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6 March 2020
Bristow Businessman Indicted for Tax FraudRead the Press Release
A federal grand jury returned an indictment Wednesday charging a Bristow, Oklahoma, business owner with filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma.
According to the indictment, David Ellis Fisher owned and operated A-1 Power Tongs and Casing Crews LLC, a business that provided equipment and services to oil and gas extraction companies. From 2013 through 2015, Fisher allegedly willfully underreported his income on his tax returns for 2013 through 2015 by depositing a portion of the payments to his business into a bank account that Fisher did not disclose to his bookkeeper or tax return preparer.
If convicted, Fisher faces a maximum sentence of three years in prison on each count. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shores commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Andrew Kameros of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Brewer Man Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Bangor, Maine: A Brewer man pleaded guilty yesterday in federal court in Bangor to being a felon in possession of two firearms, U.S. Attorney Halsey B. Frank announced.
According to court records, on May 17, 2019, Brewer police officers found Jamey Brigley, 32, in possession of brass knuckles. He later physically resisted and struggled with an officer, and two additional officers had to assist in securing him. When officers searched his backpack following his arrest, they found two pistols, one of which had an obliterated, unreadable serial number. Brigley admitted that he knew he could not legally buy or own a firearm. He was prohibited from possessing firearms due to prior felony convictions, including convictions for Unlawful Possession of Oxycodone and Unlawful Trafficking in Scheduled Drugs in 2015.
Brigley faces up to 10 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Brewer Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN, please visit http://www.justice.gov/psn.
Bangladeshi National Pleads Guilty to Conspiracy to Bring Aliens to the United StatesRead the Press Release
A Bangladeshi national formally residing in Tapachula, Mexico, pleaded guilty for his role in a scheme to smuggle aliens from Mexico into the United States.
Mohamad Milon Hossain, 39, admitted that from March 2017 to June 2019, he conspired to bring, and brought, Bangladeshi nationals to the United States at the Texas border in exchange for payment. Hossain operated out of Tapachula, Mexico, where he maintained a hotel that housed aliens on their way to the United States. Hossain provided plane tickets and other assistance for the aliens to travel from Tapachula to Monterrey, Mexico where co-conspirator Moktar Hossain assisted their illegal crossing into the United States.
U.S. District Judge Diana Saldana accepted the guilty plea. Sentencing has not been scheduled.
“Hossain’s brazen scheme to smuggle Bangladeshi aliens into the United States put our national security at risk,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This guilty plea underscores the Department’s commitment to working with our law enforcement partners here and abroad to disrupt the flow of illegal aliens into the United States and bring human smugglers to justice.”
“Border Security is national security,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Our DHS law enforcement partners work on both sides of the border to make sure it is secure. The Southern District of Texas is on the front line of the fight against illegal immigration and we will continue to lead the nation in doing so.”
“This plea is a clear statement that defendants who smuggle illegal aliens across the United States border for profit will face consequences in a U.S. courtroom,” said Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “HSI remains committed in aggressively investigating and prosecuting members of transnational criminal organizations that exploit and endanger the people they smuggle into the United States. We will continue to work with our law enforcement partners both domestic and international to maintain the integrity of our border and the safety of our communities.”
HSI Laredo is investigating this case with assistance from the HSI Human Smuggling Unit, HSI Mexico City, HSI Houston, HSI Calexico, HSI Monterrey, U.S. Customs and Border Protection (CBP) Office of Field Operations, CBP Border Patrol and the U.S. Marshals Service. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
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.
Baltimore Felon Sentenced to Nine Years in Federal Prison for Illegal Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Kyle Greene, age 32, of Baltimore, Maryland, today to nine years in federal prison, followed by three years of supervised release, for possession of a stolen firearm.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Kyle Greene had multiple felony convictions and was prohibited from possessing firearms and ammunition. Despite that prohibition, law enforcement recovered a loaded gun that had been stolen, from under Greene’s mattress. Now Greene will serve nine years in federal prison, where there is no parole—ever,” said U.S. Attorney Robert K. Hur. “We are determined to work with our law enforcement partners to reduce violent crime by removing gun-toting criminals from our communities. I urge anyone who is tempted to follow Kyle Greene’s example to put down the gun. You’ll save a life, maybe even your own.”
According to Greene’s guilty plea, on February 27, 2019, members of the Baltimore Police Department (BPD) and FBI executed a search warrant at Greene’s residence. During the search, Greene was located in his bedroom. A loaded firearm was recovered from under the mattress in that room. The gun was found to have been stolen. Greene admitted that he knew the firearm was there and that it was stolen. As a result of previous felony convictions, Greene was prohibited from possessing firearms and ammunition.
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. Project Safe Neighborhoods (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.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Christine Goo, who prosecuted the case.
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Aviation maintenance student charged with bribing examiner to pass FAA’s mechanic’s examinationRead the Press Release
ATLANTA - Aviation maintenance student Frank A. Jalion Amaro has been charged with bribing a Federal Aviation Administration (“FAA”) Designated Mechanic Examiner in exchange for receiving a passing score on the FAA’s Airframe and Powerplant examination.
“The integrity of America’s civil aviation system is of paramount importance,” said U.S. Attorney Byung J. “BJay” Pak. “By allegedly trying to bribe his way into obtaining an FAA certification to repair aircrafts, Amaro put his personal ambitions ahead of the safety of others.”
“Blatant actions that seek to circumvent FAA certification requirements will not be tolerated,” said Todd A. Damiani, Regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General. “Together with our prosecutorial partners, we are committed to identifying and preventing those individuals willing to compromise the safety of the National Airspace System and the traveling public.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The FAA is an agency of the U.S. Department of Transportation that is responsible for the regulation and oversight of civil aviation in the United States, including the operation and development of the National Airspace System and the management of commercial space transportation. The FAA’s primary mission is to ensure the safety of civil aviation.
As part of its responsibility to protect the integrity and safety of the American civil aviation system, the FAA requires mechanics and repairmen to obtain an Airframe and Powerplant Certificate to perform maintenance on aircraft and approve equipment for returns to service. To receive an Airframe and Powerplant Certificate, the FAA requires mechanics to complete 1,900 hours of classroom and practical training and to pass several tests covering 43 technical subjects.
Amaro was a student at an aviation maintenance school in Las Vegas, Nevada. In late 2019, Amaro was preparing to take the examination to obtain an FAA Airframe and Powerplant Certificate. On November 19, 2019, Amaro contacted an FAA Designated Mechanic Examiner (“FAA Examiner”) in the Atlanta-metropolitan area. As a Designated Mechanic Examiner, the FAA authorized the FAA Examiner to perform activities on its behalf, including administering the Airframe and Powerplant examination.
Beginning on November 19, 2019, Amaro (using an alias and spoofed phone number) contacted the FAA Examiner and offered to pay the FAA Examiner a bribe payment in exchange for receiving a passing score on the Airframe and Powerplant examination. The FAA Examiner immediately reported Amaro’s bribe solicitation and, thereafter, agreed to work with federal law enforcement authorities.
Over the next several weeks, Amaro and the FAA Examiner agreed that Amaro would take the Airframe and Powerplant examination in Duluth, Georgia, on December 16, 2019. As part of the agreement, Amaro offered to pay the FAA Examiner $500 upfront and $2,000 on the day of the test, in exchange for receiving a passing score on the Airframe and Powerplant examination.
On December 9, 2019, Amaro sent the FAA Examiner $500 via a mobile payment service. On December 16, 2019, Amaro met the FAA Examiner in Duluth and paid the FAA Examiner $2,000 in cash for a passing score on the Airframe and Powerplant examination.
Based on the conduct set forth above, the U.S. Attorney charged Frank A. Jalion Amaro, 21, of Las Vegas, Nevada, in a criminal information with bribery. Notably, defendants who are charged via a criminal information, typically plead guilty shortly after being arraigned.
The Department of Transportation – Office of Inspector General is investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Anaconda man sentenced for illegal firearm possession after admitting to making a bombRead the Press Release
MISSOULA—An Anaconda man who admitted making a bomb was sentenced today to four years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Maxie Richard Arthur, 43, pleaded guilty in November to possession of an unregistered firearm.
Chief U.S. District Judge Dana L. Christensen presided.
In court documents filed in the case, the prosecution said Arthur possessed a destructive device, a bomb, which was not registered to him in the National Firearms Registration and Transfer Record. In August 2019, law enforcement arrested Arthur on another offense and in a search of his residence, found firearms and a bomb made by Arthur.
Arthur acknowledged to law enforcement he made the bomb and that he and a friend were going to buy zombie mannequins that bleed to see what the bomb did when it blew up. He also acknowledged, buying, possessing and shooting the firearms and that because he was a convicted felon, he was prohibited from possessing them.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Anaconda-Deer Lodge County Law Enforcement.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Ali Sultan Sentenced to 104 Months in PrisonRead the Press Release
FORT WAYNE – Ali Sultan, age 21, was sentenced by U.S. District Court Judge Damon R. Leichty, after pleading guilty to distributing cocaine and heroin and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Sultan was sentenced to 104 months in prison followed by 3 years of supervised release
According to documents in this case, in early 2017, Sultan took over the drug operation of his brother who was incarcerated for murder and drug dealing. Between June and October 2017, Sultan distributed cocaine and heroin on numerous occasions. Specifically, Sultan distributed crack cocaine and heroin on August 9, 2017, and possessed a firearm in furtherance of that drug transaction
The case was investigated by Federal Bureau of Investigations with the assistance of the Fort Wayne Police Department, Indiana State Police and the Allen County Police Department. The case was handled by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
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33 Charged with Meth ConspiracyRead the Press Release
Thirty-three individuals in the Dimmit, Texas area have been charged with conspiracy to distribute methamphetamine and other drug crimes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Nineteen of the defendants were arrested on Thursday, March 5 during a large-scale takedown coordinated by the FBI’s Dallas Field Office. Four defendants remain fugitives. Ten defendants were already in law enforcement custody on state charges.
A 38-count federal indictment, filed February 27, was unsealed today.
In addition to the drug charges, six defendants were charged with gun crimes, including possession of a firearm in furtherance of a drug trafficking crime, unlawful user of a controlled substance in possession of a firearm, and felon in possession of a firearm.
“Methamphetamine is a highly addictive drug that ravages communities. We will do everything we can to keep those peddling meth off our streets,” said U.S. Attorney Nealy Cox.
“The FBI remains committed to working with our partners to protect our communities from the scourge of methamphetamine and other dangerous drugs,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “In this case, we worked closely with the Castro County Sheriff’s Office, Hereford Police Department, Texas Department of Public Safety, and other law enforcement agencies over the course of several months in order to gather the evidence presented in this indictment.”
