Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 17 January 2020
Erie Man Indicted for Possession of Cocaine with Intent to DistributeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal drugs laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Joel Nicholas Gustave, Jr., 39, of Erie, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, on or about November 1, 2019, Gustave possessed with the intent to distribute five hundred grams or more of cocaine.
The law provides for a maximum total sentence of 40 years, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania Office of the Attorney General, and the Erie Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eight Harrisburg Residents Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Qushawn Brown, age 28, Wesley Garner, age 26, Anderson Ortiz, age 20, Tyquann Langston, age 24, Donza Brown, age 56, Jaionne Miller, age 19, Adieas Johnson, age 31, and Kaleaf Brown, age 24, all of Harrisburg, Pennsylvania, were indicted by a federal grand jury in a superseding indictment on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the superseding indictment charges the eight defendants with running a drug trafficking conspiracy from 2018 to the present in the Harrisburg area. Members of the conspiracy were affiliated with a music group named “Never Forget Loyalty” or “NFL.” As a part of their drug trafficking operation, the “NFL” posted videos on YouTube which were filmed in various Harrisburg locales. In the videos, members of the group brandished assault rifles, machine guns, and pistols with extended magazine clips, flashed cash, and displayed drugs. Defendants also described their drug trafficking activities and their willingness to act violently against rivals or perceived threats to their group, including those suspected of cooperating with law enforcement.
The case was investigated by the Bureau of Alcohol Tobacco, Firearms, and Explosives, the Harrisburg Bureau of Police, and the Pennsylvania State Police. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 NCIS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Dubuque Felon and Drug User Sentenced to over Five Years in Federal Prison for Unlawfully Possessing a Loaded GunRead the Press Release
A Dubuque man who illegally possessed a firearm while conducting narcotics sales out of an apartment in Dubuque was sentenced to more than five years in federal prison.
Michael Angelo Burdunice Jr., age 24, from Dubuque, Iowa, received the prison term after an August 21, 2019 guilty plea to being a prohibited person in possession of a firearm. A search warrant executed at defendant’s residence, which he shared with his girlfriend and two young children, reflected a loaded 9 mm Glock handgun with an extended magazine and obliterated serial number. Additional items recovered included narcotics, digital scales, baggies, packaging materials and a large amount of U.S. currency.
Burdunice Jr. was sentenced in Cedar Rapids by United States District Court C.J. Williams. Burdunce Jr. was sentenced to 70 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Burdunice Jr. is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the Dubuque Drug Task Force, the Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1025-CJW.
Follow us on Twitter @USAO_NDIA.
Doctor and Ex-Hospital Owner Sentenced to 15 Months in Prison for Massive Health Care Fraud that Occurred on His WatchRead the Press Release
SANTA ANA, California – A doctor and the former owner of a Long Beach hospital was sentenced this morning to 15 months in federal prison for taking part in a long-running health care fraud scheme where he authorized sham contracts that concealed over $30 million in illegal kickback payments to physicians who steered spinal surgeries to his hospital. The overall scheme resulted in more than $900 million in fraudulent bills being submitted, primarily to California’s worker compensation system.
Dr. Faustino Bernadett, 65, of Rolling Hills, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay a $60,000 fine on top of $1 million he has already forfeited to the United States.
Bernadett, a board-certified anesthesiologist and pain management physician who retired his license last year, pleaded guilty in August to a one-count criminal information charging him with misprision of a felony.
The kickback scheme centered on Pacific Hospital in Long Beach, which specialized in surgeries, especially spinal and orthopedic procedures. Pacific Hospital’s owner, Michael D. Drobot, conspired with doctors, chiropractors and marketers to pay kickbacks in return for the referral of thousands of patients to Pacific Hospital for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system.
In 2005, Bernadett purchased Pacific Hospital from Drobot. Under the terms of the sale, Drobot guaranteed to Bernadett that 75 spinal surgeries per month would be performed at Pacific Hospital or else Drobot’s payout would be reduced by $25,000 for each surgery below that requirement.
Bernadett, who became directly involved with the hospital’s day-to-day operations by late 2007, later learned that Drobot was making illegal kickback payments to physicians in order to cause those physicians to steer spinal surgeries to Pacific Hospital. By January 2008, Bernadett had learned that Drobot concealed the illegal kickback payments by entering into various types of sham contracts – such as management agreements, collection agreements and option agreements.
Instead of putting a halt to Drobot’s kickback scheme, Bernadett authorized the continued use of Drobot’s sham contracts to incentivize surgical referrals to his hospital. Between January 2008 and October 2010 (when Bernadett sold his interest in Pacific Hospital back to Drobot), Pacific Hospital and related entities made more than $30 million in illicit payments to kickback recipients and performed approximately 1,400 kickback-induced spinal fusion surgeries.
“Kickbacks corrupt the doctor-patient relationship and have a deleterious impact on the health care system because they incentivize doctors to put their financial interests before patients’ best interests,” prosecutors wrote in their sentencing memorandum. “More so than other Pacific Hospital executives, [Bernadett] understands the sacred nature of the doctor-patient relationship because he is a physician himself.”
Twenty-four defendants have been charged in connection with the scheme, and 15 of them have been convicted, including Drobot and his son.
Drobot is serving a five-year prison sentence for conspiracy and paying illegal kickbacks, and has admitted that he orchestrated a wide-ranging fraudulent kickback scheme where paid more than $50 million in bribes to doctors to steer hundreds of millions of dollars in spinal surgeries to his hospital. Drobot ultimately profited millions of dollars from the scheme. Drobot currently awaits sentencing after pleading guilty to breaking additional federal laws by violating a court forfeiture order by illegally selling his luxury cars.
The investigation into the spinal surgery kickback scheme was conducted by the FBI; IRS Criminal Investigation; the California Department of Insurance; and the United States Postal Service, Office of Inspector General.
This case was prosecuted by Assistant United States Attorneys Joseph T. McNally of the Violent and Organized Crime Section, Scott D. Tenley of the Santa Ana Branch Office, and Victor A. Rodgers of the Asset Forfeiture Section.
Des Moines Man Sentenced to 10 Years in Prison for Possession of a Firearm as a FelonRead the Press Release
DES MOINES, Iowa – On January 16, 2020, Shane Leroy Robey, age 24, of Des Moines, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Felon in Possession of a Firearm. Robey was sentenced to 120 months imprisonment, the statutory maximum, to be followed by a three-year term of supervised release.
Robey pleaded guilty to the offense on September 3, 2019. At sentencing, the Court found on July 3, 2019, Des Moines Police Officers attempted to pull over Robey’s motorcycle. Robey then led officers on a high-speed chase through a residential neighborhood in Des Moines. Robey eventually crashed his motorcycle and then ran from officers. After a brief foot chase, officers apprehended Robey in the backyard of a residence. Officers found a loaded handgun with an obliterated serial number on Robey’s flight path. At the time, Robey was on parole for three separate Iowa convictions.
This case was investigated by the Des Moines Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Des Moines Man Sentenced to 10 Years in Prison for Possession of a Firearm as a FelonRead the Press Release
DES MOINES, Iowa – On January 16, 2020, Shane Leroy Robey, age 24, of Des Moines, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Felon in Possession of a Firearm. Robey was sentenced to 120 months imprisonment, the statutory maximum, to be followed by a three-year term of supervised release.
Robey pleaded guilty to the offense on September 3, 2019. At sentencing, the Court found on July 3, 2019, Des Moines Police Officers attempted to pull over Robey’s motorcycle. Robey then led officers on a high-speed chase through a residential neighborhood in Des Moines. Robey eventually crashed his motorcycle and then ran from officers. After a brief foot chase, officers apprehended Robey in the backyard of a residence. Officers found a loaded handgun with an obliterated serial number on Robey’s flight path. At the time, Robey was on parole for three separate Iowa convictions.
This case was investigated by the Des Moines Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Delvin Perkins Sentenced to 51 Months in PrisonRead the Press Release
HAMMOND – Delvin Perkins, 24, of South Holland, Illinois, was sentenced by Senior U.S. District Court Judge James T. Moody to 51 months in prison after pleading guilty to one count of Conspiracy to Commit Hobbs Act Robbery, announced United States Attorney Thomas L. Kirsch II.
According to documents in the case, on March 18, 2019, Perkins and co-conspirator, Reilly Jackson, conspired to rob an armored vehicle within the Northern District of Indiana. Perkins’ plan was to follow the armored vehicle as it picked up currency from various local businesses and find a suitable location to confront the driver with a firearm in order to obtain United States Currency. The conspiracy was thwarted by FBI agents who conducted a felony traffic stop on Perkins’ vehicle before the crime could be committed. At the time of the arrest, the FBI found two firearms within Perkins’ car. As part of Perkins’ plea, he also admitted to participating in a prior theft of an armored vehicle out of Chicago, Illinois that took place on July 24, 2018. At that time, Reilly Jackson was an employee of the armored car company and left the armored vehicle unlocked with the express purpose of giving Perkins access to the currency within. Perkins entered the vehicle and stole $537,374 in United States Currency, which he later split with Jackson. As part of the sentence, Perkins has been ordered to pay restitution in the full amount to the victim of the Illinois theft. In November 2019, Reilly Jackson was sentenced to 42 months in prison by U.S. District Court Judge Philip Simon.
This case was investigated by the FBI with assistance from the Merrillville Police Department and prosecuted by Assistant United States Attorney Thomas McGrath in cooperation with the United States Attorney’s Office for the Northern District of Illinois.
###
Court Sentences High Seas Drug Trafficker to 120 Months Imprisonment for Smuggling 1,916 Kilograms of CocaineRead the Press Release
On January 9, 2020 United States District Court Judge Terry F. Moorer sentenced Jackson Alexander Vera Cabeza, an Ecuadorian national, for being caught in international water in the act of smuggling 1,916 kilograms of cocaine.
Court records established that on August 4, 2018, while on routine patrol in the Eastern Pacific Ocean, a Joint Interagency Task Force South (JIATF-S) Maritime Patrol Aircraft (MPA) visually detected a low profile go-fast vessel (LPGFV) operating in international waters, approximately 302 nautical miles Northwest of the country of Ecuador and suspected to be engaged in drug trafficking. United States Coast Guard (USCG) Cutter “TAHOMA” diverted to intercept. The LPGFV initially ignored warning shots fired from a USCG helicopter and the commands to stop given by personnel on the TAHOMA. The Helicopter activated its lights and gave commands in English and Spanish for the LPGFV to stop which the LPGFV ignored. The helicopter next completed three “stiches” firing 25 warning shots with a M240B machine gun, 5 yards off the bow of the vessel to get it to stop. The LPGFV still failed to stop. The TAHOMA had launched an Over the Horizon (OTH) vessel to intercept the LPGFV and eventually the vessel came to a stop.
The LPGFV yielded no flag flown, no vessel registration documents and no other indicia of nationality. The TAHOMA personnel completed the boarding of the LPGFV and recovered approximately 1,916 kilograms of cocaine stored on the vessel. The 1,916 kilograms of cocaine had a retail street value of approximately of over $190,000,000 in the United States.
Jackson Alexander Vera Cabeza was charged in United States District Court for the Southern District of Alabama along with William Toloza Cuero, and Cesar Xavier Garcia Vera, who were previously sentenced by the Court, and Luis Eduardo Montenegro Martinez, who remains to be sentenced. The smugglers were travelling a common seaborne smuggling route to transport the cocaine from Columbia and deliver it to Central America in order that it could be further distributed.
Title 46 United States Code, § 70501 states: Congress finds and declares that (1) trafficking in controlled substances aboard vessels is a serious international problem, is universally condemned, and presents a specific threat to the security and societal well-being of the United States and (2) operating or embarking in a submersible vessel or semi-submersible vessel without nationality and on an international voyage is a serious international problem, facilitates transnational crime, including drug trafficking, and terrorism, and presents a specific threat to the safety of maritime navigation and the security of the United States. Title 46 further provides that such offenses may be prosecuted in any United States federal district court.The case was prosecuted by Assistant United States Attorney George F. May, Deputy Criminal Chief. The case was investigated by the United States Coast Guard and the Department of Homeland Security, Homeland Security Investigations.
Convicted Child Sexual Abuser Sentenced for Illegal ReentryRead the Press Release
ALEXANDRIA, Va. – An illegal alien from El Salvador, who recently was convicted in state court of taking indecent liberties with a child, was sentenced today to 15 months in prison for illegally reentering the United States after he previously was deported in 2004.
