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Monday 27 January 2020
Rochester Man Going to Prison on Fentanyl ChargeRead 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 Felix Figueroa, 40, of Rochester, NY, who was convicted of possession with the intent to distribute 40 grams or more of fentanyl, was sentenced to serve 96 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that during the course of a lengthy investigation, the defendant sold cocaine and heroin on several occasions to an individual working with investigators. On January 29, 2018, investigators executed a search warrant at Figueroa’s home, and recovered a quantity of fentanyl and cocaine, 199 bags of heroin, 154 decks of heroin, 576 bags of cocaine, as well as items commonly used in the packaging and distribution of illegal drugs, such as a scale, baggies, cutting agent, and approximately $2,108 in cash.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crime Task Force, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Greece Police Department, under the direction of Chief Patrick Phelan; the Brighton Police Department, under the direction of Chief David Catholdi; and U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Luis R. Tafoya.
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Red Lake Man Pleads Guilty to Domestic AssaultRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of EDWARD LEE BELLANGER, 45, to three counts of assault of an intimate or dating partner. BELLANGER, who was initially charged on June 27, 2019, entered his plea today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. BELLANGER is scheduled to be sentenced on May 26, 2020.
According to the defendant’s guilty plea and documents filed in court, between October 2018 and January 2019, BELLANGER violently assaulted the victim on three separate occasions. During one of the assaults, BELLANGER, who was driving his car, reached over to the victim, who was seated in the front passenger seat, and slammed her head into the windshield, cracking the windshield. Following the assaults, the victim sought medical attention and was treated for substantial bodily injuries.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Special Assistant U.S. Attorney Gina L. Allery is prosecuting the case.
Defendant Information:
EDWARD LEE BELLANGER, 45
Red Lake, Minn.
Convicted:
- Assault resulting in substantial bodily injury to an intimate or dating partner, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Readout of U.S. Attorney General William P. Barr’s Meeting with Guatemala Attorney General Maria Consuelo Porras ArguetaRead the Press Release
Earlier today, U.S. Attorney General William P. Barr met with the Attorney General of Guatemala Maria Consuelo Porras Argueta in Washington, DC. They discussed ways to strengthen efforts to combat transnational organized crime and reduce illegal migration to the United States through increased cooperation and capacity building of law enforcement partners. They discussed their shared commitment to protecting the security and safety of the citizens of both the United States and Guatemala from transnational criminal organizations (TCOs) and gangs. Today’s meeting was a follow-up dialogue to the May 2019 Third Ministerial of the Northern Triangle Attorneys General in El Salvador.
Attorney General of Guatemala Maria Consuelo Porras Argueta and U.S. Attorney General William P. BarrThey discussed the continued progress of the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) capacity-building efforts in the Guatemalan judicial sector and key role in bringing together the Attorneys General from Guatemala, Honduras, and El Salvador to form the Regional Shield operations targeting MS-13 and other gangs. Additionally, they discussed ongoing accomplishments in combating violence in the region from transnational gangs, particularly MS-13 and 18th Street gangs. Regional Shield anti-gang efforts led to the arrest of more than 1,000 gang members in the past year. Also during that time, eleven smuggling/trafficking structures were dismantled in Guatemala.
Both Attorneys General agreed to continue working closely together through greater operational collaboration and intelligence sharing, including increased law enforcement coordination to fight corruption and impunity and strengthen the rule of law for the benefit of all Guatemalans and further criminal investigations in drug and human trafficking, emerging organized criminal groups, cyber and intellectual property crimes.
Attorney General Barr thanked the Government of Guatemala for extraditing fugitives to the United States and said that extradition sends a strong message to criminal organizations that our countries remain committed to the rule of law and are not safe havens for criminals. Additionally, Attorney General Barr applauded Guatemala’s efforts to fight corruption and criminal organizations engaged in human trafficking and its continual efforts to root out organizations involved in human smuggling.
The Attorneys General agreed that transnational crime affects both countries and that with continual cooperation we can dismantle these organizations, reduce violent crime, and generate stability and prosperity.
Continued bilateral law enforcement collaboration and successful law enforcement programs between the United States and Guatemala remain a priority for the U.S. Government.
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.
Portland, Oregon man arrested for traveling to sexually molest 5-year-oldRead the Press Release
Seattle – A Portland, Oregon, resident was charged today in U.S. District Court in Seattle with enticement of a minor. The criminal complaint alleges that DIRK WALTER TICHGELAAR, 44, attempted to coerce, entice, and persuade someone under 18 to engage in sexual activity. TICHGELAAR was arrested in Whatcom County, Washington, and made his initial appearance on the charges in Seattle this afternoon.
According to the complaint, between October 2019 and January 2020, TICHGELAAR used an internet-based chat platform to communicate about sexual abuse of children. TICHGELAAR used a screen nickname containing the word “Pedo” to communicate on this platform. TICHGELAAR repeatedly sought out an undercover agent who was posing as the father of two young children, a girl 5 and a boy 4. TICHGELAAR proposed traveling to the “father’s” location so that he could sexually molest the 5-year-old. On Saturday January 25, 2020, TICHGELAAR arrived at a Whatcom County hotel and met with an agent he believed was the “father” from the online chat. TICHGELAAR carried a bag with an “Elsa” dress as a gift for the 5-year-old. TICHGELAAR went to a hotel room with the agent and was arrested.
Enticement of a minor is punishable by 10 years to life in prison.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Matthew Hampton.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.justice.gov/psc
Omaha Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Joe Kelly announced that Nicholas Gragg, 28, of Omaha, Nebraska, was sentenced today to 30 months in prison by Senior United States District Judge Laurie Smith Camp for being a felon in possession of a firearm. There is no parole in the federal system. Upon his release from prison, Gragg will serve a three-year term of supervised release.
On December 11, 2018, the Douglas County Sheriff’s Office attempted to serve an arrest warrant on Gragg. Law enforcement received information that Gragg was hiding at a local residence. Officers went inside the residence and made contact with four females, who claimed Gragg was not at the residence. While searching for Gragg, the officers located a .380 Glock handgun sitting on a couch. Gragg was eventually located in a crawl space inside the walls of the house, and officers had to use a K9 to get him to come out. Gragg is prohibited from having a firearm due to a 2018 conviction for possession of a controlled substance.
This case was investigated by the Omaha Police Department and the Douglas County Sheriff’s Office.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to almost three months in federal prison.
Fernando Hernandez-Correa, age 28, a citizen of Mexico illegally present in the United States and residing in Sioux City, Iowa, received the prison term after a November 21, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Hernandez-Correa admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Hernandez-Correa voluntarily returned to Mexico in January 2017 following an arrest in Texas for driving while intoxicated. Hernandez-Correa was deported in July 2017 after illegally entering the United States in June 2017.
On October 30, 2019, Hernandez-Correa and other illegal aliens came to the attention of immigration agents following a traffic stop on Interstate 80 near Wilton, Iowa, for a commercial vehicle violation.
Hernandez-Correa was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hernandez-Correa was sentenced to 82 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Correa is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-120.
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Media Advisory: Pair of West Virginians to Be Sentenced for Kidnapping Elderly VictimsRead the Press Release
Knoxville, Tennessee – The sentencing hearing of Joshua Small, 52, and Joni Amber Johnson, 36, both of Princeton, West Virginia, for their roles in a conspiracy to kidnap elderly victims and rob them, will continue Tuesday morning, January 28, 2020, at 9:30 a.m. before the Honorable Chief Judge Pamela Reeves in the United States Courthouse in Knoxville.
Immediately following the conclusion of the sentencing hearing in this matter, U.S. Attorney J. Douglas Overbey and FBI Special Agent in Charge Joseph Carrico will make a statement and take questions from the media outside the Courthouse.
Assistant United States Attorneys Alan Kirk and Kevin Quencer represented the United States at trial and sentencing.
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Manhattan Doctor Sentenced to Nearly Five Years in Prison for Accepting Bribes and Kickbacks in Exchange for Prescribing Fentanyl DrugRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ALEXANDRU BURDUCEA, a doctor who practiced in Manhattan, was sentenced today in Manhattan federal court to 57 months in prison for conspiring to violate the Anti-Kickback Statute, in connection with a scheme to prescribe Subsys, a potent fentanyl-based spray, in exchange for bribes and kickbacks from Subsys’s manufacturer, Insys Therapeutics. BURDUCEA pled guilty on February 14, 2019, and was sentenced by United States District Judge Kimba M. Wood.
U.S. Attorney Geoffrey S. Berman said: “Before September 2014, Alexandru Burducea, a doctor who practiced in Manhattan, had never prescribed Subsys, a potent fentanyl-based spray. By the second quarter of 2015, however – in exchange for bribes and kickbacks from Subsys’s manufacturer, Insys Therapeutics – Burducea became approximately the 14th-highest prescriber of Subsys in the country. Burducea sacrificed the safety of his patients to satisfy his own greed, and will now spend time in federal prison for his reckless prescribing of this highly addictive and deadly drug.”
According to the allegations contained in the Indictment against BURDUCEA and filings in related proceedings:
The Insys Speakers Bureau
Subsys, which is manufactured by Insys, is a powerful painkiller approximately 50 to 100 times more potent than morphine. The FDA approved Subsys only for the management of breakthrough pain in cancer patients. Prescriptions of Subsys typically cost thousands of dollars each month, and Medicare and Medicaid, as well as commercial insurers, reimbursed prescriptions written by BURDUCEA.
In or about August 2012, Insys launched a “Speakers Bureau,” a roster of doctors who would conduct programs (“Speaker Programs”) purportedly aimed at educating other practitioners about Subsys. In reality, Insys used its Speakers Bureau to induce the doctors who served as speakers to prescribe large volumes of Subsys by paying them Speaker Program fees. Speakers were supposed to conduct an educational slide presentation for other health care practitioners at each Speaker Program. In reality, many of the Speaker Programs were predominantly social affairs where no educational presentation about Subsys occurred. Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of health care practitioners who had not actually been present.
BURDUCEA’s Participation in the Scheme
BURDUCEA, a doctor certified in pain management and anesthesiology, was an Assistant Professor of anesthesiology at a large Manhattan hospital. He also practiced at an anesthesiology and pain management office associated with the hospital. From in or about September 2014 until in or about June 2015, BURDUCEA received approximately $68,400 in Speaker Program fees from Insys in exchange for prescribing large volumes of Subsys. In addition, Insys hired BURDUCEA’s then-girlfriend, now wife, to work as BURDUCEA’s sales representative, and the company paid her large commissions based on the volume of Subsys prescribed by her assigned doctors, which included BURDUCEA.
BURDUCEA, who had never prescribed Subsys before in or about September 2014, became approximately the 14th-highest prescriber of Subsys nationally in the second quarter of 2015, accounting for total net sales of the drug of approximately $621,345 in that quarter.
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In addition to the prison sentence, BURDUCEA, 43, of Little Neck, New York, was sentenced to three years of supervised release and ordered to forfeit $68,400. A restitution order will be entered within 90 days.
BURDUCEA was one of five Manhattan doctors convicted for participating in the Subsys bribery conspiracy. Todd Schlifstein was convicted upon a guilty plea and sentenced by Judge Wood on October 28, 2019, principally to a term of two years in prison. Dialecti Voudouris was convicted upon a guilty plea and is scheduled to be sentenced by Judge Wood on March 5, 2020. Jeffrey Goldstein was convicted upon a guilty plea and is scheduled to be sentenced by Judge Wood on March 12, 2020. Gordon Freedman was convicted following a jury trial and is scheduled to be sentenced before Judge Wood on March 19, 2020.
Mr. Berman praised the investigative work of the FBI, and thanked HHS OIG for its participation in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk and David Abramowicz are in charge of the prosecution.
Manchester Man Sentenced to 42 Months for Fentanyl TraffickingRead the Press Release
CONCORD – Abelino Morales-Padilla, 38, of Manchester, was sentenced to 42 months in federal prison for fentanyl trafficking on Friday, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in October 2018, Morales-Padilla conspired with others to distribute fentanyl. On October 16, 2018, a confidential informant informed police that Morales-Padilla would be coming from Massachusetts to New Hampshire with a large quantity of fentanyl. Police officers identified the car and stopped Morales-Padilla for traffic violations in Londonderry. Law enforcement officers later located approximately 424 grams of fentanyl inside the vehicle.
Morales-Padilla previously pleaded guilty on July 30, 2019.
“Interstate fentanyl traffickers endanger our citizens by making this deadly substance available for sale in New Hampshire,” said U.S. Attorney Murray. “We will not tolerate this hazardous and unlawful conduct. Those who transport fentanyl into the Granite State will be prosecuted and sentenced to federal prison.”
“Morales-Padilla and the other members of this drug trafficking organization believed they could operate with impunity selling fentanyl and other deadly narcotics for profit with no regard to human life,” said Jason J. Molina, acting special agent in charge for HSI Boston. “HSI and our law enforcement partners remain committed to putting any organization that is flooding our streets with fentanyl out of business and behind bars.”
This matter was investigated by the U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney John Davis.
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MS-13 Member Sentenced to 10 Years for Drug TraffickingRead the Press Release
FRESNO, Calif. — Claudia Lizaola, 40, of San Bernardino, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 10 years in prison for conspiracy to distribute and possess with intent to distribute controlled substances, U.S. Attorney McGregor W. Scott announced.