Those charged include:
• Jesus Manuel Garcia, aka “Don Chuy,” 58
Charged with one count of conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine
• Noel Mandujano, aka “Noe” and “Oregon,” 48
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Robert Vera, 48
Charged with one count of conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine
• Gustavo Rincon, aka “Tavo,” 43
Charged with one count of conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine
• Ricky Dale Leavitt, aka “Big Rick,” 45
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Michael Diaz, aka “Mike,” 45
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Michael Reyes, aka “Rat,” 42
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Arturo Martinez, aka “Juan,” 41
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Steven Mendez, 36
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Johnny Gilbert Lopez, aka “Cannon,” 52
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Katrina Casas, 34
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Ricardo Reyes, Jr., aka “Little Ricky,” 32
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Roxanne Casas, 37
Charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine
• Cruz Nunez, aka “Cruz Mendez,” 56
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Priscilla Kay Caballero, 35
Charged with one count of conspiracy to distribute methamphetamine
• Susan Odette Stinnett, 32
Charged with one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of unlawful user of a controlled substance in possession of a firearm (Ruger 9mm pistol)
• Denita Mirelez, aka “Denita Mireles,” 45
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• John David Ramirez, 40
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Ricardo Chavez, aka “KK,” 39
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
• Serviano Riojas, aka “Smokey,” 39
Charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face maximum sentences of up to 40 years, or life in some instances, in federal prison for the drug-related offenses, and up to 10 years for the firearm possession charges.
The investigation was conducted by the Federal Bureau of Investigation’s Dallas Field Office; the Drug Enforcement Administration’s Dallas Field Division; the U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division; ICE – Enforcement & Removal Operations; Castro County Sheriff's Office; Hereford Police Department; Texas Department of Safety; Amarillo Police Department; Dimmitt Police Department; Randall County Sheriff's Office; Lubbock Police Department; Potter County Sheriff's Office; Lubbock County Sheriff's Office; and the Plainview Police Department. Assistant U.S. Attorney Sean Long is prosecuting the case.
This case was brought by the Organized Crime Drug Enforcement Task Force, an interagency partnership dedicated to reducing the supply of illegal narcotics in the United States and combating violence associated with the drug trade.
5 March 2020
Youngstown physician indicted for operating a “pill mill” that distributed controlled substances, including opioids, and causing the deaths of two patientsRead the Press Release
Martin Escobar, age 57, of Youngstown, Ohio, was indicted by a federal grand jury in a 145-count indictment charging the unlawful distribution and dispensation of controlled substances, causing the deaths of two patients, maintaining a drug-involved premises, health care fraud, and unlawfully distributing and dispensing a controlled substance to a person under the age of 21.
The indictment alleges that between March 2015 and May 2019, Escobar prescribed opioids and other controlled substances out of his Lake Milton medical office, including opioids such as oxycodone and hydrocodone, often in combination with benzodiazepines and stimulants, all outside the usual course of professional practice and not for a legitimate medical purpose.
The indictment further alleges that to support his illegal prescribing, Escobar engaged in the following conduct, among other things: used false diagnoses; falsified patient pain intensity scales in medical charts; increased dosages of controlled substances and prescribed them for prolonged periods without evidence of efficacy; failed to adequately investigate patients’ pain complaints; failed to consider treatment options other than controlled substances; and falsely claimed in patient charts to have performed extensive physical examinations of patients. The indictment also alleges that Escobar ignored the results of patients’ urine drug screen tests, many of which were performed in Escobar’s medical office and that Escobar billed the government for. The indictment further alleges that these screens demonstrated the absence of prescribed controlled substances and the presence of non-prescribed controlled substances, suggesting the patients were abusing prescribed and non-prescribed controlled substances, and selling prescribed controlled substances that Escobar prescribed to them on the illegal secondary street market.
In addition, the indictment alleges that Escobar committed health care fraud by billing and causing the government to be billed for medically unnecessary controlled substances and urine drug screen tests.
The indictment further alleges that Escobar caused the deaths of two of his patients in 2015 and 2016 by unlawfully distributing and dispensing controlled substances to them that led to their deaths.
“We are relying on our community’s healthcare professionals to help devise strategies to address the opioid crisis,” said U.S. Attorney Justin Herdman. “The vast majority of doctors take their oath to do no harm seriously and have embraced practices that lead to responsible prescribing and reduce diversion, abuse, and addiction. Where there may be departures from those professional obligations, as alleged with respect to this defendant, we stand ready to use every law enforcement tool, including criminal charges, to address that harm.”
“Today's indictment is another example of DEA's determination to combat the troubling prescription drug abuse problem in this country,” said Drug Enforcement Administration Detroit Field Division Special Agent in Charge Keith Martin. “Dr. Escobar allegedly abused his position of trust and jeopardized the lives of many individuals by illegally prescribing controlled substances. No matter if it’s in a doctor’s office, board room or street corner, DEA and our law enforcement partners will continue to investigate and bring to justice those who are responsible for the illegal distribution of prescription medicines.”
“All physicians are expected to uphold specific ethical standards to do no harm, but Dr. Escobar, who took the Hippocratic oath to become a physician, is accused of falsifying medical records, prescribing unnecessary controlled substances subsequently causing two deaths, among other charges,” stated FBI Special Agent in Charge Eric Smith. “Patients should be able to trust and rely on their chosen physician, not become addicts or die as a result of their physician's care. The FBI will continue to work with our partners to root out and hold accountable physicians that are violating the law and endangering their patients.”
“Prescribing controlled substances outside the usual course of professional practice and with no legitimate medical purpose puts a patient’s health and safety at risk,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Prescribing patterns such as those alleged in this indictment are serious in nature and only exacerbate the opioid crisis. The OIG will continue to work with our law enforcement partners to vigorously investigate allegations of this nature.”
“Every time a pill mill grinds to a halt, Ohio moves closer to ending this crisis,” Ohio Attorney General Dave Yost said. “Ohio needs Medicaid fraud teams like these to hold these operations accountable.”
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Medicaid Fraud Control Unit of the Ohio Attorney General’s Office, and the Ohio Board of Pharmacy. It is being prosecuted by Assistant U.S. Attorneys Brendan D. O’Shea, Michael L. Collyer, and Special Assistant U.S. Attorney Jonathan L. Metzler of the Ohio Attorney General’s Office.
If you believe that you may have relevant information about Martin Escobar, you are asked to contact law enforcement at (216) 583-5314.
Woman Sentenced to Prison for Armed Drug DealingRead the Press Release
NEWPORT NEWS, Va. – A Hampton woman was sentenced today to over seven years in prison for possessing cocaine for distribution while possessing a firearm.
According to court documents, Marquita Meredith, 37, was convicted for distributing cocaine from her residence in Hampton. Meredith, who is the mother of seven children, was pregnant during the drug conspiracy and had children in her residence during drug sales in 2018 and 2019. In January 2019, officers recovered over an ounce of cocaine from Meredith’s residence. Children were at the home at the time of the search warrant. Prior to the drug sales and search warrant, Meredith possessed over half an ounce of cocaine and a firearm during a November 2017 traffic stop in Newport News.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith. Special Assistant U.S. Attorney Amy E. Cross prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-061.
Woman Indicted for Bank RobberyRead the Press Release
NEW ORLEANS, LOUISIANA – CATHOLINE HAMMETT, age 29, a resident of New Orleans, was indicted for bank robbery, announced U.S. Attorney Peter G. Strasser.
According to the indictment, on or about January 8, 2020, HAMMETT entered the Iberia Bank located at 3412 St. Charles, Ave in New Orleans. She handed the teller a note that claimed HAMMETT had a bomb, and demanded money. HAMMETT obtained approximately $633 and left the bank. If convicted, HAMMETT faces a maximum sentence of (20) years imprisonment, (3) years of supervised release, a $250,000.00 fine and a $100.00 special assessment fee.
United States Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.
Wilmington Man Receives 96 Months in Federal Prison for Drug OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, Chief United States District Judge Terrence W. Boyle sentenced JAMES EARL RUTLAND III, 34, of Wilmington, North Carolina, to 96 months imprisonment, followed by 3 years of supervised release and a $100 special assessment.
RUTLAND was named in an Indictment filed in the Eastern District of North Carolina on May 31, 2019, charging him with possession with intent to distribute a quantity of heroin on July 20, 2018, possession with intent to distribute a quantity of heroin, a quantity of fentanyl and a quantity of tramadol, on October 29, 2018, and possession with the intent to distribute a quantity of cocaine and a quantity of heroin on January 23, 2019. On December 11, 2019, RUTLAND pled guilty to count three of the Indictment charging possession with intent to distribute a quantity of cocaine and a quantity of heroin on January 23, 2019.
According to the investigation, on July 20, 2018, following a controlled purchase of heroin from RUTLAND, the New Hanover County Sheriff’s Office executed a search warrant on RUTLAND’s hotel room. Officers found multiple bags of a mixture of heroin and fentanyl in the hotel room and 9mm ammunition in RUTLAND’s car. On October 29, 2018, law enforcement officers were notified by a confidential source that RUTLAND was “selling dope”. Law enforcement officers approached and searched RUTLAND and recovered 79 bindles of a heroin, fentanyl and tramadol mixture. Finally, on January 23, 2019, officers with the New Hanover County Sheriff’s Office conducted a controlled purchase of heroin from RUTLAND using a confidential informant and subsequently recovered additional bags of heroin and cocaine hidden by RUTLAND in a Wilmington mini-mart in the area of the controlled purchase. RUTLAND has an extensive history of narcotics related convictions and offenses in New Hanover County.
This case is part of the FBI Investigation Organized Crime Drug Enforcement Task Force (OCDETF) Operation “Dodgeball” with cooperation from the ATF, Wilmington Police Department and New Hanover County Sheriff’s Office. This operation is focused on a drug trafficking organization operating in the New Hanover County area of North Carolina.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The FBI, ATF, Wilmington Police Department and New Hanover County Sheriff’s Office conducted the investigation of this case. Special Assistant United States Attorney Murphy Averitt prosecuted the case on behalf of the government. Mr. Averitt is a prosecutor with the Prosecutorial District 6 District Attorney’s Office encompassing New Hanover County. District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Waterloo Bank Robber Sentenced to PrisonRead the Press Release
A Waterloo bank robber with a long and violent criminal history was sentenced March 4, 2020, to more than 17 years in federal prison.
Steven Lee Sisk, age 55, from Waterloo, Iowa, received the prison term after a June 25, 2019 guilty plea to bank robbery.
Evidence at sentencing showed that in 2017, Sisk robbed a bank in Waterloo, Iowa. He took $2,389 from a teller after pointing what appeared to be a gun at her face. At the time of sentencing, Sisk had accumulated 47 prior convictions for various crimes. These convictions include willful injury causing bodily injury, domestic assault with intent to cause serious injury, burglary, fraud practices, assault, theft, delivery of cocaine, interference with official acts, possession of controlled substances, and multiple other crimes.
Sisk was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sisk was sentenced to 210 months’ imprisonment. He was ordered to make $2,389 in restitution to the bank. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sisk is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by Waterloo Police Department and the Federal Bureau of Investigation (FBI), the Tri-County Drug Task Force, and the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2007.
Follow us on Twitter @USAO_NDIA.