“Carrero Alas illegally entered the United States, was deported at taxpayer expense, then returned illegally a second time and was convicted of sexually abusing a child,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to make these cases a priority and will work closely with our local and state partners to not only promote the rule of law, but also protect the most vulnerable members of our community.”
According to court documents, Oscar Saul Carrero Alas, 37, a citizen of El Salvador, was removed from the United States in October 2004, after having illegally entered the country by crossing the Rio Grande River. Carrero Alas reentered the United States, again without permission, and he subsequently was arrested in Prince William County in January 2018 for violations of state law. In June 2019, Carrero Alas was convicted of taking indecent liberties with a child by a person in a custodial or supervisory relationship, possession of cocaine, and obscene exhibition, all in violation of Virginia law.
“This individual received due process in immigration court and was removed to his home country but chose to flout that decision and return to the U.S. and victimize a child,” said Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removals Operations (ERO) Washington D.C. “ICE is committed, alongside our law enforcement partners, to upholding our shared public safety mission.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr. Assistant U.S. Attorney Natasha Smalky and Special Assistant U.S. Attorney Michael P. Grady prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-318.
Colorado Springs Man Convicted of Bank FraudRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jack V. Smalley, age 70, of Colorado Springs was found guilty following a four-day jury trial for bank fraud related to a mortgage application with the Navy Federal Credit Union. The Department of Defense Criminal Investigative Service, the Internal Revenue Service--Criminal Investigations, and the Air Force Office of Special Investigations join in this announcement.
On June 25, 2015, Smalley submitted a mortgage loan application with the Navy Federal Credit Union indicating that he earned a salary of approximately $200,000 dollars a year. At the time, Smalley knew that wasn’t true. In conducting its due diligence, the Navy Federal Credit Union requested a pay stub that would show Smalley's monthly income, a letter from his employer to verify his employment and salary, and a bank statement to show Smalley’s income deposited into his bank account.
Smalley took steps to falsify the requested information, including falsifying a pay stub and his employment letter. Based on the fraudulent documents, the Navy Federal Credit Union approved Smalley for a $998,000 loan. Smalley defaulted on that loan in 2017. In trying to mitigate his loan, Smalley provided two more fraudulent employment letters in 2018 and 2019. Smalley used the proceeds of the loan to purchase a $1.1 million dollar residence in Colorado Springs. As part of the proceedings in this case, the Court ruled that the residence is subject to forfeiture based on the bank fraud.
“Lying to get a home loan is fraud, and the guilty verdict by the jury who heard this case made that perfectly clear,” said U.S. Attorney Jason Dunn. “Thanks to the hard work of our office and the law enforcement agents investigating this case, Smalley is now a convicted felon facing prison time.”
Smalley is scheduled to be sentenced on April 27, 2020. The case was investigated by the Department of Defense Office of the Inspector General, the Internal Revenue Service—Criminal Investigations and Air Force Office of Criminal Investigations. The trial was before U.S. District Court Judge Daniel D. Domenico. The defendant was prosecuted by Assistant U.S. Attorney Jeremy Sibert.
Colombian Female Sentenced to 15 Years for International Cocaine Smuggling and PerjuryRead the Press Release
Tampa, Florida– U.S. District Judge Susan C. Bucklew has sentenced Lelia Vanessa Perdomo Zapata (26, Colombia, South America) to 15 years in federal prison for conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States, for possession with the intent to distribute five kilograms or more of cocaine on that vessel, and for perjury.
A federal jury had found Zapata guilty on September 3, 2019.
According to trial evidence, Zapata was the Colombian load guard for a Cartagena, Colombia-based cocaine smuggling crew and part of an international maritime drug smuggling operation involving at least 440 kilograms of cocaine, worth approximately $13 million. Prior to their interdiction by the U.S. Coast Guard (USCG), Zapata and one of her co-conspirators were transporting 18 bales of cocaine onboard a 60-foot sailing vessel from Cartagena to Cancun, Mexico. Ultimately, USCG law enforcement officers from Tactical Law Enforcement Team (TACLET) Pacific boarded the sailing vessel and discovered 18 bales of cocaine and multiple electronic devices consistent with cocaine trafficking. Subsequent analyses of these devices yielded crucial digital evidence of the cocaine smuggling operation.
During trial, Zapata testified under oath for nearly seven hours and made numerous statements that were demonstrably false.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. 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. The case was prosecuted by Assistant United States Attorney Diego F. Novaes and Special Assistant United States Attorney Nicholas DeRenzo.
Chicago Investment Manager Indicted on Fraud Charges for Allegedly Swindling Money from Women He Met OnlineRead the Press Release
CHICAGO — A Chicago investment manager has been indicted for allegedly swindling money from women he met through online dating services.
MARCUS BEAM, who owned and controlled various companies in Chicago and the suburbs, exaggerated his financial success and the expected return on investments to fraudulently obtain money from women he met online and other investors, including a family member and a former employee, according to an indictment returned Thursday in U.S. District Court in Chicago. Beam falsely claimed that their funds would be invested in popular stocks such as Uber and Lyft, and other investment products such as gold, art, and real estate, the indictment states. In reality, Beam spent the money for his own personal benefit, including rent, auto loans, and purchases at retail stores such as Walmart and Ikea, the indictment states. The fraud scheme began in 2015 and continued until October of last year, resulting in a loss to investors of at least $500,000, the indictment states.
The indictment charges Beam, 49, of Woodridge, with nine counts of wire fraud and one count of mail fraud. Arraignment in federal court has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State. The government is represented by Assistant U.S. Attorney Jacqueline Stern.
Valuable assistance has been provided by the U.S. Securities and Exchange Commission, which previously filed a civil complaint against Beam.
According to the indictment, Beam held himself out as the owner of a Chicago investment company called Chase Private Equity LLC, which was also known as New World Capital LLC. Beam also owned and operated other companies, including a Naperville-based virtual reality company called VR 360 LLC, and Imex Energy Inc., a Bolingbrook-based brokerage firm that claimed to sell retail electricity for third parties, the indictment states.
The charges allege that Beam attempted to conceal his fraud scheme by furnishing victims with account statements that misrepresented the value of their funds. Beam also made false lulling statements to investors for why their money could not be paid back as requested, the indictment states. Some of the money allegedly misappropriated by Beam came from investors’ retirement accounts.
Each count in the indictment is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Canonsburg Man Pleads Guilty to Possessing Child Pornography on His Cell PhoneRead the Press Release
PITTSBURGH, PA-A former resident of Canonsburg, Pennsylvania, pleaded guilty in federal court to possession of child pornography, United States Attorney Scott W. Brady announced today.
Robert Fichter, 54, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that investigative efforts during a Homeland Security Investigation revealed that Fichter utilized an Android cellular phone running BitTorrent software to access, view and download child pornography. The court was further informed that law enforcement officials executed a federal search warrant at Fichter’s residence on May 24, 2018, wherein they seized Fichter’s cellular phone. During a forensic review of the cell phone, agents uncovered images and videos of child pornography, some of which involved children under the age of 12, as well as violent sexual conduct.
Judge Hornak scheduled sentencing for May 21, 2020 at 9:30 AM The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Fichter remains incarcerated pending sentencing.
The Department of Homeland Security Investigations, with assistance from members of the North Strabane and Canonsburg police departments, conducted the investigation leading to the prosecution of Fichter.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
California man who falsely claimed ties to Moroccan Royal Family pleads guilty to $10 million dollar advance fee fraud schemeRead the Press Release
ATLANTA - Hassan Ra El, a/k/a Rasheem Harrson Crockett has pleaded guilty to mail fraud related to a scheme in which he falsely claimed to be a member of the Moroccan Royal Family to defraud business owners around the country to pay an advance fee before obtaining millions in business loans.
“This defendant will be held responsible for his elaborate advance fee loan scheme that took advantage of individuals and businesses that desired to raise capital,” said U.S. Attorney Byung J. “BJay” Pak. “Consumers and business owners are encouraged to conduct due diligence beyond information on websites when they enter business relationships.”
“Those seeking to maximize profits while misleading business owners and investors should expect to pay a heavy price,” said David M. McGinnis, Inspector in Charge, U.S. Postal Inspection Service, Charlotte Division. “The U.S. Postal Inspection Service has investigated these kind of deceptive practices for years to protect consumers. Postal Inspectors work tirelessly to identify and hold accountable any person who uses the U.S. mail to defraud American citizens.”
According to U.S. Attorney Pak, the charges and other information presented in court: Hassan Ra El operated a scheme to defraud business owners across the country who were seeking loans. El claimed that he was a wealthy investor and a member of the Moroccan Royal Family. El fraudulently claimed that he had access to Moroccan Royal Family funds that would be used to fund business loans. El created fraudulent documentation showing that insurance companies were offering default insurance policies on the loans. El convinced prospective loan applicants that they had to pay default insurance fees, typically 10% of the loan amount, before the loans would fund. When the loans failed to fund, El used fees from later loan applicants to partially refund fees from previous loan applicants.
In furtherance of the scheme, El created fraudulent bank statements purportedly showing that he, or companies that he controlled, had millions in bank accounts. El also created fraudulent email accounts and correspondence purportedly from insurance executives stating that loans had been approved. El used fees from loan applicants to fund his lifestyle, pay his living expenses, and to rent high-end automobiles - including a Ferrari, Range Rover and Lamborghini. El fraudulently induced victims to pay over $10 million dollars in advance fees. Neither El, nor his companies, funded any of the promised loans and loan applicants lost over $5 million dollars in the fraud scheme.
Hassan Ra El, a/k/a Rasheem Harrson Crockett, 45, of Chino Hills, California was previously charged with forgery, theft by conversion, and false statements in Douglas County, Georgia, for defrauding loan clients. After his convictions in Douglas County, El formerly changed his name from Rasheem Harrson Crockett to Hassan Ra El and continued to defraud prospective business owners seeking capital.
On July 2, 2019, El was indicted on thirteen counts of mail fraud, and five counts of wire fraud. Sentencing is scheduled for April 22, 2020, at 2:30 p.m., before U.S. District Judge William M. Ray II.
The U.S. Postal Inspection Service in investigating this case.
Assistant U.S. Attorneys Jeffrey Brown, Deputy Chief of the Complex Frauds Section, and Erin Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Buffalo Man Going to Prison for 10 Years for His Role in Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Quinton Jones, 40, of Buffalo, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, five kilograms or more of cocaine, was sentenced to serve 120 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between November 2016 and September 29, 2017, the defendant conspired with others to distribute cocaine in the South Buffalo area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa. In August of 2017, the defendant received a kilogram of cocaine from one of his co-defendants. On August 18, 2018, Jones made a payment of approximately $30,000 for the kilogram.
On September 13, 2017, the drug trafficking organization received several parcels containing cocaine through the U.S. Postal Service. Upon receipt, another co-defendant contacted the defendant to arrange for the defendant to pick up a kilogram and distribute it in the Buffalo area. On his way to collect the kilogram of cocaine, Jones was stopped by a marked Erie County Sheriff’s vehicle, and law enforcement found him in possession of $19,995 in U.S. currency.
Over the course of the defendant’s involvement in the conspiracy, Jones regularly distributed at least one kilogram of cocaine per month on behalf of the drug trafficking organization.
On September 29, 2017, the defendant was arrested inside his residence at 57 Juniata Street in Buffalo. A search warrant was executed and investigators recovered $4,023 in U.S. currency; a .22 caliber rifle with a defaced serial number; multiple rounds of ammunition; and a quantity of cocaine.
Jones is one of 12 defendants convicted in this case and the fourth to be sentenced.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, 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 Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Police, under the direction of Major Edward Kennedy.
# # # #
Bucks County Man to Pay $12,000 to Resolve Allegations of Making Fraudulent Insurance Claims to U.S. Postal ServiceRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that David W. Miller, Jr., of Warminster, PA has agreed to pay the United States $12,000 to resolve civil allegations that he made fraudulent insurance claims to the United States Postal Service.
The government’s investigation began when a proactive review of claims data disclosed that Miller had made a large number of insurance claims to the Postal Service during 2017 and 2018. The government alleges that Miller falsely claimed that packages he sent or received via Priority Mail arrived damaged, when they were not, and that Miller submitted false information and documentation to support his postal insurance claims. The government contends that as a result, Miller improperly received between $1,830 and $9,100 from the Postal Service.
“Fraud should never pay, and we are committed to ensuring that it does not,” said U.S. Attorney McSwain. “My Office places a high priority on enforcement in all types of fraud against the government and works with its law enforcement partners to identify and investigate these matters. This case should serve as notice that we will come after anyone who steals from the United States government, with every tool we have.”
