organization with expertise in engineering and other areas. The agreement also precludes the expenditure of funds to benefit alleged perpetrators of the corruption or to pay contingency fees for lawyers. The agreement reflects the sound principles for ensuring transparency and accountability adopted at the Global Forum on Asset Recovery (GFAR) in December 2016 in Washington, D.C., which the United States and the United Kingdom (UK) hosted with support from the Stolen Asset Recovery Initiative of the World Bank and United Nations Office on Drugs and Crime.
In addition to the more than $308 million forfeited in Jersey, the Department of Justice is seeking to enforce its forfeiture judgment against approximately $30 million located in the UK and over $144 million in France. The United States is also continuing to seek forfeiture of over $177 million in additional laundered funds held in trusts that name Abacha associate Bagudu, the current governor of Kebbi State, and his relatives as beneficiaries. The United States has asked the government of Nigeria to withdraw litigation it has instituted in the UK that hinders the U.S. effort to recover these additional funds for the people of Nigeria. The United States entered into the trilateral agreement to repatriate the Jersey assets because of its longstanding commitment to recover asset for the benefit of those harmed by grand corruption and because of the important safeguards embodied in the agreement.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section working in partnership with the FBI. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice and federal law enforcement agencies seek to safeguard the U.S. financial system from criminal money laundering and to recover the proceeds of foreign official corruption. Where appropriate and possible, the department endeavors to use recovered corruption proceeds to benefit the people harmed by acts of corruption and abuse of public trust.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected]. The department appreciates the extensive assistance provided by the governments of Jersey, France, Nigeria and the UK in this investigation.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two sentenced in securities fraud conspiracyRead the Press Release
HOUSTON – Two defendants charged in relation to a more than $40 million securities fraud “pump and dump” conspiracy have now been ordered to prison, announced U.S. Attorney Ryan K. Patrick.
John David Brotherton, 60, League City, pleaded guilty Feb. 12, 2019, while Charles Earl Grob, 39, Houston, admitted his guilt Dec. 5, 2018.
Today, U.S. District Judge Vanessa Gilmore imposed a 60-month sentence for Brotherton, while Grob received a sentence of 12 months.
Brotherton and Grob were also ordered to forfeit $1.9 million and $242,907.09, respectively, and serve three years of supervised release following their sentences. The court also ordered each man to pay restitution to the victims of the fraud. The amount will be determined at a later date.
Brotherton and Grob admitted they participated in a conspiracy to commit fraud in microcap securities. During the course of the conspiracy, they obtained control of the stock of numerous companies, then “pumped up” the price of the stock through false and misleading press releases and fraudulent trading techniques. They then “dumped” their shares of stock onto the market for a significant profit.
Brotherton, who is in now in custody following violations of his conditions of release, will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Grob was permitted to remain on bond and voluntarily surrender at a later date.
Five others - Andrew Ian Farmer, 41, Thomas Galen Massey, 49, Eddie Douglas Austin Jr., 69, and Carolyn Price Austin 65, all of Houston; and Scott Russell Sieck, 61, of Winter Park, Florida, also pleaded guilty for their respective roles and will be sentenced later this year.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorneys Justin R. Martin and Michael Chu are prosecuting the case.
Texas Man Sentenced in South Florida to Ten Years in Federal Prison for his Role in Tricare and Medicare Fraud SchemeRead the Press Release
MIAMI – U.S. District Judge Cecilia M. Altonaga sentenced Senthil Kumar Ramamurthy, 38, of Texas, to 121 months in federal prison for his role in a scheme that defrauded Tricare and Medicare out of more than $9.6 million. Ramamurthy and his co-conspirators tricked beneficiaries into having the federal health care programs pay for medically unnecessary compounded prescription medicines and cancer genetic tests.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Cynthia Bruce, Special Agent In Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and SAC Omar Pérez Aybar, Special Agent in Charge for Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
Tricare is the health care program for the U.S. military that pays the health care costs of active and retired military personnel and their families, including the costs of medically necessary prescription medications. Medicare is a federally-funded program that provides free or below-cost health care benefits to certain individuals, primarily the blind, elderly, and disabled.
On November 12, 2019, Ramamurthy pled guilty to conspiring to commit health care fraud and conspiring to defraud the United States and receive health care kickbacks.
According to court records, Ramamurthy and his co-conspirators targeted Tricare for about 10 months, starting in 2014. After deceiving their way onto U.S. military bases, Ramamurthy and his co-conspirators convinced Tricare beneficiaries to sign-up for compounded prescription medications that the beneficiaries did not need. To encourage sign-up, Ramamurthy and his co-conspirators falsely told the beneficiaries that the pharmacies would custom-design their medications or that the medications were free. In fact, the medications were not custom-designed and the patients had co-payments. Compounding pharmacies paid Ramamurthy and his co-conspirators millions of dollars in kickbacks in exchange for sending the pharmacies expensive prescription orders.