Washington State Man Sentenced for Child Exploitation in TennesseeRead the Press Release
Chattanooga, Tenn. – On March 4, 2020, Mark Douglas Gould, 50, currently of Port Orchard, Washington, was sentenced by the Honorable Curtis L. Collier, in the U.S. District Court for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement, Gould pled guilty to an indictment charging him with one count of knowingly using a facility or means of interstate commerce in an attempt to persuade, induce, entice, or coerce a minor to engage in sexual activity. Gould was sentenced to 210 months in prison, followed by 10 years’ supervised release. Gould is required to register with the state sex offender registry in any state in which he lives, works, or attends school and to comply with special sex offender conditions during his supervised release.
In January 2019, Gould responded to an online advertisement offering to permit someone to engage in online sexually oriented live transmissions with an 8-year-old in exchange for child pornography. During the on-line conversation, Gould proffered an additional child in exchange for sexually explicit content. Law enforcement officials apprehended the individual who was offering the advertised content and took over the account, assuming the role of the initial contact. Gould continued his efforts and, in doing so, distributed child pornography and offered payment to take part in a live transmission. Ultimately, Gould traveled from Washington state to Chattanooga, Tennessee, intending to engage in sexual contact with the child, and was then arrested.
“Predators who actually travel in an attempt to victimize and have sexual contact with children are the worst of their kind. Collaborative efforts of federal, state and local law enforcement agencies resulted in this defendant no longer being able to circulate images and videos of sexually abuse of children,” said U.S. Attorney J. Douglas Overbey. “To those who choose to do the same, know that we’re coming for you, and we’ll put you away for as long as the law allows.”
“Sexual predators use the Internet and social media to find children, victimize them and entice illicit sexual activity. This crime is deplorable and will be prosecuted to the fullest extent possible by law,” said HSI Nashville Special Agent in Charge Jerry C. Templet Jr. “This sentencing should send a message that the United States will aggressively investigate and prosecute those who choose to participate in the continued victimization of children.”
The criminal indictment resulted from an ongoing investigation by the Chattanooga Crimes Against Children Task Force, comprised of agents from the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), the Hamilton County Sheriff’s Department, and the Chattanooga Police Department. This investigation was led by HSI Special Agent Dave Nalley.
Assistant United States Attorney James T. Brooks represented the United States.
This case was brought as part of Project Safe Childhood (PSC), 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, go to www.justice.gov/psc/resources.html click on the tab "resources.”
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U.S. Marshals Arrest “Operation Cold Snap” FugitiveRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Clay Millhouse, a/k/a “Bear,” 34, was arrested yesterday by the U.S. Marshals Service (USMS) on state and federal charges. Millhouse was one of three fugitives from last week’s “Operation Cold Snap,” an ATF-led operation that recovered a total of 82 illegally possessed firearms, and resulted in the filing of federal firearm and drug trafficking charges against 16 defendants in 10 separate indictments.
Millhouse is named in one of those federal indictments along with his co-defendant, Shad Rider-Sorden, a/k/a “Shadow,” 28, charging them with conspiracy to possess and sell stolen firearms and possession or sale of a stolen firearm. Millhouse is also charged with being a felon in possession of a firearm.
According to the indictment, on Sept. 20, 2019, Millhouse, Rider-Sorden, and another individual, pulled into the driveway of an Anchorage residence in a pickup truck. The indictment alleges that Millhouse and Rider-Sorden unlawfully entered the residence and exited carrying a large gun safe, which included approximately 12 firearms. It is further alleged that on Nov. 25, 2019, Millhouse and Rider-Sorden sold firearms to another person, and cautioned the buyer about re-selling the firearms in the state. Millhouse has multiple felony convictions with the State of Alaska for crimes including Sexual Abuse of a Minor, Theft, and Robbery, which prohibited him from possessing firearms.
If convicted, Millhouse and Rider-Sorden face a maximum penalty of up to 10 years in federal prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Anchorage Police Department (APD) conducted the investigation leading to the charges in this case. Millhouse was arrested by the USMS Pacific Northwest Violent Offenders Task Force (PNVOTF), which is comprised of the USMS, the Alaska State Troopers (AST), the Anchorage Police Department (APD), and Homeland Security Investigations (HSI). This case is being prosecuted by Assistant U.S. Attorney Carole Holley.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Sues Spinal Device Company and Its Executives for Allegations that they Paid Kickbacks to SurgeonsRead the Press Release
BOSTON – The U.S. Attorney’s Office has filed a civil health care fraud complaint against SpineFrontier, Inc. (SpineFrontier); Impartial Medical Experts, LLC (IME); Kingsley Chin, the founder and CEO of SpineFrontier; Aditya Humad, the CFO of SpineFrontier; Vanessa Dudley, Chin’s wife and the Business Administrator of IME; and other entities Chin owns and controls.
The government alleges that SpineFrontier, based in Malden, Mass., and the other defendants paid, and conspired to pay, kickbacks in the form of sham consulting fees via a sham third-party, IME. The lawsuit alleges that the defendants made these payments to surgeons to induce them to use SpineFrontier’s devices in spinal surgeries. The government contends that the defendants violated the Anti-Kickback Statute, and as a result caused federal health care programs to pay millions of dollars in false claims.
In addition, the U.S. Attorney’s Office has settled civil health care fraud claims against five physicians, each of whom admits to seeking and obtaining kickbacks from SpineFrontier, via the sham third-party IME, for consulting work he did not perform. Further, each physician admits that one or more of SpineFrontier, Chin, or Humad specifically instructed him to bill “consulting” hours to SpineFrontier for each and every surgery in which he used a SpineFrontier device, regardless of whether he spent any time actually consulting.
- Dr. F. Paul DeGenova, an orthopedic spine surgeon in Ohio, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $486,985;
- Dr. Michael Murray, an orthopedic spine surgeon in New York employed by the Department of Veteran Affairs, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $330,668;
- Dr. Joseph Shehadi, a neurosurgeon in Ohio, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $323,419;
- Dr. Agha Khan, a neurosurgeon in Maryland, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $310,843; and
- Dr. John Atwater, an orthopedic surgeon who has worked in in Florida and Illinois, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $105,149.
Each of the five settling surgeons cooperated with the government’s investigation into the defendants, and the U.S. Attorney’s Office took that cooperation into account in these settlements.
“Medical device companies that pay surgeons kickbacks, directly or indirectly, corrupt the market, damage the health care system and jeopardize patient health and safety,” said United States Attorney Andrew E. Lelling. “We will pursue aggressively any organization or individual who fails to play by the rules.”
“Kickbacks undermine the integrity of federal health care programs and can result in unnecessary or harmful medical care,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will pursue unlawful kickback arrangements in whatever form they occur to ensure the integrity of the medical care received by federal program beneficiaries.”
“Kickbacks paid to surgeons as sham medical consultants, as alleged in this case, cheat patients and taxpayers alike,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners, we will continue to investigate kickback schemes that threaten the integrity of our federal health care system, no matter how those schemes are disguised.”
“Surgeons have a moral imperative to operate in a trustworthy, transparent manner. No less than people’s lives and safety depend on them. Today, five spine doctors from across the country admitted they prioritized payoffs over patients to enrich themselves and a Malden medical supply company, SpineFrontier, by shelving their ethics once hundreds of thousands of dollars in kickbacks were put on the negotiating table,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI aggressively pursues health care fraud because cases like this don’t just impact a few people. The cost of these egregious crimes is ultimately borne by all taxpayers.”
“Veterans and non-Veterans alike put trust in their physicians and that confidence is the cornerstone of our health care system. When physicians choose personal gain over patient care, that trust is broken. The settlement with Dr. Murray demonstrates VA OIG’s strong commitment to combating fraud and corruption in our government health care programs, including the Veterans Health Administration,” said VA OIG Acting Special Agent in Charge Jeffrey Stachowiak.
According to the government’s complaint, SpineFrontier paid physicians kickbacks through IME, which operates only with a Florida post office box, and whose sole employee is Chin’s wife, Dudley. The government contends that the defendants told surgeons that they could bill SpineFrontier and IME for “consulting” on a per-surgical case basis, regardless of the time, if any, the surgeons spent consulting. SpineFrontier and IME allegedly set no limit on the number of times a surgeon could purportedly evaluate a SpineFrontier device, leading to numerous instances in which SpineFrontier paid the same physician for submitting consulting hours on the same SpineFrontier device over and over again.
According to the complaint, SpineFrontier made no effort to catalogue, review, or assess feedback that surgeon-consultants provided. Often, the defendants paid surgeons ostensibly for consulting time even when surgeons had provided no product feedback whatsoever.
The government alleges that SpineFrontier and IME paid more than $8 million in kickbacks to surgeons, which generated more than $100 million in revenue, with the vast majority of SpineFrontier's total domestic sales revenues coming from kickback-tainted surgeries.
In connection with the filing of its complaint, the government intervened in two private whistleblower lawsuits that had been filed under seal pursuant to the False Claims Act. The cases are United States ex rel. Birchall v. SpineFrontier, Inc. et al., No. 15-cv-12877 and United States ex rel. Miller & Bennett v. SpineFrontier, Inc. et al., No. 15-cv-12908.
U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS-OIG SAC Coyne, FBI SAC Bonavolonta, and VA OIG Acting SAC Stachowiak made the announcement today. The government’s investigation is being handled by Assistant U.S. Attorneys Abraham R. George, David J. Derusha, Patrick M. Callahan and Steven T. Sharobem of Lelling’s Office and Trial Attorneys Douglas Rosenthal and Chris Terranova of the Department of Justice’s Civil Division.
Two Peoria Men Arrested, Charged in Five-County Burglary Spree of Licensed Firearms DealersRead the Press Release
PEORIA, Ill. – Two Peoria, Ill., men appeared in federal court in Peoria today following their arrests on charges that allege they have stolen 53 guns from Central Illinois licensed firearms dealers since Christmas Day 2019. Terrence M. Daniels, 19, and James D. Woolfolk, 20, both of Peoria, are charged in the burglary of six licensed firearms dealers in five counties.
As alleged in the affidavit filed in support of the criminal complaint, Daniels and Woolfolk burglarized and stole guns from licensed firearms dealers in the Illinois counties of Tazewell, Woodford, Logan, McLean, and Bureau, as follows:
- Dec. 25, 2019: Midwestern Firearms Company, 829 E. Camp St., East Peoria. Police were alerted at approximately 3:20 a.m. Ten firearms were stolen;
- Feb. 23, 2020: Midwestern Firearms Company, 829 E. Camp St., East Peoria. Police were alerted at approximately 2:08 a.m. Six firearms were stolen;
- Feb. 27: Freedom Sports Shop, 146 W. Front St., El Paso. Police were dispatched at approximately 12:25 a.m.; however, no firearms were stolen;
- Feb. 27: Pekin Gun and Sporting Goods, 281 Derby St., Pekin. Police were dispatched at approximately 1:40 a.m. 13 firearms were stolen;
- Feb. 27: Tactical Bunker, 127 S. Sangamon St., Lincoln. Police were dispatched when the business owner arrived to find that the business had been burglarized. Six firearms were stolen;
- Feb. 29: Guns and Glory, 117 E. Center St., LeRoy. Police were dispatched at approximately 1:39 a.m. Nine firearms were stolen; and,
- March 4: LZ Resale, 120 E. St. Paul St., Spring Valley. Police were dispatched at approximately 1:31 a.m. Nine firearms were stolen.