Kenneth Cleevely, Special Agent in Charge, Eastern Area Field Office, U.S. Postal Service Office of Inspector General (USPS OIG), stated: “Ancient Greek playwright Sophocles once wrote, ‘Things gained though unjust fraud are never secure.’ In this case, Mr. Miller attempted to obtain what he thought would be free money from the U.S. Postal Service. However, due to the investigative efforts of special agents with the U.S. Postal Service Office of Inspector General and our law enforcement partners, he is learning the hard way that there is no such thing. USPS OIG special agents vigorously investigate allegations of fraud targeting the Postal Service, and will pursue the appropriate remedy when fraud is discovered.”
To report fraud, waste, or abuse within the Postal Service, contact the USPS OIG hotline at www.uspsoig.gov or 888-USPS-OIG.
The settled civil claims are allegations only. There has been no determination of liability.
The case was investigated by the U.S. Postal Service Office of the Inspector General. It was handled by Assistant United States Attorney Mark J. Sherer, Fraud Investigator Frank O’Conner, and Auditor Denis Cooke.
Brownsville, PA Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
PITTSBURGH - A former resident of Washington County, Pennsylvania pleaded guilty in federal court to charges of Production of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Scott W. Brady announced today.
Sean Houston, age 47, of Brownsville, Pennsylvania, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on May 20, 2016 and from July 22, 2017 through October 2018, Houston produced and attempted to produce visual depictions of the sexual exploitation of a minor. Additionally, on October 29, 2018, Houston knowingly possessed visual depictions of the sexual exploitation of minors.
Judge Bissoon scheduled sentencing for May 11, 2020. The law provides for a sentence of not less than 15 years and a maximum sentence of 30 years in prison, a fine of $750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations, the Centerville Police Department, the North Strabane Police Department, and the Washington County District Attorney’s Office conducted the investigation that led to the prosecution of Houston.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brighton Man Sentenced for Failure to File Tax Return and for Fraudulently Concealing Facts Relevant to Social Security Disability PaymentsRead the Press Release
DENVER – Jason R. Dunn today announced that Robert Eugene Hybertson, age 61, of Brighton, Colorado was sentenced to time served, which constitutes approximately 20 months’ imprisonment for failure to file a tax return and for fraudulently concealing facts relevant to Social Security Disability payments. Hybertson will serve 3 years of supervised release. The defendant also agreed to pay restitution to the Social Security Administration (SSA) in the amount of $146,484, file accurate tax returns for all years in which returns are pending, and pay all taxes owed to the IRS as determined by a subsequent civil IRS proceeding. The IRS-Criminal Investigation and Social Security Office of the Inspector General joined in the announcement.
According to the stipulated facts in the plea agreement, Hybertson received a gross income of $887,000 in 2012 but willfully failed to file the required income tax return for that year. The defendant also failed to file tax returns for his income for the years 2010, 2011, and 2013, when he had approximate gross incomes of $241,000, $566,000, and $117,000, respectively. The estimated tax loss for those four years is $828,000, or $1.7 million if penalties and interest are included.
Also, in May 2001, Hybertson began receiving Social Security Disability Insurance (SSDI) benefits. As part of this application, the defendant agreed to notify SSA if the defendant’s medical condition improved enough that he was able to return to work. Starting around 2010, however, Hybertson concealed from SSA the fact that he was receiving the income described above, including by making false statements that he was not working. As a result of his concealment, Hybertson received $146,484 in SSDI benefits to which he was not entitled.
“The defendant avoided paying hundreds of thousands of dollars in taxes and at the same time lied to get money he did not deserve from Social Security Disability Insurance,” said U.S. Attorney Jason Dunn. “Special thanks to the IRS-Criminal Investigation and Social Security Office of the Inspector General who persisted with their investigation to ensure Hybertson was brought to justice.”
“As we enter into tax filing season, today’s sentencing of Robert Hybertson is a timely reminder that the payment of one’s taxes is an obligation, and not a choice,” said Special Agent in Charge Andy Tsui, IRS-Criminal Investigation. “Mr. Hybertson made the decision not to file tax returns when he was legally obligated to do so. He cheated all taxpayers who make an honest effort every year to comply with the US tax laws and pay their fair share.”
“Social Security OIG is committed to protecting the agency’s disability programs from fraud, waste, and abuse,” said Adam Lowder, Acting Special Agent-in-Charge of the SSA OIG’s Denver Field Division. “This individual deliberately concealed his work from Social Security for personal gain for over a decade. We will continue to pursue those who commit disability fraud, and we appreciate the efforts of the U.S. Attorney’s Office to see justice served and recover funds for Social Security.”
The sentencing hearing was before U.S. District Court Judge R. Brook Jackson. The case was investigated by IRS-Criminal Investigation and the Social Security Office of the Inspector General. The defendant was prosecuted by Assistant U.S. Attorneys Rebecca Weber, Emily Treaster, Kelly Churnet, and First Assistant U.S. Attorney Matthew Kirsch.
Bridgeport Twins Involved in Violent Robbery and Carjacking of Ansonia Delivery Driver are SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTOINE SNELL and TREYQUANE SNELL, both 21 of Bridgeport, were sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to prison terms of 64 months and 72 months, respectively, for committing a violent robbery and carjacking of a food delivery driver in Ansonia.
According to court documents and statements made in court, on December 21, 2016, Antoine and Treyquane Snell, who are twin brothers, and a juvenile male, placed a food order with an Ansonia restaurant to be delivered to a location on Dwight Street. After the driver arrived at the location, the three males ordered the driver out of his car, attacked him and stole the car. The victim suffered serious injuries, including multiple broken bones in his face and bleeding in his brain.
On August 14, 2019, the each brother pleaded guilty to one count of Hobbs Act robbery.
The juvenile involved in the robbery and carjacking was charged, convicted and sentenced in state court.
Antoine and Treyquane Snell will serve three years of supervised release when they are released from prison.
This matter was investigated by the Federal Bureau of Investigation and the Ansonia Police Department. The case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Maria del Pilar Gonzalez.
6 Colombian Nationals and Owner of Consumer Electronics Business Charged for Their Roles in Money Laundering and Unlicensed Money Transmission Business OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Eduardo A. Chavez, Special Agent in Charge of the Dallas Division of the U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of four indictments charging MIGUEL CESPEDES, OMAR MOGOLLON, LUIS FELIPE GONZALEZ ARCILA, IVAN ROJAS ACOSTA, ALEX BARRERA FORERO, and DAVID ORTIZ VILLAMIZAR, six Colombian nationals, as well as AMIT AGARWAL, an Indian national who operates a wholesale consumer electronics business in East Hanover, New Jersey, for offenses relating to various international money laundering schemes and the operation of unlicensed money transmission businesses. CESPEDES, MOGOLLON, GONZALEZ, ROJAS, BARRERA, and ORTIZ were arrested in Colombia, and the United States Government will be seeking their extradition to the United States. AGARWAL was arrested on December 20, 2019, at Newark International Airport. AGARWAL’s case is assigned to United States District Judge Paul A. Engelmeyer; CESPEDES’s case is assigned to United States District Judge Gregory H. Woods; BARRERA and ORTIZ’s case is assigned to United States District Judge Gregory H. Woods; and MOGOLLON, GONZALEZ, and ROJAS’s case is assigned to United States District Judge J. Paul Oetken.
U.S. Attorney Geoffrey S. Berman said: “The illegal drug trade depends on shadow financial networks to move drug traffickers’ profits into our banking system and across our borders. As alleged, these defendants ran those types of networks in both the United States and Colombia. Today’s arrests demonstrate that this Office, along with our partners here and abroad, will bring the operators of such networks to justice wherever in the world they may hide.”
DEA Special Agent in Charge Eduardo A. Chavez said: “Today’s arrests serve as notice to those who participate in any aspect of the global drug trade – whether it be selling drugs on a street corner or moving illicit profits through our banking system – the DEA along with our global partners, will hold you responsible and bring you to justice.”
As alleged in the Indictments unsealed in Manhattan federal court:[1]
From at least in or about June 2018 through at least in or about 2019, MIGUEL CESPEDES, OMAR MOGOLLON, LUIS FELIPE GONZALEZ ARCILA, IVAN ROJAS ACOSTA, ALEX BARRERA FORERO, DAVID ORTIZ VILLAMIZAR, and AMIT AGARWAL all participated in schemes to launder funds from locations throughout the United States to recipients in, among other places, Colombia. Among other things, the purpose of the schemes was to enable clients with cash located in the United States to transfer the value of that cash to other countries, principally Colombia, without the need for physically transporting United States currency across an international border or directly depositing large amounts of cash into the legitimate financial system.
To effectuate the scheme, “clients,” i.e., the owners of funds located in the United States, utilized the services of money brokers operating primarily in Colombia (the “Money Brokers”). The Money Brokers offered “contracts” typically requiring (a) the pick-up of United States currency from couriers throughout the United States and the receipt of international wires in the United States, and (b) the delivery of a corresponding amount of pesos in Colombia to the Money Brokers. In exchange for successfully delivering on a contract, the Money Brokers earned a commission, taken from the pesos received by them in Colombia. The person(s) with whom the Money Brokers contracted to arrange for the pick-up and receipt of United States currency also received a commission taken from the pesos received by the Money Brokers in Colombia. Although the payment of commissions from the funds collected pursuant to a contract meant that the clients did not receive the full value of the funds that the clients owned in the United States, this scheme enabled the clients to avoid the risks of having large quantities of cash detected at international borders and to avoid triggering financial reporting requirements.
CESPEDES, MOGOLLON, GONZALEZ, ROJAS, BARRERA, and ORTIZ engaged in the scheme as Money Brokers. As Money Brokers, working at times independently and at times together, they offered and executed upon multiple contracts requiring the pick-up of funds throughout the United States, and the delivery of a corresponding value of pesos to them in Colombia. In exchange for their work as Money Brokers, they received commissions taken from the pesos delivered to them in Colombia, as did the individuals with whom they contracted.
AGARWAL was the chief executive officer of a consumer electronics products business based in East Hanover, New Jersey (the “Agarwal Electronics Business”). Among other things, the Agarwal Electronics Business exported consumer electronics to purchasers throughout the world, including purchasers located in Colombia. In connection with its business activities, the Agarwal Electronics Business maintained a bank account in the United States, controlled and operated by AGARWAL (the “Agarwal Bank Account”).
Typically, as part of the scheme, the funds collected in the United States pursuant to contracts offered by CESPEDES, MOGOLLON, GONZALEZ, ROJAS, BARRERA, and ORTIZ were deposited in a bank account located in the United States (“Bank Account-1”), and then transferred to the Agarwal Bank Account. Pursuant to the contracts offered by the Money Brokers, AGARWAL agreed to accept these funds into the Agarwal Bank Account, and AGARWAL also agreed to accept funds into the Agarwal Bank Account that had been wired to Bank Account-1 from foreign locations, including Mexico. AGARWAL understood these funds to be narcotics proceeds and sought to repatriate them to South America while avoiding the risk associated with having large quantities of cash detected at international borders, and avoiding the currency reporting requirements imposed by United States laws.
Upon receiving confirmation that funds collected pursuant to a Money Broker contract issued by CESPEDES, MOGOLLON, GONZALEZ, ROJAS, BARRERA, or ORTIZ were available for deposit into the Agarwal Bank Account, AGARWAL arranged for the export of a roughly equivalent value of consumer electronics products to certain consumer electronic product suppliers located in Colombia (the “Colombian Electronics Suppliers”). The Colombian Electronics Suppliers, in turn, arranged to pay for the products by delivering pesos to an individual in Colombia, who then delivered those funds to the Money Brokers. In this way, funds collected in the United States were remitted to Colombia, without requiring that they be reported, declared, or smuggled over international borders.
During the execution of the scheme, federal law enforcement agents working in an undercover capacity, and persons operating at the direction of federal law enforcement agents, informed AGARWAL that the funds he agreed to receive in the Agarwal Bank Account from Bank Account-1, pursuant to the scheme, represented the proceeds of narcotics trafficking activity. AGARWAL, however, continued to accept the funds into the Agarwal Bank Account while facilitating the Money Broker contracts.
* * *
AGARWAL is charged in United States v. Amit Agarwal, 19 Cr. 838, with one count of money laundering, which carries a maximum sentence of 20 years in prison.
