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Wednesday 15 January 2020
St. Louis Man Sentenced for His Involvement in a CarjackingRead the Press Release
St. Louis, MO – Antonio Ball, 21, St. Louis, MO, was sentenced to 102 months in prison for carjacking and brandishing a firearm in furtherance of a crime. Ball appeared today before U.S. District Judge Ronnie L. White.
According to court documents, on May 19, 2018, the victim stopped at the Elite Market on North Broadway in a rental vehicle. Ball approached the victim with a handgun and demanded the car keys. When the victim complied, Ball and two other males jumped into the vehicle and drove off. Ball was later arrested by the St. Louis Metropolitan Police Department.
The Saint Louis Metropolitan Police Department. Assistant United States Attorney Tom Mehan is handling the case.
St. Louis City Woman Indicted for Using Her Deceased Grandmother's Social Security ChecksRead the Press Release
St. Louis, MO –Corrina Wester, 48, of St. Louis City, was indicted by a federal grand jury on one count of theft of government funds.
According to the Indictment, Wester grandmother, Dorothy Carlock, passed away on February 22, 2017. Carlock’s death was not reported to the Social Security Administration, and her Social Security benefits continued to be direct deposited into her bank account, which was held jointly with Wester. Carlock’s Social Security record showed that her direct deposit information was changed to this account only 15 days prior to her death.
As of May 1, 2019, the bank account was closed and the Social Security benefits had all been withdrawn. The total amount of Social Security funds deposited following Carlocks’ death was $39,961.00.
The charge of Theft of Government funds carries a maximum penalty of 10 years and a fine of $250,000. Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Social Security Administration is investigating the case. Special Assistant United States Attorney Diane Klocke is handling the case.
South Bay Veteran Pleads Guilty to Impersonating A Federal OfficerRead the Press Release
SAN JOSE – Alexander Taylor pleaded guilty today to impersonating a federal officer, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux. The Honorable Lucy H. Koh, U.S. District Judge, accepted the guilty plea.
According to the plea agreement, Taylor, 49, of San Jose, Calif., conducted a vehicle stop using his personal vehicle (identified as a Volkswagen Jetta in other filings by the government) that Taylor had equipped with emergency lights and a siren, similar to a law enforcement equipment. After pulling the vehicle over, Taylor falsely identified himself to the driver as a DEA Special Agent and displayed a fake DEA badge that he had purchased on the internet. According to the plea agreement, Taylor told the driver that he was going to write her a traffic citation; but when the driver responded that she did not believe that DEA Special Agents could issue traffic citations, Taylor left the scene.
A federal grand jury indicted Taylor on July 11, 2019, with one count of false impersonation of a federal officer, in violation of 18 U.S.C. § 912, and one count of possession of a counterfeit seal of an agency of the United States, in violation of 18 U.S.C. § 506(a)(3). Under the plea agreement, Taylor pleaded guilty to false impersonation of a federal officer; if Taylor complies with the plea agreement, the remaining count will be dismissed at sentencing.
Judge Koh scheduled Taylor’s sentencing hearing for May 27, 2020. The maximum statutory penalty for impersonating a federal officer is three (3) years in prison and a fine of $250,000. Additional periods of supervised release, fines, and restitution also may be imposed if appropriate; however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jeffrey Backhus is prosecuting the case with assistance from Elise Etter. This prosecution is the result of an investigation by the DEA.
Shonto Man Sentenced to More than 19 Years in Prison for MurderRead the Press Release
PHOENIX, Ariz. – This week, Emanuel D. Haudley, Sr., of Shonto, Ariz., was sentenced by U.S. District Judge Michael T. Liburdi to 235 months of imprisonment, to be followed by five years of supervised release. Haudley had previously pleaded guilty to second-degree murder.
On the night of July 17, 2019, Haudley killed the victim near Shonto, Ariz., on the Navajo Nation Reservation. Haudley is an enrolled member of the Navajo Nation, as was the victim.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Alexander Samuels and Hunter Bridges, District of Arizona, Phoenix.
San Jose Man Sentenced to 72 Months in Prison for Illegally Possessing Firearm as A Convicted FelonRead the Press Release
SAN JOSE – Michael Anthony Lamb was sentenced today to 72 months in prison for being a felon in possession of a firearm, announced U.S. Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
Lamb, 28, of San Jose, pleaded guilty to the charge on July 18, 2019. According to the plea agreement, Lamb was drinking a can of beer while sitting on a planter box on a light rail platform in San Jose, when he noticed two law enforcement officers approaching him. One of the officers waived at Lamb and asked him to approach. Instead, Lamb picked up his backpack and ran. According to the plea agreement, Lamb ran because he knew he would get in trouble if he were arrested. Lamb was a convicted felon and knew he was not entitled to possess a firearm, but he still was carrying a loaded 9mm Kel-Tec PF-9 pistol with seven full-metal jacket 9mm rounds in the magazine. Lamb was also carrying approximately four grams of cocaine and a jar containing approximately 53 grams of marijuana. While running away, Lamb heard the officers order him to stop. Instead of stopping, Lamb continued to run, threw the loaded gun into some nearby bushes, and threw his backpack aside. Lamb was quickly arrested and the gun and backpack were recovered.
On June 27, 2019, Lamb was charged by information with one count of being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Lamb pleaded guilty to the charge. Lamb has been in custody since March 11, 2019.
In addition to the prison term, Judge Koh ordered Lamb to serve a three-year period of supervised release and to pay a $100 special assessment.
Assistant United States Attorney Jeff Nedrow is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation conducted by the ATF and the Santa Clara County Sheriff’s Office.
San Jose Gang Member Sentenced to Two Years in Prison for Illegally Possessing Firearm as A Convicted FelonRead the Press Release
SAN JOSE – Marcos Barajas was sentenced today to 24 months in prison for being a felon in possession of a firearm, announced U.S. Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John Bennett. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
Barajas, 34, of San Jose, pleaded guilty to the charge on October 10, 2019. According to the plea agreement, Barajas posted a picture on Facebook of him holding the gun. At a later point, he wrapped the gun in a bandana and stored it in an air conditioning vent above a bedroom in his residence in San Jose, where it was subsequently discovered by law enforcement. Following his arrest, Barajas admitted to knowingly possessing the gun.
According to a complaint filed in the case, Barajas was a self-identified and documented Sureño street gang member and member of the “East Side Clanton” or “ESC” branch of the gang in San Jose.
On October 4, 2019, Barajas was charged by information with one count of being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Barajas pleaded guilty to the charge. Barajas has been in custody since May 23, 2019.
In addition to the prison term, Judge Koh ordered Barajas to serve a three-year period of supervised release and to pay a $100 special assessment.
Assistant United States Attorney Jeff Nedrow is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation conducted by the FBI and the San Jose Police Department.
Richland County Boy Scout official sentenced to 30 years of prison for sexually exploiting children as well as receiving and distributing child pornographyRead the Press Release
Thomas Close, 39, of Shelby, was sentenced today in federal court to 30 years in prison followed by lifetime supervised release, which included lifetime sex offender registration obligations. He was also ordered to pay $949 in restitution and a $300 special assessment.
Close was known to many in the Boy Scouts of America as “Aqua Joe” because he was a swim instructor as well as a troop leader. And yet, from 2011 through 2018, Close abused these positions to surreptitiously record young boys while they changed for swimming or showers. He then transferred those recorded images from a simple spy watch to his home computers in carefully labeled folders and file structures. Close also victimized children in his care at the YMCA, the Willard Conservation League, the Firelands Scout Reservation, the Ashland County-West Holmes Career Center, the Mohican Wilderness camp, the STEM camp, and even his own home in Shelby, Ohio.
“It is difficult to imagine a more heinous crime, particularly when the ages and youthful experiences of children were so calculatingly exploited,” said U.S. Attorney Justin Herdman. “If we have not made it clear before, let this sentence send a message to all who seek to prey on our children: there is no place we cannot find you and we will bring you to justice.”
“This individual used his position and regular access to children to exploit the young people who he was entrusted to take care of and protect,” said Vance Callender, HSI special agent in charge for Michigan and Ohio. “While no amount of prison time is sufficient for the depraved abuse of trust by Mr. Close on his innocent victims, hopefully, today’s sentencing can begin the healing process for all of those impacted.”
Additional details of these crimes were described in court filings and during today’s sentencing hearing:
In May of 2018, the Department of Homeland Security (HSI) Cleveland received information from the Cyber Crimes Center (C3), Child Exploitation Investigations Unit (CEIU) regarding a child exploitation lead in Sandusky, OH. C3 provided several videos that were taken of minor boys changing before or after swimming, with a series of lockers visible in some of the pictures. The National Center for Missing and Exploited Children (NCMEC) confirmed that these videos were seen in previous child pornography investigations but the children depicted in the images had not yet been identified. However, the NCMEC Victim Identification Lab was able to identify the manufacturer of the lockers as the Bradley Corp. Since only a few YMCAs purchased lockers from Bradley Corp, C3 was able to confirm that the images were likely taken at the YMCA facility located in Sandusky, OH.
With little to go on, agents set out to identify the boys. They focused on landmarks and the Boy Scout logo captured in images, which let them to speak with representatives of the Boy Scouts and local YMCAs. Both the Boy Scouts and local YMCAs assisted agents with their investigation. In speaking with the Boy Scouts, agents were directed to an incident report in which one den leader noted Close’ frequent and unnecessary contact with scouts during swim time.
Later, and based on this tip, agents interviewed Close. Close admitted to the following: accessing child pornography from the TOR network; using a Russian photo sharing site to access child pornography; receiving and distributing images of child pornography online; being sexually interested in boys as young as five and up to 18; and possessing approximately 5 terabytes of child pornography. He also acknowledged leaving a watch with video capability in the designated changing areas in order to record the boys as they undressed.
Agents conducted a forensic analysis of Close’s devices and confirmed that he had more than 110,000 image and video files that depicted minors engaged in sexually explicit conduct. Approximately 60,000 of those files were unique images. Close also created 1,900 images of child pornography. To date, 143 victims have been identified, with the youngest being seven years old.
One of the identified victims, who is referred to in court filings as Minor #21, provided a recorded victim impact statement which was played during the sentencing hearing. He stated in pertinent part:
Never have I been so sad. This whole thing lingers in my mind all the time. I wish I could make it go away. . . . I have a question for you, Aqua Joe: Why? Why would you do this to me? Why would you do this to any kid? How dare you do this to a kid that can’t defend himself. I don’t understand. I’m supposed to be able to trust the people that I’m told I can trust. You took advantage of me and you spied on me. Now I don’t trust anyone. You ruined part of my life! And I hate you. . . . I especially hate you for hurting my mother. You broke her heart – and mine. . . . I hope someday I can forget about you.