The affidavit alleges that in each instance, officers arrived to find the front door glass broken and firearms removed from broken glass display cases. In several of the instances, agents reviewed surveillance footage of the burglaries.
“A top priority of the Department of Justice is keeping our communities safe from gun violence,” stated U.S. Attorney John Milhiser. “Stolen guns frequently get into the hands of dangerous criminals, resulting in deadly consequences. We will continue to work with our federal, state, and local partners to aggressively prosecute those who help put guns in the wrong hands.”
Both men were arrested on March 4, and appeared this afternoon before U.S. Magistrate Judge Jonathan E. Hawley in Peoria. Woolfolk waived a detention hearing and was ordered to remain in the custody of the U.S. Marshals Service. Daniels was also detained pending a detention hearing scheduled on Monday, March 9.
The charges are the result of investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department with assistance from the East Peoria; Pekin; El Paso; LeRoy; Lincoln; and, Spring Valley Police Departments.
If convicted, for the offenses of stealing firearms from a federal firearms licensee and possession of stolen firearms, the maximum statutory penalty for each count is up to 10 years in prison and a fine of up to $250,000. The maximum penalty for conspiracy to steal and possess firearms from a federal firearms licensee is five years in prison and a fine of $250,000.
Members of the public are reminded that a complaint is merely an accusation; each defendant is presumed innocent unless proven guilty.
This case is brought as 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, and local authorities in investigating and prosecuting gun crimes; improves information-sharing by ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System, 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.
Two Former Texas Executives Charged with Fraud and Obstruction of JusticeRead the Press Release
Two former executives of EarthWater Limited (EarthWater), a Dallas-based company, were charged in a superseding indictment with conspiracy to commit wire fraud and bank fraud and obstruction of justice.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group in Washington, D.C., made the announcement.
Beth Ellen DeGroot, 60, and Harley E. “Buddy” Barnes III, 61, both of Plano, Texas, were charged with one count of conspiracy to commit wire fraud and bank fraud and one count of obstruction.
Barnes and nine other individuals had been previously indicted by a Dallas grand jury for their alleged roles in a high-yield investment fraud scheme involving EarthWater. To induce victims to purchase EarthWater stock, the defendants allegedly falsely promised victims the opportunity to earn a high-rate of return in a short period of time by offering them stock at a low price on what they falsely claimed was the eve of EarthWater’s initial public offering (IPO). In truth, EarthWater had no ability or actual plans to go public.
The defendants also allegedly lied to victims about how their money would be used, telling victims that nearly all of their money would be reinvested in EarthWater’s business (including to launch the IPO). In truth, the defendants allegedly stole most of the victims’ money and treated EarthWater’s accounts like their own personal piggybank. Barnes and his co-conspirators allegedly targeted elderly victims, defrauding them of millions of dollars. A trial date is currently scheduled for March 30, 2020.
The superseding indictment alleges that, following Barnes’ arrest for the alleged EarthWater fraud, DeGroot, who was EarthWater’s vice president, partnered with Barnes, who was EarthWater’s chief financial officer, to continue to use EarthWater to raise money, including by selling stock. In addition, Barnes and DeGroot conspired to use EarthWater to fraudulently obtain large paychecks from EarthWater’s payroll processor and to fraudulently obtain a substantial mortgage from an FDIC-insured financial institution. Specifically, Barnes and DeGroot allegedly misrepresented that EarthWater continued to operate and employ them as its top executives when, in reality, EarthWater had shut down and they were unemployed.
The superseding indictment further alleges that, after Barnes was arrested in connection with the EarthWater fraud, Barnes and DeGroot attempted to hide Barnes’s assets to prevent his money from being subject to forfeiture and fine in the event he were to be convicted.
The superseding indictment includes two counts of obstruction for which DeGroot was originally charged in October 2019. Among other things, DeGroot was charged with providing falsified records to a Dallas-based grand jury in order to conceal evidence relating to the conspiracy described above.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
USPIS investigated the case. Trial Attorneys Christopher Fenton and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary F. Walters of the Northern District of Texas are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Toledo man charged with possessing a firearm after prior felony and domestic violence convictionsRead the Press Release
Terrell Moses, 36, of Toledo, Ohio was indicted on one count of felon in possession of a firearm and one count of possession of a firearm by a person with a prior misdemeanor of domestic violence conviction.
On January 20, 2020, Moses allegedly possessed a Glock, Model 17, nine caliber semi-automatic pistol after previously being convicted of burglary in the Lucas County Common Pleas Court and misdemeanor domestic violence in the Toledo Municipal Court.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms. The case is being prosecuted by Assistant United States Attorneys Deyana Unis and Matthew Simko.
Three Correction Officers Arrested for Taking Bribes to Smuggle Drugs and Other Contraband into Private JailRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Guido Modano, Special Agent in Charge of the New York Field Office of the Department of Justice Office of the Inspector General (“DOJ OIG”), announced today the unsealing of a Complaint in Manhattan federal court charging corrections officers JERMAINE HARMON, a/k/a “Mel,” KHARI FAISON, a/k/a “Country,” and COMPTON RICHMOND, a/k/a “Rich,” with taking bribes in exchange for smuggling contraband into a private detention facility in Queens, New York, which houses federal inmates pursuant to a contract with the United States Marshals Service (the “Jail”).
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these correction officers abused the power entrusted to them and compromised the safety of the very institution they swore to protect by taking bribes in exchange for smuggling contraband to the inmates in their custody. We remain committed to rooting out corruption anywhere it takes hold – from the halls of power to the corridors of our correctional facilities.”
DOJ OIG Special Agent in Charge Guido Modano said: “The public relies on Correctional Officers to maintain order and uphold the law. Instead, these three Correctional Officers allegedly accepted bribes for smuggling drugs and cell phones into the jail, endangering their fellow Correctional Officers, staff, inmates and the public, and also jeopardizing the security of the jail facility.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
HARMON, FAISON, and RICHMOND were all, at relevant times, correction officers at the Jail. As alleged, HARMON, FAISON, and RICHMOND took bribes from numerous inmates housed at the Jail in exchange for smuggling contraband to those inmates, including marijuana and, in HARMON and FAISON’s case, smokeable synthetic cannabinoids (“K2”). The bribes were funneled to HARMON, FAISON, and RICHMOND by non-incarcerated friends and relatives of the inmates either in cash or via a cellphone payment application. For example, on at least four occasions in 2019, HARMON is alleged to have received bribes from an inmate (“Inmate-1”) in exchange for smuggling marijuana and cigarettes into the Jail. HARMON warned Inmate-1 to “stay low” and “be careful” and offered Inmate-1 marijuana to assault inmates whom HARMON believed to be providing information about him, but Inmate-1 declined. On multiple occasions in 2019, HARMON took bribes from another inmate (“Inmate-2”) in exchange for smuggling marijuana, K2, and cigarettes into the Jail. On at least four occasions in 2019, FAISON is alleged to have accepted bribes from two inmates (“Inmate-8” and “Inmate-9”) in exchange for smuggling marijuana, K2, cigarettes, and a cellphone into the Jail. On at least two occasions in 2019, RICHMOND is alleged to have taken bribes from one of the same inmates who bribed FAISON (Inmate-9) in exchange for smuggling contraband, including marijuana, into the Jail. As alleged, in most instances, RICHMOND, HARMON, and FAISON obtained the contraband, including marijuana and K2, from non-incarcerated associates of the inmates; those non-incarcerated associates also paid cash bribes, either in person or via mobile applications, to RICHMOND, HARMON, and FAISON.
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JERMAINE HARMON, 32, of Brooklyn, New York, KHARI FAISON, 26, of Brooklyn, New York, and COMPTON RICHMOND, 24, of Staten Island, New York, each have been charged in the Complaint with one count of conspiracy to commit bribery and to introduce contraband into prison, which carries a maximum prison term of five years, and one count of bribery, which carries a maximum prison term of 15 years.
Mr. Berman praised the investigative work of the DOJ Office of Inspector General in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Maurene Comey and Jessica Lonergan are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Texas Man Sentenced to 7 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Eric Eugene Portier, age 45, of Dallas, Texas, was sentenced today to 84 months in federal prison followed by fifteen years of supervised release on one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records in September of 2017, Investigators with Homeland Security identified Portier, through his IP address, as an individual who was making multiple files of child pornography available for download while he was living in Centerton, Arkansas. Investigators executed a federal search warrant on his residence. Through an analysis of his devices, investigators found Portier to have received and possessed over one thousand images of child pornography and several videos of child pornography. Portier was arrested in Texas, where he had moved, and brought back to face federal charges in 2019.
Portier was indicted in June of 2019 and entered a guilty plea in November of 2019.
This case was investigated by Homeland Security and officers assigned to the Internet Crimes Against Children (ICAC) Task Force in Northwest Arkansas. Assistant United States Attorney Ben Wulff prosecuted the case for the United States.
Tennessee Man Ordered Removed to Germany Based on Service as Concentration Camp Guard During WWIIRead the Press Release
A U.S. Immigration Judge in Memphis, Tennessee, has issued a removal order against a German citizen and Tennessee resident, on the basis of his service in Nazi Germany in 1945 as an armed guard of concentration camp prisoners in the Neuengamme Concentration Camp system (Neuengamme).
After a two-day trial, a U.S. Immigration Judge issued an opinion finding Friedrich Karl Berger removable under the 1978 Holtzman Amendment to the Immigration and Nationality Act because his “willing service as an armed guard of prisoners at a concentration camp where persecution took place” constituted assistance in Nazi-sponsored persecution. The court found that Berger served at a Neuengamme sub-camp near Meppen, Germany, and that the prisoners there included “Jews, Poles, Russians, Danes, Dutch, Latvians, French, Italians, and political opponents” of the Nazis. The largest groups of prisoners were Russian, Dutch and Polish civilians.
The court found that Meppen prisoners were held during the winter of 1945 in “atrocious” conditions and were exploited for outdoor forced labor, working, as at other Nazi camps, “to the point of exhaustion and death.” The court further found, and Berger admitted, that he guarded prisoners to prevent them from escaping during their dawn-to-dusk workday, and on their way to the worksites and also on their way back to the subcamp in the evening.
At the end of March 1945, with the advance of British and Canadian forces, the Nazis abandoned Meppen. The court found that Berger helped guard the prisoners during their forcible evacuation to the Neuengamme main camp – a nearly two-week trip under inhumane conditions, which claimed the lives of some 70 prisoners. The decision also cited Berger’s admission that he never requested a transfer from concentration camp guard service and that he continues to receive a pension from Germany based on his employment in Germany, “including his wartime service.”