CESPEDES is charged in United States v. Miguel Cespedes, 19 Cr. 839, with one count of operation of an unlicensed money transmission business, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
MOGOLLON, GONZALEZ, and ROJAS are charged in United States v. Omar Mogollon, et al., 19 Cr. 837, with conspiracy to operate an unlicensed money transmission business and operation of an unlicensed money transmission business, each of which carries a maximum sentence of five years in prison. MOGOLLON is also charged with one count of international money laundering, which carries a maximum sentence of 20 years in prison.
BARRERA and ORTIZ are charged in United States v. Alex Barrera Forero and David Ortiz Villamizar, 19 Cr. 840, with one count of conspiracy to operate an unlicensed money transmission business, and one count of operation of an unlicensed money transmission business, each of which carries a maximum sentence of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the respective judges.
Mr. Berman praised the investigative work of the DEA’s Dallas Field Division’s Enforcement Group 4 and the DEA’s Bogota Country Office, and thanked the authorities in Colombia, and the Justice Department’s Office of International Affairs of the Department’s Criminal Division for their assistance.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution.
The allegations in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
19 Defendants Sentenced to Combined 321 Years in Federal Prison for Roles in Related Lexington Meth ConspiraciesRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that 19 defendants from Lexington County and surrounding areas have been sentenced to federal prison for their roles in related methamphetamine distribution conspiracies, which involved the possession and use of dozens of firearms:
Willie Ricardo Gordon, a/k/a “Rico,” 35, was convicted following a jury trial in January 2019 of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and use of a firearm in furtherance of drug trafficking, and sentenced to 420 months in federal prison;
Marcus Young, a/k/a “Lay Low,” 31, was convicted following a jury trial in January 2019 of conspiracy to possess and possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, use of a firearm in furtherance of drug trafficking, and felon in possession of firearm, and sentenced to 420 months;
Rafael Redmond, a/k/a “Pockets,” 44, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 200 months;
Jennifer Logan, 43, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and use of a firearm in furtherance of drug trafficking and was sentenced to 180 months;
Andrew Michael Chamberlain, 32, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 160 months;
James Lloyd, 29, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 235 months;
Jeremy Davis, 32, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 360 months;
Robert Pendleton, a/k/a “Bobby,” 40, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 100 months;
David Peeples, 38, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months;
Terri Moore, 41, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and use of a firearm in furtherance of drug trafficking and was sentenced to 270 months;
Brian Lorick, 46, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and use of a firearm in furtherance of drug trafficking and was sentenced to 168 months;
John Phillip Drawdy, 41, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 264 months;
Leigh Antley McCamy, 37, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 71 months;
Blake Allen Smith, 30, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 188 months;
Kimberly Hartley, 31, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 151 months;
Joseph Smith, 41, pleaded guilty to possession of a firearm by a convicted felon and use of a firearm in furtherance of drug trafficking and was sentenced to 60 months & 1 day;
Robert Flowers, 34, pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon and was sentenced to 156 months;
Jeffrey Shane Tager, 34, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 78 months; and
Clinton French, 34, pleaded guilty to possession of a firearm by a convicted felon and use of a firearm in furtherance of drug trafficking and was sentenced to 262 months.
“Methamphetamine is a powerful drug with increasing prevalence across our state, and in Lexington County in particular,” said Acting United States Attorney Crick. “The drug is dangerous enough on its own, but the added presence of firearms and violence made these conspiracies a particularly egregious threat to the community. I am grateful to ATF and the Lexington County Sheriff’s Department for their continued partnership in our fight to reduce violent crime and drug distribution.”
ATF Assistant Special Agent in Charge Brian Mein stated, “The outcome of this investigation means that very dangerous individuals have been taken out of our neighborhoods for a very long time. This case highlights a truly collaborative effort and the ongoing commitment from our local, state, and federal law enforcement partners to keep up the fight against violent crime in our communities.”
Lexington County Sheriff Jay Koon stated, “The safety and security of Lexington County residents is always top of mind for the men and women of my office as we focus on getting drugs out of our community and putting dealers in jail. Thanks to the strong relationships we have with our federal, state and local partners, there’s a united front against violent crime in our neighborhoods.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The case was prosecuted by Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office.
#####
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.
Thursday 16 January 2020
“Impatient” Bank Robber Sentenced to 6 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of imprisonment of six years (72 months) to be followed by three years of supervised release on his conviction of bank robbery, United States Attorney Scott W. Brady announced today.
Chief United States District Court Judge Mark R. Hornak imposed the sentence on Christian Elijah Moore, age 30.
According to information presented to the court, on September 5, 2017, Moore walked into the First National Bank in Homestead, PA and asked for change. While the teller was providing him with change, Moore placed his wallet on the counter and stated that his friend wanted him to give her a note. In the note, Moore threatened to shoot the teller if he she did not provide him with money.
The teller provided Moore with $1,055.00, as well as a GPS tracking device. As Moore was walking from the bank, he removed identifiable clothing and left the items in the bushes of the homes along his path. Officers later recovered the gray Adidas jacket that he was wearing during the bank robbery from the bushes of a home near the bank. He then walked to a jitney station and asked for a ride to Oakland. The jitney driver proceeded across the Homestead Grays Bridge. Moore observed Homestead police, who were alerted to the area by the GPS device, and instructed the jitney driver to make a U-turn and proceed to Hazelwood. After observing the vehicle make a U-turn, police stopped the vehicle. Officers recovered a loaded Kel-Tec semi-automatic .9mm pistol as well as the money and tracking device from Moore. Moore admitted that when he woke up that day, he decided to rob a bank because he needed money and did not like having to wait.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and Homestead Police Department conducted the investigation that led to the prosecution of Moore.
York Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shanquay Ritter, age 23, of York, Pennsylvania, was indicted on January 8, 2020, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment charges Ritter with possession with intent to distribute heroin, cocaine, and fentanyl, for possession of a firearm in furtherance of drug trafficking, and for being a convicted felon in possession of a firearm. Ritter is also charged with threatening a federal official with the intent to intimidate that official while he was engaged in his official duties.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for possession with the intent to distribute heroin, cocaine, and fentanyl is 20 years’ imprisonment and a fine. The maximum penalty under federal law for possession of a firearm in furtherance of drug trafficking is life imprisonment and a fine. Conviction for that offense also subjects a defendant to a mandatory minimum consecutive sentence of five years’ imprisonment. Possession of a firearm by a prohibited person under federal law carries a maximum penalty of 10 years’ imprisonment. Threatening a federal official is punishable by up to 6 years’ imprisonment. A sentence for each of these offenses also includes a period of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Wilmington Press Conference Time ChangeRead the Press Release
***CHANGE IN TIME***
MEDIA ADVISORY
WHEN: Friday, January 17, 2020 at 1:30 PM
WHERE: New Hanover County Historic Courthouse
Commissioners Assembly Room 301
24 North 3rd Street
Wilmington, NC 28401
Re: Operation DodgeBall
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the sentencing of multiple gang member defendants in a multi-year heroin/fentanyl and heroin conspiracy investigation in Wilmington and New Hanover County. These defendants were not only responsible for the sale of narcotics in Wilmington, but also multiple violent acts. We will also highlight the important partnerships between all levels of law enforcement in this and other investigations during the preceding year. The Federal Bureau of Investigation’s Safe Streets Task Force, consisting of FBI Special Agents, Wilmington Police Department investigators and New Hanover County Sheriff’s Office detectives investigated this case.
In addition to United States Attorney Robert J. Higdon, Jr., District Attorney Ben David, and members of the FBI, ATF, ICE/HSI, Wilmington Police Department, and New Hanover County Sheriff’s Office are expected to be present at this event.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.
Williamsville Man Sentenced for Wire Fraud -- AgainRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert C. Logel, 56, of Williamsville, NY, who was convicted of wire fraud and tax evasion, was sentenced to serve 51 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Jonathan P. Cantil, MaryEllen Kresse, and David Rudroff, who handled the case, stated that in 2009, the defendant was convicted of wire fraud for defrauding two victims out of nearly $3,000,000 and sentenced to 48 months in prison. Logel told the victims that he invested their money in various businesses when, in fact, he used the funds himself.
Within months of being released from prison, Logel entered into a scheme involving the production, distribution, and sale of two skin and healthcare products. During the course of the scheme, the defendant made false representations regarding his ability to distribute and market such products. As a result, victims, including QuadPharma, a pharmaceutical manufacturing company located in Clarence, NY, transferred funds to Logel which they believed would be used to ready the products for distribution and sale. The defendant did not, however, use the victims' money as promised. Rather, Logel used the vast majority of the funds for his personal use, including car payments, college tuition, rent for his and his girlfriend’s apartments, and cosmetic surgery. QuadPharma suffered a loss of approximately $417,120. Six other victims suffered a total loss of approximately $143,176.
In addition, the defendant failed to file income tax returns for the tax years 2004 through 2007, resulting in a loss of $5,574,837.38 to the Internal Revenue Service.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Jonathan D. Larsen.
# # # #
Webster Parish Non-Profit Director Sentenced for Stealing More Than $1 Million from Federal Feeding ProgramRead the Press Release
SHREVEPORT, La. – David C. Joseph, United States Attorney for the Western District of Louisiana, announced that a Cotton Valley woman was sentenced for stealing more than $1 million from the U.S. Department of Agriculture’s Summer Feeding Service Program, a federal feeding program meant to provide meals to economically disadvantaged children during the summer months when they are not in school.
Myrna Thomas Quarles, 59, was sentenced today by U.S. District Judge Donald E. Walter to serve 71 months in federal prison. Judge Walter also sentenced Quarles, who pleaded guilty to theft of government property on September 18, 2019, to three years of supervised release following her confinement and ordered her to pay $1,460,541.41 in restitution.
Quarles was the director of Greater Horizons Developmental Services, a non-profit headquartered in Webster Parish. Greater Horizons received reimbursements from the U.S. Department of Agriculture’s Summer Feeding Service Program, which was administered through the State of Louisiana. From 2014 through 2015, Greater Horizons submitted reimbursement claims that greatly inflated the number of eligible meals provided. Once Greater Horizons received the money, Quarles wrote checks that were payable to vendors and other third parties, but instead of sending those checks to the vendors, Quarles deposited that money into her personal bank account, which totaled over $1 million in theft from the federal feeding program. Additionally, Quarles used the Greater Horizons’ checking account to pay for personal expenses that she charged to a Greater Horizons credit card totaling $370,816.61. Purchases included real estate, farm equipment, a restaurant, air travel, cruises and designer luxury items.
“Quarles stole from a taxpayer-funded program meant to provide meals to children,” stated U.S. Attorney Joseph. “My office will continue to aggressively prosecute this and other types of fraud. Today’s sentence should send the clear message that the U.S. Attorney’s Office and our law enforcement partners will bring justice to those who defraud the taxpayers and take advantage of the most vulnerable among us.”
“Make no mistake – this was bold and shameless thievery of nearly $1.5 million intended to feed hungry children,” stated Louisiana Inspector General Stephen Street. “Ms. Quarles showed an outrageous lack of concern for the taxpayers and the children those funds were supposed to benefit. Today’s sentence should send the message loud and clear that the party is over. If you steal from the public, you had better be prepared to go to jail. We will continue doing everything in our power to make sure of it. I want to thank United States Attorney David C. Joseph and his staff for their usual outstanding work, as well as our partners at the FBI.”
The FBI, and State of Louisiana, Office of State Inspector General, conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan and First Assistant U.S. Attorney Alexander C. Van Hook prosecuted the case.
# # #
WeLeakInfo.com Domain Name SeizedRead the Press Release
WASHINGTON – Today, the Federal Bureau of Investigation and the U.S. Department of Justice announced that they have seized the internet domain name weleakinfo.com. The announcement was made by U.S. Attorney Jessie K. Liu of the District of Columbia and Special Agent in Charge Timothy M. Dunham of the FBI’s Washington Field Office.
The website had claimed to provide its users a search engine to review and obtain the personal information illegally obtained in over 10,000 data breaches containing over 12 billion indexed records – including, for example, names, email addresses, usernames, phone numbers, and passwords for online accounts. The website sold subscriptions so that any user could access the results of these data breaches, with subscriptions providing unlimited searches and access during the subscription period (one day, one week, one month, or three months).
With execution of the warrant, the seized domain name – weleakinfo.com – is now in the custody of the federal government, effectively suspending the website’s operation. Visitors to the site will now find a seizure banner that notifies them that the domain name has been seized by federal authorities. The U.S. District Court for the District of Columbia issued the seizure warrant.