This case was investigated by Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force (ICAC) and the Shelby Police Department. It was prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
Resmed Corp. to Pay the United States $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related DisordersRead the Press Release
ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers, the Department of Justice announced today.
“Paying any type of illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “When a patient receives a prescription for a device to treat a health care condition, the patient deserves to know that the device was selected based on quality of care considerations and not on unlawful payments from equipment manufacturers.”
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement resolves allegations that ResMed (a) provided DME companies with free telephone call center services and other free patient outreach services that enabled these companies to order resupplies for their patients with sleep apnea, (b) provided sleep labs with free and below-cost positive airway pressure masks and diagnostic machines, as well as free installation of these machines, (c) arranged for, and fully guaranteed the payments due on, interest-free loans that DME supplies acquired from third-party financial institutions for the purchase of ResMed equipment, and (d) provided non-sleep specialist physicians free home sleep testing devices referred to as “ApneaLink.”
“This settlement represents another example of our district’s commitment to prosecuting violations of the False Claims Act and the Anti-Kickback Statute,” said Lance Crick, Acting U. S. Attorney for the District of South Carolina. “Medical decisions should be based on what is in the best interest of the patient and not based on financial incentives and related schemes.”
“Medical decisions should always be made without outside influence caused by cash payments, free goods, or other types of illegal remuneration, and we will continue to take action to prevent attempts to induce medical decisions through illegal kickbacks,” said Katherine L. Parker, Civil Chief, U.S. Attorney’s Office for the Southern District of California. “We applaud the whistleblower for coming forward and notifying the United States.”
“Illegal kickbacks in the federal healthcare system create an unfair marketplace and the potential that medical decisions are not based on what is best for patients,” said U.S. Attorney Peter E. Deegan Jr. for the Northern District of Iowa. “This settlement is another sign of our office’s dedication to fair and full enforcement of the False Claims Act.”
“When companies give free equipment to doctors for the sole purpose of generating business and increasing their bottom lines, federal health insurance programs should not foot the bills. This case rights that alleged wrong by ResMed,” said U.S. Attorney Richard P. Donoghue for the Eastern District of New York. “We will continue to work with our law enforcement partners to hold accountable companies that put profits before patients.”
Contemporaneous with the civil settlement, ResMed entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that ResMed implement additional controls around its product pricing and sales and that ResMed conduct internal and external monitoring of its arrangements with referral sources.
The agreement resolves five lawsuits originally brought by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery. The whistleblowers will collectively receive a roughly $6.2 million share of the settlement.
“The government contended ResMed provided free goods and services to companies in order to sell more medical equipment bought by taxpayers,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG’s integrity agreement with ResMed is designed to ensure such alleged behavior will not be repeated.”
“I applaud the Department of Justice and the U.S. Attorneys' for their continued efforts to hold health care providers accountable to the American taxpayer," said Army Lt. Gen. Ron Place, Director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
This settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Offices for the District of South Carolina, the Southern District of California, the Northern District of Iowa, and the Eastern District of New York; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Federal Bureau of Investigation; and the National Association of Medicaid Fraud Control Units.
The lawsuits resolved by this settlement are captioned United States, et al., ex rel. Ameer v. ResMed, Inc., et al., Case No. 2:15-CV-04842-MBS (D.S.C.); United States, et al., ex rel. Baker v. ResMed, Inc., et al., Case No. 3:16-CV-00987-MBS (D.S.C.); United States, et al., ex rel. Ross v. ResMed, Inc., Case No. 16-CV-1988-W (JLB) (S.D. Cal.); United States ex rel. Meyer v. ResMed, Inc., et al., Case No. 17-CV-12-MWB (N.D. Iowa); and United States, et al., ex rel. Ottavio, et al. v. ResMed, Inc., Case No. CV 17-5734 (E.D.N.Y.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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.
ResMed Corp. to Pay the United States $37.5 Million for Allegedly Causing the Filing of False Claims Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related DisordersRead the Press Release
WASHINGTON – The Department of Justice announced today that ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers.
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement resolves allegations that ResMed: (a) provided DME companies with free telephone call center services and other free patient outreach services that enabled these companies to order resupplies for their patients with sleep apnea; (b) provided sleep labs with free and below-cost positive airway pressure masks and diagnostic machines, as well as free installation of these machines; (c) arranged for, and fully guaranteed the payments due on, interest-free loans that DME suppliers acquired from third-party financial institutions for the purchase of ResMed equipment; and (d) provided non-sleep specialist physicians free home sleep testing devices referred to as “ApneaLink.”
“When companies give free equipment to doctors for the sole purpose of generating business and increasing their bottom lines, federal health insurance programs should not foot the bills. This case rights that alleged wrong by ResMed,” stated United States Attorney for the Eastern District of New York Richard P. Donoghue. “We will continue to work with our law enforcement partners to hold accountable companies that put profits before patients.”
“Paying any type of illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “When a patient receives a prescription for a device to treat a health care condition, the patient deserves to know that the device was selected based on quality of care considerations and not on illegal payments from equipment manufacturers.”
The agreement resolves five lawsuits originally brought by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery. The whistleblowers will collectively receive a roughly $6.2 million share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Offices for the Eastern District of New York, the District of South Carolina, the Southern District of California and the Northern District of Iowa; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Federal Bureau of Investigation; and the National Association of Medicaid Fraud Control Units.
The lawsuits resolved by this settlement are captioned United States, et al., ex rel. Ameer v. ResMed, Inc., et al., Case No. 2:15-CV-04842-MBS (D.S.C.); United States, et al., ex rel. Baker v. ResMed, Inc., et al., Case No. 3:16-CV-00987-MBS (D.S.C.); United States, et al., ex rel. Ross v. ResMed, Inc., Case No. 16-CV-1988-W (JLB) (S.D. Cal.); United States ex rel. Meyer v. ResMed, Inc., et al., Case No. 17-CV-12-MWB (N.D. Iowa); and United States, et al., ex rel. Ottavio, et al. v. ResMed, Inc., Case No. CV 17-5734 (E.D.N.Y.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
ResMed Corp. to Pay the United States $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related DisordersRead the Press Release
CEDAR RAPIDS, IA – ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers, the Department of Justice announced today.
“Paying any type of illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “When a patient receives a prescription for a device to treat a health care condition, the patient deserves to know that the device was selected based on quality of care considerations and not on unlawful payments from equipment manufacturers.”
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement resolves allegations that ResMed (a) provided DME companies with free telephone call center services and other free patient outreach services that enabled these companies to order resupplies for their patients with sleep apnea, (b) provided sleep labs with free and below-cost positive airway pressure masks and diagnostic machines, as well as free installation of these machines, (c) arranged for, and fully guaranteed the payments due on, interest-free loans that DME supplies acquired from third-party financial institutions for the purchase of ResMed equipment, and (d) provided non-sleep specialist physicians free home sleep testing devices referred to as “ApneaLink.”
“Illegal kickbacks in the federal healthcare system create an unfair marketplace and the potential that medical decisions are not based on what is best for patients,” said U.S. Attorney Peter E. Deegan, Jr., for the Northern District of Iowa. “This settlement is another sign of our office’s dedication to fair and full enforcement of the False Claims Act.”
“This settlement represents another example of our district’s commitment to prosecuting violations of the False Claims Act and the Anti-Kickback Statute,” said Lance Crick, Acting U. S. Attorney for the District of South Carolina. “Medical decisions should be based on what is in the best interest of the patient and not based on financial incentives and related schemes.”
“Medical decisions should always be made without outside influence caused by cash payments, free goods, or other types of illegal remuneration, and we will continue to take action to prevent attempts to induce medical decisions through illegal kickbacks,” declared Katherine L. Parker, Civil Chief, United States Attorney’s Office for the Southern District of California. “We applaud the whistleblower for coming forward and notifying the United States.”
“When companies give free equipment to doctors for the sole purpose of generating business and increasing their bottom lines, federal health insurance programs should not foot the bills. This case rights that alleged wrong by ResMed,” stated United States Attorney for the Eastern District of New York Richard P. Donoghue. “We will continue to work with our law enforcement partners to hold accountable companies that put profits before patients.”
Contemporaneous with the civil settlement, ResMed entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that ResMed implement additional controls around its product pricing and sales and that ResMed conduct internal and external monitoring of its arrangements with referral sources.
The agreement resolves five lawsuits originally brought by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery. The whistleblowers will collectively receive a roughly $6.2 million share of the settlement.
“The government contended ResMed provided free goods and services to companies in order to sell more medical equipment bought by taxpayers,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG’s integrity agreement with ResMed is designed to ensure such alleged behavior will not be repeated.”
“I applaud the Department of Justice and the U.S. Attorneys' for their continued efforts to hold health care providers accountable to the American taxpayer," said Army Lt. Gen. Ron Place, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
This settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Offices for the District of South Carolina, the Southern District of California, the Northern District of Iowa, and the Eastern District of New York; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Federal Bureau of Investigation; and the National Association of Medicaid Fraud Control Units.
The lawsuits resolved by this settlement are captioned United States, et al., ex rel. Ameer v. ResMed, Inc., et al., Case No. 2:15-CV-04842-MBS (D.S.C.); United States, et al., ex rel. Baker v. ResMed, Inc., et al., Case No. 3:16-CV-00987-MBS (D.S.C.); United States, et al., ex rel. Ross v. ResMed, Inc., Case No. 16-CV-1988-W (JLB) (S.D. Cal.); United States ex rel. Meyer v. ResMed, Inc., et al., Case No. 17-CV-12-MWB (N.D. Iowa); and United States, et al., ex rel. Ottavio, et al. v. ResMed, Inc., Case No. CV 17-5734 (E.D.N.Y.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
ResMed Corp. to Pay $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and other DisordersRead the Press Release
Assistant U. S. Attorneys Joseph Price (619) 546-7642 and Dylan Aste (619) 546-7621
NEWS RELEASE SUMMARY – January 15, 2020
SAN DIEGO – ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers, the Department of Justice announced today.
“Paying any type of illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “When a patient receives a prescription for a device to treat a health care condition, the patient deserves to know that the device was selected based on quality of care considerations and not on unlawful payments from equipment manufacturers.”