“Berger was part of the SS machinery of oppression that kept concentration camp prisoners in atrocious conditions of confinement,” said Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division. “This ruling shows the Department's continued commitment to obtaining a measure of justice, however late, for the victims of wartime Nazi persecution.”
“This case is but one example of U.S. Immigration and Customs Enforcement’s commitment to ensuring that the United States will not serve as a safe haven for human rights violators and war criminals,” said Assistant Director David C. Shaw of U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “We will continue to pursue these types of cases so that justice may be served.”
In 1946, British occupation authorities in Germany charged SS Obersturmführer Hans Griem, who had headed the Meppen sub-camps, and other Meppen personnel with war crimes for “ill-treatment and murder of Allied nationals.” Although Griem escaped before trial, the British court tried and convicted the three remaining defendants of war crimes in 1947.
The removal case was jointly tried by Eli Rosenbaum, HRSP Director of Human Rights Enforcement and Policy, HRSP Senior Trial Attorney Susan Masling and ICE New Orleans, Office of the Principal Legal Advisor (Memphis), with assistance from HRSP Chief Historian Jeffrey S. Richter. The investigation was initiated by the HRSP and was conducted in partnership with HSI’s Nashville SAC office.
Since the 1979 inception of the Justice Department’s program to detect, investigate, and remove Nazi persecutors, it has won cases against 109 individuals. Over the past 30 years, the Justice Department has won more cases against persons who participated in Nazi persecution than have the law enforcement authorities of all the other countries in the world combined. HRSP’s case against Berger was part of its ongoing efforts to identify, investigate and prosecute individuals who engaged in genocide, torture, war crimes, recruitment or use of child soldiers, female genital mutilation, and other serious human rights violations. HRSP attorneys prosecuted the first torture case brought in the United States and have successfully prosecuted criminal cases against perpetrators of human rights violations in Guatemala, Ethiopia, Liberia, Cuba, and the former Yugoslavia, among others.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Tennessee Man Ordered Removed to Germany Based on Service as Concentration Camp Guard During WWIIRead the Press Release
WASHINGTON – A U.S. Immigration Judge in Memphis, Tennessee, has issued a removal order against a German citizen and Tennessee resident, on the basis of his service in Nazi Germany in 1945 as an armed guard of concentration camp prisoners in the Neuengamme Concentration Camp system (Neuengamme).
After a two-day trial, a U.S. Immigration Judge issued an opinion finding Friedrich Karl Berger removable under the 1978 Holtzman Amendment to the Immigration and Nationality Act because his “willing service as an armed guard of prisoners at a concentration camp where persecution took place” constituted assistance in Nazi-sponsored persecution. The court found that Berger served at a Neuengamme sub-camp near Meppen, Germany, and that the prisoners there included “Jews, Poles, Russians, Danes, Dutch, Latvians, French, Italians, and political opponents” of the Nazis. The largest groups of prisoners were Russian, Dutch and Polish civilians.
The court found that Meppen prisoners were held during the winter of 1945 in “atrocious” conditions and were exploited for outdoor forced labor, working, as at other Nazi camps, “to the point of exhaustion and death.” The court further found, and Berger admitted, that he guarded prisoners to prevent them from escaping during their dawn-to-dusk workday, and on their way to the worksites and also on their way back to the subcamp in the evening.
At the end of March 1945, with the advance of British and Canadian forces, the Nazis abandoned Meppen. The court found that Berger helped guard the prisoners during their forcible evacuation to the Neuengamme main camp – a nearly two-week trip under inhumane conditions, which claimed the lives of some 70 prisoners. The decision also cited Berger’s admission that he never requested a transfer from concentration camp guard service and that he continues to receive a pension from Germany based on his employment in Germany, “including his wartime service.”
“Berger was part of the SS machinery of oppression that kept concentration camp prisoners in atrocious conditions of confinement,” said Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division. “This ruling shows the Department's continued commitment to obtaining a measure of justice, however late, for the victims of wartime Nazi persecution.”
“This case is but one example of U.S. Immigration and Customs Enforcement’s commitment to ensuring that the United States will not serve as a safe haven for human rights violators and war criminals,” said Assistant Director David C. Shaw of U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “We will continue to pursue these types of cases so that justice may be served.”
In 1946, British occupation authorities in Germany charged SS Obersturmführer Hans Griem, who had headed the Meppen sub-camps, and other Meppen personnel with war crimes for “ill-treatment and murder of Allied nationals.” Although Griem escaped before trial, the British court tried and convicted the three remaining defendants of war crimes in 1947.
The removal case was jointly tried by Eli Rosenbaum, HRSP Director of Human Rights Enforcement and Policy, HRSP Senior Trial Attorney Susan Masling and ICE New Orleans, Office of the Principal Legal Advisor (Memphis), with assistance from HRSP Chief Historian Jeffrey S. Richter. The investigation was initiated by the HRSP and was conducted in partnership with HSI’s Nashville SAC office.
Since the 1979 inception of the Justice Department’s program to detect, investigate, and remove Nazi persecutors, it has won cases against 109 individuals. Over the past 30 years, the Justice Department has won more cases against persons who participated in Nazi persecution than have the law enforcement authorities of all the other countries in the world combined. HRSP’s case against Berger was part of its ongoing efforts to identify, investigate and prosecute individuals who engaged in genocide, torture, war crimes, recruitment or use of child soldiers, female genital mutilation, and other serious human rights violations. HRSP attorneys prosecuted the first torture case brought in the United States and have successfully prosecuted criminal cases against perpetrators of human rights violations in Guatemala, Ethiopia, Liberia, Cuba, and the former Yugoslavia, among others.
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.
Tax fraud: preparer convicted of filing more than $300K in fraudulent returnsRead the Press Release
CORPUS CHRISTI, Texas – A tax preparer has admitted her guilt for tax crimes involving fraudulent customer returns that happened over a four-year period, announced U.S. Attorney Ryan K. Patrick.
Jeanneth Iliana Escobedo was in the business of preparing income tax returns for clients under the name of BizTax, which began its business in Brownsville and later added offices in Harlingen and Corpus Christi.
Today, she pleaded guilty to one count of willfully aiding and assisting in the preparation of a false income tax return. That return included excessive deductions for medical expenses, unreimbursed employee expenses and other expenses. The false claims increased her refund to $15,405, more than what she was supposed to receive.
As part of the plea, she also admitted to claiming similar false items on income tax returns for other clients during income tax years 2010 through 2014 and to helping other BizTax tax preparers doing the same for their customers.
Escobedo admitted the total intended tax loss was approximately $342,000.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing June 10. At that time, she faces up to three years in federal prison. She has agreed to pay the IRS $150,000 in restitution.
She was permitted to remain on bond pending that hearing.
IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Tattoo Shop Owner Pleads Guilty to Distributing Heroin and Methamphetamine on the DarknetRead the Press Release
SACRAMENTO, Calif. —Jason Keith Arnold, 46, of Chandler, Arizona, pleaded guilty today to conspiracy to distribute heroin and methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Arnold, along with co-defendants David White, 50, and Alicia McCoy, 31, both of Chandler, operated the vendor accounts “TheSickness” and “SicknessVersion2” on Dream Marketplace, through which they conducted more than 3,000 transactions for heroin and methamphetamine to customers throughout the country. Dream Marketplace was a website on the darknet that allowed individuals to sell narcotics and other illegal goods and services. Arnold and his co-conspirators mailed heroin inside Haribo Gold gummy bear packages from post offices in the Chandler region. Some of these packages were mailed to locations in the Eastern District of California.
Arnold is scheduled to be sentenced on May 11 by U.S. District Judge Morrison C. England Jr. Arnold faces a mandatory minimum sentence of 10 years in prison, a maximum statutory penalty of life in prison, and a fine of up to $10 million. 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.
Charges against White and McCoy are pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of investigations by the Northern California Illicit Digital Economy (NCIDE) task force, which is composed of the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, and the United States Postal Inspection Service. Assistant U.S. Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.
This case was brought in conjunction with the Joint Criminal Opioid Darknet Enforcement (J‑CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the darknet. Building on the work initiated with the takedowns of Silk Road and AlphaBay, the FBI’s J-CODE team brings together agents, analysts, and professional staff with expertise in drugs, gangs, health care fraud, and more, and our federal, state, and local law enforcement partners from across the U.S. Government, to focus on disrupting the sale of drugs via the darknet and dismantling criminal enterprises that facilitate this trafficking.
Two Women Sentenced to over 20 Years in Prison for Armed Robberies of Taxi Cab Drivers and Gas Station Employees in MilwaukeeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that two women and one man were sentenced to prison for their involvement in several armed robberies of taxi cab drivers and two gas stations in Milwaukee in August 2018.
On March 5, 2020, United State District Court Judge J.P. Stadtmueller sentenced Nickie Foster to 25 years in prison to be followed by five years of supervised release. Foster was convicted of committing four armed robberies of taxi cab drivers and an armed robbery at the Petro Mart gas station on Chase Avenue in Milwaukee, during which Foster shot the gas station employee in the head, causing life-threatening injury.
On October 31, 2019, Judge Stadtmueller sentenced Marquel Johnson to 28 years in prison to be followed by five years of supervised release. Johnson was convicted of committing five armed robberies of taxi cab drivers, the armed robbery of the Petro Mart, and an armed robbery of a BP gas station in downtown Milwaukee.
On December 19, 2019, Judge Stadtmeuller sentenced Martell Ford to 114 months (9 years, 6 months) in prison to be followed by three years of supervised release. Ford was convicted of committing one armed robbery of a taxi cab driver and aiding and abetting the BP gas station robbery.
With respect to the taxi cab robberies, on August 22 and August 23, 2018, Foster was the passenger in several taxi cabs when she brandished a firearm and demanded money and other items from the drivers. During the course of these robberies, Foster pointed a silver handgun at the taxi cab drivers, and, on one occasion, discharged the firearm after leaving the taxi cab. During the Petro Mart gas station robbery on August 23, 2018, Foster entered the Petro Mart with Marquel Johnson.
Foster brandished a silver handgun and proceeded to shoot the gas station employee in the head. Foster then emptied the cash from the register while Johnson took possession of the firearm and pointed it toward the gas station employee, who was on the ground. On August 25, 2018, Johnson and Martell Ford entered the BP gas station. Johnson pointed a silver handgun at the clerk and demanded money. The clerk locked the doors to the store, trapping Johnson in the store. Eventually, Johnson was able to exit the store. Later that day, after engaging in a vehicle pursuit with law enforcement, Johnson was arrested. Police officers recovered a silver handgun from Johnson when she was arrested.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. This case was prosecuted by Assistant United States Attorney Margaret B. Honrath.
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St. Albans Man Sentenced for Receipt of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on March 4, 2020, Ryan Billado, 28, of St. Albans, Vermont, was sentenced in United States District Court in Rutland, Vermont, to serve 96 months in prison after his guilty plea to one count of receipt of child pornography. Chief U.S. District Judge Geoffrey W. Crawford also ordered Billado to serve a ten (10) year term of supervised release, and to pay a $100 special assessment.