Any persons having information concerning weleakinfo.com or its owners and operators are encouraged to provide that information by filing a complaint (referencing #weleakinfo in the “Description of Incident” field) with the FBI’s Internet Crime Complaint Center (IC3) at https://www.ic3.gov/complaint/default.aspx.
The seizure is part of a comprehensive law enforcement action taken by the FBI, the U.S. Attorney’s Office for the District of Columbia, and the Department of Justice’s Computer Crime and Intellectual Property Section, along with international law enforcement, including the United Kingdom’s National Crime Agency, the Netherlands National Police Corps, the German Bundeskriminalamt (the Federal Criminal Police Office of Germany), and the Police Service of Northern Ireland.
Washington, D.C. Resident Sentenced for Violating the Toxic Substances Control ActRead the Press Release
A Washington, D.C. man was sentenced yesterday to 60 days’ incarceration, two years of supervised release, a $50,000 fine and 300 hours of community service for violating the Toxic Substances Control Act in the course of renovating a Washington, D.C., property without following lead-safe work practices and lead disclosure requirements.
Mohammad Sikder, 60, had previously pled guilty to these offenses on June 20, 2019, before the Honorable Amy Berman Jackson. Sikder’s solely held company, District Properties LLC, also pled guilty to making false statements, at Sikder’s direction, in 25 building permit applications to the District of Columbia Department of Consumer and Regulatory Affairs (DCRA). These applications understated the age of the homes being renovated, with the intent to avoid regulatory scrutiny of inadequate lead-based paint safety measures at those properties. Judge Jackson sentenced District Properties LLC to a $150,000 fine and two years’ probation with special condition of funding 3 lead-paint awareness seminars for real estate developers and contractors.
“Skirting laws that govern the use of toxic substances puts the public’s health at risk, and doing so will get you investigated and prosecuted,” said Jeffrey Bossert Clark, Assistant Attorney General for the Environment and Natural Resources Division. “Lead-safe work practices and disclosure requirements provide essential protections from lead exposure, and this case shows that business owners and individuals who violate them will get jail time and pay a substantial penalty.”
“The defendant is being held accountable for providing false information on the permit application concerning the age of the building and using untrained workers to remove lead paint from the property,” said Jennifer Lynn, Special Agent in Charge of EPA’s criminal enforcement program in the District of Columbia. “Today’s sentencing sends a clear signal that EPA and its law enforcement partners are committed to enforcing environmental laws that protect the health and safety of our communities.”
In 2018, the U.S. Environmental Protection Agency (EPA), Housing and Urban Development (HUD), and U.S. Health and Human Services (HHS) launched the Trump Administration’s Federal Lead Action Plan to Reduce Childhood Lead Exposures and Associated Health Impacts. EPA and the Justice Department are working together to investigate and prosecute those who violate lead-safe work practices and lead disclosure requirements under TSCA.
Lead poisoning continues to be a major environmental health problem in the United States, although it is completely preventable. The most common source of childhood lead poisoning is lead-based paint in older homes, and the primary exposure pathway is ingestion of lead-contaminated dust. Lead is a toxic substance that can cause permanent damage, and is regulated under the Toxic Substances Control Act. Under the Renovation, Repair and Painting Rule (RRP Rule), contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, childcare facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination.
According to a statement of offense filed along with the plea agreements, Sikder and District Properties LLC purchased and renovated a property in Washington, D.C., without following the requirements of the RRP Rule. In 2014, the company submitted a building permit application to DCRA for addition, alteration, and repair of the property. At Sikder’s instruction, the employee submitting the permit application, under the section of the application titled “Lead Abatement,” falsely indicated that the property was built after 1978. During the summer and fall of 2014, a contractor conducted demolition at the property without following RRP Rule safe work practices. The demolition work included removing windows, removing interior and exterior painted surfaces, and removing floor and ceiling joists.
A Sept. 24, 2015, Occupational Safety and Health Administration inspection revealed multiple hazards, including employees performing manual demolition on a wall surface that had paint containing lead; the lack of an employee exposure assessment to determine actual employee exposure; the lack of lead training to employees; and proper sanitation practices not being followed. Sampling analysis showed lead present on the dump truck and employees’ hands. When the property was properly remediated and sold, Sikder and District Properties LLC did not provide the purchasers with this information and with a report documenting the prior existence of lead-based paint at the property.
Between 2011 and 2017, District Properties LLC submitted 25 renovation permit applications for properties in Washington, D.C., on which the company falsely represented that the properties had been built after 1978, thereby circumventing additional permitting requirements and avoiding EPA oversight with respect to RRP Rule compliance, which would be triggered by an accurate permit application.
The investigation was handled by the EPA-Criminal Investigations Division, in partnership with the Metropolitan Police Department Environmental Crimes Unit. Trial Attorney Cassandra J. Barnum of the Environmental Crimes Section is prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Washington man charged with aggravated sexual abuse of a minor under age 12Read the Press Release
HONOLULU, Hawaii – Shawn M. Wilcher, 37, of Tacoma, Washington, was indicted by a federal grand jury today with aggravated sexual abuse of a minor under the age of 12 in violation of 18 U.S.C. § 2241(c). The abuse occurred at Hickam Air Force Base, which is within federal jurisdiction in the District of Hawaii. Wilcher lived on this military base between 2015 and 2018 when he committed the offense. He was previously charged federally in the Western District of Washington for related offenses against the same minor. Kenji M. Price, U.S. Attorney for the District of Hawaii, made the announcement.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of the charges, Wilcher faces a mandatory minimum sentence of 30 years in prison.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Morgan Early.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and 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.
Waldorf Man Sentenced to 20 Years in Federal Prison for Production of Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Christopher Crawford, age 40, of Waldorf, Maryland to 20 years in federal prison, followed by 25 years of supervised release, for production of child pornography. The sentence was imposed on January 15, 2020. Judge Grimm also ordered that, upon his release from prison, Crawford must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to his guilty plea, on January 5, 2018, Crawford agreed to a search of his cellular phone as part of an investigation by the Prince George’s County Police Department, revealing videos and images of two minor female victims engaged in sexually explicit conduct, and documenting Crawford’s sexual abuse of the victims.
On February 15, 2018, search warrants were executed on Crawford’s residence and a vehicle. Law enforcement recovered electronic media and devices that contained files depicting the victims engaged in sex acts or simulated sex acts with Crawford, and other sexually explicit images.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joseph R. Baldwin and Jessica C. Collins, who prosecuted the federal case.
# # #
U.S. Attorney’s Office Collects over $104M in Criminal and Civil Actions in 2019Read the Press Release
SACRAMENTO, Calif. — The U.S. Attorney’s Office collected $104,469,755 in criminal and civil actions during the fiscal year ending Sept. 30, 2019, U.S. Attorney McGregor W. Scott announced today. Of this amount, $78,774,806 was in civil actions and $25,694,949 was in criminal actions.
This office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,947,052 in cases pursued jointly by these offices. Of this amount, $1,928,713 was collected in civil actions and $18,339 was collected in criminal actions. Working with other partner agencies and divisions, the office collected $23,712,892 in asset forfeiture actions. These figures represent funds actually received during the year, not judgments or settlements that have not yet been paid.
“Financial recoveries are a critical part of our mission to protect the public treasury and hold those who violate the law accountable for the injury they cause,” said U.S. Attorney Scott. “Each year, our recoveries for victims and taxpayers dwarf the total cost of operating our office. We will continue to aggressively pursue compensation from those who commit crimes and other wrongs in our district, to take the profit out of crime and to ensure that wrongdoers—not the public—bear the costs of unlawful conduct. I am enormously proud of these recoveries and other great accomplishments this year by all the dedicated public servants who work in this office.”
Major recoveries during this period include: $50.5 million from Health Net Federal Services for false claims submitted to the Department of Veterans Affairs under a contract to provide veterans with health care, $13.4 million in fraud proceeds forfeited from NBA executive Jeff David and restored to the Sacramento Kings, $9 million from Kernen Construction Co. and Bundy & Sons Logging for damages caused by a fire that burned more than 1,600 acres of the Shasta-Trinity National Forest, and $10 million from BMO Harris Bank N.A. to resolve allegations that the bank violated the Financial Institutions Reform, Recovery and Enforcement Act by engaging in a fraud.
U.S. Attorneys’ Offices and the Justice Department’s litigating divisions enforce and collect debts owed to the United States and to victims of federal crimes. Federal law requires defendants convicted of certain crimes to pay restitution to the victims for physical injury or financial loss. Criminal fines and felony assessments are distributed by the Department of Justice Crime Victims’ Fund to state victim-compensation and victim-assistance programs. Assets recovered through forfeitures are used to restore lost funds to crime victims, to reimburse forfeiture-related investigative expenses, and for other law-enforcement purposes authorized by Congress.
Most civil recoveries were from enforcement actions seeking compensation and penalties for frauds on federal programs or federally insured financial institutions, negligent destruction of National Forest land by fire, and violations of federal health, safety, civil rights, or environmental laws. Recoveries in civil enforcement actions are used primarily to return taxpayer funds to defrauded programs and for restoration of damaged public resources.
U.S. Attorney Davis Announces New Administrative OfficerRead the Press Release
BOISE – Joel M. Hawker is the District of Idaho’s new Administrative Officer, announced U.S. Attorney Bart M. Davis.
Mr. Hawker is an Idaho native and a graduate of Boise State University. He started with the U.S. Attorney’s Office in February 2003 as an IT Student Trainee. After graduating from Boise State in 2003 with a Bachelor of Business Administration in Networking and Telecommunications, he became the District’s IT Specialist. In January 2016, he was promoted to IT Systems Manager, where he served on the Department of Justice’s Information Technology Working Group (ITWG). The ITWG provides a comprehensive nationwide approach to share information and identify business requirements for IT investments transparent to all affected stakeholders.
In December 2019, USA Davis promoted Mr. Hawker to become the District’s new Administrative Officer. He will continue to aid the IT department and help hire his replacement in addition to filling the role of Administrative Officer.
“Throughout his tenure with the office, Joel has proven to be an invaluable colleague,” said U.S. Attorney Davis. “Joel brings unrivaled talent to the leadership team and I look forward to his contributions.”
# # #
Two Men Sentenced to Prison for Trafficking Methamphetamine in North Alabama Thanks to Joint Law Enforcement EffortRead the Press Release
BIRMINGHAM, Ala. –A federal judge today sentenced two men involved in a methamphetamine conspiracy to prison sentences ranging from twelve years to twenty-four years, announced U.S. Attorney Jay E. Town, Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Judge Madeline H. Haikala sentenced Melvin “Froggy” Rolin, of Cullman, to 24 years and 7 months in prison, as the leader of a North Alabama drug conspiracy that was responsible for importing over 90 kilograms of pure methamphetamine into Cullman, Morgan, Madison and Limestone counties. Rolin pled guilty in June 2019 to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine between January 2016 and February 2018. Rolin also pled guilty to distributing 5 grams or more of methamphetamine on February 3, 2018 and to possessing a North American Arms .22 magnum caliber pistol firearm in furtherance of a drug-trafficking crime and being a felon in possession of a firearm.
The judge sentenced Barry Williams, of Morgan County, to 12 ½ years in prison for his role in the drug conspiracy. Williams pled guilty in October 2019 to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine between January 2016 and February 2018. Rolin also pled guilty to distributing 5 grams or more of methamphetamine on January 31, 2018.
“There is no daylight between local, state and federal law enforcement,” Town said. “These prosecutions represent the hard work of many of our law enforcement partners and exemplify our global efforts to stop the influx of dangerous drugs like methamphetamine being brought into our communities. These defendants will now be joined by other drug dealers in a federal prison.”
“Drugs and guns are a deadly combination that often end with violent acts,” Morris said. “Today’s sentences should send a resounding message to all drug dealers in Alabama. We will target you, investigate you, and ensure that you go to prison in order to make our communities safe.”
“ATF’s Crime Gun Intelligence as part of Project Guardian, continue to focus on reducing violent crime as the criminal element knows no geographical boundaries,” Watson said.
The DEA, ATF along with the Madison County Sheriff’s Office, Morgan County Sheriff’s Office, and Cullman County Sherriff’s Office investigated the case, which Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted.
Two Former Correctional Officers Plead Guilty to Federal Offenses Following the In-Custody Death of a WomanRead the Press Release
Today, two more defendants pleaded guilty in connection with their roles in the death of Nimali Henry, an inmate in their custody. Henry, who had a rare blood disorder and other medical conditions, died in the St. Bernard Parish Prison in Chalmette, Louisiana, on April 1, 2014, after failing to receive treatment for her serious medical needs during the 10 days she was incarcerated there.