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement resolves allegations that ResMed (a) provided DME companies with free telephone call center services and other free patient outreach services that enabled these companies to order resupplies for their patients with sleep apnea, (b) provided sleep labs with free and below-cost positive airway pressure masks and diagnostic machines, as well as free installation of these machines, (c) arranged for, and fully guaranteed the payments due on, interest-free loans that DME supplies acquired from third-party financial institutions for the purchase of ResMed equipment, and (d) provided non-sleep specialist physicians free home sleep testing devices referred to as “ApneaLink.”
“Medical decisions should always be made without outside influence caused by cash payments, free goods, or other types of illegal remuneration, and we will continue to take action to prevent attempts to induce medical decisions through illegal kickbacks,” declared Katherine L. Parker, Civil Chief, United States Attorney’s Office for the Southern District of California. “We applaud the whistleblower for coming forward and notifying the United States.”
“This settlement represents another example of our district’s commitment to prosecuting violations of the False Claims Act and the Anti-Kickback Statute,” said Lance Crick, Acting U. S. Attorney for the District of South Carolina. “Medical decisions should be based on what is in the best interest of the patient and not based on financial incentives and related schemes.”
“Illegal kickbacks in the federal healthcare system create an unfair marketplace and the potential that medical decisions are not based on what is best for patients,” said U.S. Attorney Peter E. Deegan, Jr., for the Northern District of Iowa. “This settlement is another sign of our office’s dedication to fair and full enforcement of the False Claims Act.”
“When companies give free equipment to doctors for the sole purpose of generating business and increasing their bottom lines, federal health insurance programs should not foot the bills. This case rights that alleged wrong by ResMed,” stated United States Attorney for the Eastern District of New York Richard P. Donoghue. “We will continue to work with our law enforcement partners to hold accountable companies that put profits before patients.”
Contemporaneous with the civil settlement, ResMed entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that ResMed implement additional controls around its product pricing and sales and that ResMed conduct internal and external monitoring of its arrangements with referral sources.
The agreement resolves five lawsuits originally brought by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery. The whistleblowers will collectively receive a roughly $6.2 million share of the settlement.
“The government contended ResMed provided free goods and services to companies in order to sell more medical equipment bought by taxpayers,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG’s integrity agreement with ResMed is designed to ensure such alleged behavior will not be repeated.”
“I applaud the Department of Justice and the U.S. Attorneys' for their continued efforts to hold health care providers accountable to the American taxpayer," said Army Lt. Gen. Ron Place, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
This settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Offices for the District of South Carolina, the Southern District of California, the Northern District of Iowa, and the Eastern District of New York; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Federal Bureau of Investigation; and the National Association of Medicaid Fraud Control Units.
The lawsuits resolved by this settlement are captioned United States, et al., ex rel. Ameer v. ResMed, Inc., et al., Case No. 2:15-CV-04842-MBS (D.S.C.); United States, et al., ex rel. Baker v. ResMed, Inc., et al., Case No. 3:16-CV-00987-MBS (D.S.C.); United States, et al., ex rel. Ross v. ResMed, Inc., Case No. 16-CV-1988-W (JLB) (S.D. Cal.); United States ex rel. Meyer v. ResMed, Inc., et al., Case No. 17-CV-12-MWB (N.D. Iowa); and United States, et al., ex rel. Ottavio, et al. v. ResMed, Inc., Case No. CV 17-5734 (E.D.N.Y.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Receipt of Child Pornography and Possession of Child Pornography.
Nikolas John Larson, age 39, was charged on December 17, 2019. Larson appeared before U.S. Magistrate Judge Daneta Wollmann on January 8, 2020, and pleaded not guilty to the charges. The maximum penalty upon conviction is a mandatory minimum of 5 up to 20 years in federal prison and/or a $250,000 fine, up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Larson receiving and possessing child pornography between January 2009 and October 2019 at Rapid City. The charges are merely an accusation and Larson is presumed innocent until and unless proven guilty.
The investigation is a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Larson was released pending trial. A trial date has not been set.
Rapid City Man Indicted for Kidnapping of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Kidnapping of a Minor by a Registered Sex Offender and Transportation of a Minor with Intent to Engage in Criminal Sexual Activity by a Registered Sex Offender.
Christopher Bald Eagle, age 65, was charged on January 7, 2020. Bald Eagle appeared before U.S. Magistrate Judge N. Reid Neureiter in Denver, Colorado, on December 31, 2019, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 25 years up to life in federal prison and/or a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bald Eagle unlawfully transporting a minor female from Pine Ridge, South Dakota, to Colorado in December 2019, with the intent to engage in illegal sexual activity. The charges are merely an accusation and Bald Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Denver Police Department. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Bald Eagle was detained and will be transported to South Dakota at a future date. A trial date has not been set.
Prolific Hartford Drug Trafficker Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JULIO OLIVERAS, also known as “Cuzzo Jay,” 34, of Hartford and New Britain, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 186 months of imprisonment, followed by five years of supervised release, for narcotics trafficking and firearm possession offenses.
According to court documents and statements made in court, in August 2017, the Drug Enforcement Administration’s Hartford Task Force launched an investigation into a drug trafficking organization that was selling large amounts of heroin, fentanyl, cocaine and crack cocaine in Hartford. Oliveras was identified as the leader of the organization. The investigation, which included approximately six months of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that Oliveras and his associates supplied distribution quantities of narcotics to several Hartford-area drug dealers, and used multiple locations in Hartford to process, store and distribute narcotics.
Oliveras and other members of the organization were arrested on July 19, 2018. On that date, investigators executed 10 search warrants and seized approximately 2.7 kilograms of fentanyl, one kilogram of heroin, approximately 500 grams of crack cocaine, 100 grams of cocaine, eight firearms, more than 1,000 rounds of ammunition, cash, and other evidence of narcotics trafficking activity. The drugs and firearms were found at a stash house Oliveras maintained, a storage unit he rented, and the residences of his associates.
On August 2, 2018, a grand jury in Hartford returned an indictment charging Oliveras and 15 co-defendants with various offenses.
Oliveras has been detained since his arrest. On October 22, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl and a quantity of cocaine, and one count of possession of a firearm by a convicted felon.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut Department of Correction, and the East Hartford, New Britain, Newington and West Hartford Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Project Safe Childhood: Two Defendants Sentenced to Federal Prison for Traveling to Have Sex with MinorsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that two different defendants were sentenced to federal prison this week for traveling in interstate commerce for the purpose of having sex with a minor.
“Our law enforcement partnerships are strong - VERY STRONG,” said United States Attorney Mike Stuart. “The excellent work of our partners enables us to bring to justice those who prey on children. We will always place the highest priority on protecting our children.”
On January 14, 2020, Ryan Scott Kibble, 33, of Parkersburg, West Virginia, was sentenced to serve 57 months in federal prison for traveling in interstate commerce in order to engage in illicit sexual activity with a minor. Upon release from prison, Kibble will be required to serve a term of 15 years of supervised release and register as sex offender. Kibble previously admitted that on March 1, 2019, he began communicating via a social messaging application and text messages with a minor he believed to be a 14-year-old girl located in Parkersburg, West Virginia. Despite knowing her age, Kibble discussed meeting the minor to engage in sexual intercourse. On the evening of March 1, 2019, Kibble also spoke with the purported minor on the phone, further discussing plans to meet the next day in Parkersburg in order to engage in oral sex and sexual intercourse with the minor in his vehicle. On March 2, 2019, Kibble traveled from his work in Belpre, Ohio to an arranged meeting location in Parkersburg in order to engage in sexual intercourse with the purported 14-year-old girl. Senior United States District Judge David A. Faber presided over the sentencing hearing.
On January 15, 2020, Thomas Wilson Parks, Jr., 33, of Coolville, Ohio, was sentenced to serve 30 months in federal prison for traveling in interstate commerce in order to engage in illicit sexual activity with a minor. Upon release from prison, Kibble will be required to serve a term of 10 years of supervised release and register as sex offender. Parks previously admitted that on March 2, 2019, he began communicating via a social messaging application with a minor he believed to be a 14-year-old girl located in Parkersburg, West Virginia. Despite knowing her age, Parks traveled from Ohio to Parkersburg shortly after beginning to chat with the purported minor in order to engage in sexual intercourse with her. While on the way to the meeting location, Parks stopped to buy condoms. Senior United States District Judge John T. Copenhaver, Jr., presided over the sentencing hearing.
The investigations were both conducted by the FBI West Virginia Child Exploitation and Human Trafficking Task Force in conjunction with the West Virginia States Police Internet Crimes Against Children Task Force and the Parkersburg Police Department. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecutions.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Probationers Caught Breaking into Cars in Macon Plead Guilty to Federal Firearm ChargesRead the Press Release
MACON, Ga. – Two armed probationers caught breaking into multiple vehicles in a Macon residential area admitted to their crimes and will be sentenced on April 1, 2020, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Quenshon Travez Robinson, 23, and Deshae Amondai Floyd, 23, both of Macon, pleaded guilty to one count conspiracy to receive and possess stolen firearms before U.S. District Judge Marc Treadwell. Robinson entered his guilty plea on Tuesday, January 7, 2020 and Floyd entered his guilty plea on Friday, January 10, 2020. Each defendant is facing a maximum five years in prison, a $250,000 fine and three years of supervised release. There is no parole in the federal system.
Robinson and Floyd admitted that they broke into multiple cars in residential areas during the morning hours of Saturday, February 16, 2019. Bibb County Sheriff’s deputies responded to a citizen’s call reporting a break-in, and the deputies arrested the defendants as they attempted to flee from the scene. The men were caught with two stolen pistols and ammunition. At the time, Robinson was serving five years’ probation for Criminal Damage to Property in the Second Degree under the First Offender Act and Floyd was serving ten years’ probation for Cruelty to Children in the Second Degree under the First Offender Act. As probationers under First Offender status, it is unlawful for them to possess firearms.
“Removing firearms from the hands of criminals who disrupt the peace and safety of our communities is a high priority for our office and our law enforcement partners, and we will prosecute offenders to the fullest extent of the law,” said U.S. Attorney Charlie Peeler. “I want to commend the Bibb County Sheriff’s Office for quickly arresting these defendants and then partnering with ATF to stop them from potentially doing more harm with the guns they stole.”