In mid-2015, Tricare scaled back its reimbursements for compounded medications. Ramamurthy and his co-conspirators turned to Medicare. They paid doctors to refer Medicare beneficiaries to a lab in Georgia for cancer genetic screening testing, even though the doctors had never examined the beneficiaries. As with the compounded medications, the cancer genetic screening tests were not medically necessary. The owner of the Georgia lab, Minal Patel, 40, was indicted in the Southern District of Florida in September 2019.
“Ramamurthy used our military families, our elderly, and our disabled to bilk millions of dollars from our country’s vital health care programs. He is set to spend the next 10 years in federal prison paying for that,” said U.S. Attorney Fajardo Orshan. “I commit to you that along with its federal law enforcement partners, the U.S. Attorney’s Office will continue to fight health care fraud in South Florida.”
"Senthil Ramamurthy’s conduct was part of a multi-million dollar fraud scheme perpetrated on the military's healthcare program. Today's sentencing is a testament of the Defense Criminal Investigative Service's fierce commitment to protect America's Warfighters and the integrity of their healthcare program. DCIS will work tirelessly with our law enforcement partners and Federal prosecutors in order to bring to justice any unscrupulous individuals or organizations who decide to compromise and abuse the interests, health and well-being of our men and women in the military," said Cyndy Bruce, Special Agent in Charge of the Defense Criminal Investigative Service, Southeast Field Office.
“Ramamurthy preyed upon unsuspecting beneficiaries to enrich himself; however, his unlawful actions led not to riches, but a 10-year prison sentence,” said Omar Pérez Aybar, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to protect government-funded health care programs and the beneficiaries served by them.”
Additional co-conspirators of Ramamurthy have pleaded guilty to federal criminal charges arising out of the fraud scheme: Asif Uddin, 32, of Missouri, Karl Voeller, 34 of Delray Beach, Florida, Jennifer John Carbon, 48, of Miami, Florida, John Scholtes, 56 of Boca Raton, Florida, Anthony Mauzy, 43, of California, Thomas Sahs, 41, of California, Rajesh Mahbubani, 46, of Texas, and Dr. Mangala Ramamurthy, 64, of Texas. They are scheduled for sentencing in the Southern District of Florida in February 2020.
To date, fraudulent compounding pharmacy schemes have caused estimated losses to Tricare in excess of $2 billion. Fraudulent genetic testing lab schemes have caused estimated losses to Medicare of approximately $2.1 billion.
U.S. Attorney Fajardo-Orshan commended the investigative efforts of DCIS and HHS-OIG. Assistant United States Attorneys Kevin J. Larsen, Ana Maria Martinez, and John C. Shipley prosecuted the case. Assistant United States Attorney Daren Grove is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Steubenville man admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Shannon Terill Loveless, of Steubenville, Ohio, has admitted to his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Loveless, age 42, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Loveless admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.Loveless faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
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.
U.S. Magistrate Judge James P. Mazzone presided.
Steubenville man admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Rolland Kwame Owens, of Steubenville, Ohio, has admitted to his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Owens, also known as “Buster,” age 30, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Owens admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.Owens faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
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.
U.S. Magistrate Judge James P. Mazzone presided.
South Carolina Man Is Sentenced to 14 Years for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. sentenced a South Carolina man to 168 months in prison and four years of supervised release for trafficking heroin and crack cocaine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Veto Omar Martin, 41, of Anderson, S.C., received an enhanced prison sentence and was sentenced as a Career Offender due to his multiple prior drug trafficking convictions.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief David Zack of the Asheville Police Department (APD), join U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, on November 30, 2018, officers with the Asheville Police Department’s Drug Suppression Unit executed a search warrant at a residence, and a vehicle parked in the driveway of the residence, in Asheville. While executing the search warrant, law enforcement recovered from inside the home narcotics and various drug paraphernalia. Law enforcement also arrested Martin, who was sitting in the driver’s seat of the parked vehicle. Inside the vehicle, law enforcement located heroin, crack cocaine, and other narcotics. According to court records, over the course of the investigation, Martin admitted to selling drugs in Asheville and surrounding areas, and using the Asheville residence to sell narcotics.
In October 2019, Martin pleaded guilty to possession with intent to distribute narcotics. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the FBI and APD for handling the investigation.
Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.