“Officers such as Andre Dominick and Lisa Vaccarella have a responsibility to protect the civil rights of all in their custody,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to defend the civil rights of all citizens.”
“The protection for all of our citizen’s civil rights is an essential part of our constitutional rights,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office along with DOJ, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizens civil rights.”
“Captain Andre Dominick and Correctional Officer Lisa Vaccarella were responsible for the welfare of inmates at the St. Bernard Parish Prison. Because of the choices each defendant made, Nimali Henry failed to get the care and attention that she needed to address known medical conditions, leading to her death,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “The FBI New Orleans Field Office, in coordination with the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office, remain committed to protecting the rights of all Americans, to include those incarcerated.”
Dominick, a former correctional captain, pleaded guilty to violating the civil rights of Henry, pursuant to 18 U.S.C. § 242. In pleading guilty, Dominick – who was acting as the medical officer during Henry’s incarceration – admitted that he knew that Henry had serious medical needs, but failed to take any reasonable steps to get her the medical attention she needed during the 10 days that she was in the custody.
Vaccarella, a former correctional deputy, pleaded guilty to one count of misprision of a felony. In pleading guilty to that count, Vaccarella admitted that she knew that other officers at the jail had willfully deprived Henry of medical treatment for her serious medical needs, but she failed to take any affirmative steps to alert federal authorities to this federal civil rights violation. In addition, Vaccarella pleaded guilty to one count of making false statements to the FBI, admitting that, during her voluntary interview with the FBI, she lied to the FBI about her observations of Henry.
Vaccarella is scheduled to be sentenced on April 29, 2020. Dominick is scheduled to be sentenced on June 10, 2020. Dominick faces a sentence of up to life imprisonment. Vaccarella faces a sentence of up to eight years of imprisonment.
Previously, in related cases, former Corporal Timothy Williams pleaded guilty on Sept. 18, 2018, to one count of deprivation of rights under color of law, in violation of 18 U.S.C. § 242. In pleading guilty, Williams admitted that he willfully disregarded a substantial risk of serious harm to Henry’s health and safety by failing to take reasonable measures to address her medical conditions. On Jan. 7, 2020, former Deputy Debra Becnel pleaded guilty to making false statements in connection with the federal investigation into Henry’s death, in violation of 18 U.S.C. § 1001.
This case was investigated by the FBI and is being prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant U.S. Attorneys Chandra Menon and Tracey N. Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana.
Two Former Correctional Officers Plead Guilty to Federal Offenses Following the In-Custody Death of a WomanRead the Press Release
WASHINGTON – Today, two more defendants pleaded guilty in connection with their roles in the death of Nimali Henry, an inmate in their custody. Henry, who had a rare blood disorder and other medical conditions, died in the St. Bernard Parish Prison in Chalmette, Louisiana, on April 1, 2014, after failing to receive treatment for her serious medical needs during the 10 days she was incarcerated there.
“Officers such as Andre Dominick and Lisa Vaccarella have a responsibility to protect the civil rights of all in their custody,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to defend the civil rights of all citizens.”
“The protection for all of our citizen’s civil rights is an essential part of our constitutional rights,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Violation of these entitlements, especially in this case by the correctional officers sworn to protect the rights of inmates, erodes public confidence in our correctional system. The public must be able to trust that correctional officers are fulfilling their duties honestly and are truthful during the course of federal investigations or face the consequences of their actions. Our office along with DOJ, state and local law enforcement agencies will continue to investigate and prosecute any violations of our citizens civil rights.”
“Captain Andre Dominick and Correctional Officer Lisa Vaccarella were responsible for the welfare of inmates at the St. Bernard Parish Prison. Because of the choices each defendant made, Nimali Henry failed to get the care and attention that she needed to address her known medical conditions, leading to her death,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “The FBI New Orleans Field Office, in coordination with the Department of Justice’s Civil Rights Division and U.S. Attorney’s Office, remain committed to protecting the rights of all Americans, to include those incarcerated.”
Dominick, a former correctional captain, pleaded guilty to violating the civil rights of Henry, pursuant to 18 U.S.C. § 242. In pleading guilty, Dominick – who was acting as the medical officer during Henry’s incarceration – admitted that he knew that Henry had serious medical needs, but failed to take any reasonable steps to get her the medical attention she needed during the 10 days that she was in the custody.
Vaccarella, a former correctional deputy, pleaded guilty to one count of misprision of a felony. In pleading guilty to that count, Vaccarella admitted that she knew that other officers at the jail had willfully deprived Henry of medical treatment for her serious medical needs, but she failed to take any affirmative steps to alert federal authorities to this federal civil rights violation. In addition, Vaccarella pleaded guilty to one count of making false statements to the FBI, admitting that, during her voluntary interview with the FBI, she lied to the FBI about her observations of Henry.
Vaccarella is scheduled to be sentenced on April 29, 2020. Dominick is scheduled to be sentenced on June 10, 2020. Dominick faces a sentence of up to life imprisonment. Vaccarella faces a sentence of up to eight years of imprisonment.
Previously, in related cases, former Corporal Timothy Williams pleaded guilty on Sept. 18, 2018, to one count of deprivation of rights under color of law, in violation of 18 U.S.C. § 242. In pleading guilty, Williams admitted that he willfully disregarded a substantial risk of serious harm to Henry’s health and safety by failing to take reasonable measures to address her medical conditions. On Jan. 7, 2020, former Deputy Debra Becnel pleaded guilty to making false statements in connection with the federal investigation into Henry’s death, in violation of 18 U.S.C. § 1001.
This case was investigated by the FBI and is being prosecuted jointly by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant U.S. Attorneys Chandra Menon and Tracey N. Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana.
# # #
Two Dentists and Office Manager Indicted for Medicaid Fraud SchemeRead the Press Release
BOSTON – A federal grand jury in Boston has indicted a Worcester dentist, a Chelmsford dentist, and a Worcester office manager for their participation in a scheme to defraud the Massachusetts Medicaid program, commonly known as MassHealth.
Dr. Anthony DiStefano III, 70, of Worcester, was indicted on one count of conspiracy to commit health care fraud, one count of health care fraud, two counts of aggravated identity theft and one count of tax evasion. Dr. Scott Cale, 65, of Chelmsford, and Robin Cronin, 58, of Worcester, were each indicted on one count of conspiracy to commit health care fraud and one count of health care fraud. The defendants were arrested this morning and will appear in federal court in Boston this afternoon.
According to the indictment, in 2005, MassHealth excluded DiStefano, a dentist practicing in Worcester, from participation in the MassHealth program. DiStefano twice sought readmission into MassHealth’s provider network, but was denied both times in light of significant concerns regarding the quality of dental care he delivered to patients. In order to circumvent his exclusion, DiStefano recruited another dentist, Cale, to join his practice. From 2014 to 2018, dental services that DiStefano personally delivered were billed to MassHealth using Cale’s provider identification credentials. Cale then paid DiStefano a share of the money that MassHealth paid Cale. The purpose of this arrangement was to deceive MassHealth into paying for dental services that were not reimbursable (because MassHealth had terminated DiStefano from the MassHealth program). Cronin, DiStefano’s office manager, was aware of the arrangement and personally billed MassHealth for services that were not reimbursable, knowing that the claims were false.
In addition, according to the indictment, DiStefano owed substantial tax liabilities to the Internal Revenue Service for the years 2011-2014. The IRS notified DiStefano of his outstanding tax liability and DiStefano evaded paying his outstanding liability by, for example, ceasing the use of bank accounts and operating his business in cash; cashing Social Security checks and checks from dental insurance companies at check cashing institutions, thus avoiding IRS levies on his bank accounts; and using the aforementioned Medicaid fraud scheme to conceal his income.
The charges of health care fraud and conspiracy to commit health care fraud provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a maximum fine of $250,000. 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; Massachusetts Attorney General Maura Healey; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Evan Panich and Chris Looney of Lelling’s Office, as well as Special Assistant U.S. Attorney Kevin Lownds, detailed from Healey Office, are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Twenty-Six People Charged with Trafficking at least Five Kilograms of Cocaine, Heroin and Fentanyl Between Puerto Rico and MilwaukeeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that 26 defendants have been charged in federal court with trafficking at least five kilograms or more of cocaine as well as distributable quantities of heroin and fentanyl. The defendants were also charged with money laundering and conspiracy to commit money laundering. If convicted, each defendant faces a mandatory minimum of 10 years in prison and up to life in prison. According to the complaint, the defendants were part of a drug-trafficking organization that has been sending multi-kilogram quantities of cocaine through the U.S. Postal Service from Puerto Rico to Milwaukee, Wisconsin.
On January 15, 2020, federal, state, and local law enforcement officers arrested 22 of these defendants. The officers also executed search warrants in both Milwaukee and Puerto Rico resulting in the seizure of approximately 15 kilograms of cocaine, at least 50 grams of heroin, at least 80 grams of crack cocaine, 35 firearms (25 handguns, 8 rifles, 1 fully automatic handgun, and 1 sawed off shotgun), and approximately $267,000 in U.S. currency.
United States Attorney Krueger said in announcing this takedown: “Our communities continue to suffer from an unprecedented drug epidemic that has taken far too many lives. The drug trafficking organizations that fuel this epidemic for their own profit must be stopped and held accountable. These arrests demonstrate the extraordinary commitment and partnership among all levels of law enforcement to pursue traffickers, wherever they are operate.”
The defendants charged in this law enforcement action, called Operation Island Hopper, are:
Name
Age
Residence
Jose GONZALEZ-COLLADO
28
Milwaukee
Hector Yamil RODRIGUEZ-RODRIGUEZ
28
Milwaukee
Marcos APONTE-LEBRON
40
Milwaukee
Vladimir RODRIGUEZ-RODRIGUEZ
25
Milwaukee
Steven CORTES-IRIZARRY
38
Milwaukee
Kevin TORRES-BONILLA
29
Milwaukee
Andros MARTINEZ-PELLOT
30
Milwaukee
Eric ROSA
32
Milwaukee
Kadeja LEWIS
29
Milwaukee
Yadier ROSARIO
23
Milwaukee
Julio RIVERA-RAMIREZ
51
Milwaukee
Rafael RIVERA-QUINONES
34
Milwaukee
Ricardo BONILLA
48
Milwaukee
Jose BURGOS-RIVERA
42
Milwaukee
Jomar LABOY-SILVA
27
Milwaukee
Enid MARTINEZ
32
Milwaukee
Alexander MORALES-RIVERA
27
Milwaukee
Wilberto SANTIAGO-MARTINEZ
38
Milwaukee
Julio SEDA-MARTINEZ
39
Milwaukee
Jose M. AVILES-GONZALEZ
25
Milwaukee
David QUINONES-QUINONES
48
Puerto Rico
David Joel QUINONES-RIOS
29
Puerto Rico
Roberto ORENCH-FELICIANO
27
Puerto Rico
Carlos Omar CONCEPCION-RIVERA
31
Puerto Rico
Yashira Jehovalis CORTES-NIEVES
24
Puerto Rico
Keishla M. ORENCH-FELICIANO
27
Puerto Rico
“This case shows the impact that intensive investigations targeting large-scale drug trafficking can have,” said Wisconsin Attorney General Josh Kaul. “When local, state, and federal investigators work together, as they have in this case, we can disrupt the supply of narcotics to Wisconsin and help people avoid addiction. Thank you to the brave law enforcement professionals at DCI and other agencies who have worked on this case.”
“The DEA is committed working with its local, state and federal law enforcement partners to keep the citizens of Milwaukee safe from drug trafficking and the violence that is always associated with it. Today’s arrests shows the resolve of law enforcement to work together in order to identify, investigate, and prosecute individuals who profit from the national drug epidemic,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
Chicago Division Postal Inspector in Charge Bill Hedrick said, “The incredible partnerships between law enforcement agencies are imperative to protect the American public from illegal drug activity and the violence that goes along with it. The criminal activity in this case was uncovered through the investigation of drug parcels by a well-trained Postal Inspector, and transformed into this multi-faceted investigation which led to the numerous arrests we have today. Postal Inspectors work not only to remove drugs from the mail, but to investigate and arrest individuals, and disrupt drug trafficking across the United States.”
“This investigation’s success is a direct result of the strong partnership between HSI and our local, state and federal law enforcement partners,” said Special Agent in Charge James M. Gibbons, HSI Chicago. “This close coordination between law enforcement agencies is essential to ensuring those allegedly involved in the illicit drug trade are brought to justice.”