“This case illustrates the commitment of our federal prosecutor’s work to assure that offenders are held responsible for their criminal deeds. We can be grateful for the quick work of the Bibb deputies and the thorough follow up investigation by the sheriff’s office and ATF which ended with these hardened criminals entering a guilty plea for their actions,” said Bibb County Sheriff David Davis.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Paul McCommon is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Phoenix Man Sentenced toRead the Press Release
TUCSON, Ariz. – On January 14, 2020, Andrew Lamar Blake, 45, of Phoenix, Ariz., was sentenced by U.S. District Judge Rosemary Márquez to 80 months in prison, followed by five years of supervised release. Blake previously pleaded guilty to Conspiracy to Transport Illegal Aliens for Profit Wherein the Aliens’ Lives Were Placed in Jeopardy and During Which Death Resulted.
During an attempted traffic stop by the United States Border Patrol and Pinal County Sheriff’s Office on April 6, 2018, Blake sped away at a high rate of speed on the I-10 freeway. Blake was driving a truck containing eleven illegal aliens and two co-conspirators. Blake crashed during his flight from law enforcement, rolling the truck. One victim was killed in the crash, and many others were injured.
The investigation was conducted by Homeland Security Investigations and the United States Border Patrol. The prosecution was handled by Christine A. Melton and Arturo A. Aguilar, Assistant U.S. Attorneys, District of Arizona, Tucson.
Pharmacist Admits Role in Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a conspiracy to commit health care fraud, U.S. Attorney Craig Carpenito announced.
Estela Blaustein, 55, of Mahwah, New Jersey, pleaded guilty today before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with one count of conspiracy to commit health care fraud with four individuals who have been previously charged by complaint in the District of New Jersey: Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Vangelas, a/k/a “Joseph Miller,” 33, of Fort Lee, New Jersey; Marlene Vangelas, 58, of River Vale, New Jersey; and Zachary Ohebshalom, 33, of Edgewater, New Jersey. The charges against those four defendants remain pending.
According to documents filed in this case and statements made in court:
Beginning in November 2016, Blaustein participated in a scheme to obtain millions of dollars in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.
Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The information alleges that Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, where Blaustein was the pharmacist-in-charge. The Fairlawn Pharmacy was owned and operated by Joseph Vangelas and Marlene Vangelas, who, along with Ohebshalom, directed Blaustein and others to research reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. Joseph Vangelas, Marlene Vangelas, and Ohebshalom directed Blaustein and others to print prescription labels for Filippone to use with his patients. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. To induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they desired, Joseph Vangelas and Marlene Vangelas purchased Filippone’s medical office and then permitted Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, the Vangelases, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to send prescriptions to the pharmacy, so long as Miller and the Vangelases permitted him to remain rent-free in the property.
The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. As part of her plea agreement, Blaustein agreed that the charged healthcare fraud conspiracy caused losses of $1.5 million to $3.5 million. Sentencing is scheduled for April 22, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the charges and today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Healthcare Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the information pertaining to Filippone, Joseph Vangelas, Marlene Vangelas, and Ohebshalom are merely accusations, and those four defendants are presumed innocent unless and until proven guilty.
Defense counsel: Jerome A. Ballarotto Esq., Trenton, New Jersey
Owner and Manager of Anwar Fresh Meat Market in Erie Charged with Food Stamp FraudRead the Press Release
ERIE, Pa. - Two people have been indicted by a federal grand jury in Erie on charges of conspiracy to defraud the United States and food stamp fraud, United States Attorney Scott W. Brady announced today.
The five-count Indictment named Laith Kadhem, 35, of Pittsburgh, Pennsylvania and Haydar Al-Kofi, 41, of Lakeside, California, as defendants.
According to the Indictment presented to the court, from in and around March 2016 to in and around September 2017, Kadhem, who was the owner and operator of Anwar Fresh Meat Market in Erie and Al-Kofi, who was the manager and partner working at Anwar Fresh Meat Market, conspired to defraud the United States by filing an application containing false information for a license to accept SNAP (Supplemental Nutrition Assistance Program) benefits and accepting food stamps for cash, and ineligible items.
The law provides for a maximum total sentence of 25 years in prison, a fine of $1,250,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
This case was investigated as part of the Pittsburgh Document and Benefit Fraud Task Force (DBFTF), a multi-agency partnership established to focus on high-impact criminal investigations involving the use of fraudulent documents in furtherance of immigrations benefit applications and petitions, financial fraud, criminal work-site enforcement, and public benefits fraud. The Pittsburgh DBFTF consists of the following agencies: Homeland Security Investigations, US Citizenship and Immigration Services, the Social Security Administration-Office of the Inspector General, the Internal Revenue Service-Criminal Investigations, US Department of State-Diplomatic Security Service, US Department of Agriculture- Office of the Inspector General, US Department of Labor- Office of the Inspector General, and the Pennsylvania Office of the Attorney General.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oakland Resident Sentenced to More Than Eight Years in Prison for 19 Bank Robberies Across Northern CaliforniaRead the Press Release
SAN FRANCISCO – Duane Kurt Makela was sentenced to 97 months in prison in connection with ten armed bank robberies, seven unarmed bank robberies, and two attempted bank robberies across Northern California, announced Northern District of California Acting U.S. Attorney Adam A. Reeves, U.S. Attorney McGregor W. Scott of the Eastern District of California, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Charles R. Breyer, Senior U.S. District Judge.
Makela, 50, of Oakland, pleaded guilty to the charges on October 3, 2019. Makela admitted in open court that between March 2018 and February 2019, he committed or attempted to commit 19 robberies of banks and credit unions largely located in the San Francisco Bay Area but also in towns in or near the Sierra Nevada Mountains. As part of his plea, Makela agreed that he entered the banks and credit unions and demanded that employees hand over money. Makela further acknowledged that during each armed robbery, he brandished what appeared to be a handgun and directed employees of the banks and credit unions to hand over money. In total, Makela stole $69,002.
Makela robbed or attempted to rob the following banks and credit unions on the following dates:
CHARGE
DATE
BANK OR CREDIT UNION
LOCATION
1. Armed Bank Robbery
March 21, 2018
Pacific Service Credit Union
Pleasant Hill, CA
2. Bank Robbery
March 24, 2018
Wells Fargo Bank
South Lake Tahoe, CA
3. Bank Robbery
March 30, 2018
U.S. Bank
Oakland, CA
4. Armed Bank Robbery
April 11, 2018
Pacific Service Credit Union
San Ramon, CA
5. Armed Bank Robbery
April 13, 2018
Comerica Bank
Palo Alto, CA
6. Bank Robbery
April 17, 2018
Bank of the West
Orinda, CA
7. Attempted Bank Robbery
May 11, 2018
U.S Bank
San Ramon, CA
8. Armed Bank Robbery
May 12, 2018
Chase Bank
Oakland, CA
9. Bank Robbery
May 24, 2018
Sierra Central Credit Union
South Lake Tahoe, CA
10. Bank Robbery
June 6, 2018
U.S. Bank
Roseville, CA
11. Armed Bank Robbery
June 12, 2018
U.S. Bank
Pollock Pines, CA
12. Armed Bank Robbery
August 25, 2018
Wells Fargo Bank
Mill Valley, CA
13. Attempted Bank Robbery
October 18, 2018
First Republic Bank
Burlingame, CA
14. Armed Bank Robbery
October 19, 2018
Meriwest Credit Union
Mountain View, CA
15. Armed Bank Robbery
October 22, 2018
Chase Bank
South San Francisco, CA
16. Bank Robbery
November 3, 2018
Wells Fargo Bank
Orinda, CA
17. Armed Bank Robbery
November 5, 2018
U.S. Bank
Alameda, CA
18. Armed Bank Robbery
December 23, 2018
U.S. Bank
Castro Valley, CA
19. Bank Robbery
February 4, 2019
Wells Fargo Bank
Palo Alto, CA
On May 7, 2019, a federal grand jury indicted Makela, charging him with four counts of armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d), and one count of unarmed bank robbery, in violation of 18 U.S.C. § 2113(a). On September 25, 2019, Makela waived his right to indictment and to venue for those charges arising out of the Eastern District of California, and he was arraigned on a superseding information alleging the above-listed crimes. On October 3, 2019, Makela pleaded guilty to all 19 counts in the superseding information.
In addition to the prison term, Judge Breyer ordered Makela to serve a three-year period of supervised release and ordered full restitution to the victim banks and credit unions.
Northern District of California Assistant U.S. Attorney Nicholas Walsh is prosecuting the case with the assistance of Rosario Calderon and Margoth Turcios. Eastern District of California Assistant U.S. Attorney Michelle Rodriguez assisted.
The prosecution is the result of investigations by the FBI with assistance from the police departments of Pleasant Hill, Orinda, Daly City, South Lake Tahoe, Oakland, San Ramon, Palo Alto, Roseville, Burlingame, Mountain View, South San Francisco, and Alameda, as well as the Contra Costa County, El Dorado County, Marin County, and Alameda County Sheriff’s Offices.
Nursing Home Operator Pleads Guilty to Embezzlement and Tax OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHAIM STERN, 71, of Flushing, New York, waived his right to be indicted and pleaded guilty today in Bridgeport federal court to embezzlement and tax offenses related to his operation of nursing homes in Bridgeport and Waterbury.
According to court documents and statements made in court, Stern was the principal operator of the Bridgeport Health Care Center (“BHCC”), Bridgeport Manor, and the Rosegarden Health and Rehabilitation Center LLC (“Rosegarden”) in Waterbury, which were privately owned nursing and rehabilitation facilities. Between approximately 2011 and 2018, Stern stole approximately $4.1 million from the BHCC Pension Plan, over which he was the trustee, principally by diverting the money to a purported charity, called Em Kol Chai, which Stern controlled, as well as to himself and other entities. Also, in approximately February 2015, Stern misapplied $305,608.06 from BHCC Health Plan by diverting the money from a stop-loss insurance plan that was intended to pay for an employee health claim, and instead used it for other purposes, including Em Kol Chai, the operation of the BHCC, and for Stern’s personal use.
In addition, from at least January 2017 through March 2018, Stern failed to, and caused BHCC and Rosegarden to fail to, pay over employment taxes it collected from BHCC and Rosegarden employees. And, from January 2017 through June 2018, Stern failed to, and caused BHCC and Rosegarden to fail to, pay BHCC and Rosegarden’s share of employment taxes. The total tax loss resulting from Stern’s conduct is $4,356,409.85.
Stern pleaded guilty to one count of theft or embezzlement from an employee benefit plan, one count of theft or embezzlement in connection with healthcare, and one count of willful failure to pay tax. Stern is scheduled to be sentenced by U.S. District Judge Janet C. Hall in New Haven on April 8, 2020, at which time he faces a maximum term of imprisonment of 20 years.