According to court documents, Lizaola was a member of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. Lizaola pleaded guilty to conspiring to distribute methamphetamine to MS-13 members in Mendota.
Co-defendant Brenda Morales pleaded guilty to being an alien in possession of a firearm. Her sentencing hearing is scheduled for March 13. The remaining 14 co‑defendants are scheduled for trial on April 14. These remaining defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). Assistant U.S. Attorneys Ross Pearson, Kathleen Servatius and Kimberly Sanchez are prosecuting this and related cases. Fresno County Senior Deputy District Attorney Dennis Lewis is working with the team and prosecuting related cases in Fresno County Superior Court.
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 was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Leader of Holland Methamphetamine Conspiracy Sentenced to More Than 19 Years in Federal Prison for Drug Trafficking and Obstruction of JusticeRead the Press Release
Matthew Boeve Organized and Led a Methamphetamine Distribution Conspiracy In Holland and Threatened Cooperating Witnesses on Facebook
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that on January 24, 2020, Matthew James Boeve, 30, of Holland, Michigan, was sentenced to serve 235 months in the Federal Bureau of Prisons for conspiring to distribute methamphetamine, and 120 months for aiding and abetting obstruction of justice. He will serve the terms concurrently. U.S. District Judge Paul L. Maloney also imposed a 5-year period of supervised release. In sentencing Boeve, Judge Maloney noted the harm methamphetamine distribution causes to the community and families, and that Boeve’s obstructive conduct struck at the heart of the justice system.
On September 3, 2019, Boeve pleaded guilty to conspiracy to distribute 500 grams or more of methamphetamine and endeavoring to influence, obstruct, or impede the due administration of justice by publicizing the names of witnesses in the underlying drug prosecution in an attempt to impede their testimony. Specifically, Boeve organized and led the conspiracy by selling methamphetamine, and by directing others to sell methamphetamine on his behalf. Additionally, while in custody awaiting trial on federal drug charges, Boeve directed others to publish and post to Facebook lists of witness names, and photographs of police reports with the names of witnesses underlined. The threatening posts caused at least one cooperating witness to contact law enforcement, fearing retaliation for his or her cooperation in the methamphetamine conspiracy prosecution.
In announcing the sentence, U.S. Attorney Birge stated, “West Michigan has recently seen an increase in the distribution of methamphetamine, which is an extremely dangerous drug that destroys lives. Those who choose to sell methamphetamine are on notice that it will result in serious consequences.” Regarding Boeve’s sentence for obstruction of justice, U.S. Attorney Birge reiterated law enforcement’s commitment to protecting witnesses: “Witnesses who come forward to testify in criminal prosecutions play a vital role in our justice system. When we work with witnesses, we make their safety a priority. Any threats, harassment, or attempts to obstruct or prevent their testimony will be met with serious consequences, including years in federal prison.”
“The West Michigan Enforcement Team (WEMET) is attacking the distribution of crystal methamphetamine head on,” stated D/F/Lt. Andy Fias, WEMET Section Commander. “In addition, we take the safety of all those who wish to cooperate very seriously, providing added protection when needed, and we seek prosecution of those individuals who threaten or cause them harm. The Boeve case is yet another great example of the cooperative efforts of law enforcement in West Michigan.”
Boeve is the last defendant to be sentenced in this methamphetamine distribution conspiracy and obstruction of justice prosecution. The Court previously sentenced co-defendants Philip Noah Bell to 70 months in prison and Kayde Joseph Metzler to 37 months in prison for their roles in the drug conspiracy, and co-defendant Mark Adrian Baker to 63 months in prison for his role in the obstruction of justice offense.
The Holland Police Department, the West Michigan Enforcement Team (WEMET) of the Michigan State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant United States Attorney Daniel T. McGraw prosecuted the case.
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Jennings County man illegally purchased 21 firearmsRead the Press Release
New Albany – United States Attorney Josh J. Minkler announced today, Wayne Komsi III, 58, of North Vernon, Ind., was convicted on two counts of making a false statement during the purchase of firearm, following a two-day jury trial, in the federal court, in New Albany, Ind., before U.S. District Judge Tanya Walton Pratt.
“The U.S. Attorney’s Office is committed to reducing gun violence by keeping firearms out of the hands of those who are prohibited from possessing firearms,” said Minkler. “If you choose to lie and buy firearms, you will be prosecuted fully under federal law.”
On December 13, 2017, Komsi pleaded guilty to a felony in Jennings County, Ind. As a term of his Jennings County felony plea, Komsi was prohibited from possessing firearms. Although he had a pending felony out of Jennings County, Komsi attended an auction on March 3, 2018, where he purchased 21 firearms. In order to get those 21 firearms transferred into his possession, Komsi falsely indicated on three Firearms Transaction Records, March 6, March 20, and April 3, 2018, that he was not prohibited from possessing firearms. At the time he filled out each form, Komsi was, in fact, prohibited from possessing firearms because of the felony charge of resisting law enforcement. Additionally, Komsi fraudulently filled out a Firearms Transaction Record on May 26, 2018 in an attempt to purchase an additional firearm.
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. The United States Attorney’s Office prosecuted this case with support from our Project Guardian partner: The Bureau of Alcohol, Tobacco, Firearms and Explosives.
For more information about Project Guardian, please see:
https://www.justice.gov/projectguardian
“ATF is committed to combating gun violence in our communities and ensuring that firearms do not end up in the hands of those people who are prohibited from possessing them,” said Jonathan McPherson, ATF Special Agent in Charge for the Columbus Field Division. “We will continue to work closely with our law enforcement partners to reduce violent gun-related crimes and make our communities safer.”
According to Assistant United States Attorneys Michelle P. Brady and Lindsay E. Karwoski, who are prosecuting this case for the government, Komsi faces a sentence of up to 5 years in federal prison followed by three years of supervised release.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to targeting the District’s most violent geographic areas for the adoption of reactive federal drug and firearm prosecutions. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.2.
Huntington Man Sentenced for Distributing HeroinRead the Press Release
HUNTINGTON W.Va. – A Huntington man caught selling heroin last year in Huntington was sentenced today to 15 months in federal prison, announced United States Attorney Mike Stuart. Quentin J. Parker, 32, previously pled guilty to distribution of heroin. Parker also was sentenced for violating his supervised release and was sentenced to an additional 21 months in federal prison for a total sentence of 36 months.
“Parker had previous convictions on drug and gun charges,” said United States Attorney Mike Stuart. “He went back to peddling drugs while still under supervision. Parker just got himself a longer stay in federal prison.”
Parker admitted that, on February 6, 2019, he directed a confidential informant to come to a parking lot in the 200 block of 4th Avenue in Huntington to purchase heroin. Once the informant arrived, Parker entered the informant’s vehicle and sold the informant 3 grams of heroin. At the time of the offense, Parker was serving a term of supervised release based on convictions he received in 2011 for distributing crack cocaine and being a felon in possession of a firearm.
The Drug Enforcement Administration conducted the investigation. United States District Judge Robert C. Chambers presided over the hearings. Assistant United States Attorney Joseph F. Adams handled the prosecution.
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Hartford Man Sentenced to 27 Months in Federal Prison for Possessing Loaded FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CLETUS JONES, 39, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded handgun.
According to court documents and statements made in court, on January 23, 2018, Hartford Police officers responded to a two-car motor vehicle accident near Elizabeth Park. At the scene, officers learned that Jones had gone into the park and placed something near a tree. A search of the area uncovered a loaded Taurus .38 semi-automatic handgun. Subsequent analysis of the gun revealed Jones’ DNA profile.
Jones’ criminal history includes felony convictions for possession of narcotics, failure to appear in the first degree, robbery in the first degree and carjacking. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Jones has been detained since his arrest on August 2, 2018. On August 7, 2019, he pleaded guilty to one count of possession of a firearm and ammunition by a felon.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Hartford Man Pleads Guilty to Federal Charges Stemming from Drug-Related ShootingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RANDY PARKMAN, 43, of Hartford, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to robbery and firearm offenses.
According to court documents and statements made in court, on May 22, 2018, Parkman shot and seriously wounded an individual during a robbery at 149 Wethersfield Avenue in Hartford. At the time, the location was being used as a “trap house” by a drug trafficking organization.
On October 22, 2018, Parkman was arrested at an apartment where he had been staying. On that date, a search of the apartment revealed a Taurus, Model 444, .44 caliber revolver, which had been reported stolen from a motor vehicle in Hartford in August 2018.
Parkman has been detained since his arrest.
Parkman pleaded guilty to one count of interference with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of possession and discharge of a firearm during and in relation to a crime of violence, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Parkman’s criminal history includes numerous felony convictions for larceny, burglary and other offenses.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harahan Man Indicted on Child Pornography ChargesRead the Press Release
NEW ORLEANS, La. – CHARLES A. LOPEZ (“LOPEZ”), age 27, of Harahan, Louisiana, was indicted on January 16, 2020, for receipt of child pornography, announced United States Attorney Peter G. Strasser. LOPEZ was arrested by Special Agents with Homeland Security Investigations (“HSI”) on Thursday, January 23, 2020. LOPEZ appeared before U.S. Magistrate Judge Michael B. North on Friday, January 24, 2020.
The case against LOPEZ developed as a result of an undercover child exploitation investigation conducted by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”). On April 30, 2019, HSI agents and special agents with the Louisiana Bureau of Investigation executed a federal search warrant at LOPEZ’s Harahan home and determined LOPEZ received images and videos depicting the sexual exploitation of minors.
U.S. Attorney Strasser reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, LOPEZ faces a mandatory minimum penalty of five (5) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine.
U.S. Attorney Strasser praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Supervisor of Financial Crimes Unit, Assistant U.S. Attorney Brian M. Klebba.
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HOPE Clinic Physician Pleads GuiltyRead the Press Release
BECKLEY, W.Va. – A North Carolina physician pled guilty to a drug crime, announced United States Attorney Mike Stuart. Roswell Tempest Lowry, M.D., 85, pled guilty to interstate travel in aid of a racketeering enterprise.
“Like I’ve said before, medical professionals prescribing controlled substances outside the bounds of medical practice and without legitimate medical purpose, will be held accountable just like any other drug dealer. A drug dealer with a lab coat and a stethoscope is still just a drug dealer,” said United States Attorney Mike Stuart. “Furthering the opioid crisis and taking advantage of West Virginians suffering with substance use disorder for the sake of personal greed cannot and will not be tolerated.”
Lowry admitted that in May 2014, he was contacted by a “head-hunter,” about working at the Charleston HOPE Clinic. He was told that HOPE Clinic specialized in the treatment of chronic pain through opioids but Lowry had no experience in pain management. Despite having no experience in pain management, Lowry agreed to work at the Charleston HOPE Clinic location. Lowry travelled from North Carolina to West Virginia the day before he was scheduled to work and stayed at a hotel for the week. When Lowry started working at the HOPE Clinic, it became apparent to him that customers were not being properly evaluated prior to receiving prescriptions for opioids. Lowry also realized that customer’s files were poorly kept with little relevant medical information in them. Most customers paid in cash and many travelled from out of state to the HOPE Clinic. Lowry often received a bonus on top of his hourly pay that was clearly based on the number of paying customers at the HOPE Clinic. Despite all of these red flags, Lowry continued to travel from North Carolina to work at the HOPE Clinic in Charleston, West Virginia, and he continued to write customers prescriptions for Schedule II narcotics. Lowry specifically admitted that he travelled to from North Carolina to Charleston, West Virginia on June 15, 2014, to work at the Charleston HOPE Clinic from June 16-18, 2014. During this trip, Lowry admitted to prescribing customer D.J.B. 120 Percocet 10/325 mg pills and 60 Oxycodone 10 mg pills without a legitimate medical purpose in the usual course of professional medical practice and beyond the bounds of medical practice.
Lowry faces up to 5 years in prison when sentenced on May 4, 2020.
The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General (OIG), the Internal Revenue Service – Criminal Investigations, the Food and Drug Administration – Office of Criminal Investigations, the Federal Bureau of Investigation, the West Virginia State Police, the Kentucky State Police, the Beckley Police Department, the Virginia State Police, the Charleston Police Department, and the Drug Enforcement Administration.
United States District Judge Volk presided over the hearing. Assistant United States Attorneys Monica D. Coleman and Steven Loew are handling the prosecution.
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(Note: this guilty plea was withdrawn on August 24, 2022. On September 8, 2022, Lowry pleaded guilty to aiding and abetting obtaining a controlled substance by fraud. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-169.)
Guilty Plea: Male Enhancement Pills Were Not “All Natural” SupplementsRead the Press Release
KANSAS CITY, KAN. – A Kansas man pleaded guilty today to importing and selling misbranded pharmaceutical-grade erectile dysfunction drugs from China and marketing them as herbal remedies for men, U.S. Attorney Stephen McAllister said.