According to court records and proceedings, the Vermont Internet Crimes Against Children Task Force (the ICAC) received a CyberTip from the National Center for Missing and Exploited Children (NCMEC). The CyberTip was generated after Facebook reported that child pornography had been sent between two users. One of the users appeared to be a minor who sent self-produced images of child pornography to another user. Through investigation by the ICAC and special agents with Homeland Security Investigations, law enforcement determined that the recipient of the images of child pornography was Ryan Billado. Through investigation, which included execution of several search warrants for Billado’s residence, digital media, and online accounts, law enforcement learned that Billado communicated with a 15-year-old girl, convinced her to send him sexually explicit photos of herself, and that Billado travelled to another state and had sex with this child. Billado also possessed images of child pornography that did not involve this minor victim.
U.S. Attorney Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Billado. Assistant Federal Public Defender Elizabeth Quinn represented Billado.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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
Southern California Man Accused of Health Care FraudRead the Press Release
PORTLAND, Ore.—A southern California man who owned and operated local compounding pharmacies has been indicted by a federal grand jury on allegations that he submitted dozens of fraudulent patient attestations in support of reimbursement claims to CVS Caremark, a national pharmacy benefit manager.
Matthew Hogan Peters, 36, of Dana Point, California, made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman. The court unsealed a two-count indictment charging Peters with health care fraud and aggravated identity theft.
According to the indictment, Peters owned and operated Professional Center 205 Pharmacy and Portland Professional Pharmacy, compounding pharmacies located in Southeast Portland. The pharmacies filled prescriptions for, among other things, compounded pain creams, a lucrative line of products. Private and federal healthcare insurance programs reimburse compounding pharmacies for such creams at rates far higher than comparable over-the-counter or bulk-manufactured medications.
CVS Caremark administered prescription drug benefits for many patients the pharmacies served. From April 1, 2014, through May 15, 2015, Peters sought reimbursements of more than $3.4 million from CVS Caremark, which in turn paid him nearly $1.69 million. In mid-2015, CVS Caremark audited Professional Center Pharmacy’s claims for reimbursement and identified approximately 185 claims that lacked records proving customers’ receipt of medications.
Facing possible suspension from CVS Caremark’s network, Peters submitted documentation to explain the discrepancies identified in the audit. This documentation included 41 written attestations, each purporting to bear the electronic signature of an individual patient, confirming that the patient received the prescription in question. Peters is alleged to have created each of their electronic signatures himself.
Peters was released pending a four-day jury trial scheduled for May 5, 2020, before Chief U.S. District Court Judge Marco A. Hernandez.
This case was investigated by the FBI, the Offices of Inspectors General for the Departments of Health and Human Services and Labor, the United States Postal Service Office of Inspector General, the United States Postal Inspection Service, and the Defense Criminal Investigative Service. It is being prosecuted by Ryan W. Bounds and Seth D. Uram, Assistant U.S. Attorneys, and Elizabeth Ballard Colgrove, Special Assistant U.S. Attorney, for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
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.
Smith County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 29-year-old Tyler, Texas, man has pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Victor Hernandez, Jr., pleaded guilty to possession with intent to distribute methamphetamine before U.S. Magistrate Judge K. Nicole Mitchell on March 5, 2020.
According to information presented in court, on July 26, 2019, Hernandez distributed approximately 25 grams of methamphetamine to another person for $400 in an undercover transaction. During a later search of his residence, officers discovered ammunition. Hernandez admitted to being responsible for the distribution of between 20 and 35 grams of methamphetamine.
Under federal statutes, Hernandez faces up to 40 years in federal prison at sentencing. The 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 was investigated by the Federal Bureau of Investigation, the Smith County Sheriff’s Office, and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Alan Jackson.
Seventy-Five Year Old Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Fort Lauderdale, Florida – Today before a federal judge, Frank Richard Beyer (a/k/a “Rick Beyer”), 75, of Fort Lauderdale, Florida, pled guilty to possessing child pornography that included images of boys under age 12 engaged in sex acts and exposing their genitals.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court records, law enforcement received multiple cyber tips that an on-line user had uploaded child pornography to internet platforms. The cybertips included an email address that led law enforcement officers to Beyer. On November 20, 2019, officers executed a search warrant at Beyer’s home. During the search, law enforcement found external digital storage devices that contained multiple images and videos of children (some under age 12) engaging in explicit sexual conduct with other children or adults.
Beyer’s sentencing is scheduled for May 18, 2020, at 10:00 a.m. before United States District Judge Rodolfo Ruiz in Fort Lauderdale, Florida. Beyer faces up to 20 years in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, Broward County Sheriff’s Office, and Homeland Security Investigations. Assistant U.S. Attorney Ajay Alexander is prosecuting this case.
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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Seventh Defendant Sentenced in Conspiracy to Distribute Fentanyl in Northern KentuckyRead the Press Release
COVINGTON, Ky. – A Cincinnati, Ohio man, Edvey L. Belton, 32, was sentenced in federal court on Thursday, to 216 months in prison, by U.S. District Judge David L. Bunning, for conspiracy to distribute 400 grams or more of a substance containing fentanyl.
According to his plea agreement and other court documents, Belton conspired with Elmer Toler, Virgil Blake Daugherty, Michael Leonhardt, Lauren Smith, Natisha Sanford, Britni Ettleman, and others to distribute more than a kilogram of fentanyl between June 2018 and December 2018. Belton agreed that he supplied the fentanyl that was ultimately distributed by the members of the conspiracy and that he carried a firearm while participating in the conspiracy. Belton was previously convicted for Trafficking in Heroin from Ohio in 2011.
Belton is the last defendant to be sentenced in this conspiracy. The sentencings for six other defendants are as follows:
- Lauren Smith- 42 months and 3 years of supervised release
- Michael Leonhardt- 50 months and 5 years of supervised release
- Britni Ettleman- 60 months and 4 years of supervised release
- Natisha Sanford- 78 months and 5 months of supervised release
- Virgil Blake Daugherty- 96 months and 5 years of supervised release
- Elmer Wayne Toler- 138 months and 8 years of supervised release
Under federal law, Belton and his co-defendants must serve 85 percent of their prison sentence. Belton will be under the supervision of the U.S. Probation Office for 10 years after completion of his prison term.
“Our Office is committed, along with our law enforcement partners, to holding accountable those individuals who distribute fentanyl and other lethal poisons in our neighborhoods. The defendants, through their conspiracy to distribute fentanyl, helped further addictions and spread misery in Covington and throughout Northern Kentucky,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The lengthy sentences imposed underscore the seriousness of the crimes committed and should send a clear message – if you are caught distributing deadly drugs in the Eastern District of Kentucky you will face significant prison time for your criminal conduct.”
U.S. Attorney Duncan; James Robert Brown, Special Agent in Charge for FBI, Louisville Field Division, and Rob Nader, Chief of the Covington Police Department, jointly made the announcement.
The investigation was directed by the FBI and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Sentencing and Guilty Plea in Two "Operation End Game" Child Sexual Exploitation CasesRead the Press Release
MACON, Ga. — Two defendants arrested during “Operation End Game,” a multi-agency effort targeting and arresting adult perpetrators seeking sex with children, made appearances in federal court Wednesday, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. Andrew Leo Schafer, 53, of Winder, Georgia previously pleaded guilty to one count of use of facilities in interstate and foreign commerce to transmit information about a minor and was sentenced by U.S. District Judge C. Ashley Royal on March 4, 2020 to 46 months in prison and ten years of supervised release. Schafer is currently in federal custody, and once he finishes serving his sentence, he will be required to register as a sex offender and undergo computer and phone monitoring. Fredrick Lamar Smith, 28, of Royston, Georgia entered a guilty plea to one count of use of facilities in interstate and foreign commerce to transmit information about a minor and faces a maximum five years’ imprisonment, a $250,000 fine and at least three years supervised release. Smith remains in federal custody and will be sentenced in Athens, Georgia on June 3, 2020. There is no parole in the federal system.
“These cases are about protecting children. The defendants both made explicit attempts to have sex with a person they believed was a 14-year-old child, but was in actuality an undercover officer working to stop child sex predators. This office will continue to criminally prosecute adults who seek sexual gratification from children,” said U.S. Attorney Charlie Peeler. “I want to thank our law enforcement partners for their collective efforts to stop would-be child predators from harming young children.”
“Operation End Game did exactly what it was tasked to do: Put an end to criminal attempts of predators to irreversibly harm young children,” said Debbie Garner, GBI Special Agent in Charge and Commander of the Georgia Internet Crimes Against Children (ICAC) Task Force. “The GBI and the Georgia ICAC Task Force will work tirelessly with our partners to protect our children against those who seek to harm them.”
“This sentencing and guilty plea are indicative of the FBI’s commitment, along with our federal, state and local partners, to prosecute anyone who would seek sexual gratification from taking advantage of children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Our message to these predators is you cannot hide behind the ‘anonymity’ of the internet.”
“Operation End Game” was a three-day proactive effort centered in Athens, Georgia in July 2019 to arrest adults communicating with children on-line and then traveling to meet them for the purpose of having sex. The cases were investigated by the U.S. Attorney’s Office for the Middle District of Georgia, the Georgia Internet Crimes Against Children (ICAC) Task Force, the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit (CEACC), the Athens-Clarke County Police Department (ACCPD), the FBI, and the Athens-Clarke County District Attorney’s Office. Assistant U.S. Attorney Lyndie Freeman is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362. The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at https://www.justice.gov/history.
San Fernando Valley Woman Sentenced to over 3 Years in Prison for Running $11.5 Million Sleep Study Scam Bilking UPS and CostcoRead the Press Release
LOS ANGELES – The former owner of a Studio City medical clinic was sentenced today to 37 months in federal prison for causing more than $11.5 million in bills to be submitted to health care benefit programs for unnecessary – and sometimes nonexistent – sleep studies, primarily for employees of United Parcel Service, Inc., and Costco Wholesale Corp.
Anna Vishnevsky, 52, of Valley Village, was sentenced by United States District Judge George H. Wu, who also ordered her to pay $2,747,071 in restitution.
Vishnevsky, who owned Atlas Diagnostic Services, Inc., pleaded guilty in November 2018 to one count of health care fraud.
From March 2014 until June 2016, Vishnevsky participated in a scheme to defraud health care benefit plans. Vishnevsky and others working at her direction recruited patients to participate in sleep study testing at Atlas by offering them cash. She also offered them additional cash if they brought in other sleep study participants, including their co-workers and relatives.
Vishnevsky recruited patients, knowing that no doctor had prescribed sleep study testing for them and regardless of whether the testing was medically necessary or appropriate. Vishnevsky did not score or interpret the data from the testing or send it to anyone who could score or interpret it, which is necessary for diagnosis and treatment.
She submitted insurance claims for sleep study testing performed on the recruited patients, listing physicians that had never treated the patients. She also billed not only for the one night of sleep study testing that the patients had purportedly undergone – regardless of medical necessity – but also for an additional, consecutive night of sleep study testing that was never performed.