As part of his plea agreement, Stern has agreed to make restitution to Pension Plan participants in the amount of approximately $4.1 million; to participants in the Health Plan with unpaid claims; and to the IRS in the total amount of approximately $2.4 million.
Stern is released on a $500,000 bond pending sentencing.
This matter is being investigated by the U.S. Department of Labor – Office of Inspector General, U.S. Department of Labor – Employee Benefits Security Administration, Boston Regional Office, and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.
New Orleans Man Sentenced to 37 Months Imprisonment for Illegal Possession of a FirearmRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that ELTON JOHNSON, (“JOHNSON”), age 35, of New Orleans, was sentenced on January 14, 2020 to 37 months imprisonment by the Honorable Jay C. Zainey for being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). Also, JOHNSON was ordered by the Court to serve three (3) years of supervised release and pay a $100.00 special assessment fee.
According to court documents, on June 27, 2018, Louisiana State Troopers conducted a traffic stop near the intersection of Downman and Dwyer Rds. One Trooper observed that the vehicle, a 2008 gray Saturn sedan, had a tinted rectangular cover over the temporary license plate and could not see the temporary license plate’s information. The Troopers stopped the sedan at a local gas station. JOHNSON exited the gray sedan from the front passenger side. A Trooper instructed JOHNSON to approach them but he walked away from the sedan. After a second command, JOHNSON complied.
As JOHNSON walked closer to the Troopers, they smelled marijuana and JOHNSON was observed with a hand rolled cigar in his right hand. The Troopers suspected that the cigar contained marijuana and was the source of the marijuana odor.
The sedan was searched incidental to JOHNSON’s arrest and law enforcement located a loaded Taurus Model PT-709 SLIM, serial no. FTS32722 on the front passenger side of the center console. JOHNSON later confessed at the scene that he possessed the firearm for protection. Due to his status as a federally convicted felon, the law prohibits JOHNSON from possessing firearms.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Louisiana State Police. Assistant United States Attorney Duane A. Evans prosecuted the case.
New Indictment: KU Researcher Concealed Being Recruited for Chinese ‘talent’ programRead the Press Release
KANSAS CITY, KAN. – Feng “Franklin” Tao, 47, of Lawrence, Kan., was charged today in a superseding indictment with two counts of wire fraud and one count of program fraud. The indictment alleges Tao concealed from University of Kansas officials work he was doing for China while employed full time as an associate professor at KU’s Center for Environmentally Beneficial Catalysis. Some of Tao’s research at KU was funded by the U.S. Department of Energy.
The superseding indictment elaborates on an indictment a grand jury returned in August 2019. It describes how China offered competitive salaries, state-of-the-art research facilities and honorific titles to researchers who joined talent programs and urged them to recruit others.
If convicted, the defendant could face up to 20 years in federal prison and a fine up to $250,000 on each of the wire fraud counts and up to 10 years and a fine up to $250,000 on the program fraud count.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the assigned judge.
The University of Kansas cooperated and assisted in the FBI’s investigation of the case. Assistant U.S. Attorney Tony Mattivi and Nathan Charles, trial attorney for the Counterespionage and Export Control Section (CTS) of the Justice Department’s National Security Division, are prosecuting.
OTHER INDICTMENTS
Lance Ashley is charged with four counts of failing to pay over employment taxes. The crimes are alleged to have occurred during 2014 through 2017.
Ashley owned Ashley Home Care Services, LLC, which was a Kansas corporation with a registered office in Overland Park. It is alleged he withheld employment taxes from employees’ paychecks without fully paying those taxes to the Internal Revenue Service. The indictment alleges he failed to pay more than $13,386 for tax year 2013, $48,847 for 2014, $63,933 for 2015 and $78,055 for 2016.
If convicted, he could face up to five years in federal prison and a fine up to $250,000 on each count. The Internal Revenue Service investigated. Assistant U.S. Attorney Leon Patton is prosecuting.
Roberto Gallegos-Garcia, 43, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Dec. 19, 2019, in Sedgwick County, Kan.
If convicted, he could face up to two years in federal prison and a fine up to $250,000. The Department of Homeland Security, Enforcement and Removal Operations, investigated the case. Assistant U.S. Attorney Alan Metzger is prosecuting.
Leo Carlos Pacheco-Santos, 20, Passaic, N.J., is charged with failing to appear for a court hearing on charges including wire fraud and aggravated identity theft. He failed to appear in federal court in Kansas City, Kan., on Oct. 7, 2019.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
New Castle Man Pleads Guilty to Federal Drug ChargesRead the Press Release
PITTSBURGH, Pa.-A former resident of New Castle, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Zaamar Stevenson, age 43, pleaded guilty to three counts before United States District Court Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on November 9, 2015, officers utilized a confidential informant to purchase heroin and crack from the defendant. While on surveillance, officers observed a female get into the back seat of the defendant’s rental vehicle. Officers stopped the vehicle and secured the occupants. The defendant was the driver of the vehicle. The female admitted that she arranged to buy crack from the defendant. A blue grocery bag was found under the front passenger seat. The bag contained baggies of crack cocaine and stamp bags of heroin. The defendant had $1,506 in his possession, $150 of which were prerecorded official funds and the front passenger had $185 in her purse, $20 of which were prerecorded official funds.
Judge Fischer scheduled sentencing for May 27, 2020. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, 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.
Pending sentencing, the court ordered that Stevenson remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Butler County District Attorney's Drug Task Force and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Stevenson.
New Britain Man Sentenced to 97 Months in Prison for Trafficking Cocaine from Puerto Rico to ConnecticutRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERICK SUAREZ, 31, of New Britain, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 97 months of imprisonment, followed by four years of supervised release, for trafficking cocaine from Puerto Rico to Connecticut through the U.S. Mail.
According to court documents and statements made in court, in 2017, the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service began investigating a drug trafficking organization that was sending Priority Mail parcels containing kilogram-quantities of cocaine through the U.S. Mail from Puerto Rico to Connecticut and elsewhere. The investigation revealed that Suarez coordinated shipments of cocaine from individuals in Puerto Rico to addresses in New Britain, Hartford, Newington, East Hartford and Bridgeport, as well as Springfield, Massachusetts. Investigators identified more than 50 suspect parcels that were mailed from Puerto Rico, and intercepted five of the suspect parcels, each of which contained approximately one kilogram of cocaine.
On April 10, 2018, investigators arrested several members of the cocaine trafficking ring, including Jerry Rodriguez, also known as “Bebo,” of Hartford. On that date, a search of Rodriguez’s residence revealed approximately 400 grams of cocaine, approximately 160 grams of heroin, items used to process and package narcotics for street sale, and a loaded .45 caliber handgun. Also on that date, investigators searched Suarez’s residence, as well as two storage units used by Suarez and one storage unit used by Rodriguez in West Hartford. The search of Suarez’s storage units revealed more than $50,000 in cash and a search of Rodriguez’s storage unit revealed additional items used to process and package narcotics.
Suarez was arrested on April 12, 2018. On April 18, 2018, a grand jury returned an indictment charging Suarez, Rodriguez and five other individual with conspiracy to distribute cocaine. Suarez pleaded guilty on September 10, 2019.
Suarez has been detained since his arrest.
Rodriguez has pleaded guilty and is detained while awaiting sentencing.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The DEA Puerto Rico Caribbean Corridor Strike Force and U.S. Postal Inspection Service, Newark Division, San Juan (P.R.) Office, have assisted the investigation. This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Miami-Dade County Resident Charged with Mail and Wire Fraud Targeting the United States Postal ServiceRead the Press Release
A Miami-Dade County resident was arrested on federal charges in connection with a $1.5 million mail and wire fraud scheme that targeted the United States Postal Service.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Christopher Cave, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS OIG), Southern Area Field Office, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division made the announcement.
Edwin Jim Garcia-Albarracin, 45, of Miami, Florida, was charged in a thirty-two count indictment, that was unsealed today, with ten counts of mail fraud, ten counts of wire fraud, and twelve counts of money laundering (Case No. 20-cr-20012-WILLIAMS). He is scheduled for a detention hearing on January 21, 2020.
According to the indictment, Garcia-Albarracin through his company, Rambos Market, sold a variety of products online and used the United States Postal Service to mail the purchased products to consumers throughout South Florida and the United States. The indictment charges that from at least as early as July 2016 and continuing through November 2019, Garcia-Albarracin submitted false and fraudulent claims through the United States Postal Service Customer Inquiry and Claims Response System certifying that contents of certain packages that he had mailed were damaged, when in truth they were not. As a result of Garcia-Albarracin’s false and fraudulent claims, the United States Postal Service made payments to Garcia-Albarracin of over $1.5 million.
If convicted, Garcia-Albarracin faces a maximum statutory sentence of twenty years in prison for each mail fraud count; twenty years in prison for each wire fraud count; twenty years in prison for each money laundering count, in violation of Title 18, United States Code, Section 1956; ten years in prison for each money laundering count, in violation of Title 18, United States Code, Section 1957; a fine of up to $250,000 for the mail and wire fraud counts; and a fine not more than $500,000 or not more than twice the value of the loss as to each money laundering count of conviction.
An indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of USPS OIG and USPIS in this matter. This case is being prosecuted by Assistant U.S. Attorney Christine Hernandez. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Mexican national heads to prison for child porn convictionRead the Press Release
BROWNSVILLE, Texas – A 24 year-old Mexican national who illegally resided in San Juan has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Ernesto Vitela pleaded guilty May 23, 2019.
Today, U.S. District Judge Rolando Olvera Jr. ordered Vitela to serve 78 months in federal prison and ordered he pay $27,000 in restitution for the victims. He will also serve 20 years on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.
On or about May 9, 2018, law enforcement initiated an investigation of an IP address that was identified as sharing child pornography. That investigation led them to Vitela’s address in San Juan. On Nov. 29, 2018, agents executed a search warrant at that location and seized a cell phone and other digital devices belonging to Vitela. A forensic analysis later yielded approximately 7,844 images and 582 videos of child pornography.
Immigration and Customs Enforcement’s Homeland Security Investigations-Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Mexican National Sentenced for Conspiring to Assist Flight of Man Charged with Murdering Police OfficerRead the Press Release
FRESNO, Calif. — Erik Quiroz Razo (Quiroz), 28, an illegal alien from Michoacán, Mexico residing in Merced, was sentenced today to 21 months in prison for conspiring with others to assist Paulo Virgen Mendoza’s flight from California to Mexico after he allegedly committed a felony: the murder of Newman Police Corporal Ronil Singh during a traffic stop, U.S. Attorney McGregor W. Scott announced.