Rick Shepard, 60, Overland Park, pleaded guilty to one count of conspiracy to import misbranded drugs. In his plea, he admitted he was doing business as Epic Products when he sold a product called Euphoric to adult novelty stores in multiple states. He marketed Euphoric as “all natural herbal supplements for male enhancement.” In fact, the product contained prescription drugs Tadalafil and Sildenafil, the active ingredients in Viagra and Cialis. Shepard purchased the drugs from a supplier in China. He repackaged the capsules, applied his own labels and distributed them to stores in Kansas, Missouri and Colorado.
Sentencing is set for April 20. He could face a sentence of up to five years in federal prison and a fine up to $250,000. The Food and Drug Administration investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Guatemalan National Sentenced for Illegal Reentry, Trafficking HeroinRead the Press Release
PROVIDENCE – A Guatemalan national deported from the United States in June 2004, has been sentenced to 36 months in federal prison for reentering the country illegally and for trafficking heroin.
According to information presented to the Court, prior to being deported by Immigration and Customs Enforcement officials, Eduardo Alvarez-Gamez, 43, was arrested nine times. Eight of the arrests involved larcenous conduct, involving six victims. He was removed from the United States on June 14, 2004.
Alvarez-Gamez was arrested by members of the Rhode Island DEA Drug Task Force on February 26, 2019, after he made two deliveries of heroin, totaling nearly a kilogram. The deliveries were monitored by members of the DEA Drug Task Force. The heroin was quickly seized by law enforcement following each delivery.
Alvarez-Gamez pleaded guilty on October 2, 2019, to distribution of one hundred grams or more of heroin and illegal re-entry.
At sentencing on Friday, Alvarez-Gamez was sentenced by U.S. District Court Judge William E. Smith to 36 months in federal prison, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle, and Todd M. Lyons, Acting Field Office Director, ICE Enforcement & Removal Operations, Boston Field Office.
Alvarez-Gamez faces deportation proceedings upon completion of his term of incarceration.
The case was prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
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Grant County man admits to firearms violationRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Jonathan Turner, of Petersburg, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Turner, age 40, pled guilty to one count of “Unlawful Possession of Firearms.” Turner, a person prohibited from having a firearm, admitted to having three pistols and a rifle in March 2018 in Hampshire County.
Turner faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Grand Jury - January 2020Read the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 28 Indictments charging 30 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Juan Guadalupe Balbuena Gallegos, age 37, is charged with illegal reentry after deportation on or about January 16, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Andres Bautista Velasquez, age 39, is charged with illegal reentry after deportation on or about November 18, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Shane A. Bertucci, age 36, is charged with domestic assault by a habitual offender on or about January 8, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, a $100 special assessment.
* Leonel Dario Blanco-Sanchez, age 21, and Samantha Perez-Juarez, age 20, are charged with conspiracy to distribute and possession with intent to deliver 500 grams or more of methamphetamine (mixture) beginning in November 1, 2019, and continuing through January 8, 2020. The maximum possible penalty for each if convicted is life imprisonment, $10,000,000 fine, five-year term of supervised release, and a $100 special assessment.
* Timothy A. Caruso, age 43, is charged with receipt and distribution of child pornography on or about December 24, 2018. Because of his prior child pornography conviction, Caruso faces a 15-year mandatory minimum and a maximum possible penalty of 40 years’ imprisonment, a $250,000 fine, a Life term of supervised release, a $100 special assessment, and a $17,000 additional special assessment.
* Henry Richard Cline, age 60, is charged with failing to register as a sex offender on or about February 1, 2019 through on or about September 26, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, five-year term of supervised release, a $100 special assessment.
* Darien Duran-Castellon, age 36, and Alejandro Cossio, are charged with transmitting threatening communications in interstate and foreign commerce on or about January 1, 2019 and on or about December 17, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, three-year term of supervised release, a $100 special assessment.
* Martin Garcia, age 39, is charged with illegal reentry after deportation following a felony conviction on or about January 2, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Jorge Garcia Zavalta, age 31, is charged with illegal reentry after deportation on or about December 26, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Alex Dunte Green, age 32, is charged with possession with intent to distribute 500 grams or more of cocaine (mixture) on or about June 3, 2019. The maximum possible penalty if convicted is life imprisonment, $8,000,000 fine, eight-year term of supervised release, and a $100 special assessment.
* Fermin Heredia-Lopez, age 27, is charged with conspiracy to distribute and possession with intent to deliver 500 grams or more of methamphetamine (mixture) and 500 grams or more of cocaine (mixture) beginning in October 4, 2019, and continuing through January 11, 2020. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about January 11, 2020.
* Robert Keith Hopkins, age 39, of Central City, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with production of child pornography on or about December 9, 2019. The offense carries a 15-year mandatory minimum sentence and a maximum possible penalty of 30 years’ imprisonment, a $250,000 fine, a Life term of supervised release, a $100 special assessment, and a $50,000 additional special assessment. Count II charges the defendant with possession of child pornography on or about December 17, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a Life term of supervised release, a $100 special assessment, and a $17,000 additional special assessment.
* Kevin C. Johnson, age 34, of Omaha, is charged in a four-count Indictment. Count I charges the defendant with possession with intent to distribute 28 grams or more of crack cocaine (mixture) on or about December 6, 2019. The maximum possible penalty if convicted is 80 years’ imprisonment, $20,000,000 fine, ten-year term of supervised release, and a $100 special assessment. Count II charges the defendant with use/possess firearm with drug trafficking on or about December 6, 2019. The maximum possible penalty if convicted is life imprisonment consecutive to the crack charges, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Count III charges the defendant with distribution of less than 28 grams of crack cocaine (mixture) on or about December 3, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $2,000,000 fine, six-year term of supervised release, and a $100 special assessment. Count IV charges the defendant with felon in possession of a firearm on or about December 6, 2019. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Tevin R. King, age 26, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with distribution of visual depictions of minors engaging in sexually explicit conduct on or about November 18, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a Life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment. Count II charges the defendant with possession of child pornography on or about December 17, 2019. Because of the prior child pornography conviction, the maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a Life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment.
* Ivan Leon-Vega a/k/a Ivan Leon Vera, age 39, is charged, with illegal reentry after deportation following a felony conviction on or about January 14, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Sheila Likness, age 43, of Omaha, and Thomas Povondra, age 53, of Omaha, are charged in a six-count Indictment. Count I charges Likness with distribution of 5 grams or more of methamphetamine (actual) on or about October 24, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count II charges Likness with distribution of 5 grams or more of methamphetamine (actual) on or about October 24, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count III charges Likness with distribution of 5 grams or more of methamphetamine (actual) on or about November 11, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count IV charges the defendants with conspiracy to unlawfully transfer a document or authentication feature on or about October 11, 2019, to on or about December 17, 2019. The maximum possible penalty for each if convicted is 15 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count V charges the defendants with sale of a card purporting to be a social security card on or about October 11, 2019, to on or about December 17, 2019. The maximum possible penalty for each if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count VI charges the defendants with aggravated identity theft on or about October 11, 2019 to on or about December 17, 2019. The maximum possible penalty for each if convicted is 2 years’ consecutive imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit computers and accessories seized on or about December 17, 2019.
* Darrell L. Manley, age 18, is charged in a nine-count Indictment. Count I charges the defendant with interference with commerce by robbery on or about July 22, 2019. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with brandishing a firearm during a crime of violence on or about July 22, 2019. The maximum possible penalty if convicted is Life imprisonment consecutive, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Counts III through VII charge the defendant with interference with commerce by robbery on or about September 12, 2019 and on September 16, 2019. The maximum possible penalty if convicted is 20 years imprisonment each count, a $250,000 fine each count, a three-year term of supervised release each count, and a $100 special assessment each count. Count VIII charges the defendant with brandishing a firearm during a crime of violence on or about September 16, 2019. The maximum possible penalty if convicted is Life imprisonment consecutive, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Count IX charges the defendant with interference with commerce by robbery on or about September 18, 2019. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Simon Mateo Gaspar, age 33, is charged with illegal reentry after deportation on or about December 11, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Dustin Minkler, age 27, is charged with failing to register as a sex offender on or about July 17, 2019 through on or about December 12, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, five-year term of supervised release, a $100 special assessment.
* Carlos D. Montejano, age 35, is charged with felon in possession on or about October 17, 2019. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Andres Morales-Bautista a/k/a Sebastian Martinez, age 39, is charged in a three-count Indictment. Count I charges the defendant with false representation of a social security number on or about November 22, 2015. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of visas, permits, and other documents on or about November 22, 2015. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count III charges the defendant with illegal reentry of a removed alien on or about January 7, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Julio Ordonez Duarte a/k/a Julio Noel Ordonez Duarte, age 34, is charged with illegal reentry after deportation on or about December 10, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Miguel Ortiz-Juarez, age 26, is charged with illegal reentry after deportation on or about January 14, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Elvis Quinonez-Revolorio, age 47, is charged with illegal reentry after deportation on or about January 6, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Cody Rhyne, age 31, is charged in a three-count Indictment. Count I charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine (mixture) on or about December 4, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, four-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession of a firearm during drug trafficking crime on or about December 4, 2019. The maximum possible penalty if convicted is life imprisonment consecutive, $250,000 fine, five-year term of supervised release, and a $100 special assessment. Count III charges the defendant with felon in possession of a firearm on or about December 4, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, three-year term of supervised release, and a $100 special assessment.
* Ervin Sanchez-Vasquez, age 25, is charged with illegal reentry after deportation on or about January 16, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Rodney Thomas, age 40, of Winnebago, Nebraska, is charged in a five-count Indictment. Counts I and II charge the defendant with abusive sexual contact with a minor on or about November 17, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment each count, a $250,000 fine each count, a Life term of supervised release each count, a $100 special assessment each count. Counts III and IV charge the defendant with committing an offense against a minor while required to register as a sex offender on or about November 17, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment each count consecutive to Counts I and II. Count IV charges the defendant with terroristic threats on or about November 17, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $10,000 fine, a one-year term of supervised release, a $100 special assessment.
* Gregorio Zetino-De La Cruz, age 27, is charged in a two-count Indictment. Count I charges the defendant with false representation of a social security number on or about August 20, 2018. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with false claims to United States citizenship on or about August 20, 2018 and December 12, 2019. The maximum possible penalty if convicted is 3 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Getaway Driver for Bank Robber Sentenced to Federal PrisonRead the Press Release
A woman who voluntarily participated in the robbery of a bank was sentenced today to more than two years in federal prison.
Karen Merrick, age 36, from Sioux City, Iowa, received the prison term after a September 10, 2019, guilty plea to being an accessory after the fact to bank robbery.
Information provided by the United States at Merrick’s change of plea, detention, and sentencing hearings, revealed Merrick knew Phillip White had just robbed the Iowa State Bank in Le Mars, Iowa on December 12, 2018, when she chose to help him escape the crime scene. Merrick, despite driving a U-Haul, led officers on a dangerous, 20-mile, car-chase, that reached speeds of 70 miles per hour. She ran an intersection, endangered other motorists and pedestrians, and was only brought to a stop, when officers used stop-sticks to destroy her wheels. In fact, even after her tires were deflated, she continued to flee in the vehicle for a couple more miles until she lost control of the van.
Merrick had a significant history of criminal behavior and substance abuse, and had been convicted of assaultive conduct, escape, and interference with official acts prior to the present offense.
Merrick was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Merrick was sentenced to 30 months’ imprisonment. She was ordered to make $21,223,11 in restitution to Iowa State Bank in Le Mars, Iowa and to U-Haul of Sioux City, Iowa. She must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
White, whose crime spree included not only a bank robbery but also a robbery of a taxi cab two months before, was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand, on November 22, 2019, to 144 months’ imprisonment. He was ordered to make $21,503.11 in restitution. He must also serve a 3-year term of supervised release after the prison term.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Merrick is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was investigated by the Federal Bureau of Investigation, the Iowa State Patrol, the Plymouth County Sherriff’s Office, and the Le Mars and Sioux City, Iowa Police Departments. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4012.
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Fresno Man Found Guilty of Distributing Fentanyl Resulting in First Reported Fentanyl Overdose Deaths in Fresno and Madera CountiesRead the Press Release
FRESNO, Calif. — On Friday, a federal jury found Darnell Pearson, 41, of Fresno, guilty of two counts of distribution of fentanyl resulting in death and serious bodily injury, U.S. Attorney McGregor W. Scott announced.
“This defendant sold what his customers thought was cocaine that was, in fact, fentanyl and caused the deaths of two people and serious injury to two others,” U.S. Attorney Scott stated. “These two deaths were the first reported fentanyl overdose deaths in Fresno and in Madera. As they demonstrate, fentanyl is extremely dangerous and is a serious public health threat in our area and the nation as a whole. Even trace amounts of this drug can be lethal, and it poses serious risks to those who come into contact with it, including first responders. We will continue to work with our state and federal partners to target those who distribute this poison in our communities.”
“Fentanyl is man-made and potent in the smallest amounts. A few grains of the substance can lead to overdose, and we are increasingly seeing it sold as other illicit drugs. The message has been sent, if you distribute drugs that result in death and serious bodily injury, we will use every tool available to ensure that justice is served,” stated Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux. “I applaud the collaborative efforts and good old fashioned police work that led to the successful prosecution of this investigation.”