ATF Special Agent in Charge Tim Jones said, “Protecting the American people from criminal organizations is a priority of the ATF. Operations such as this are a great example of how law enforcement partnerships working in concert can help protect the public from criminal organizations and reduce violent crime.”
The defendants were charged based on a multi-year investigation led by law enforcement agents and officers from the Drug Enforcement Administration (DEA), the North Central High Intensity Drug Trafficking Area (HIDTA), the Wisconsin Department of Justice, Division of Criminal Investigations, Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service, the Milwaukee Police Department, and the City of New Berlin Police Department. Assistant United States Attorney Robert J. Brady, Jr. and Assistant United States Attorney Gail Hoffman are prosecuting the case.
The public is cautioned that a criminal complaint is merely a charge and the defendant is presumed innocent until and unless proven guilty.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Troy Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
ALBANY, NEW YORK – Jessica Pascale, age 34, of Troy, New York, pled guilty today to defrauding the Social Security Administration (SSA) by diverting and stealing the benefit payments of two minor children while she was employed as a Social Security claims representative.
The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
As part of her guilty plea, Pascale admitted that in July and September 2019, she used the SSA computer system in the SSA’s Troy office to divert two Supplemental Security Income (SSI) benefit payments intended for two minor children, totaling $3,309.34, into her personal bank account. Neither the children, nor their parents, were aware of the thefts, which were discovered through internal controls at SSA. Pascale pled guilty to four felony charges: two charges of theft of government property and two charges of fraud in connection with identification information.
At sentencing on May 20, 2020, Pascale faces up to 15 years in prison and up to 3 years of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Topeka Men Sentenced on Federal Carjacking ChargesRead the Press Release
TOPEKA, KAN. – Two Topeka men were sentenced today on federal carjacking charges, U.S. Attorney Stephen McAllister said.
Chauncey Elliott Lyles, 20, Topeka, Kan., was sentenced to 87 months in federal prison. Co-defendant Mathdaniel Squirrel, 23, Topeka, Kan., was sentenced to 72 months. Both defendants pleaded guilty to one count of carjacking.
In their pleas, the defendants admitted that on Jan. 30, 2019, in Topeka, they threatened the driver of a 2007 Cadillac SUV and stole the driver’s vehicle.
McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Skip Jacobs for their work on the case.
Three Indicted in Warranty-Deed Fraud ConspiracyRead the Press Release
OKLAHOMA CITY – A federal grand jury has indicted LAURA R. JOHNSON, 44, THOMAS JOHNSON, SR., 51, and CHERYL M. ASHLEY, 69, all of Oklahoma City, for conspiracy, fraud, identity theft, and other crimes, based on allegations that they used fraudulent legal documents to take ownership of more than a dozen homes without the consent or knowledge of the actual owners, announced U.S. Attorney Timothy J. Downing.
According to the indictment, the defendants used fraudulent documents from 2014 until 2019 to obtain title to homes and other properties. A number of properties the defendants are alleged to have targeted had delinquent property taxes and therefore were subject to being auctioned by the Oklahoma County Treasurer’s Office. By paying off one or more years of taxes, the indictment alleges, the defendants caused the properties to be removed from the auction process. The defendants then allegedly filed fraudulent warranty deeds to transfer properties into the names of fictitious companies and individuals. The conspiracy also allegedly included fraudulent confidential stamp tax affidavits, fake mortgages, and forged notary signatures and seals.
Some homeowners are alleged to have vacated their homes based on phony eviction notices posted as part of the conspiracy. When certain victims fought the takeover of their homes in court, the indictment alleges, the defendants filed pleadings with the names of fictitious lawyers and submitted affidavits in court signed by fictitious people.
According to the indictment, the defendants targeted one home that had been owned by a woman who died in 2012. After they gained control of the property, the defendants allegedly used bank records they found in the home and forged a power of attorney in an attempt to withdraw more than $100,000 from the dead woman’s bank account. It is alleged that when that failed, conspirators attempted to steal money by writing checks on the dead woman’s account with forged signatures. It is also alleged they filed a false will in Oklahoma County District Court after the woman’s nephew learned of the death and filed a probate action. According to the indictment, based on the fraudulent information, the court appointed Defendant Laura Johnson as the personal representative of the estate, which enabled her to withdraw $63,950 from the dead woman’s bank accounts and obtain $45,000 from her oil and gas interests.
"Oklahomans have to be able to rely on records county officials maintain to establish ownership of real property," said U.S. Attorney Downing. "When federal charges help uphold the integrity of governmental property records, the Department of Justice will eagerly work with state investigators and prosecute fraud. Thank you to Attorney General Hunter and his team for this outstanding example of federal-state cooperation."
"The elaborate coordination by these defendants and lengths to which they defrauded property owners is disturbing," Attorney General Hunter said. "They not only preyed on victims whose properties were vacant, but they also used forged eviction notices and court documents to remove people from their homes and even targeted the deceased. I appreciate the leadership of U.S. Attorney Downing and our other law enforcement partners for making this case a priority."
All three defendants were arrested this morning. They were arraigned this afternoon before U.S. Magistrate Judge Gary M. Purcell.
Each defendant is charged with conspiracy to commit mail and wire fraud, which in the event of convictions could result in sentences of thirty years in prison and fines of up to $1,000,000. Each is also charged with conspiracy to commit identity theft, which could result in sentences of five years in prison and a fine of up to $250,000. Laura Johnson is charged with making a false statement to a financial institution and four counts of wire fraud; Thomas Johnson is charged with making a false statement to a financial institution, and one count of bank fraud. Each of these counts could carry a maximum sentence of thirty years in prison and a fine of $1,000,000. Furthermore, Laura Johnson is charged with four counts of aggravated identity theft, while Thomas Johnson is charged with two counts of aggravated identity theft. A conviction on one of these counts would trigger a mandatory two-year prison term, to be served in addition to any other imprisonment imposed in the case. Each defendant would also be ordered to pay restitution to victims for any counts of conviction.
These charges are the result of an investigation by the United States Secret Service and the Oklahoma Attorney General’s Office. Assistant U.S. Attorneys Kerry A. Kelly and Jessica L. Perry are prosecuting the case.
The public is reminded that these charges are merely allegations and that each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Three Alleged Members of the Violent Extremist Group “the Base” Facing Federal Firearms and Alien-Related ChargesRead the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed charging three alleged members of the racially motivated violent extremist group “The Base” with firearms and alien-related charges. The complaint charges Brian Mark Lemley, Jr., age 33, of Elkton, Maryland, and Newark, Delaware, and William Garfield Bilbrough IV, age 19, of Denton, Maryland, with transporting and harboring aliens and conspiring to do so. Lemley is also charged with transporting a machine gun and disposing of a firearm and ammunition to an alien unlawfully present in the United States. Further, the complaint charges Lemley and Canadian national Patrik Jordan Mathews, age 27, currently of Newark, Delaware, with transporting a firearm and ammunition with intent to commit a felony. The complaint also charges Mathews with being an alien in possession of a firearm and ammunition. The complaint was filed January 14, 2020, and was unsealed today upon their arrests by the FBI.
The defendants are expected to have initial appearances beginning at 2:45 p.m. today in U.S. District Court in Greenbelt, 6400 Cherrywood Lane, before U.S. Magistrate Judge Charles B. Day.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; United States Attorney for the District of Delaware David C. Weiss; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to the criminal complaint, within The Base’s encrypted chat rooms, members have discussed, among other things, recruitment, creating a white ethno-state, committing acts of violence against minority communities (including African-Americans and Jewish-Americans), the organization’s military-style training camps, and ways to make improvised explosive devices. Lemley previously served as a Cavalry Scout in the United States Army, and as of August 2019, Mathews, a Canadian citizen in the United States illegally, was a combat engineer in the Canadian Army Reserve.
The affidavit filed in support of the criminal complaint alleges that on August 19, 2019, Mathews unlawfully crossed from Canada into the United States near the Manitoba/Minnesota border. On August 30, 2019, Lemley and Bilbrough allegedly drove from Maryland to Michigan in order to pick up Mathews, and all three men returned to Maryland on August 31, 2019.
As detailed in the criminal complaint, on November 3, 2019, the three men drove from Virginia to the Eastern Shore of Maryland, where Bilbrough resided. Lemley and Mathews then continued to the area of Elkton, Maryland, where Lemley obtained a motel room for Mathews. The following day, Lemley drove Mathews to Delaware, where Lemley rented an apartment in which the two have resided since that time.
According to the affidavit, during December 2019, Lemley and Mathews used an upper receiver ordered by Lemley, as well as other firearms parts, to make a functioning assault rifle. Also in December, Lemley, Mathews, and Bilbrough allegedly attempted to manufacture a controlled substance, DMT, at Lemley and Mathews’s apartment. Furthermore, Lemley, Mathews, and Bilbrough discussed The Base’s activities and spoke about other members of the organization. Mathews also allegedly showed the assault rifle to Bilbrough, who examined the assault rifle and returned it to Mathews.
In January 2020, according to the affidavit, that Lemley and Mathews purchased approximately 1,650 rounds of 5.56mm and 6.5mm ammunition; traveled from Delaware to a gun range in Maryland, where they shot the assault rifle; and retrieved plate carriers (to support body armor) and at least some of the purchased ammunition from Lemley’s prior residence in Maryland.
If convicted, Lemley and Bilbrough each face a maximum sentence of five years for transporting and harboring certain aliens, and 10 years for conspiracy to do so. Lemley also faces a maximum of five years in prison for transporting a machine gun in interstate commerce, and a maximum of 10 years in federal prison for disposing of a firearm and ammunition to an illegal alien. Lemley and Mathews each face a maximum of 10 years in federal prison for transporting a firearm and ammunition in interstate commerce with intent to commit a felony offense. Finally, Mathews faces a maximum of 10 years in federal prison for being an alien in possession of a firearm and ammunition. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorneys Robert K. Hur and David C. Weiss commended the FBI Baltimore Joint Terrorism Task Force (JTTF) and ATF for their work in the investigation, and thanked U.S. Homeland Security Investigations, the Maryland Department of Natural Resources, the Maryland State Police, and the Delaware State Police for their assistance. Mr. Hur and Mr. Weiss thanked their offices’ national security prosecutors, who are handling the case.
# # #
Superseding Indictment Charges Man for Making Threats Against a Maryland SynagogueRead the Press Release
A federal grand jury returned a superseding indictment charging Stephen Orback, 65, for threatening on multiple occasions to attack a Baltimore-area synagogue. Count One charges Orback with intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs through the threatened use of force, in violation of Title 18, United States Code, Section 247. Count Two charges Orback with making threatening interstate communications, in violation of Title 18, United States Code, Section 875.
According to the superseding indictment, between May 12 and July 21, 2019, Orback made numerous telephone calls to an employee of a synagogue in Owings Mills, Maryland, threatening to kill members of the synagogue’s congregation with firearms, by using explosives, and by burning the synagogue down. The superseding indictment replaces a previous indictment, handed down by the grand jury on Aug. 15, 2019, which charged the defendant only with the interstate-threats count.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Orback faces a maximum sentence of 20 years in prison, three years of supervised release, and a fine of up to $250,000.
The case is being investigated by the FBI's Baltimore Field Office and is being prosecuted by Assistant U.S. Attorney P. Michael Cunningham of the District of Maryland and Civil Rights Division Trial Attorney Zachary Dembo.
For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Steubenville man admits to his role in a drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Michael Bernard Barnett, of Steubenville, Ohio, has admitted to his role in a crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Barnett, age 44, also known as “Gator,” pled guilty to one count of “Distribution of Cocaine Base.” Barnett admitted to selling cocaine base, also known as “crack,” in January 2019 in Brooke County.Barnett faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
Staten Island Man Sentenced to 33 Months’ Imprisonment for Defrauding Investors in Virtual CurrencyRead the Press Release
Earlier today, in federal court in Brooklyn, Patrick McDonnell was sentenced by United States District Judge Nicholas G. Garaufis to 33 months’ imprisonment for wire fraud related to a scheme to defraud investors in virtual currency. In addition, McDonnell was ordered to pay $224,352 in restitution. McDonnell pleaded guilty in June 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the sentence.
“Patrick McDonnell is headed to prison for deceiving investors, using an alias, false promises and false balance statements for one purpose only—so that he could steal their money,” stated United States Attorney Donoghue. “This Office will continue to vigorously prosecute white-collar criminals who defraud the investing public.” Mr. Donoghue expressed his grateful appreciation to the Commodity Futures Trading Commission for its assistance with the investigation.