“The murder of a police officer in the line of duty is an assault on the entire community. This defendant, a convicted felon and previously deported alien, played a critical role in helping a man accused of killing a police officer to elude apprehension,” said U.S. Attorney Scott. “He disposed of the murder weapon, and he urged those close to him to not tell anyone about his activities. The successful prosecution of this defendant sends a message to the community that this behavior will not be tolerated.”
Last September, a jury found Quiroz guilty, along with Virgen Mendoza’s brother, Conrado Virgen Mendoza, 34, an illegal alien from Colima, Mexico, residing in Chowchilla. The evidence at trial established that Quiroz helped Paulo Virgen Mendoza conceal the truck that he was driving at the time of Corporal Singh’s murder, disposed of the firearm used to kill the officer, and lied to Stanislaus County Sheriff officers about Paulo’s whereabouts.
A court hearing for Conrado Virgen Mendoza has been scheduled for Jan. 21 where a sentencing date will be set for his involvement in the conspiracy to help his brother flee. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for conspiring to aid in his brother’s flight from authorities. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by Homeland Security Investigations and the Stanislaus County Sheriff’s Office with assistance from the Immigration and Customs Enforcement, Enforcement and Removal Operations; Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; Southern Tri-County HIDTA; Bureau of Alcohol, Tobacco, Firearms, and Explosives; California Highway Patrol; California Department of Justice, the Sheriffs’ Offices for Kern, Merced, and Santa Cruz Counties; and the Police Departments for Merced, Turlock, Modesto, and Santa Cruz. Assistant U.S. Attorneys Karen A. Escobar, Laura D. Withers, and Michael G. Tierney are prosecuting the case.
Mexican Man Sentenced to 13 Months in Federal Prison for Being an Illegal Alien in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ANTONIO OSORIO DIAZ, (“DIAZ”), age 41, a native of Mexico, was sentenced on January 8, 2020 to 13 months in federal prison after pleading guilty to a one-count indictment charging him with being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A).
In papers filed in open court, DIAZ admitted he was an illegal alien in possession of a firearm. The indictment alleged he illegally possessed a Ruger 45 caliber semi-automatic pistol. On February 3, 2019, the Gretna Police received a complaint of a man with a gun in a parking lot and responded. Illegal aliens are prohibited from possessing firearms under federal law.
DIAZ faced a maximum term of imprisonment of 10 years, a fine of $250,000, and three years of supervised release. After he completes his prison term, he will face deportation.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency and the Gretna Police Department in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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McKees Rocks Woman Pleads Guilty to Drug Charges in West End Wiretap InvestigationRead the Press Release
PITTSBURGH - A resident of McKees Rocks, PA, pleaded guilty in federal court to charges of conspiracy to distribute crack cocaine, cocaine and heroin, United States Attorney Scott W. Brady announced today.
Tamra Moore, age 35, pleaded guilty to three counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The investigation revealed that from in and around November 2017 through in and around June 2018, Tamra Moore and her co-conspirators distributed cocaine, crack cocaine and heroin in and around the area of the Greenway Projects.
Judge Schwab scheduled sentencing for May 13, 2020 at 10:00 a.m. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne Saadi are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Tamra Moore.
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.
Massachusetts Man Pleads Guilty to Conspiracy to Distribute CocaineRead the Press Release
Portland, Maine: A Lawrence, Massachusetts man pleaded guilty today in federal court in Portland to conspiring to distribute 500 grams or more of cocaine, U.S. Attorney Halsey B. Frank announced.
According to court records, between September 2017 and January 2018, Pedro Perez, 29, supplied another conspirator with multi-ounce quantities of cocaine for further distribution in the Portland area. On January 19, 2018, Perez supplied approximately 280 grams of cocaine to a member of the conspiracy. Law enforcement officers seized the cocaine in Scarborough during a traffic stop.
Perez faces between five and 40 years in prison, a $5,000,000 fine and between four years and life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The FBI, the U.S. Drug Enforcement Administration and the South Portland Police Department investigated the case.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Man who mailed deadly fentanyl to Seattle area woman arrested in PennsylvaniaRead the Press Release
Seattle – A 35-year-old Pennsylvania man was arrested January 14, 2020, in Philadelphia, charged with distributing fentanyl and acetyl fentanyl to the Western District of Washington, announced U.S. Attorney Brian T. Moran. The criminal complaint alleges that JESSE S. DITTMAR sent multiple envelopes containing the drug to his former girlfriend who had moved to her brother’s home in Seattle. The former girlfriend was found dead on January 29, 2019, less than 24 hours after she texted DITTMAR that she had done some of the drugs that arrived in the mail on January 28, 2019.
DITTMAR appeared today on the charges in U.S. District Court in the Eastern District of Pennsylvania and ultimately will appear in the Western District of Washington.
According to the criminal complaint, the 32-year-old victim broke up with DITTMAR and moved to her brother’s home in Seattle in the fall of 2018. Despite DITTMAR’s repeated attempts to text the victim, the victim cut off contact with DITTMAR until December 2018. During December 2018 and January 2019, DITTMAR and the victim were in contact and the texts make clear he was sending her drugs enclosed in greeting cards. Following the victim’s death, multiple greeting cards and packaging materials for drugs were found in the victim’s bedroom. The King County Medical Examiner determined the victim died from acute drug intoxication including fentanyl.
Distribution of fentanyl is punishable by up to twenty years in prison.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Postal Inspection Service (USPIS) with assistance from the Seattle Police Department and Seattle Fire Department.
The case is being prosecuted by Assistant United States Attorney Lyndsie Schmalz.
dittmar_complaint.pdfMan Sentenced for Role in Large Scale Marijuana ConspiracyRead the Press Release
A man who helped transport 1,500 pounds of marijuana from California to sell in Tulsa was sentenced Wednesday in U.S. District Court, announced U.S. Attorney Trent Shores.
Chief U.S. District Judge John E. Dowdell sentenced Kong Meng Vang, 36, of Tulsa, to time served and two years of supervised release. As a condition of his supervised release, he must serve four months of home detention.
“Kong Meng Vang chose to transport and deal massive amounts of marijuana in the Tulsa area. Now, unsurprisingly, he has been held accountable by the criminal justice system. That is a common path for those who choose to participate in the illegal drug business,” said U.S. Attorney Trent Shores. “The Tulsa Police Department broke this case wide open. And thanks to the unified effort of those officers, the Drug Enforcement Administration, IRS-Criminal Investigation, and U.S. Marshals, we dismantled a multi-state illicit marijuana network.”
In August 2018, Vang pleaded guilty to drug conspiracy, possession with intent to distribute 100 kilograms or more of marijuana and money laundering. The defendant admitted to transporting 1,500 pounds of marijuana from California to sell in the Tulsa area. As part of the plea agreement, the United States and Vang agreed to the forfeiture of 21 of the defendant’s vehicles along with seven residences, firearms and ammunition.
This case resulted from a joint investigation conducted by the Tulsa Police Department; Drug Enforcement Administration; U.S. Department of Treasury, IRS-Criminal Investigation; and U.S. Marshals Service. Assistant U.S. Attorney Joseph F. Wilson prosecuted the case as part of the U.S. Attorney’s Organized Crime and Drug Enforcement Task Force.
Man Pleads Guilty to Straw Purchasing a FirearmRead the Press Release
ALEXANDRIA, Va. – A Lorton man pleaded guilty today to straw purchasing a firearm.
“Every straw purchased firearm is a gun that can wind up in the hands of a prohibited person,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to use federal firearms laws to prosecute straw purchasers and hold them accountable for their role in trafficking illegally purchased firearms. As I recently stated, the violation is our threshold—one straw purchased firearm on one occasion will be prosecuted. I want to commend the ATF for their leadership and commitment to investigating these important cases.”
According to court documents, Daquan Anthony Poindexter, 22, straw purchased a firearm from a federal firearms licensee (FFL) in Eastern Virginia for another individual. In making the purchase, Poindexter represented himself as the true buyer of the firearm, but immediately after he received the firearm he transferred it to the straw purchaser and was paid for making the purchase.
“This investigation demonstrates how criminals abuse laws governing firearm purchases,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Straw purchased firearms can end up in the hands of violent offenders and prohibited persons. If you lie when you buy a firearm, you will be held accountable.”
Poindexter pleaded guilty to making false statements with respect to the purchase of a firearm and faces a maximum penalty of five years in prison when sentenced on April 10. 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.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea. Special Assistant U.S. Attorney Anthony W. Mariano is prosecuting 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. 1:20-cr-004.
Malden Woman Indicted on Bank Fraud and Identity Theft ChargesRead the Press Release
BOSTON – A Malden woman has been indicted by a federal grand jury in connection with a scheme to embezzle more than $795,000 from her employer.
Kayla Figelski, 32, was charged with seven counts of bank fraud and one count of aggravated identity theft. Figelski was previously charged and arrested on Dec. 19, 2019.
According to court documents Between April 2017 and June 2019, Figelski stole at least $795,000 from her employer, a law firm in Malden. Figelski allegedly forged checks to herself from her employer’s checking accounts, including conservatorship and trust accounts her employer maintained for its elderly clients and their estates, and deposited the checks into her own account, from which she withdrew the funds, or directly cashed the checks. It is further alleged that to hide her scheme, Figelski modified bank statements to make it appear that the checks were written out to legitimate vendors rather than to Figelski.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the Malden Police Department. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mailed meth package sends California man to prisonRead the Press Release
BILLINGS—A California man who picked up a package of meth that had been mailed to Billings was sentenced today to 54 months in prison and five years of supervised release for conviction on drug trafficking charges, U.S. Attorney Kurt Alme said.
Michael Armando Sanchez, 27, of Bakersfield, CA, pleaded guilty in November to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
The prosecution said in court records that in March 2019, a U.S. Postal Service mail carrier attempted to deliver a package from Bakersfield, CA, to an apartment unit in Billings. The unit was unoccupied, and the mail carrier then knocked on a basement apartment. Two men answered the door. As the carrier left, one of the men claimed to be the “David Castillo,” who was later identified as Sanchez, and said that the package belonged to him. Sanchez was unable to produce any identification to receive the package and was informed that identification would be needed to retrieve the package from the main U.S. Postal Service office. Both men became irate and began yelling and calling the carrier names. The carrier reported the incident to her supervisor.
Both men went to the post office and spoke with the manager about getting the package. The men became verbally aggressive about not getting the package, and after leaving, Sanchez called the post office again asking about the package.