According to court documents, on Jan. 7, 2019, law enforcement officers responded to a call concerning an overdose in Fresno and found three individuals on the ground with faint or no pulse. All three individuals were transported to Community Regional Medical Center for treatment. One of the individuals was pronounced dead on Jan. 10, 2019. A toxicology report determined that the cause of death for the individual was overdose from fentanyl. The other two individuals survived and were later released from the hospital. The jury found that the death resulted from the use of the fentanyl distributed by Pearson, and it caused the other two victims to suffer serious bodily injury.
Pearson was convicted of a second count of distribution of fentanyl resulting in death of a victim in Madera, and the jury found the death of this victim resulted from the use of the fentanyl distributed by Pearson. On Jan. 7, 2019, the victim, the mother of Pearson’s children, was found motionless on the floor of her bathroom by family members. Officers and paramedics were unable to revive her and she was pronounced dead that evening.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, Homeland Security Investigations, the Fresno Police Department, and the Madera Police Department. Assistant U.S. Attorneys Laurel Montoya and Michael Tierney are prosecuting the case.
Pearson is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 8. Pearson faces a minimum statutory penalty of 20 years in prison, a maximum of life in prison, and a $1 million fine on each count. 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.
Franklin County Woman Pleads Guilty for Her Role in the Heroin and Fentanyl Conspiracy that Resulted in DeathRead the Press Release
St. Louis – Shannon Rennee Bradley, 25, of Washington, Missouri, pleaded guilty today to conspiracy to distribute, and aiding and abetting in the distribution of heroin and fentanyl, which resulted in the death of victim A.C. She appeared before United States District Judge Audrey G. Fleissig. Sentencing is scheduled for May 1, 2020.
According to court documents, on October 21, 2017, Bradley and co-defendant Jacob Brewer met victim A.C. and her boyfriend at a gas station in Washington, Missouri, where the distribution took place. A.C. and her boyfriend shared the drugs sold by Bradley and co-defendant Brewer later that evening. A.C.’s boyfriend woke up and discovered A.C. unresponsive. A.C. was taken to the hospital where she was pronounced dead.
Co-defendant Brewer pleaded guilty in May 2019 and is scheduled to be sentenced on February 12, 2020.
Bradley faces up to 20 years in prison and a fine of not more than $1,000,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Franklin County Sheriff’s Department and the Drug Enforcement Administration investigated this case. Assistant United States Attorneys James Delworth and Sara Koppenaal are handling the case.
Fort Wayne Man Sentenced to PrisonRead the Press Release
FORT WAYNE – Jesus Sanchez, Jr, age 22, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after his guilty plea of possessing a firearm in furtherance of a drug trafficking crime and maintaining a drug involved premises, announced U.S. Attorney Kirsch.
Sanchez was sentenced to 72 months in prison followed by 2 years of supervised release.
According to documents in this case, on June 19, 2019, Sanchez and two other defendants were charged for their role in a five count Indictment that alleged the possession with intent to distribute marijuana, possessing a firearm in furtherance of a drug trafficking crime and providing a residence for the storage and distribution of narcotics.
The case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets and Gang Task Force with the assistance of the Indiana State Police, the Allen County Sheriff’s Department and the Fort Wayne Police Department. The case was handled by Assistant United States Attorneys Stacey R. Speith and Anthony W. Geller.
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Former Rochester Man Charged in Multi-Million Dollar Ponzi SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Parris, 39, currently of Atlanta, GA, formerly of Rochester, NY, was arrested and charged by criminal complaint with conspiracy to commit mail fraud, mail fraud, and conspiracy to engage in money laundering. The charges carry maximum penalty of 20 years in prison and a $500,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Parris and his partner, Perry Santillo, doing business as Lucian Development, headquartered in Rochester, NY, operated an investment fraud Ponzi scheme from approximately January 2012 to June 2018. The Ponzi scheme defrauded approximately 1000 investors out of at least $115,500,000.
The investment offerings pitched by Parris and Santillo consisted principally of unsecured promissory notes and preferred stock issued by various entities that they controlled. Potential investors were offered an array of investment options to create the illusion of a diversified investment portfolio. Those investment options included products issued by purported issuers such as First Nationle Solutions (FNS), Percipience Global Corporation, United RL Capital Services, Boyles America, Middlebury Development Corporation, and NexMedical Solutions, among others. None of those issuers had substantial bona fide business operations or used investor money in the manner and for the purposes represented to investors. To the extent that an issuer may have had some minor legitimate business activities, it was not profitable and insufficient revenues were generated to pay investors any returns (let alone return the principal amounts of their investments).
Over the years, to keep the Ponzi scheme from being detected, a substantial portion of incoming new investor monies were depleted by making promised interest and other payments to earlier investors. Most of the rest of incoming investor money was used to finance lavish lifestyles of the conspirators, their families and associates; to expand the scheme by purchasing investment advisor/brokerage businesses to obtain access to fresh investors; and to pay operating expenses – salaries for a sales force and administrative staff, office rents and related expenses, housing for employees, and interest on loans—all of which were in furtherance of keeping the scheme going and maintaining a façade of legitimate business operations.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was released pending further proceedings.
Perry Santillo previously pleaded guilty for his role in the scheme and is awaiting sentencing.
The criminal complaint is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert, and FBI Scranton Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Michael C. Mikulka, Special Agent-in-Charge, New York Region; the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; and the Securities and Exchange Commission.
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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Former Philadelphia Zoning Board of Adjustments Chairman Sentenced to More Than One Year in Prison for Theft, Tax FraudRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Dr. James E. Moylan, 57, a Philadelphia chiropractor and the former Chair of the Philadelphia Zoning Board of Adjustments, was sentenced to 15 months’ imprisonment, three years’ supervised release, $52,898 restitution to the International Brotherhood of Electrical Workers (IBEW) Union Local 98, and $77,885 restitution (plus penalties and interest) to the IRS by United States District Court Judge Jeffrey L. Schmehl for stealing civic funds and filing false federal income tax returns.
The defendant was charged by Indictment in January 2019 with 17 counts of wire fraud and four counts of filing false federal income tax returns. In October 2019, Moylan pleaded guilty to all charges, admitting that he defrauded both Local 98 and a related entity – 298, Inc., a non-profit organization – of more than $50,000 in funds which he claimed he would use for community support and education, but which he actually used to pay his personal mortgage and business expenses. Moylan also filed false federal income tax returns for the years 2012 through 2015, in which he underreported more than $200,000 in income and claimed false business expenses.
“Moylan knew what his responsibilities were as a public official and as a taxpayer, and he ignored them for his own personal benefit,” said First Assistant U.S. Attorney Williams. “In doing so, he cheated a non-profit organization meant to benefit the entire community, and he cheated all taxpayers by lying to the IRS. This office and our partners will continue aggressively investigating and prosecuting fraudsters who choose to line their pockets rather than operate honestly.”
“Mr. Moylan’s failure to pay his fair share of taxes is a slap in the face to honest and law-abiding citizens who do not shirk their tax obligations,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “The sentence he received today underscores our relentless pursuit of those who would attempt to defraud America's tax system.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, and is being prosecuted by Assistant United States Attorneys Paul L. Gray, Frank R. Costello, and Bea Witzleben.
Former Officer with U.S. Customs and Border Protection Sentenced to over 2½ Years in Federal Prison for Illegal Gun Sales and Tax EvasionRead the Press Release
LOS ANGELES – A former U.S. Customs and Border Protection watch commander was ordered today to serve 31 months in federal prison for committing a series of crimes, including operating an illegal gun-selling business, possessing machine guns and other prohibited firearms, failing to disclose his foreign financial interests and contacts in China in order to obtain a secret-level security clearance, and cheating on his federal income taxes.
Wei Xu, 58, of Santa Fe Springs, was sentenced by United States District Judge R. Gary Klausner. Xu was sentenced after pleading guilty in July 2019 to four felonies: unlawfully engaging in the business of dealing in firearms, unlawfully possessing unregistered firearms, making materially false statements to a federal agency, and tax evasion.
When he pleaded guilty, Xu admitted that he sold at least 99 firearms without the required federal license in the 20 years prior to his arrest nearly one year ago. To increase the profits of his unlawful firearms business, Xu exploited his status as a law enforcement officer to purchase, and then transfer, “off-roster” handguns that cannot be sold to the general public by a federal firearms license dealer.
According to court documents, in July and August 2018, Xu sold four firearms to an undercover agent posing as a buyer, and Xu unlawfully sold three of the firearms out of the trunk of his car. The firearms included an “off-roster” pistol, high-capacity magazines, and a short-barreled rifle – which Xu provided information on how to convert to a fully automatic firearm.
A search of Xu’s residence on February 5, 2019 led to the recovery of more than 250 firearms, including 41 machine guns and two additional short-barreled rifles – all of which never were registered with the Bureau of Alcohol, Tobacco, Firearms and Explosives as required by federal law.
Xu also admitted that he made materially false statements on three questionnaires submitted to the Office of Personnel Management (OPM) to obtain a secret-level security clearance. OPM is a federal agency that oversees applications for security clearances for federal government employees. Specifically, Xu maintained foreign financial interests and had nearly weekly contacts with business associates in China as part of his employment as an accounts manager for a China-based auto parts import company. Xu collected a commission for his work and remitted the profit to his China-based business partners. But on his security clearance questionnaires in 2003, 2011 and 2015, Xu denied maintaining close and continuing contacts with foreign nationals, denied having a foreign financial interest, and denied having a business venture with a foreign national.
Finally, Xu admitted in his plea agreement that he willfully evaded the payment of federal income taxes for the years 2005 through 2017. Xu established a sham company that claimed fictional losses, which he used to offset his CBP income and fraudulently evade federal income taxes. In a sentencing memorandum filed with the court, prosecutors argued that Xu also failed to report income from a rental property and the profits of his unlicensed gun business.
“Mr. Xu betrayed his oath to uphold the laws of the United States solely to put more money in his pocket,” said United States Attorney Nick Hanna. “The scope of his corrupt conduct is wide-ranging – he endangered the public by selling off-roster firearms, and he lied to federal government officials to cover up his illegal activities and his connections to Chinese nationals. The prison sentence imposed today is the result of Mr. Xu’s conscious choices to take advance of his law enforcement position to generate profits for himself.”
“The goal of ATF’s illegal firearms trafficking enforcement efforts is to reduce violent crime by stemming the flow of firearms to prohibited individuals,” said Carlos A. Canino, the Special Agent in Charge of the Los Angeles Field Division of the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF). “At ATF we all stand committed to safeguarding lives by protecting the public from violent crime. Xu used his position as a federal law enforcement officer to do just the opposite. He bought firearms from gun dealers that the general public in California could not. He then repeatedly sold those firearms, putting more guns into our communities. He sadly was motivated by greed, as opposed to being motivated by his promise to enhance public safety. Bringing a case against a fellow federal law enforcement officer is never pleasant, but public safety is ATF’s first priority, and our commitment to justice is above everything.”
“As a law enforcement official, Xu was expected to set a good example and to live up to the high standards he was sworn to uphold,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Instead, he violated his oath, betrayed his colleagues and endangered the public he was hired to protect. The seamless relationship among the investigative agencies in this case led to the successful conclusion and significant sentence being announced today.”
“Wei Xu took advantage of his employment as a sworn law enforcement officer to orchestrate criminal activities ranging from illegal firearm sales to filing fraudulent tax returns,” said Ryan L. Korner, Special Agent in Charge of IRS Criminal Investigation. “Xu’s actions were an insult to the men and women of law enforcement who work tirelessly to protect and serve the public. We were proud to work alongside our law enforcement partners to hold Xu accountable for his actions.”
In addition to the prison term, Judge Klausner ordered Xu to pay $128,407 in restitution to the Internal Revenue Service.
Xu, who was a CBP watch commander at the Los Angeles and Long Beach Seaport, has been in federal custody since his arrest in this case on February 5, 2019.
This matter was investigated by the FBI, the ATF, and IRS Criminal Investigation.
This case was prosecuted by Assistant United States Attorneys Annamartine Salick of the Terrorism and Export Crimes Section, Valerie L. Makarewicz of the Major Frauds Section, and Brent A. Whittlesey of the Asset Forfeiture Section.
Former Executive Admits Embezzling More Than $48 MillionRead the Press Release
NEWARK, N.J. – A former executive at a New Jersey publication company pleaded guilty today to defrauding the company by embezzling millions of dollars for his personal benefit, U.S. Attorney Craig Carpenito announced.
Nestor Charriez, 60, of Scotch Plains, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of wire fraud.According to documents filed in this case and statements made in court:
Charriez was a longtime senior employee of Victim-Company 1, a publication company based in New Jersey. Charriez’s financial responsibilities at Victim-Company 1 included overseeing and managing employee payroll. He would submit Victim-Company 1’s payroll information to an outside payroll company, which would process Victim-Company 1’s payroll requests.
From at least 2002 through June 2019, Charriez defrauded Victim-Company 1 by embezzling millions of dollars through unauthorized “bonus” payments to himself. He submitted false payroll instructions to Victim-Company 1’s outside payroll provider, indicating that Charriez was entitled to massive bonuses – hundreds of thousands of dollars at a time – which Victim-Company-1 had not approved.
Charriez carried out this scheme on numerous occasions over nearly two decades. In total, Charriez stole more than $48 million from Victim-Company 1 and spent the money he stole on personal expenses.