In total, Vishnevsky submitted more than $11.5 million in fraudulent insurance claims to health care benefit plans. She received approximately $3 million on those claims, of which $2,747,071 is still outstanding.
“(Vishnevsky’s) criminal activity victimized not only the plans, but also plan participants recruited into the scheme, as many of them have been required to pay back fraudulent insurance claims submitted using their names (on penalty of losing their health insurance),” prosecutors wrote in their sentencing memorandum.
A co-defendant, Eddie Hernandez, 46, of Torrance, pleaded guilty in November 2018 to one count of health care fraud and is serving a 30-month federal prison sentence in this case. Hernandez was a UPS driver who helped Vishnevsky recruit people to participate in the fraudulent sleep studies.
The United States Department of Labor - Employee Benefits Security Administration, the Department of Labor - Office of Inspector General, the FBI, and the Office of Personnel Management - Office of Inspector General investigated this matter.
This case was prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Riverton Man Indicted on Charges of Preparing, Filing False Tax Returns to Claim Higher Refunds for HimselfRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has indicted a Riverton, Ill., man, Jason Hines, 47, of the 100 block of E. Menard St., for allegedly preparing and filing false tax returns for approximately 20 clients for tax years 2015 and 2016. The indictment alleges that Hines diverted approximately $106,033 in false federal refund claims to his personal use without his clients’ knowledge.
During the time of the alleged scheme, from February 2016 to April 2017, Hines was a paid tax preparer for clients. The indictment alleges that Hines submitted false claims on clients’ tax returns to claim higher refunds. Hines allegedly gave some clients a ‘preview’ copy of their return with lower refunds and then prepared and filed higher refund claims with the IRS. To claim the higher refunds, Hines allegedly falsely reported losses associated with the sale of business vehicles, false business income and expense amounts, and falsely claimed education credits. Hines then diverted a significant amount of the refund to bank accounts he controlled and used the funds for himself.
Hines is also charged with wire fraud related to returns filed with the Illinois Department of Revenue that were likewise false. The false claims caused the Illinois returns to be false in reporting the amount of the taxpayers’ federal adjusted gross income and Illinois taxable income. As a result, Hines caused a loss of approximately $30,440 to the Illinois Department of Revenue.
The U.S. Clerk of the Court will issue a summons to Hines to appear in federal court in Springfield for arraignment.
Assistant U.S. Attorney Timothy A. Bass is representing the government in the prosecution. The IRS, Criminal Investigation Division, and the Illinois Department of Revenue conducted the investigation.
If convicted, the maximum statutory penalty for aiding in preparation and filing of a false federal tax return is up to three years in prison; for wire fraud the maximum penalty is up to 20 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Repeat Federal Defendant to Serve 20 Years in Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
ROCK ISLAND, Ill. – A former Manito, Ill., man, Jonathan Edward Rakestraw, 36, has been sentenced to 20 years in federal prison. On Feb. 28, 2020, Chief U.S. District Judge Sara Darrow sentenced Rakestraw to 15 years in prison for possession with intent to distribute methamphetamine in Schuyler County, Ill., in September 2018. Rakestraw was found to have approximately 118 grams of ice methamphetamine in his possession. On Oct. 2, 2019, Rakestraw pleaded guilty.
In addition, Judge Darrow revoked Rakestraw’s supervised release in his prior federal case and sentenced him to five years in prison to be served consecutive to the 15-year term. Rakestraw was previously prosecuted and sentenced to 78 months in prison in the Central District of Illinois for conspiracy to manufacture and distribute methamphetamine in Tazewell County.
The case was investigated by the Schuyler County Sheriff’s Office; Illinois State Police; and the Drug Enforcement Administration. Assistant U.S. Attorney Alyssa A. Raya represented the government in the case prosecution.
Previously Convicted Felon Sentenced for Illegally Selling FirearmsRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to eight years in prison for possession of a firearm by a convicted felon.
“Under Attorney General Barr’s leadership, we are 100 percent committed to Project Guardian and keeping illegally trafficked firearms out of the hands of convicted felons and out of our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The trafficking of firearms poses a serious threat to public safety and the safety of our law enforcement partners. Simply put, convicted felons have forfeited their Second Amendment right to bear arms, and those who choose to illegally traffick firearms will be investigated, prosecuted, and held accountable for their actions.”
According to court documents, in August 2018, Shakil R. Bland, 30, a previously convicted felon, sold several firearms to an undercover agent with ATF. Bland sold two semi-automatic firearms and a 50-round drum magazine to an individual he believed was coming from out of state to purchase firearms. In October 2018, Bland also sold the same undercover agent an additional semi-automatic handgun and extended magazine.
“Anyone who is trafficking firearms poses a serious threat to the safety of every community those firearms pass through,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “We are glad to see that these guns were taken off of the street and that this defendant is being held accountable for his dangerous actions. Now there is still more work to do and others like him to stop. Through Project Guardian and our partnerships with law enforcement and prosecutors, we will continue working tirelessly to disrupt and prevent firearms trafficking.”
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Heather H. Mansfield prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-079.
Pittsburgh Man Pleads Guilty to Possession of Heroin and FentanylRead the Press Release
PITTSBURGH, Pa. -- A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court on Wednesday to a charge of violating federal drug laws, United States Attorney Scott W. Brady announced today.
Matthew Lacher, 40, pleaded guilty to one count of possession with intent to distribute heroin and fentanyl, before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on July 27, 2018, the Allegheny County Police Department Narcotics Unit executed a search of Lacher’s residence, and recovered 70 bricks of heroin and fentanyl, a Masterpiece Arms semiautomatic handgun with a 30 round magazine, two digital scales, several packages of marijuana, and $1079.00 in United States currency.
Judge Conti scheduled sentencing for June 23, 2020, at 11:30 a.m. The law provides for a maximum total sentence of twenty years in prison, 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, if any, of the defendant. The defendant remains on bond pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Allegheny County Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
Norwich Man Sentenced to 33 Months in Prison for Role in Southeastern Connecticut Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that PRINCETAFARI VIDAL, also known as “Prince,” 38, of Norwich, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by one year of supervised release, for his role in a southeastern Connecticut drug trafficking ring.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation included court-authorized wiretaps and controlled purchases and seizures of heroin, cocaine and crack cocaine, and firearms. Vidal was intercepted on a wiretap discussing cocaine transactions with Royshawn Allgood, also known as “Boy Roy.” Vidal received cocaine from Allgood, and sometimes supplied cocaine to Allgood.
On March 5, 2019, a grand jury in Hartford returned an indictment charging Rodriguez, Allgood and 22 other individuals with various offenses. On August 6, 2019, a superseding indictment included charges against an additional two defendants.
Vidal has been detained since his arrest on June 4, 2019. On November 8, 2019, he pleaded guilty to using a telephone to commit a narcotics offense.
Allgood pleaded guilty to related charges and, on January 3, 2020, was sentenced to 71 months of imprisonment.
This investigation is being conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Homeland Security Investigations, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
New Orleans Man Sentenced for Conspiracy to Commit Bank RobberyRead the Press Release
NEW ORLEANS – Peter G. Strasser announced that JOHN RUDOLPH, age 46, of New Orleans, was sentenced for conspiracy to commit bank robbery in violation of Title 18, United States Code, Section 371.
According to the court documents, JOHN RUDOLPH conspired with his co-defendant and nephew, AARON RUDOLPH, to rob the First Bank and Trust, in Hammond, Louisiana, of approximately $10,490.96.
U. S. District Court Judge Barry W. Ashe sentenced RUDOLPH to serve (60) months in prison, to be followed by (3) years of supervised release, and restitution to the First Bank and Trust in the amount of $10,496.00. Judge Ashe also imposed a $100.00 dollar special assessment fee.
U.S. Attorney Strasser praised the work of agents of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Maria M. Carboni is in charge of the prosecution.
New Haven Man Sentenced to 6 Years in Prison for Distributing Drugs, Including Fentanyl PillsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MUSA HILL, 47, of New Haven, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 72 months of imprisonment, followed by four years of supervised release, for distributing cocaine, crack, heroin and counterfeit oxycodone pills containing fentanyl.
According to court documents and statements made in court, an investigation conducted by the DEA’s New Haven Tactical Diversion Squad revealed that Hill was obtaining cocaine from a source in the Bronx, New York, and heroin from a source in New Haven. He converted some of the cocaine he received into crack cocaine, and then sold the narcotics to customers and also provided narcotics to a co-defendant for distribution to a network of customers. During the investigation, law enforcement made controlled purchases of crack, heroin and hundreds of counterfeit oxycodone pills from Hill. The vast majority of the counterfeit pills contained fentanyl.
Hill has been detained since his arrest on June 25, 2019. On November 20, 2019, he pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, controlled substances.
The DEA Tactical Diversion Squad includes officers from the Bristol, Hamden, Meriden, Monroe, New Britain, New Haven, Wallingford, Watertown and West Haven Police Departments. This case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Natchez Man Pleads Guilty under Project EJECT to Possessing a Machine GunRead the Press Release
Jackson, Miss – Jamarhi Raheem Lucas, 23, of Natchez, pled guilty today before Senior U.S. District Judge David C. Bramlette III to possessing a machine gun, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On September 22, 2018, Jamarhi Raheem Lucas, who was one of two men standing outside of a residence on Ouachita St. in Natchez, attempted to flee from law enforcement officers as they approached him. Officers detained him and while they were identifying him, they saw a short-barreled rifle that was fully automatic (machine gun) in the car that belonged to him. Officers seized the short-barreled machine gun.
On June 12, 2019, Lucas was charged in a federal indictment with possessing a machine gun and of possessing a machine gun not registered to him in the National Firearms Registration and Transfer Record.
Lucas will be sentenced by Judge Bramlette on June 4, 2020. He faces a statutory penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorneys Bert Carraway and Glenda Haynes.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Muskogee Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David William Wilcox, age 48, of Muskogee, Oklahoma, entered a guilty plea to Failure To Register As Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that from on or about October 21, 2018, until on or about September 16, 2019, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of North Dakota on or about January 27, 2014, for Felony Sexual Assault, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charges arose from an investigation by the Muskogee Police Department and the United States Marshals Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
More Charges Brought Against Former Executive Director of NEAD and Former Chairman of the RHARead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 27-count third superseding indictment charging George H. Moses, 50, of Rochester, NY, with 25 counts of conspiracy to commit wire fraud, wire fraud, mail fraud, federal program fraud, aggravated identity theft, and filing false tax returns. In addition, co-defendant Janis White, 58, also of Rochester, is charged in four counts with conspiracy to commit wire fraud, wire fraud, and obstruction of justice. The charges carry a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that in November 2019, Moses and White were charged in a 55-count second superseding indictment. In that indictment, Moses was charged with various schemes to defraud the Rochester Housing Charities (RHC), a scheme to defraud Quad A for Kids, and tax violations. White was charged along with Moses in connection with one of the schemes to defraud the RHC.