Law enforcement arranged for a K9 to sniff the package and the dog alerted to the presence of narcotics. A search warrant was executed on the package, which was found to contain about eight ounces of meth. The package was given to the postal inspector for a controlled delivery from the post office.
The inspector called Sanchez and told him the post office could release the package. Both men arrived to pick up the package. Law enforcement arrested Sanchez after he took possession of the package. Sanchez admitted he knew the package contained meth and that it had been sent to him under a fake name.
Assistant U.S. Attorney Julie Patten prosecuted the case, which was investigated by the FBI’s Transnational Organized Crime West task force and USPS.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Leader of Utah Drug Trafficking Organization Gets 23 Years in Federal Prison for Drug DistributionRead the Press Release
SALT LAKE CITY – Brenton Michael Forney, 28, of Salt Lake City, the lead defendant in a federal drug case targeting a significant drug trafficking organization distributing methamphetamine, heroin, and fentanyl in Utah communities, will serve 276 months in federal prison.
Forney pleaded guilty in October to one count of possession of methamphetamine, heroin, and fentanyl with intent to distribute. As a part of the agreement with federal prosecutors, Forney admitted that in October 2018, he was in possession of the controlled substances and intended to sell them. The drugs, seized following the execution of a search warrant, were tested and determined to be approximately 12,591.5 grams of actual methamphetamine, approximately 6,000 grams of a mixture containing methamphetamine, approximately 10,054 grams of heroin, and approximately 1,789 grams of fentanyl.
“The women and men of Utah law enforcement dismantled a prolific drug trafficking operation,” U.S. Attorney John W. Huber said today. “They significantly slowed the flow of extraordinarily dangerous substances into our neighborhoods, such as fentanyl, heroin and methamphetamine. I am confident that this operation, and others like it, helped saved Utah lives.”
U.S. District Judge Jill N. Parrish imposed the sentence Tuesday afternoon in federal court. The sentencing guideline range for Forney was life in federal prison with a 25-year mandatory minimum sentence given the quantity of drugs involved and two previous convictions for drug trafficking. The plea agreement included a stipulated sentence of 23 years. Forney will forfeit $491,674.52 in cash and five firearms and associated ammunition as a part of the resolution of the case.
Forney and six other defendants were charged with conspiracy to distribute controlled substances, two counts of possession of a controlled substance with intent to distribute, four counts of possession of a firearm by a restricted person, one count of possessing a firearm in furtherance of a drug trafficking crime, one count of carrying a firearm during and in relation to a drug trafficking crime, eight counts of distribution of a controlled substance, 19 counts of use of a communication facility in a drug trafficking offense, and one count of structuring in a superseding indictment returned in November 2018.
During the investigation of the case, approximately 47 pounds of methamphetamine, 26.4 pounds of heroin, 4.4 pounds of a mixture or substance containing a detectable amount of fentanyl, and eight guns were seized.
At sentencing, Assistant U.S. Attorney Michael Kennedy said prosecutors learned that in the aftermath of Forney’s arrest and the seizure of his drugs, there was a significant decline in the availability of illegal drugs in the Salt Lake Valley for months afterward.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Officers and agents with the DEA Metro Narcotics Task Force, Layton Police Department, and the Davis Metro Narcotics Strike Force investigated the case.
Lawrence Man Sentenced to 78 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Henry Marte, 22, of Lawrence, Massachusetts, was sentenced on Tuesday to 78 months in federal prison for participating in a fentanyl trafficking conspiracy.
According to court documents and statements made in court, Marte participated in a drug trafficking organization that was led by Sergio Martinez. Martinez employed numerous individuals to sell fentanyl to customers from various New England states, including New Hampshire. Some defendants, including Marte, worked for the Martinez organization by distributing 200-gram bags of fentanyl on a daily basis.
“Interstate fentanyl traffickers have caused tremendous damage to the health and safety of communities throughout New England,” said U.S. Attorney Murray. “In order to protect our citizens, we are working with all of our law enforcement partners to stop the flow of this deadly drug. Those who are responsible for distributing fentanyl should expect to spend substantial time in federal prison.”
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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Jury convicts Browning man of rape, sexual abuse of two womenRead the Press Release
GREAT FALLS—A jury today convicted a Browning man of sexually assaulting two women on the Blackfeet Reservation in 2018, U.S. Attorney Kurt Alme said.
A jury found Alphonse Bird, 82, guilty of one count of aggravated sexual abuse and one count of sexual abuse. The jury acquitted Bird of a second count of aggravated sexual abuse. The trial began on Monday.
Bird faces a maximum of life in prison, a $250,000 fine and five years of supervised release.
U.S. District Judge Brian Morris ordered Bird to report to custody on Jan. 31 and set sentencing for May 21.
“Mr. Bird posed a serious danger to women in the community. We know that Native American women face too much violence, including sexual violence, and it must stop. Those who prey on women will face prosecution to the full extent of the law. I want to thank Assistant U.S. Attorney Kalah Paisley, the FBI, Bureau of Indian Affairs and Blackfeet Law Enforcement Services for their work investigating and prosecuting this case,” U.S. Attorney Alme said.
The prosecution presented evidence at trial that on Sept. 15, 2018, the first victim approached a Blackfeet Law Enforcement officer near the Town Pump in Browning and reported that Bird had just raped her. Bird had picked her up near the Blackfeet Care Center and she thought he was giving her a ride home. Instead, Bird drove toward East Glacier Park, parked the vehicle and raped her. The victim couldn’t get Bird to stop until she got sick. He dropped her off near Advanced Towing and witnesses helped her. The victim promptly reported the assault and cooperated with the investigation.
In the second assault, a witness called law enforcement on Nov. 4, 2018 to report an incident she had just observed south of Browning in which a vehicle was parked on the side of the road. The witness pulled up to the passenger side to see if the occupants needed assistance. Bird was in the driver’s seat and the victim was a passenger. The victim attempted to sit up but was unable to do so. Bird drove away. The witness tried to follow but could not keep up and called law enforcement. A law enforcement officer located the vehicle and when she approached, she saw Bird, who had his right arm in a sling and was putting a glove on his left hand. Bird said he was bringing his passenger home and was just turning around.
The victim told the officer that Bird had picked her up and she thought he was going to take her home. The victim was intoxicated and had trouble recounting what happened, but said Bird sexually assaulted her despite telling him to stop. The victim said Bird kept telling her she was going to be okay.
DNA analysis linked Bird to evidence collected from both of the victims.
Assistant U.S. Attorney Kalah Paisley prosecuted the case, which was investigated by the FBI, the Bureau of Indian Affairs and Blackfeet Law Enforcement.
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Jury Finds Texas Attorney and Client Guilty of Conspiring to Defraud the Internal Revenue ServiceRead the Press Release
A federal jury convicted a Texas attorney John O. Green and his client Thomas Selgas today for conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. The jury also convicted Selgas of tax evasion. Selgas’s wife, Michelle Selgas, was acquitted of conspiring to defraud the United States and tax evasion.
According to the evidence presented at trial, Selgas conspired with Green, an attorney licensed to practice in Texas, to defraud the United States by obstructing the Internal Revenue Service (IRS) from assessing and collecting Selgas’s taxes. Selgas and his wife owed approximately $1.1 million in outstanding taxes that Selgas refused to pay. When the IRS made efforts to collect the outstanding taxes, Selgas concealed funds by using Green’s Interest on Lawyers Trust Account
(IOLTA) rather than using accounts in his own name. An IOLTA is a bank account used by a lawyer to hold money in trust for clients. From 2007 to 2017, Selgas deposited proceeds from the sale of gold coins and other income into Green’s IOLTA and Green would then pay the Selgases personal expenses, including their credit card bills, from that account. Selgas and Green also filed a false tax return on behalf of MyMail, Ltd., an intellectual property development and licensing partnership Selgas co-founded, omitting a substantial portion of the partnership’s income.
U.S. District Judge Karen Gren Scholer will set sentencing at a later date. Selgas faces a statutory maximum sentence of five years in prison for each of the conspiracy and tax evasion counts.
Green faces a maximum sentence of five years in prison for the conspiracy count. They also face a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked agents of the IRS - Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Robert A. Kemins and Mara Strier, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Jonesboro Drug Conspiracy Results in Seizure of $35,000 Worth of Methamphetamine, Multiple GunsRead the Press Release
LITTLE ROCK— Seven defendants are in custody after federal and state authorities made multiple arrests in Jonesboro this morning as part of an ongoing investigation. The portion of the investigation that concluded with today’s arrests resulted in the seizure of more than five pounds of methamphetamine and six firearms. The overall investigation, which is continuing, involves the seizure of more than 12 pounds of methamphetamine and 31 guns, to date. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s arrests.
The large-scale drug operation in Northeast Arkansas is, according to one of five related federal indictments, headed by Eiichi Moore, a known member of the Crip gang. Today’s arrests are in conjunction with the announcement of these indictments of eight individuals who were charged by a federal grand jury on January 7, 2020. Moore, 41, and two others—Lakendra Thomas, 27, and Jullian Woods, 33, all of Jonesboro—are charged with conspiracy to distribute methamphetamine as well as distribution of methamphetamine. An additional co-conspirator has been indicted but has not been arrested and is currently a fugitive.
During this morning’s arrests, police announced their presence at Moore’s residence and immediately heard shots fired from inside the home. Officers confirmed that Moore fired the shots while he and Thomas were in the master bedroom. Moore fired towards the living room, where minor children were sleeping. No one was injured in the shooting.
Other defendants whose charges were announced today, all of whom reside in Jonesboro, include Alva Turner, 42, who is charged with possession of methamphetamine with intent to distribute; Lawrence Cannon, 49, who is charged with being a felon in possession of a firearm; Mike Crockett, 31, who is charged with distribution of methamphetamine; and Percy Law, Jr., 39, who is charged with possession of cocaine and crack cocaine with intent to deliver, possession of a firearm in furtherance of a drug trafficking crime, and three counts of distribution of methamphetamine. Cannon is currently in state custody on unrelated charges. The other six defendants are being held in federal custody and will be seen Thursday by United States Magistrate Judge Jerome T. Kearney.