The wire fraud count to which Charriez pleaded guilty carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 11, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Robert Stahl Esq., Westfield, New Jersey
Florida Criminal Defendant to Serve Additional Prison Time for Lying on Pre-Sentencing Financial Disclosure FormRead the Press Release
A currently imprisoned Florida businessman was sentenced to an additional 20 months in prison today for willfully omitting assets from a pre-sentencing financial disclosure form he provided to the Justice Department, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez for the Middle District of Florida.
According to documents filed with the court, Casey Padula, 51, formerly of Port Charlotte, Florida, made the false statements on a financial disclosure statement he was required to submit to the government after pleading guilty to tax and bank fraud. On July 17, 2017, in the prior prosecution, Padula was sentenced to 57 months in prison on one count of conspiracy to defraud the United States and to commit bank fraud. Padula admitted he used offshore entities and accounts to commit the tax fraud and carried out the bank fraud by conducting a fraudulent short-sale transaction designed to reduce or eliminate his $1.5 million mortgage. As part of his plea agreement, Padula was required to provide a full and accurate financial disclosure statement to the government. Instead, Padula submitted a false financial disclosure statement in which he omitted numerous assets, including a boat valued at almost $340,000, at least $80,000 in cash, and a $90,000 Mercedes he had recently purchased for his daughter.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez thanked special agents of the Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division, who is prosecuting the case.
Florida Academy Agrees to Pay $512,000 to Resolve Misrepresentation Claims Impacting Veterans’ Post-9/11 Tuition Subsidy ProgramRead the Press Release
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces that Florida Academy has agreed to pay $512,500 to the United States to resolve allegations that it made misrepresentations to the United States Department of Veterans Affairs (VA) in order to maintain its eligibility to receive VA funding under the Post-9/11 GI Bill.
Florida Academy, which is located in Fort Myers, Florida, is a for-profit provider of adult professional education programs in the beauty-and-wellness and skilled trades industries. Beginning in 2012, the VA provided financial assistance for veterans taking classes at Florida Academy as part of the Post-9/11 GI Bill.
The Post-9/11 GI Bill is a VA educational benefit program for veterans who served on active duty after September 10, 2001. As part of that program, the VA provides tuition and fee payments directly to qualifying schools on behalf of eligible veterans. In order for a school to qualify for the program, it is required to certify to the VA that no more than 85% of the students for any particular course are receiving VA benefits. This requirement, commonly referred to as the “85-15% Rule,” is intended to prevent abuse of Post-9/11 GI Bill funding by ensuring that the VA is paying fair market value tuition rates since at least 15% of the enrolled students would be paying the same rate with private funds. Schools that receive GI Bill funding are required to certify their compliance with this rule and notify the VA in the event they are no longer in compliance.
According to the Settlement Agreement, the United States alleged that, from January 1, 2017, until January 1, 2018, Florida Academy received Post-9/11 GI Bill funding during a time when they knew, or reasonably should have known, that it did not qualify because almost all of the students who were enrolled in the Heating, Ventilation, and Air Conditioning (“HVAC”) Advanced Fundamentals class were veterans, whose tuition was paid for by the VA. The settlement resolves allegations that Florida Academy made misrepresentations to the VA regarding its compliance with the 85-15% Rule.
“The Post-9/11 GI Bill is crucial to providing educational opportunities to our veterans who served following the 9/11 attacks on our country,” said United States Attorney Maria Chapa Lopez. “Our office will continue to vigilantly protect the financial viability of programs designed to serve and honor our veterans.”
“As detailed in the civil settlement, Florida Academy’s actions took advantage of VA’s Post-9/11 education benefits program,” said David Spilker, Special Agent in Charge, VA Office of Inspector General. “VA OIG is committed to protecting and safeguarding the integrity of VA programs intended for the advancement and benefit of veterans."
The investigation was handled by Assistant U.S. Attorney Kyle S. Cohen, with assistance from the VA-OIG.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Five Plead Guilty in Scheme to Deceive Homeland Security, Illegally Employ Undocumented WorkersRead the Press Release
A North Texas construction company will pay the government $3 million for its role in a scheme to illegally employ undocumented immigrants, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Five individuals have already pleaded guilty in connection with the crime.
In a non-prosecution agreement with the U.S. Attorney’s Office (available below), Texas-based builder Speed Fab Crete admitted it illegally employed undocumented immigrants not authorized to work in the United States, and agreed to forfeit $3 million to the U.S. Treasury for use in promoting law enforcement activities related to immigration enforcement.
Per the agreement – which requires Speed Fab Crete to cooperate with the government to ensure it will not violate immigration laws in future – the company pledged to continue to use E-Verify, the federal government’s web-based employment eligibility verification system; to comply with new internal verification procedures; to conduct company-wide training on immigration compliance; and to discipline those who attempt to employ unauthorized workers.
The company’s three owners, Carl Eugene Hall, Ronald Alan Hamm, and David Leon Bloxom, are jointly and severally liable for the full amount if Speed Fab Crete does not fulfill its financial obligations under the non-prosecution agreement.
Earlier this month, Mr. Hall pleaded guilty to conspiracy to unlawfully harbor illegal aliens, a felony. Mark Sevier, owner of Take Charge Staffing, a temp agency used by Speed Fab Crete, also pleaded guilty to conspiracy to unlawfully harbor illegal aliens. Mr. Hamm, Mr. Bloxom, and Robert Edwin James, the company’s Chief Financial Officer, pleaded guilty to unlawful employment of illegal aliens, a misdemeanor offense.
“An inspection revealed these defendants knowingly hired dozens of unauthorized workers, in flagrant disregard of U.S. law. Worse yet, rather than working with ICE to resolve their violations, they attempted to deceive the government,” said U.S. Attorney Nealy Cox. “We will not allow employers to flout our laws.”
“All three of Speed Fab Crete’s officials pleaded guilty to federal charges, in connection to them knowingly hiring unauthorized workers, and attempting to deceive the government,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “And now they are paying the price for their criminal conduct. It’s criminal investigations like these, that not only exemplify HSI’s mission to protect the integrity of the U.S. immigration system, but also serve as a warning to business owners willing to hire an illegitimate workforce. You can not only expect a hefty fine but a prison sentence as well.”
According to their plea papers and Speed Fab Crete’s factual statement, the defendants admitted that they attempted to disguise the employment of unauthorized workers at Speed Fab Crete by placing them on the payroll of Take Charge Staffing, then lied to the government, stating that the unauthorized workers had been terminated from employment at Speed Fab Crete.
Per plea papers, after an I-9 inspection of Speed Fab Crete’s employment records revealed that 43 of the company’s 106 employees were undocumented immigrants not authorized to work in the United States, Speed Fab Crete entered into a settlement with Immigration & Customs Enforcement, pledging to rectify the situation.
HSI agreed not to conduct any subsequent I-9 inspection for a period of six months, giving Speed Fab Crete the time and opportunity to rectify the situation by employing legal workers.
In furtherance of that effort, in February 2016, the owners of Speed Fab Crete met with Take Charge Staffing to discuss replenishing their workforce. At the initial meeting, Mr. Hall asked Mr. Sevier to simply transfer the unauthorized workers from Speed Fab Crete’s payroll system onto Take Charge Staffing’s payroll, and have them assigned to Speed Fab. At the time, Mr. Sevier refused, promising to supply legal workers instead.
Over the ensuing six months, Mr. Sevier and Take Charge struggled to find employees to replace Speed Fab Crete’s unauthorized workers. In September 2016, Mr. Sevier agreed to Mr. Hall’s plan.
On Friday, September 23, 2016, Speed Fab Crete simultaneously terminated 39 unauthorized workers and sent 23 of them straight to Take Charge Staffing, where they were hired and assigned to Speed Fab Crete. All 23 retuned to work at Speed Fab Crete the following Monday.
From September 2016 until August 2017, Take Charge Staffing sent invoices for the unauthorized workers to Speed Fab Crete—all of which were authorized by Mr. Hall.
On October 11, 2016, Speed Fab Crete followed up with Immigration & Customs Enforcement, sending a letter that stated all 39 of the unauthorized workers had been released and were “no longer working at Speed Fab Crete Corporation.” Each of the individuals and the company admitted that this was a false and misleading statement to the government.
Mr. Hall and Mr. Sevier are facing up to five years in federal prison. Mr. Bloxom, Mr. Hamm, and Mr. James are facing up to six months in federal prison. As part of the plea agreements, each individual will be also required to pay a $69,000 fine, equal to $3,000 per alien, the statutory maximum.
Homeland Security Investigations conducted the investigation. Special Assistant U.S. Attorney Cathy Richardson and Assistant U.S. Attorney Nick Bunch are prosecuting the case.
Federal Jury in San Antonio Convicts Two Relatives for Scheme to Steal Oil from Energy Companies Operating in the South Texas’ Eagle Ford ShaleRead the Press Release
In San Antonio this afternoon, a federal jury convicted 49–year-old Luis Valencia of San Antonio, and his nephew, 34-year-old Mauricio Valencia of San Antonio, for their scheme to steal oil from oil companies and oilfield service companies operating in the South Texas’ Eagle Ford Shale, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Jurors convicted Luis Valencia of ten counts of theft from interstate shipments, ten counts of wire fraud, ten counts of money laundering and four counts of transportation of stolen goods. Jurors convicted Mauricio Valencia of ten counts of theft from interstate shipments, one count of wire fraud and four counts of transportation of stolen goods. Evidence presented during trial revealed that from September 2013 through February 2016, the defendants engaged in a scheme with others to steal approximately 33,000 barrels of crude oil valued in excess of $1.8 million. In 2013, Luis Valencia and others began using Houston-based Andra Energy, LLC, to serve as a collection point in Cotulla, TX, for oil stolen from nearby oil storage facilities. To conceal their criminal actions, the defendants filed false documents with the Texas Railroad Commission to make it appear that the stolen oil was derived from legitimate transactions.
Following the verdict, Senior U.S. District Judge Royce Lamberth remanded both defendants to the custody of the U.S. Marshals Service. Theft of interstate shipment calls for up to ten years in federal prison. Wire fraud calls for up to 20 years in federal prison. Money laundering calls for up to ten years in federal prison. Transportation of stolen goods call for up to ten years in federal prison. Sentencing has yet to be scheduled.
The FBI, IRS-Criminal Investigation and Texas Attorney General’s Office investigated this case. Assistant U.S. Attorney William F. Lewis, Jr., is prosecuting this case on behalf of the government.
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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/Celebrating150YearsFederal Court Permanently Shuts Down Georgia Tax Return PreparersRead the Press Release
A federal court in Columbus, Georgia, permanently barred Stacy Lee and Heather Lee from preparing tax returns for others and from owning, operating, or franchising a tax return preparation business, the Justice Department announced today. The court also ordered Stacy Lee and Heather Lee to close their tax return preparation stores. Stacy Lee and Heather Lee consented to the relief.
According to the complaint, Stacy Lee operated two tax return preparation stores under the names Fast Track Tax Service in Talbotton, Georgia, and TimeLee Tax Service in Columbus, Georgia. Stacy Lee’s daughter, Heather Lee, allegedly prepared tax returns at the two stores as well. From 2013 to 2018, Stacy Lee prepared 3,728 tax returns and Heather Lee prepared 1,116 tax returns, the complaint alleges.
The government further claimed that Stacy and Heather Lee prepared false federal income tax returns, understated federal income tax liabilities, and improperly claimed tax credits in order to obtain inflated tax refunds for customers. In particular, according to the complaint, the defendants fabricated deductions for charitable contributions, unreimbursed employee business expenses, and medical expenses; reported profits and losses for fictitious businesses; and claimed false education credits, energy credits, and childcare credits.
“The Tax Division will work with its IRS partners to shut down return preparers who claim improper or illegal deductions and credits for their clients,” said Principal Deputy Assistant Attorney General Zuckerman. “Taxpayers should be vigilant so they do not file tax returns claiming false deductions.”
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fairfield Man Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 10-count indictment against Reginald Lamont Thomas, 44, of Fairfield, charging him with bank fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Thomas used a victim’s personally identifiable information to take over the victim’s checking and savings account and make various unauthorized transactions, including incurring $112,874 in debit card charges.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Tanya B. Syed and Matthew Morris are prosecuting the case.
If convicted of bank fraud, Thomas faces a maximum statutory penalty of 30 years in prison and a $1 million fine. If convicted of aggravated identity theft, Thomas faces a mandatory statutory penalty of two years in prison consecutive to any other sentence imposed and a fine of up to $250,000. 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.
Electronic Health Records Vendor to Pay $145 Million to Resolve Criminal and Civil InvestigationsRead the Press Release
Practice Fusion Inc. (Practice Fusion), a San Francisco-based health information technology developer, will pay $145 million to resolve criminal and civil investigations relating to its electronic health records (EHR) software, the Department of Justice announced today.
As part of the criminal resolution, Practice Fusion admits that it solicited and received kickbacks from a major opioid company in exchange for utilizing its EHR software to influence physician prescribing of opioid pain medications. Practice Fusion has executed a deferred prosecution agreement and agreed to pay over $26 million in criminal fines and forfeiture. In separate civil settlements, Practice Fusion has agreed to pay a total of approximately $118.6 million to the federal government and states to resolve allegations that it accepted kickbacks from the opioid company and other pharmaceutical companies and also caused its users to submit false claims for federal incentive payments by misrepresenting the capabilities of its EHR software.