“Mr. McDonnell used his knowledge of virtual currencies to scam investors. While he thought he could outsmart law enforcement, his arrest and today’s sentence shows, no matter where you are, what’s done in the dark will be brought to the light,” stated USPIS Inspector-in-Charge Bartlett.
Between approximately November 2014 and January 2018, McDonnell portrayed himself on social media as an experienced trader in virtual currency, promising investors he would provide trading advice and purchase and trade virtual currency on their behalf. Beginning in approximately May 2016, McDonnell made similar representations and promises to investors through his Staten Island-based company, CabbageTech, Corp., also known as Coin Drop Markets. However, neither McDonnell nor CabbageTech provided investment services. Instead, McDonnell sent investors false financial statements showing that their investments had been profitable, and stole their money for his personal use. In total, McDonnell defrauded at least 10 victims of at least $194,000 in U.S. currency, 4.41 Bitcoin, 206 Litecoin, 620 Ethereum Classic and 1,342,634 Verge currency, for a total loss of $224,350.32. In addition to lying to investors about his company’s prowess, McDonnell also solicited customers using a false alias, “Jason Flack,” an individual that did not actually exist.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Hiral D. Mehta is in charge of the prosecution.
The Defendant:
PATRICK MCDONNELL (also known as “Jason Flack”)
Age: 47
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-148 (NGG)
St. Louis Man Sentenced for Robbing the Richmond Heights Post Office at GunpointRead the Press Release
St. Louis, MO –Dywane Upchurch, 39, of St. Louis, MO, was sentenced to 60 months for his role in robbing the Richmond Heights Post Office and assaulting a Postal employee while committing robbery. Upchurch appeared in federal court today before United States District Judge Catherine D. Perry.
According to court documents, on December 6, 2018, Dywane Upchurch entered the rear door of the U.S. Post Office in Richmond Heights located on Big Bend Boulevard. He was armed with a nine-millimeter semi-automatic pistol. Once inside, Upchurch brandished the firearm and forced both employees into a restroom. Upchurch then went to the cash register and stole approximately $8,800 in cash.
On January 17, 2019, Upchurch was taken into custody after United States Postal Inspectors executed an arrest warrant at a residence on Blakemore Place, St. Louis, Missouri. A firearm possessed by Upchurch was seized from the residence.
Upchurch pled guilty in October to felon in possession of a firearm and assault while committing a robbery.
This case is being investigated by the U.S. Postal Inspection Service and the Richmond Heights Police Department. Assistant U.S. Attorney John Ware is handling the case.
Soldotna Man Sentenced to Federal Prison for Heroin DistributionRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Matthew Sean Bremond, 32, of Soldotna, Alaska, was sentenced yesterday by Sr. U.S. District Judge Ralph R. Beistline, to serve nine years in federal prison, followed by five years of supervised release, for distributing large quantities of heroin throughout the Kenai Peninsula. In September 2019, Bremond pleaded guilty to one count of drug distribution.
According to court documents, on two occasions in Soldotna in May 2018, Bremond sold 126 and 96 grams of heroin from his residence. A search of Bremond’s house, storage units, and vehicle revealed evidence of drug trafficking activities such as large quantities of firearms and cash, bullet proof vests, vehicles, as well as 700 more grams of heroin and 40 grams of cocaine intended for distribution. The amount of cash and heroin seized, as well as the prior sales of heroin, represented over 20,000 dosage units that were distributed, or intended to be distributed, into the community.
In addition to the sentence imposed, Bremond agreed to forfeit $101,173.00, two Polaris 800 snow machines, one Xtreme utility trailer, a 2014 Raptor Ford F150 truck, a 2008 Dodge Charger SRT sedan, a 2006 Nissan 350Z coupe, 58 firearms, two bullet proof vests, two fully automatic modifications for handguns, two bump stocks, and one silencer. Bremond agreed that these were proceeds from, or used to facilitate, his drug trafficking enterprise.
At the sentencing hearing, Judge Beistline expressed concern that “large scale” drug traffickers like Bremond were “destroying communities.”
The Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Alaska State Troopers (AST), and the Kenai Police Department conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Kelly Cavanaugh of the U.S. Attorney’s Office for the District of Alaska.
Sex Trafficker Convicted Following A Jury Trial of Using Crack Cocaine and Heroin to Coerce Victims into Prostitution Going to Prison for 30 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Valentino Shine, Sr., 52, of Buffalo, NY, who was convicted following a jury trial of five counts of sex trafficking, and one count each of sex trafficking conspiracy, narcotics conspiracy, using and maintaining a drug-involved premises, and possession with intent to distribute crack cocaine, was sentenced to serve 30 years in prison by Chief U.S. District Judge Frank P. Geraci, Jr. He was also ordered to pay $73,600 to the victims of his crimes.
Assistant U.S. Attorneys Elizabeth R. Moellering and Meghan A. Tokash, who prosecuted the case, with support from the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit, stated that the defendant ran a sex trafficking operation out of his Humboldt Parkway residence in Buffalo. Shine preyed upon and exploited women who were vulnerable and addicted to drugs, coercing them to engage in commercial sex acts. The defendant provided or withheld drugs to coerce the victims to engage in commercial sex acts.
According to evidence presented by the government at trial, Shine was recovering from a cocaine addiction and knew the power that drug addiction could have over someone. The defendant used this as a weapon to target vulnerable women. Shine’s motto was “BABI PAE” – Break a (expletive) Incorporated; Pimping Ain’t Easy.
At the urging of the defendant, victims advertised on backpage.com. After performing sex acts for money, they would give that money to Shine. Money was important to Shine. When signing his name, the defendant wrote CREAM: “Cash Rules Everything Around Me.”
In addition to using drugs to control his victims, Shine also used physical beatings, manipulation, and brainwashing.
Three women who worked for the defendant died of drug overdoses as a result of their addictions.
“The defendant’s campaign to dehumanize the victims he ensnared was reprehensible,” noted U.S. Attorney Kennedy. “Through manipulation, brainwashing, and torture, the defendant cashed-in by robbing—and then selling—the dignity of a number of young, often vulnerable, women in our community. Hopefully, this prosecution and the lengthy prison sentence imposed will give Mr. Shine—and others like him—plenty of time to reflect on my Office’s unwavering commitment to the value and worth inherent in the lives of all those who live in our District.”
“The successful criminal prosecution of Valentino Shine highlights the brutality with which sex traffickers treat their victims and the lack of regard they have for human life,” said Kevin Kelly, Special Agent-in-Charge of HSI Buffalo. “This sentence should serve as a stark warning to all individuals and criminal groups involved that traffickers will be held accountable and brought to justice. Additionally, HSI will ensure the survivors get the help they need.”
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Human Trafficking Task Force of the Western District of New York.
# # # #
San Antonio Area Pharmaceutical Sales Representative Sentenced to Prison for Paying over $400K in Bribes to Physicians and Physician AssistantsRead the Press Release
In San Antonio this morning, a federal judge sentenced 46-year-old former pharmaceutical sales representative Holly Blakely, of San Antonio, TX, to 30 months in federal prison for a Bribery/Health Care Fraud scheme that netted her over $1 million, announced U.S. Attorney John Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
In addition to the prison term, Senior U.S. District Judge Fred Biery ordered that Blakely pay $ 1,746,222 in restitution and be placed on supervised release for a period of 3 years after completing her prison term. Federal authorities had previously forfeited approximately $88,800 in proceeds from the sale of Blakely’s house. Judge Biery also ordered Blakely, who remains on bond, to surrender to the U.S. Marshals Service by June 15, 2020, in order to begin her prison term.
On February 21, 2019, Blakely pleaded guilty to one conspiracy count that involved wire fraud, Health Care Fraud, violating the Texas Commercial Bribery statute, and paying and receiving illegal kickbacks.
According to court records, from February 2013 through December 2014, Blakely and others submitted numerous fraudulent prescriptions on behalf of unsuspecting individuals to two different pharmacies for compounding medications. Numerous prescriptions were for patients who never sought treatment from the medical professional who wrote, or whose name was used to obtain, the prescription.
Blakely received commissions from pharmacies based on the amount of money the pharmacies received from private and government health care insurers for prescriptions submitted by conspirators and filled by the pharmacies. Blakely, in turn, paid kickbacks to medical professionals to induce them into writing prescriptions for insured patients.
The total loss amount due to the defendant’s scheme was approximately $8,846,972.
The FBI, together with investigators from DEA Diversion, the Texas Attorney General’s Medicaid Fraud Control Unit, Texas Department of Public Safety; Office of Professional Management – Office of the Inspector General (OPM - OIG); Defense Criminal Investigation Service (DCIS) and Air Force Office of Investigations (AFOSI) investigated this case. Assistant U.S. Attorneys Justin Chung and Antonio Franco, Jr. are prosecuting this case on behalf of the Government, with assistance from Steven Seward of the Financial Litigation Unit.
#####
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.
Psychiatrist Sentenced to Prison for Healthcare Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach doctor was sentenced today to 27 months in prison for defrauding Medicare, Medicaid, and Tricare, and other health care benefits programs out of hundreds of thousands of dollars.
Additionally, Udaya K. Shetty, 64, agreed to pay over $1 million to settle related civil claims.
According to court documents, was a licensed psychiatrist practicing medicine at his own practice, Behavioral & Neuropsychiatric Group. Beginning in 2013, Shetty created a scheme by which he could overbill healthcare benefit programs by seeing patients for only five to 10 minutes, but then billing for services that were on average 41 to 63 minutes long. Shetty instructed his staff to often double, triple, or even quadruple book appointment times. The fraud became apparent when investigators discovered that on dozens of instances Shetty would need more than 24 hours a day of working to perform the services for which he billed.
In 2017, Shetty closed his own practice and joined another psychiatric practice, Quietly Radiant Psychiatric Services. While there Shetty, and one of his former employees, Mary Otto, engaged in a similar scheme. Although other Quietly Radiant staff members were responsible for billing, Shetty directed Otto to access the billing system and change all of his billing data to a higher billing rate. Otto complied and changed the data without the knowledge of Quietly Radiant’s staff. As a result of their actions, Shetty and Otto defrauded various healthcare benefit programs of more than $450,000. Otto pled guilty for her role in the scheme and was sentenced to 15 months in prison on January 10.
In regards to the civil settlement, Shetty agreed to pay $1,078,000 to the United States and the Commonwealth of Virginia to resolve his liability under the False Claims Act and the Virginia Fraud Against Taxpayers Act for submitting or causing the submission of false claims to the Medicare, Medicaid, and TRICARE programs.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS); and Mark R. Herring, Attorney General of Virginia, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Joseph L. Kosky prosecuted the criminal case. Assistant U.S. Attorney Clare P. Wuerker handled the civil case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-089.
Providence Woman Admits to Role in Fraudulent Opioids Prescription ConspiracyRead the Press Release
PROVIDENCE – A Providence woman admitted to a federal court judge on Wednesday that she participated in a conspiracy to create and use fraudulent prescriptions to gain and distribute opioid pills.
Tammy Bonham, 55, admitted her role in a scheme to manufacture fraudulent prescriptions utilizing the identities, Drug Enforcement Administration identification numbers, and signatures of medical practitioners without their consent. Prescriptions for varying amounts of oxycodone pills were written and presented to pharmacies by some members of the conspiracy and others working at the direction of the conspirators. Often times, the prescriptions were paid for with the fraudulent use of medical insurance.
Most of the oxycodone pills gained with the use of fraudulent prescriptions were sold to others for distribution.
Appearing before U.S. District Court William E. Smith, Bonham pleaded guilty to conspiracy to distribute and to possess with intent to distribute oxycodone, announced United States Attorney Aaron L. Weisman and Jeffrey Ebersole Special Agent in Charge of the Food and Drug Administration Office of Criminal Investigations.
Bonham is scheduled to be sentenced on April 24, 2020. Conspiracy to distribute and to possess with intent to distribute oxycodone is punishable by statutory penalties of up to 20 years imprisonment to be followed by 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the Rhode Island Food and Drug Administration-Office of Criminal Investigations task force, with the assistance of Social Security Administration, Office of Inspector General.
United States Attorney Aaron L. Weisman and Jeffrey Ebersole Special Agent in Charge of Food and Drug Administration Office of Criminal Investigation, thank the Office of Program Integrity, Executive Office of Rhode Island Health and Human Services for their assistance during this investigation.
###