While all the conduct in the second superseding indictment is still included in the third superseding indictment, the new indictment includes additional allegations against Moses in connection with his role as the Executive Director of the North East Area Development Association (NEAD) and its subsidiary Freedom Community Enterprises, Inc., in Rochester. NEAD is a not-for-profit neighborhood organization governed by a volunteer board of directors, which worked with city officials and agencies to revitalize and stabilize the Sector 8 neighborhood in the northeast quadrant of Rochester.
The third superseding indictment alleges that Moses used funds belonging to NEAD and Freedom Community Enterprises to purchase personal items for himself and others. For example, Moses improperly used NEAD or Freedom funds to purchase, among other things, a Carnival cruise vacation, spa services on a Royal Caribbean cruise, four firearms, a family YMCA membership, a NRA membership, essential oils and other health products, products for a multilevel marketing business, dental expenses, tickets to a New York Knicks basketball game at Madison Square Garden, repairs and items for his personal vehicle, amusement park accommodations, immigration services for a friend, travel related expenses, and a Netflix subscription.
The third superseding indictment also charges Moses with using funds belonging to Freedom Community Enterprises to purchase a time share in Florida for approximately $20,000, and then using funds that Freedom Community Enterprises received from a grant from the City of Rochester to reimburse Freedom for Moses’ purchase of the time share.
The third superseding indictment is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
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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Montgomery County Personal Injury Attorney Sentenced to Five Years in Prison and Ordered to Pay $3.4 Million in Restitution for Stealing Clients and Collecting Bogus Referral Fees and CostsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Neil I. Mittin, 64, of Huntingdon Valley, PA was sentenced to five years in prison and ordered to pay $3.4 million in restitution by Senior United States District Court Judge Michael M. Baylson for his scheme to steal numerous personal injury cases and other legal matters from his law firm between 2008 and 2018.
The defendant pleaded guilty to mail fraud in September 2019. He worked for approximately 38 years as an associate for a Philadelphia, Pennsylvania law firm (“the Law Firm”). The Law Firm specialized in representing plaintiffs in personal injury and other types of legal matters. From 2008 through 2018, Mittin engaged in a scheme to steal numerous personal injury and other legal matters from the Law Firm by secretly referring them to outside attorneys.
The Law Firm clients did not ask him to refer their matters to outside attorneys and often did not know or understand what Mittin was doing. The defendant concealed his conduct from the Law Firm by closing the files for those matters and making it appear in the records of the Law Firm that there was no settlement or resolution and that the cases were not viable.
Following the fraudulent referrals, the outside attorneys to whom Mittin referred these matters attempted to resolve them with a settlement or a trial. If the matter was resolved successfully, the attorneys paid Mittin a referral fee, on average, of between 33 and 40 percent of the contingency fees obtained by the attorneys. The attorneys also paid Mittin a reimbursement amount for the costs that the Law Firm incurred before Mittin referred the cases out. The defendant illegally pocketed these referral payments and reimbursement costs and did not disclose to the Law Firm that the matters were resolved in this fashion.
The personal injury cases and other legal matters that the defendant referred to other lawyers generated approximately $10,800,000 in financial recoveries for the Law Firm’s former clients. As a result of this scheme, Mittin defrauded the Law Firm of approximately $4,200,000 in legal fees and costs, including the share of those fees and costs that he obtained from the outside lawyers.
“As officers of the court, attorneys are expected to uphold the law, but Mittin did just the opposite,” said U.S. Attorney McSwain. “He siphoned millions of dollars away from his firm for nearly a decade by stealing clients, covering his tracks, and lining his pockets with bogus referral fees and reimbursements for costs he never incurred. Today, he has been held accountable for his actions, and rightly so.”
“Neil Mittin diverted millions of dollars of business from his longtime employer, a firm where he worked for more than half his life,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “He cheated his colleagues, misled and poached his clients, and pocketed the proceeds in the form of referral fees. He’ll now be held to account for this decade-long, multimillion-dollar fraud.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.
Modesto Man Indicted for Methamphetamine Trafficking and Firearm OffenseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jason Allen Celes, 37, of Modesto, charging him with possession with intent to distribute methamphetamine and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Celes was arrested in Modesto in possession of methamphetamine packaged for sale and a loaded firearm with an “auto-sear” device attached to it. Auto-sear devices are used to convert semi-automatic firearms to fire as fully automatic machine guns. Celes is a convicted felon prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Central Valley Gang Impact Task Force, the Federal Bureau of Investigation, the California Department of Corrections, and the Modesto Police Department. Assistant United States Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Celes faces a mandatory minimum penalty of five years in prison, a maximum statutory penalty of life in prison and a fine up to $5 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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 www.justice.gov/projectguardian.
Minneapolis Man Charged with Making Threatening Communications Through University’s Incident Reporting SystemRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal criminal complaint charging JEFFREY COLIN PURDY, 28, with making threatening communications. PURDY made his initial appearance yesterday before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota. PURDY was ordered to remain in custody pending a formal detention hearing, which is scheduled for Monday, March 9, 2020.
According to the allegations in the complaint, on September 15, 2017, the Mankato Department of Public Safety received a complaint from an individual stating that she had been receiving harassing emails from PURDY, a former classmate from Minnesota State University, Mankato (“Mankato State”). While attending Mankato State, the victim declined repeated romantic advances from PURDY and eventually blocked PURDY from her cellular telephone and social media accounts. From August 30, 2017, through February 21, 2020, PURDY used Mankato State’s Silent Witness Report, an anonymous incident reporting tool, to make frequent, violent threats against the victim. An IP address used to make one of the Silent Witness Reports was traced back to PURDY. On February 29, 2020, during an interview at the Mankato Department of Public Safety, PURDY admitted to sending all the Silent Witness Reports.
This case is the result of an investigation conducted by the FBI and the Mankato Department of Public Safety, with assistance from the Blue Earth County Attorney’s Office.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
Defendant Information:
JEFFREY COLIN PURDY, 28
Minneapolis, Minn.
Charges:
- Threatening communications, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Maumee man indicted for threatening a mass shooting in IllinoisRead the Press Release
Ryan James Gagnet, 22, was indicted by a federal grand jury for transmitting a threatening interstate communication. The indictment alleges that on February 5, 2020, Gagnet wrote online, “Hi. It’s going to be even more scary tomorrow. Because I’m going to be on the news. Commit a mass shooting. In shorewood Illoinis.”
As set out in court filings and proceedings, Gagnet used an online chat platform Omegle to post anonymous threats about committing a mass shooting in Shorewood, Illinois. He admitted “wearing a mask” and “telling people . . . that there may be a mass shooting at some point. . . . then I would just see how ah their frightened reactions.” Gagnet also indicated there would be disturbing searches on his electronic devices.
“Every person in this country deserves to feel safe in their community,” stated U.S. Attorney Justin Herdman. “Any alleged threat to conduct a mass shooting will result in swift law enforcement action and appropriate federal charges. I am proud of the quick response by our office and the Federal Bureau of Investigation.”
“Any post that threatens the lives of others will receive a prompt law enforcement response,” said FBI Special Agent in Charge Eric Smith. “Citizens need to be able to go about their everyday lives without the fear of being a victim of a mass shooting. Law enforcement will continue to collaborate and utilize all necessary resources to protect others, it is our number one priority.”
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the FBI Joint Terrorism Task Force and is being prosecuted by Assistant U.S. Attorney Michael Freeman.
Maui Man Sentenced to over Six Years in Prison for Illegal Possession of FirearmsRead the Press Release
HONOLULU, Hawaii – Ikaika Reinhardt, 38, of Maui County, was sentenced today in federal court by Chief United States District Judge J. Michael Seabright to 75 months of imprisonment, and five years of supervised release for receipt of firearms while under indictment and possession of firearms in furtherance of a drug trafficking crime.
US Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, on March 7, 2019, Reinhardt traded methamphetamine for two stolen firearms while he was under indictment for state felonies. In addition, Reinhardt illegally possessed two other firearms, one of which was semiautomatic that had a large capacity magazine loaded with ammunition.
The case was investigated by the Maui Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant U.S. Attorney Darren W.K. Ching.
This prosecution is part of Project Safe Neighborhoods (PSN), a program that brings 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 the local community 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 ATF 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. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the ATF and the MPD. For more information about Project Guardian, please click here.
Man from Albuquerque charged with assault on a federal officer with a deadly weaponRead the Press Release
ALBUQUERQUE, N.M. – Daniel Montoya, 31, of Albuquerque, appeared in federal court in Albuquerque on Feb. 26 for a detention hearing on a criminal complaint charging him with assault on a federal officer with a deadly weapon and use of a firearm in a crime of violence.
According to the criminal complaint, police officers approached Montoya as he walked down the street in Albuquerque on Jan. 23. The officers wanted to take Montoya into custody for his suspected involvement in a shooting earlier that day. Montoya allegedly resisted the officers’ commands, pointed a pistol at two federal officers, and fired shots in their direction. An officer returned fire. Montoya then fled the area on foot while shooting more rounds at the officers chasing him. A team of other officers responded to the area and eventually apprehended Montoya, who was shot in the neck during the incident.
Montoya is currently in custody awaiting trial. He faces up to 20 years in prison for assault on a federal officer and a consecutive sentence of 10 years to life in prison for using a firearm during a crime of violence. Charges in criminal complaints are merely accusations. A defendant is presumed innocent unless found guilty beyond a reasonable doubt.
The FBI investigated this case jointly with the Albuquerque Police Department as part of Operation Relentless Pursuit, a Department of Justice initiative aimed at combating violent crime in seven of America’s most violent cities, including Albuquerque, through a stream of federal resources. Assistant U.S Attorneys Jon K. Stanford and Alexander M. Uballez are prosecuting the case.
Man That Travelled from Indiana to Wisconsin to Engage in Sexual Activity with 14 Year-old Pleads GuiltyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that Tommy Lee Jenkins (age: 32) formerly a resident of Oshkosh, Wisconsin, entered a guilty plea to a charge of attempted child enticement before Senior District Judge William C. Griesbach.
According to court documents, starting on October 1, 2019, Jenkins, who in September of 2019 moved from Oshkosh to Whitestown, Indiana, began exchanging instant messages with “Kylee” whom he believed to be a 14 year-old girl living in Neenah, Wisconsin. Jenkins began demanding sexually explicit photographs from “Kylee” and making plans to engage in sexual activity with the minor. When his numerous requests for “Kylee” to join him in Indiana were rebuffed, Jenkins walked and hitchhiked the 351-mile trek from Whitestown, Indiana to Neenah, Wisconsin. Along the way, Jenkins continued to engage “Kylee” in sexually explicit conversations and updated her as to his current location.
“Kylee” was, in fact, a Winnebago County Sheriff’s Deputy assigned to the Internet Crimes Against Children (“ICAC”) Task Force. Upon his arrival in Winnebago County, sheriff’s deputies and a Special Agent with the Federal Bureau of Investigation placed Jenkins under arrest.
Jenkins faces a mandatory minimum sentence of ten years and up to a lifetime of imprisonment when he is sentenced on May 27, 2020.
This case was investigated by the Winnebago County Sheriff’s Office with the assistance of the Green Bay office of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Julie F. Stewart and Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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