“Across the country, physicians rely on electronic health records software to provide vital patient data and unbiased medical information during critical encounters with patients,” said Principal Deputy Assistant Attorney General Ethan Davis of the Department of Justice’s Civil Division. “Kickbacks from drug companies to software vendors that are designed to improperly influence the physician-patient relationship are unacceptable. When a software vendor claims to be providing unbiased medical information – especially information relating to the prescription of opioids – we expect honesty and candor to the physicians making treatment decisions based on that information.”
The resolution announced today addresses allegations that Practice Fusion extracted unlawful kickbacks from pharmaceutical companies in exchange for implementing clinical decision support (CDS) alerts in its EHR software designed to increase prescriptions for their drug products. Specifically, in exchange for “sponsorship” payments from pharmaceutical companies, Practice Fusion allowed the companies to influence the development and implementation of the CDS alerts in ways aimed at increasing sales of the companies’ products. Practice Fusion allegedly permitted pharmaceutical companies to participate in designing the CDS alert, including selecting the guidelines used to develop the alerts, setting the criteria that would determine when a healthcare provider received an alert, and in some cases, even drafting the language used in the alert itself. The CDS alerts that Practice Fusion agreed to implement did not always reflect accepted medical standards. In discussions with pharmaceutical companies, Practice Fusion touted the anticipated financial benefit to the pharmaceutical companies from increased sales of pharmaceutical products that would result from the CDS alerts. Between 2014 and 2019, health care providers using Practice Fusion’s EHR software wrote numerous prescriptions after receiving CDS alerts that pharmaceutical companies participated in designing.
Practice Fusion executed a deferred prosecution agreement with the U.S. Attorney’s Office for the District of Vermont based on its solicitation and receipt of kickbacks from a major opioid company to arrange for an increase in prescriptions of extended release opioids by healthcare providers who used Practice Fusion’s EHR software. As detailed in the criminal Information made public today, Practice Fusion solicited a payment of nearly $1 million from the opioid company to create a CDS alert that would cause doctors to prescribe more extended release opioids. That payment was financed by the opioid company’s marketing department, and the CDS was designed with input from the marketing department. Practice Fusion and the opioid company entered the CDS sponsorship because they believed that the CDS would influence doctors’ prescriptions of extended release opioids. In marketing the “pain” CDS alert, Practice Fusion touted that it would result in a favorable return on investment for the opioid company based on doctors prescribing more opioids.
“Practice Fusion’s conduct is abhorrent. During the height of the opioid crisis, the company took a million-dollar kickback to allow an opioid company to inject itself in the sacred doctor-patient relationship so that it could peddle even more of its highly addictive and dangerous opioids,” said Christina E. Nolan, U.S. Attorney for the District of Vermont. “The companies illegally conspired to allow the drug company to have its thumb on the scale at precisely the moment a doctor was making incredibly intimate, personal, and important decisions about a patient’s medical care, including the need for pain medication and prescription amounts. This recovery is commensurate to the nature of Practice Fusion’s misconduct, represents the largest criminal fine in the history of this District, and requires Practice Fusion to admit to its wrongs. It is another example of pioneering healthcare fraud enforcement by the talented Assistant U.S. Attorneys and staff of this U.S. Attorney’s Office, working with their partners in law enforcement. We cannot — and will not — tolerate technology companies influencing patient treatment merely because a pharmaceutical company provided a kickback.”
The criminal Information charges Practice Fusion with two felony counts for violating the Anti-Kickback Statute (AKS), 42 U.S.C. § 1320a-7b(b)(1), and for conspiring with its opioid company client to violate the AKS, 18 U.S.C. § 371. This case is the first ever criminal action against an EHR vendor and the unique Deferred Prosecution Agreement imposes stringent requirements on Practice Fusion to ensure acceptance of responsibility and transparency as to its underlying conduct, and to invest heavily in compliance overhauls and an independent oversight organization. The Deferred Prosecution Agreement requires Practice Fusion to pay a criminal fine of $25,398,300 and forfeit criminal proceeds of nearly $1 million. In addition, the company will cooperate in any ongoing investigations of the kickback arrangement and report any evidence of kickback violations by any other EHR vendors. To ensure transparency and public awareness of the company’s activities while the nation continues to battle an epidemic of opioid addiction, the Deferred Prosecution Agreement requires Practice Fusion to make documents relating to its unlawful conduct available to the public through a website. Additionally, the Deferred Prosecution Agreement mandates that Practice Fusion retain an independent oversight organization that is required to review and approve any sponsored CDS before Practice Fusion may implement the CDS, and create a comprehensive compliance program designed to ensure such abuses are not repeated.
The civil settlement with the United States resolves Practice Fusion’s civil liability arising from the submission of false claims to federal healthcare programs tainted by the kickback arrangement between Practice Fusion and the opioid company. It also resolves allegations of kickbacks relating to thirteen other CDS arrangements where Practice Fusion agreed with pharmaceutical companies to implement CDS alerts intended to increase sales of their products. The $118.6 million settlement amount includes approximately $113.4 million to the federal government and up to $5.2 million to states that opt to participate in separate state agreements.
“Prescription decisions should be based on accurate data regarding a patient’s medical needs, untainted by corrupt schemes and illegal kickbacks,” said U. S. Attorney David L. Anderson of the Northern District of California. “In deciding what is best for patients, electronic health records software is an important tool for care providers. It is critically important that technology companies do not cheat when certifying that software.”
In addition to the kickback allegations, the civil settlement with the United States resolves allegations relating to two intersecting Department of Health and Human Services (HHS) programs, one at the Office of the National Coordinator for Health Information Technology (ONC) that regulates the voluntary health IT certification program, and one at the Centers for Medicare & Medicaid Services that oversees EHR incentive programs. Specifically, the United States alleged that Practice Fusion falsely obtained ONC certification for several versions of its EHR software by concealing from its certifying entity, known as an ONC-Authorized Certification Body, that the EHR software did not comply with all of the applicable requirements for certification. ONC’s certification criteria were designed to promote enhanced functionality, utility, and security of health information technology, and access to patient medical information across the care continuum. HHS implemented the certification criteria for EHR software in multiple stages, known as editions. To be certified under the 2014 Edition certification criteria, EHR software was required to allow users to electronically create a set of standardized export summaries for all patients. When Practice Fusion sought certification of this 2014 Edition criteria, Practice Fusion falsely represented to the certifying body that its software met this data portability requirement, when several versions of its software did not. The civil settlement resolves allegations that, at the time these versions of Practice Fusion’s software were certified, its software was unable to permit a user to create a set of standardized export summaries. Additionally, after obtaining certification of the 2014 Edition criteria, Practice Fusion disabled access to this feature altogether. Instead, Practice Fusion required users to contact it separately to request export of this critical patient data.
In addition to failing to satisfy the data portability requirement, Practice Fusion’s software allegedly did not incorporate standardized vocabularies as required for certification. The United States alleged that by fraudulently obtaining certification for its products, Practice Fusion knowingly caused eligible healthcare providers who used certain versions of its 2014 Edition EHR software to falsely attest to compliance with HHS requirements necessary to receive incentive payments from Medicare during the reporting periods for 2014 through 2016 and from Medicaid during the reporting periods for 2014 through 2017.
“As new technologies continue to develop and evolve, so too do new and innovative fraud schemes,” said Shimon R. Richmond, Assistant Inspector General for Investigations of the U.S. Department of Health and Human Services. “We will continue to be vigilant in detecting and investigating these schemes in order to protect the safety of patients in federal health programs and to ensure the appropriate use of electronic health records in providing their care.”
“Today's announcement shows that Practice Fusion exploited technology to profit at the expense of a vulnerable population – patients seeking medical advice," said Timothy M. Dunham, Special Agent in Charge of the FBI's Washington Field Office, Criminal Division. "The FBI is committed to working with our partners to bring to justice the perpetrators of healthcare fraud in all its forms, especially one that fans the flames of the already rampant opioid epidemic.”
The U.S. Attorney’s Office for the District of Vermont handled the criminal investigation and resolution. The civil investigation was jointly handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorneys’ Offices for the District of Vermont and the Northern District of California. The investigation was supported by the HHS Office of Inspector General and multiple HHS agencies and components. The FBI’s field office in Washington, DC, also provided significant investigative support.
Except for the conduct admitted in connection with the criminal resolution, the civil claims resolved by the settlement are allegations only, and there has been no determination of liability as to such civil claims.
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.
Electrical Contractor Sentenced to 20 Months in Prison for Stealing $3.3 Million from EmployeesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LEE FERGUSON, 62, of Farmington, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 20 months of imprisonment, followed by one year of supervised release, for stealing more than $3.3 million from his employees.
Judge Shea also ordered Ferguson to pay a $200,000 fine.
According to court documents and statements made in court, Ferguson owns and operates Ferguson Electric and Ferguson Mechanical, both headquartered in Plainville. Between approximately 2013 and 2017, Ferguson caused to be deducted approximately $1.60 to $3.15 per hour from each of his employee’s fringe benefits package as a “third party administrator fee” for the employees’ pension plans. Ferguson knew that the funds were not used to cover any administrative fees for the employees’ pension plans. Instead, this “third party administrator fee” was paid over to TPA of Connecticut, a company that Ferguson established and controlled. TPA of Connecticut, in turn, sent the monies to DJS Associates, a Florida company that Ferguson formed for the purported purpose of performing business-consulting services for him and his companies. However, no such services were performed and Ferguson used the funds for personal expenses.
Through this scheme, Ferguson stole a total of $3,357,516 from more than 300 employees. He has made full restitution.
On July 31, 2019, Ferguson pleaded guilty to one count of money laundering.
Ferguson, who is released on a $50,000 bond, is required to report to prison on April 28.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division, U.S. Department of Labor – Office of Inspector General, and U.S. Department of Labor – Employee Benefits Security Administration, Boston Regional Office. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Eight defendants sentenced in India-based call center fraud scheme involving elderly victimsRead the Press Release
ATLANTA – Eight defendants have been sentenced for their roles in an Indian based call center fraud scheme that victimized thousands in the United States resulting in over $3.7 million in losses. The sentences ranged from six months to four years and nine months in prison.
“IRS and payday loan phone schemes seek to profit by exploiting United States citizens, including the elderly and most vulnerable members of our community,” said U.S. Attorney Byung J. “BJay” Pak. “As this case shows, we will prosecute companies and individuals in India and in this country who choose to steal from vulnerable victims.”
“Victimizing taxpayers by impersonating Internal Revenue Service employees is a serious crime,” said J. Russell George, the Treasury Inspector General for Tax Administration. “TIGTA will do everything within its power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law. These significant sentences should serve as notice to those who engage in this type of criminal activity that they will be held accountable.”
According to U.S. Attorney Pak, the charges, and other information presented in court: These defendants were involved in a sophisticated scheme organized by co-conspirators in India, including a network of call centers in Ahmedabad, India. Using information obtained from data brokers and other sources, call center operators called potential victims while impersonating officials from the Internal Revenue Service or individuals offering fictitious payday loans.
The call center operators would then threaten potential victims with arrest, imprisonment, or fines if they did not pay taxes or penalties to the government. If the victims agreed to pay, the call centers would immediately turn to a network of U.S.-based co-conspirators to liquidate and launder the extorted funds by purchasing prepaid debit cards or through wire transfers, including through MoneyGram and Western Union, to the attention of fictitious names and U.S.-based defendants and their co-conspirators.
Eight defendants have been sentenced as part of this case. U.S. District Judge Michael L. Brown sentenced the following individuals:
- Mohamed Kazim Momin, 33, of Norcross, Georgia, was sentenced to four years and nine months in prison to be followed by three years of supervised release. The amount of restitution will be determined at a later hearing.
- Rodrigo Leon-Castillo, 46, of Katy, Texas, was sentenced to four years and three months in prison to be followed by three years of supervised release, and ordered to pay $833,938.20 in restitution.
- Mohmed Sozab Momin, 23, of Lawrenceville, Georgia, was sentenced to two years and six months in prison to be followed by three years of supervised release. The amount of restitution will be determined at a later hearing.
- Drue Kyle Riggins, 24, of Stone Mountain, Georgia, was sentenced to one year, one month in prison, three years of supervised release, and ordered to pay $49,640.36 in restitution.
- Nicholas Alexander Deane, 26, of Tucker, Georgia, was sentenced to one year and one day in prison, three years of supervised release, and ordered to pay $49,640.36 in restitution.
- Palak Kumar Patel, 30, Clarkston, Georgia, was sentenced to ten months in prison, three years of supervised release, and ordered to pay $19,142.60 in restitution.
- Jantz Parrish Miller, 25, Stone Mountain, Georgia, was sentenced to eight months in prison, three years of supervised release, and ordered to pay $49,640.36 in restitution.
- Devin Bradford Pope, 25, of Chamblee, Georgia, was sentenced to six months in prison, three years of supervised release, and ordered to pay $49,640.36 in restitution.