The indictments stem from an Organized Crime Drug Enforcement Task Force, or OCDETF, investigation that began in March 2016. While the overall investigation has thus far uncovered more than 12 pounds of methamphetamine, the defendants charged in the indictments announced today are allegedly responsible for five pounds of methamphetamine that law enforcement intercepted. Five pounds of methamphetamine has a street value ranging from $35,000 to $50,000. From these defendants officers also seized six firearms, one of which was a semi-automatic firearm with an extended capacity magazine to hold extra ammunition, as well as cocaine and various drug paraphernalia. Four of the firearms, including an AR-15; numerous additional magazines, some with extended capacity; and over $35,000 in cash, were seized as part of today’s arrests.
“Today’s arrests signify our commitment to stopping drug trafficking throughout Eastern Arkansas,” stated United States Attorney Hiland. “This operation shows that our reach extends to those who traffic narcotics in Jonesboro and anywhere else in the Eastern District of Arkansas. We appreciate the collaboration between the federal and state partners that made this investigation possible.”
“Today’s arrests disrupted a major drug trafficking network in Northeast Arkansas and were the culmination of an extensive OCDETF investigation involving our numerous federal, state, and local partners,” said Special Agent in Charge Upchurch. “Our goal with this OCDETF investigation was to reduce the flow of illegal drugs by identifying and targeting major traffickers within our state. Today’s operation shows what can be accomplished by Arkansas law enforcement when we work together to counter the scourge of drugs and end the violence drug traffickers instill in our communities.”
Today’s operation is the result of a joint investigation between the FBI; the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the Arkansas State Police; the Jonesboro Police Department; the Craighead County Sheriff’s Office; and the 2nd Judicial Drug Task Force. The case is being prosecuted by Assistant United States Attorney Erin O’Leary.
An indictment contains only allegations. Defendants are presumed innocent unless and until proven guilty.
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Joint Statement of Allegations Regarding Mississippi's PrisonsRead the Press Release
Special Agent in Charge of the FBI Jackson Division Michelle A. Sutphin, United States Attorney for the Northern District of Mississippi William C. Lamar and United States Attorney for the Southern District of Mississippi Mike Hurst today release the following statement:
"The FBI and United States Attorney's Offices are aware of the allegations regarding Mississippi's prisons. Allegations of the violation and deprivation of civil rights, as well as criminal activity, continue to be taken very seriously by our offices. To report federal criminal violations to the FBI, go to https://tips.fbi.gov. To file a complaint to DOJ’s Civil Rights Division about conditions within the prisons, call 877-218-5228 or 202-514-6255.”
Johnstown Man Charged with Possession and Distribution of FentanylRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The Indictment named Nathaniel Jackson, 44, as the sole defendant.
According to the Indictment presented to the court, on or about April 29, 2019, Jackson distributed and possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl.
The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jefferson City Man Sentenced for Bombing Former Spouse's VehicleRead the Press Release
St. Louis – Dean Allen McBaine, 31, of Jefferson City, MO, was sentenced to 60 months in prison following his conviction by a jury in October for one count of possessing an unregistered destructive device. McBaine appeared before U.S. District Court Judge Audrey G. Fleissig who ordered McBaine to pay restitution in the amount of $34,705.21.
According to testimony at trial, McBaine was involved in a domestic dispute with his current wife at their residence in Jefferson City. During the incident, McBaine discharged several rounds from a handgun into the bedroom where his then 13-year-old son was sleeping. Consequently, McBaine’s former spouse and mother of the boy retrieved him from Jefferson City and moved him to her home in St. Louis. Orders of protection against McBaine were issued for the former spouse and son.
Approximately three weeks later, on September 2, 2018 in St. Louis City, an explosion that also damaged two adjacent homes destroyed the former spouse’s red Mini Cooper automobile.
The co-defendant, Michael Bushman, pled guilty and was sentenced on November 22, 2019 to 13 months in prison. Bushman admitted to preparing a “sparkler bomb” with McBaine and detonating it under the vehicle in the victim’s driveway. A neighbor’s security camera system captured the explosion.
The case was investigated by the Metropolitan St. Louis Police Department, the St. Louis Fire Department, and the St. Louis division of the FBI. The case was handled by Assistant United States Attorneys John Davis and Paul D’Agrosa.
Illinois Man Admits Role in Conspiracy to Distribute Cocaine and HeroinRead the Press Release
NEWARK, N.J. – A Illinois man today admitted conspiring to transport heroin and cocaine to New Jersey, U.S. Attorney Craig Carpenito announced.
Daniel Gonzalez Maldonado, 25, of Carpentersville, Illinois, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.
According to documents filed in this case and statements made in court:
On June 6, 2019, a conspirator paid Maldonado approximately $1,000 to drive the conspirator and a quantity of narcotics from Illinois to the East Coast. Maldonado allowed the conspirator to store approximately one kilogram of cocaine and approximately two kilograms of heroin in a Norristown, Pennsylvania, hotel room that was reserved in Maldonado’s name. The investigation revealed that at least one of these kilograms of narcotics would have been distributed in New Jersey.
The count to which Maldonado pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for April 23, 2020.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s guilty plea.
The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Houston Men Arrested in Beaumont in Armored Car Robbery SchemeRead the Press Release
BEAUMONT, Texas – Four Houston men have been arrested on federal violations in the Eastern District of Texas announced. U.S. Attorney Joseph D. Brown
David Nathan Taylor, 28; Prentis Leewood Delaney, 29; Coray Quan Brown, 32; and Jamarius Early Jones, 21; appeared in federal court in Beaumont today for initial appearances. A criminal complaint charging the individuals with conspiracy to commit Hobbs Act robbery was signed by U.S. Magistrate Judge Zack Hawthorn on Jan. 14, 2020. The Hobbs Act prohibits actual or attempted robbery that has an effect on interstate commerce by reason of their repetition and aggregate effect on the economy. Investigators believe the crew is responsible for the October 2019 murder of an armored car guard in northwest Houston.
According to the criminal complaint filed in the Eastern, District of Texas, the Federal Bureau of Investigation was investigating a series of armored car robberies, including the fatal robbery of a Loomis armored car courier that occurred on Oct. 24, 2019, in Houston. During that robbery, three individuals brandished firearms and demanded money from the courier. The courier was shot and killed. A subsequent investigation led officers to these four subjects. On Jan. 13, 2020, these individuals were observed together in Houston prior to traveling to Lake Charles in two separate vehicles. Upon arriving in Lake Charles the subjects were observed by law enforcement following an armored vehicle that then traveled to Beaumont. After arriving in Beaumont they were encountered by law enforcement and subsequently arrested. Inside one of the vehicles officers discovered two AR-15 style rifles, a pistol, three masks, three sets of gloves, five cell phones, and two open bottles of rubbing alcohol.
If convicted, the defendants face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, the Beaumont Police Department, the Texas Department of Public Safety, the Lake Charles Police Department and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorney Russell E. James.
A grand jury indictment or complaint is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Honduran Sentenced to 16 Months in Federal Prison for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that FREDDY OVIDIO CASTILLO-CRUZ, (“CASTILLO-CRUZ”), age 40, was sentenced on January 9, 2020 to 16 months in federal prison for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to documents filed in open court, CASTILLO-CRUZ reentered the United States after he was previously deported on December 5, 2012. CASTILLO-CRUZ faced a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Hartford Man with Violent Criminal History Returns to Prison for Illegally Possessing AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYSHAWN COLEMAN, 30, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 46 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, in the early morning hours of August 5, 2017, Hartford Police stopped a car after a witness had reported that the car was involved in a fatal shooting on Edgewood Street less than 30 minutes earlier. Coleman was sitting in the front passenger seat. An officer conducted a pat-down of Coleman and retrieved two clear zip-lock bags from his pocket. One of the bags contained marijuana, and the other contained a .45 caliber bullet.
Prior to August 2017, Coleman had sustained two felony convictions for conspiracy to commit murder, three felony convictions for accessory to first-degree assault, one felony conviction for first degree assault, and one felony conviction for sale of a controlled substance.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Coleman has been detained since his arrest. On October 24, 2019, he pleaded guilty to one count of possession of ammunition by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Gang Member Sentenced to 108 Months in Federal Prison for Possession of Stolen FirearmsRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Michael Lorenzo Martinez Castoreno, age 35, of Moses Lake, Washington, was sentenced today after having pleaded guilty on July 15, 2019, to possession of stolen firearms. Senior United States District Judge Wm. Fremming Nielsen sentenced Castoreno to a 108-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on June 5, 2018, Castoreno, a documented criminal street gang member, led police on a high speed chase, stopping only after he crashed into a law enforcement vehicle. Officers arrested Castoreno and found three stolen firearms in his vehicle.
United States Attorney Hyslop said, “The United States Attorney’s Office will prosecute aggressively individuals who unlawfully possess firearms. Such offenses are serious. I commend the Moses Lake Police Department, Grant County Sheriff’s Office, Adams County Sheriff’s Office, U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their commitment to this successful prosecution.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Moses Lake Police Department, Grant County Sheriff’s Office, Adams County Sheriff’s Office, U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see [: https://www.justice.gov/ag/project-guardian-memo-2019/download].
This case was investigated by the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, Moses Lake Police Department, and the Sheriff’s Offices of Grant and Adams Counties. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Franklin County Woman Pleads Guilty to Conspiring to Possess with Intent to Distribute MethamphetamineRead the Press Release
St. Louis, MO –Reanna Danielle Campbell, 26, of Franklin County, MO, pleaded guilty to her involvement in conspiring to possess with the intent to distribute methamphetamine. Campbell appeared in federal court today before United States District Judge John A. Ross who accepted her plea and set her sentencing date for April 23, 2020.
According to the plea agreement, Campbell and her co-defendant Joshua Spencer were engaged in the sale of crystal methamphetamine in the St. Louis Metropolitan area, as well as in Franklin and Jefferson County, Missouri. Investigators conducted controlled buys of methamphetamine from Campbell and Spencer in and around the area. Also during the course of the investigation, Spencer and Campbell crashed a vehicle while fleeing from police near the Interstate 44 entrance at South Elm Avenue in Webster, Missouri, and fled on foot. Two handguns were recovered by law enforcement near the scene of the crash and investigators seized five other firearms from the crashed vehicle, along with knives and additional firearms magazines and drug paraphernalia.
Campbell faces imprisonment of not more than 20 years and a fine of not more than $1,000,000,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Spencer remains charged with conspiracy to distribute and to possess with the intent to distribute methamphetamine, distribution of methamphetamine, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime. Those charges remain merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Multi-County Narcotics and Violent Crimes Enforcement Unit and the Drug Enforcement Administration is investigating this case, with assistance from the Kirkwood and Webster Police Departments. Assistant United States Attorney Lisa Yemm is handling this case for the U.S. Attorney’s Office.