These eight defendants were charged along with five Indian call centers and seven Indian nationals in a 27-count indictment with conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering. The government is seeking extradition of Indian nationals.
The U.S. Treasury Inspector General for Tax Administration investigated this case.
Assistant U.S Attorney Jeffrey A. Brown, Deputy Chief of the Complex Frauds Section, and Assistant U.S. Attorney Jolee Porter prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
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.
Electronic Health Records Vendor to Pay Largest Criminal Fine in Vermont History and a Total of $145 Million to Resolve Criminal and Civil InvestigationsRead the Press Release
UPDATE
The website containing links to over four hundred (400) documents is available at:
https://www.pfdatabasedistrictofvermontsettlement.net/
ELECTRONIC HEALTH RECORDS VENDOR TO PAY LARGEST CRIMINAL FINE IN VERMONT HISTORY AND A TOTAL OF $145 MILLION TO RESOLVE CRIMINAL AND CIVIL INVESTIGATIONS
Practice Fusion, Inc. Admits to Kickback Scheme Aimed at Increasing Opioid Prescriptions
Practice Fusion, Inc. (Practice Fusion), a San Francisco-based health information technology developer, will pay $145 million to resolve criminal and civil investigations relating to its electronic health records (EHR) software, the Department of Justice announced today.
As part of the criminal resolution, Practice Fusion admits that it solicited and received kickbacks from a major opioid company in exchange for utilizing its EHR software to influence physician prescribing of opioid pain medications. Practice Fusion has executed a deferred prosecution agreement and agreed to pay over $26 million in criminal fines and forfeiture. In separate civil settlements, Practice Fusion has agreed to pay a total of approximately $118.6 million to the federal government and states to resolve allegations that it accepted kickbacks from the opioid company and other pharmaceutical companies and also caused its users to submit false claims for federal incentive payments by misrepresenting the capabilities of its EHR software.
“Practice Fusion’s conduct is abhorrent. During the height of the opioid crisis, the company took a million-dollar kickback to allow an opioid company to inject itself in the sacred doctor-patient relationship so that it could peddle even more of its highly addictive and dangerous opioids,” said Christina E. Nolan, United States Attorney for the District of Vermont. “The companies illegally conspired to allow the drug company to have its thumb on the scale at precisely the moment a doctor was making incredibly intimate, personal, and important decisions about a patient’s medical care, including the need for pain medication and prescription amounts. This recovery is commensurate to the nature of Practice Fusion’s misconduct, represents the largest criminal fine in the history of this District, and requires Practice Fusion to admit to its wrongs. It is another example of pioneering healthcare fraud enforcement by the talented Assistant U.S. Attorneys and staff of this U.S. Attorney’s Office, working with their partners in law enforcement. We cannot—and will not—tolerate technology companies influencing patient treatment merely because a pharmaceutical company provided a kickback.”
The resolution announced today addresses allegations that Practice Fusion extracted unlawful kickbacks from pharmaceutical companies in exchange for implementing clinical decision support (CDS) alerts in its EHR software designed to increase prescriptions for their drug products. Specifically, in exchange for “sponsorship” payments from pharmaceutical companies, Practice Fusion allowed the companies to influence the development and implementation of the CDS alerts in ways aimed at increasing sales of the companies’ products. Practice Fusion allegedly permitted pharmaceutical companies to participate in designing the CDS alert, including selecting the guidelines used to develop the alerts, setting the criteria that would determine when a healthcare provider received an alert, and in some cases, even drafting the language used in the alert itself. The CDS alerts that Practice Fusion agreed to implement did not always reflect accepted medical standards. In discussions with pharmaceutical companies, Practice Fusion touted the anticipated financial benefit to the pharmaceutical companies from increased sales of pharmaceutical products that would result from the CDS alerts. Between 2014 and 2019, health care providers using Practice Fusion’s EHR software wrote numerous prescriptions after receiving CDS alerts that pharmaceutical companies participated in designing.
Practice Fusion executed a deferred prosecution agreement with the U.S. Attorney’s Office for the District of Vermont based on its solicitation and receipt of kickbacks from a major opioid company to arrange for an increase in prescriptions of extended release opioids by healthcare providers who used Practice Fusion’s EHR software. As detailed in the criminal Information made public today, Practice Fusion solicited a payment of nearly $1 million from the opioid company to create a CDS alert that would cause doctors to prescribe more extended release opioids. That payment was financed by the opioid company’s marketing department, and the CDS was designed with input from the marketing department. Practice Fusion and the opioid company entered the CDS sponsorship because they believed that the CDS would influence doctors’ prescriptions of extended release opioids. In marketing the “pain” CDS alert, Practice Fusion touted that it would result in a favorable return on investment for the opioid company based on doctors prescribing more opioids.
The criminal Information charges Practice Fusion with two felony counts for violating the Anti-Kickback Statute (AKS), 42 U.S.C. § 1320a-7b(b)(1), and for conspiring with its opioid company client to violate the AKS, 18 U.S.C. § 371. This case is the first ever criminal action against an EHR vendor and the unique Deferred Prosecution Agreement imposes stringent requirements on Practice Fusion to ensure acceptance of responsibility and transparency as to its underlying conduct, and to invest heavily in compliance overhauls and an independent oversight organization. The Deferred Prosecution Agreement requires Practice Fusion to pay a criminal fine of $25,398,300 and forfeit criminal proceeds of nearly $1 million. In addition, the company will cooperate in any ongoing investigations of the kickback arrangement and report any evidence of kickback violations by any other EHR vendors. To ensure transparency and public awareness of the company’s activities while the nation continues to battle an epidemic of opioid addiction, the Deferred Prosecution Agreement requires Practice Fusion to make documents relating to its unlawful conduct available to the public through a web site. Additionally, the Deferred Prosecution Agreement mandates that Practice Fusion retain an independent oversight organization that is required to review and approve any sponsored CDS before Practice Fusion may implement the CDS, and create a comprehensive compliance program designed to ensure such abuses are not repeated.
“Across the country, physicians rely on electronic health records software to provide vital patient data and unbiased medical information during critical encounters with patients,” said Principal Deputy Assistant Attorney General Ethan Davis of the Department of Justice’s Civil Division. “Kickbacks from drug companies to software vendors that are designed to improperly influence the physician-patient relationship are unacceptable. When a software vendor claims to be providing unbiased medical information – especially information relating to the prescription of opioids – we expect honesty and candor to the physicians making treatment decisions based on that information.”
The civil settlement with the United States resolves Practice Fusion’s civil liability arising from the submission of false claims to federal healthcare programs tainted by the kickback arrangement between Practice Fusion and the opioid company. It also resolves allegations of kickbacks relating to thirteen other CDS arrangements where Practice Fusion agreed with pharmaceutical companies to implement CDS alerts intended to increase sales of their products. The $118.6 million settlement amount includes approximately $113.4 million to the federal government and up to $5.2 million to states that opt to participate in separate state agreements.
“Prescription decisions should be based on accurate data regarding a patient’s medical needs, untainted by corrupt schemes and illegal kickbacks,” stated United States Attorney David L. Anderson of the Northern District of California. “In deciding what is best for patients, electronic health records software is an important tool for care providers. It is critically important that technology companies do not cheat when certifying that software.”
In addition to the kickback allegations, the civil settlement with the United States resolves allegations relating to two intersecting Department of Health and Human Services (HHS) programs, one at the Office of the National Coordinator for Health Information Technology (ONC) that regulates the voluntary health IT certification program, and one at the Centers for Medicare & Medicaid Services that oversees EHR incentive programs. Specifically, the United States alleged that Practice Fusion falsely obtained ONC certification for several versions of its EHR software by concealing from its certifying entity, known as an ONC-Authorized Certification Body, that the EHR software did not comply with all of the applicable requirements for certification. ONC’s certification criteria were designed to promote enhanced functionality, utility, and security of health information technology, and access to patient medical information across the care continuum. HHS implemented the certification criteria for EHR software in multiple stages, known as editions. To be certified under the 2014 Edition certification criteria, EHR software was required to allow users to electronically create a set of standardized export summaries for all patients. When Practice Fusion sought certification of this 2014 Edition criteria, Practice Fusion falsely represented to the certifying body that its software met this data portability requirement, when several versions of its software did not. The civil settlement resolves allegations that, at the time these versions of Practice Fusion’s software were certified, its software was unable to permit a user to create a set of standardized export summaries. Additionally, after obtaining certification of the 2014 Edition criteria, Practice Fusion disabled access to this feature altogether. Instead, Practice Fusion required users to contact it separately to request export of this critical patient data.
In addition to failing to satisfy the data portability requirement, Practice Fusion’s software allegedly did not incorporate standardized vocabularies as required for certification. The United States alleged that by fraudulently obtaining certification for its products, Practice Fusion knowingly caused eligible healthcare providers who used certain versions of its 2014 Edition EHR software to falsely attest to compliance with HHS requirements necessary to receive incentive payments from Medicare during the reporting periods for 2014 through 2016 and from Medicaid during the reporting periods for 2014 through 2017.
“Today's announcement shows that Practice Fusion exploited technology to profit at the expense of a vulnerable population -- patients seeking medical advice," said Timothy M. Dunham, Special Agent in Charge of the FBI's Washington Field Office, Criminal Division. “The FBI is committed to working with our partners to bring to justice the perpetrators of healthcare fraud in all its forms, especially one that fans the flames of the already rampant opioid epidemic.”
“As new technologies continue to develop and evolve, so too do new and innovative fraud schemes,” said Shimon R. Richmond, Assistant Inspector General for Investigations of the U.S. Department of Health and Human Services. “We will continue to be vigilant in detecting and investigating these schemes in order to protect the safety of patients in federal health programs and to ensure the appropriate use of electronic health records in providing their care.”
The criminal investigation and resolution was handled by Assistant United States Attorneys Michael P. Drescher and Owen C.J. Foster of the United States Attorney’s Office for the District of Vermont. The civil investigation was jointly handled by the United States Attorney’s Offices for the District of Vermont and the Northern District of California, and Edward Crooke, Kelley Hauser, and Christelle Klovers of the Civil Division’s Commercial Litigation Branch. The investigation was supported by the HHS Office of Inspector General and multiple HHS agencies and components. The Federal Bureau of Investigation’s field office in Washington, DC, and New York also provided significant investigative support to the investigations. Vermont Heath Care Fraud Investigators George Thabault and Richard Lewis provided significant and critical investigative resources to the Vermont-based team.
Except for the conduct admitted in connection with the criminal resolution, the civil claims resolved by the settlement are allegations only, and there has been no determination of liability as to such civil claims.
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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Downey Man Sentenced to 10 Years in Federal Prison for Spree of GameStop Store Armed Robberies in L.A. and Orange CountiesRead the Press Release
LOS ANGELES – A Downey man was sentenced today to 120 months in federal prison for committing four armed robberies of GameStop video game stores in Los Angeles and Orange counties that resulted in the theft of more than $132,000 in merchandise and cash.
Frederick Lopez Jr., 28, was sentenced by United States District Judge Stephen V. Wilson, who also ordered him to pay $132,300 in restitution.
Lopez pleaded guilty in August 2019 to one count of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence.
Between August 2018 and October 2018, Lopez robbed GameStop stores in Lynwood, Rowland Heights, West Covina and Brea. Lopez entered the stores at night, sometimes accompanied by another suspect, pulled a handgun from his waistband and used it to threaten store employees. Lopez then would order GameStop employees to load game consoles and video games into store bags.
During the West Covina robbery on October 24, 2018, Lopez and his co-conspirator ordered the GameStop store clerks into the store’s back room, demanded their cell phones and destroyed the store’s telephone. Lopez then ordered one of the store’s clerks to help carry stolen items out to a nearby minivan. Lopez used a .40-caliber handgun during this robbery.
In total, Lopez stole $131,000 in merchandise and $1,300 in cash during the four robberies. Lopez was arrested in this matter in March 2019.
“The serious nature of [Lopez’s] offenses can hardly be overstated,” prosecutors wrote in their sentencing memorandum. “Armed robberies such as these, where firearms are brandished at victims, also leave lasting substantial stress and trauma that victims remember for years, some for their entire lives.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Brea Police Department investigated this matter.
This case was prosecuted by Assistant United States Attorneys Jeffrey M. Chemerinsky and Bruce K. Riordan of the Violent and Organized Crime Section.
Dorchester Man Convicted by Federal Jury for Being a Felon in Possession of FirearmRead the Press Release
BOSTON – A Dorchester man was convicted on Thursday, Jan. 23, 2020, in federal court in Boston for illegally possessing a firearm.
Joquentz Constant, 23, was convicted by a federal jury of one count of being a felon in possession of a firearm. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for May 26, 2020. Constant was arrested and charged in January 2019 and has been in custody since.
Constant was found to be in possession of a black Regent. 32 caliber revolver bearing obliterated model and serial numbers and containing five rounds of PPU .32 caliber ammunition and one round of WIN .32 caliber ammunition. Due to prior convictions punishable by more than one year in jail, Constant is prohibited from possessing a firearm.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Suffolk County District Attorney Rachael Rollins; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Mackenzie A. Queenin of Lelling’s Criminal Division prosecuted the case.
Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national formerly residing in Lawrence was sentenced on Friday, Jan. 24, 2020, in federal court in Boston for Social Security fraud and aggravated identity theft.
Freddy Tejada-Diaz, 50, was sentenced by U.S. District Court Judge Richard G. Stearns to two years and one day in prison. Tejada-Diaz will be subject to deportation proceedings upon completion of his sentence. In August 2019, Tejada-Diaz pleaded guilty to one count of false representation of Social Security number and one count of aggravated identity theft.
On Aug, 1, 2016, Tejada-Diaz applied for a Massachusetts identification card using the name, date of birth and Social Security number of a Puerto Rican born United States citizen. At the time of his arrest in April 2019, Tejada-Diaz had an arrest warrant out of Plymouth Superior Court for drug charges and a warrant of removal issued out of a New York immigration court. Tejada-Diaz was identified, among other things, from a fingerprint match to his immigration file bearing his photo, which showed that he was previously ordered removed on Sept. 5, 1996, but did not report to his scheduled immigration hearing. Instead, on Sept. 30, 1996, Tejada-Diaz obtained a Massachusetts identification card in the name of the United States citizen and, until his recent arrest, had been using that identity ever since.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit prosecuted the case.
District Man Sentenced to 120 Months for Federal Carjacking and Firearms Charge Related to Kidnapping of NJ ManRead the Press Release
WASHINGTON – Trevonta Barnes, 24, of Washington, D.C., was sentenced today to 120 months’ imprisonment and five years of supervised release for a federal carjacking and related firearms charge stemming from the kidnapping of a New Jersey man last year in Southeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Barnes pled guilty in the U.S. District Court for the District of Columbia to one count of federal carjacking and one count of using, carrying, possessing, and brandishing a firearm during and in relation to a crime of violence on October 28, 2019. He was sentenced by the Honorable Senior Judge Ellen Segal Huvelle.
According to the government’s evidence, on Jan. 19, 2019, at approximately 10:30 p.m., Barnes, while masked, attempted to steal the victim’s car that was left unattended while he ran into a store to make a quick transaction. When the victim heard his car engine revving, he came out to investigate and encountered Barnes, who then brandished a firearm and forced the victim into his own car. Barnes directed the victim to drive and turn on various streets. Along the way, Barnes struck the victim on the back of the head with the firearm and took several items from the victim, including his cell phone and keys to his rental property.
Barnes then directed the victim to stop under an underpass and the victim managed to run away and get help. Barnes was spotted wearing the same clothing approximately 90 minutes later. When approached by MPD officers, Barnes fled on foot until he was apprehended shortly thereafter. Barnes was still in possession of the victim’s property at the time.
Barnes was arrested on Jan. 20, 2019, and has been in custody ever since. At the time of his arrest, Barnes was on supervised release following his release from prison three months earlier for unlawfully possessing a firearm. He was also on supervised probation for an earlier Maryland burglary. He now faces formal revocation of his supervised release and additional incarceration separate and apart from the sentence that he faces for the carjacking and brandishing the loaded firearm on Jan. 19, 2019.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of the MPD officers who investigated the case, including lead Detective David Adams. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including former Assistant U.S. Attorney Stephen Gripkey, Assistant U.S. Attorney Kaitlin Vaillancourt, as well as Paralegal Candace Battle.
Detroit-Area Man Sentenced to 63 Months in Prison for Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Detroit-area man was sentenced to federal prison for aiding and abetting the distribution of oxymorphone, announced United States Attorney Mike Stuart. D’Andre Lee Mathis, 29, of Mount Clemons, Michigan was sentenced to 63 months in prison and a three year term of supervised release.
“A Detroit-area pill dealer operating in Greenbrier County,” said United States Attorney Mike Stuart. “If you think we only find Detroit drug dealers in Charleston and Huntington, guess again. We are finding out-of-state drug dealers in every county in the District. The work of our task forces is critical to identifying and investigating these poison peddlers so we can send them packing.”
Mathis previously admitted that on June 9, 2017, he distributed three oxymorphone pills to a confidential informant in Alderson after his co-defendant, Cody Reed Godfrey, helped set up the deal. Mathis admitted that he was responsible for distributing, or possessing with intent to distribute, dozens of oxymorphone pills in Greenbrier County. Godfrey was sentenced to 18 months in prison for his role in the scheme.
The Greenbrier Valley Drug and Violent Crime Task Force conducted the investigation. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney John File handled the prosecution.
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Convicted Felon Sentenced for Armed Robberies in the Central West EndRead the Press Release
St. Louis, MO – Brandon Mardell Woods, 35, of St. Louis, was sentenced to 15 years in prison for his involvement in two robberies in the Central West End. Woods appeared before U.S. District Judge Henry E. Autrey.
According to court documents, on June 17, 2018, a victim was walking to her vehicle when Woods approached her, pointed a firearm at her, and ordered her into her vehicle. Woods entered the driver’s seat and directed the victim into the passenger seat. The victim complied and Woods drove the victim’s vehicle to an ATM where he withdrew $500.00 from the victim’s bank account.
On June 19, 2018, two victims were seated in their vehicle when Woods entered the backseat, pointed a firearm at them, and ordered one of the victims to drive him to an ATM. Once at the ATM, Woods directed one of the victims to withdraw money from her bank account. She withdrew $200.00 from her account and gave it to Woods.
On June 20, 2018, officers of the St. Louis Metropolitan Police Department arrested Woods and found him to be in possession of a firearm.
“The continued collective effort among the St Louis Police Department, FBI, Circuit Attorney’s Office and U.S. Attorney’s office will definitely hold violent criminals accountable,” said Chief John W. Hayden, St. Louis Metropolitan Police Department.
The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated the case, with the assistance of the Central West End Neighborhood Security Initiative. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
Converse Man Sentenced to Prison and Ordered to Pay over $3 Million in RestitutionRead the Press Release
FORT WAYNE – Fredrick D. McCracken, age 62, of Converse, Indiana was sentenced before U.S. District Court Judge Holly A. Brady for wire fraud and making a false statement on an income tax return, announced U.S. Attorney Kirsch.
McCracken was sentenced to 46 months in prison followed by 2 years of supervised release and was ordered to pay over $3 million in restitution to his former employer and the IRS.
According to documents in this case, McCracken worked as an accountant for an industrial construction company located in Marion, Indiana. Because of his role as the accountant for the business, McCracken had access to the company’s bank accounts. From October 2012 through July 2018, McCracken wrote over 100 unauthorized checks drawn on the company’s business account and made payable to his personal business. From March 2016 through July 2018, McCracken used the company’s bank accounts to pay his personal credit card obligations more than 50 times. To avoid detection, McCracken concealed his activities in the company’s accounting records system. In total, his fraud scheme resulted in the theft of $2,440,490.46 from his employer. McCracken also failed to as income on his personal tax returns the funds that he stole, causing a $612,500.00 tax loss to the Internal Revenue Service.
The case was investigated by the Federal Bureau of Investigation, United States Postal Inspection Service and the Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Sarah E. Nokes.
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Citizen of Mexico Pleads Guilty to Reentering U.S. after Being Removed Multiple TimesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EDGAR MANDUJANO-AGUILAR, 31, a citizen of Mexico, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of reentry of a removed alien.
According to court documents and statements made in court, Mandujano-Aguilar had encounters with the U.S. Border Patrol on two occasions in 2006, both of which resulted in his voluntary return to Mexico.
In December 2010, U.S. Border Patrol encountered Mandujano-Aguilar in Yuma, Arizona. He was charged and convicted in the District of Arizona with illegal entry, sentenced to time served and, on December 29, 2010, was removed to Mexico.
In February 2011, March 2011 and October 2011, U.S. Border Patrol encountered Mandujano-Aguilar at locations close to the southern border of the U.S. He was returned to Mexico after each encounter.
On March 16, 2016, U.S. Immigration and Customs Enforcement (ICE) arrested Mandujano-Aguilar in Massachusetts. He was charged and convicted in the District of Massachusetts with illegal reentry of a removed alien, sentenced to time served and, on June 9, 2016, was removed to Mexico.
On November 15, 2019, Mandujano-Aguilar was arrested in Waterbury for interfering with an officer. He has been detained in federal custody since December 18, 2019.
Judge Dooley scheduled sentencing for April 20, 2020, at which time Mandujano-Aguilar faces a maximum term of imprisonment of 10 years.
The investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Camden County Man Sentenced to 37 Months in Prison for Role in Conspiracy to Distribute OxycodoneRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 37 months in prison for his role in conspiring to distribute oxycodone, U.S. Attorney Craig Carpenito announced.
Daniel Watson, 41, of Bellmawr, New Jersey, previously pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone. U.S. District Judge Robert B. Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:From December 2017 through June 26, 2018, Watson and others engaged in a conspiracy which resulted in the trafficking of 1,180 oxycodone pills – 680 of which were unadulterated oxycodone and 500 of which were pressed pills mixed with hydrocodone, codeine, and methylphenidate. As part of the investigation, law enforcement observed Watson’s participation in eight controlled purchases. Three of these controlled transactions were carried out by the defendants in front of the major Philadelphia hospital where co-defendant Anthony Pepe was employed as the chief surgical technologist and while he was dressed in his hospital scrubs. Pepe was sentenced Nov. 20, 2019, to 30 months in prison.
In addition to the prison term, Judge Kugler sentenced Watson to three years of supervised release.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
California Woman Sentenced to 3½ Years in Prison for Operating Wholesaler of Synthetic CannabinoidsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JANELL THOMPSON, the former vice president, chief financial officer, and co-owner of a consumer products wholesaler based in California, was sentenced today by United States District Judge Naomi Reice Buchwald to 42 months in prison for using her business to distribute massive wholesale quantities of smokeable synthetic cannabinoids throughout the U.S. and to laundering the proceeds of that scheme. THOMPSON previously pled guilty before Judge Buchwald to one count of conspiracy to distribute a controlled substance and a controlled substance analogue and one count of conspiracy to commit money laundering.
U.S. Attorney Geoffrey S. Berman said: “Janell Thompson held herself out as a company CFO and vice president, but she was actually a drug trafficker and money launderer. Through her wholesale company, Thompson distributed massive quantities of illegal and potentially dangerous synthetic cannabinoids throughout the U.S. Thompson will now serve time in prison for her crimes.”
According to the allegations in the Superseding Information, other documents filed in the case, and statements made in court:
From February 2014 until February 2019, THOMPSON was the vice president, chief financial officer, and co-owner of JK Wholesale LLC, a consumer products retailer based in Carlsbad, California. During that time period, THOMPSON used JK Wholesale LLC and its affiliated corporate entities to operate a scheme to distribute large quantities of smokeable synthetic cannabinoids (“SSC”), containing controlled substances and controlled substance analogues, throughout the U.S. SSC, colloquially referred to as “K2” or “Spice,” can be addictive, but are often marketed as safe, legal alternatives to marijuana. In fact, SSC are not safe and may affect the brain much more powerfully than marijuana; their actual effects can be unpredictable and, in some cases, more dangerous or even life-threatening.
Some of the SSC distributed by THOMPSON’s scheme were branded with colorful graphics and distinctive names, including “Yolo.” The branded SSC sometimes were misleadingly marketed as “herbal incense.” Other of the SSC were distributed in bulk quantities.
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In addition to a term of imprisonment, THOMPSON, 42, was also sentenced to two years of supervised release and ordered to forfeit $1,000,000.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, the United States Postal Inspection Service, and Homeland Security Investigations. He also thanked the Wilmington, North Carolina, Resident Office of the Drug Enforcement Administration, the Naval Criminal Investigative Service, and the United States Attorney’s Office for the Eastern District of North Carolina for their assistance. The long-term investigation of this case was partially funded by the New York/New Jersey High Intensity Drug Trafficking Area, a federal grant program that invests in law enforcement partnerships to build safe and healthy communities.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Daniel G. Nessim and Robert B. Sobelman are in charge of the prosecution.
Bowie County Booster Club Treasurer Sentenced for Wire FraudRead the Press Release
TEXARKANA, Texas – A 42-year-old Texarkana, Texas woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Nikki Diane May pleaded guilty on Sep. 12, 2019 to wire fraud and was sentenced to 23 months in federal prison today by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, during 2017 and 2018, May served as the treasurer of the Pleasant Grove High School Showstoppers Booster Club, in Texarkana, Texas. The club exists primarily to support the educational enrichment of the Showstoppers dance team by raising funds that allow them to participate in events across Texas and the United States. To further that goal, the club solicits the public for charitable donations and participation for the benefit of the students involved. As treasurer of the organization, May was entrusted with all funds received by the club and was responsible for depositing cash and checks received through various fundraising sources. May was also responsible for maintaining appropriate records of the funds received and expenditures made on behalf of the club. As treasurer, May was also entrusted with a debit card attached to the club’s bank account to be used for club business. However, from June 2017 to around November 2018, May defrauded the club by stealing cash that had been received as donations to the club and using the debit card to withdraw funds from the club’s bank account all for her own personal use. May prepared treasurer reports that falsely stated the club’s bank balances in order to hide her scheme from club officers and members. May’s fraudulent scheme resulted in the theft of more than $60,000 from the booster club.
This case was investigated by the Federal Bureau of Investigation’s Texarkana Resident Agency of the Dallas Field Office and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.