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Wednesday 8 January 2020
Convicted Felon Pleads Guilty to Possessing 23 Firearms and More Than 3,000 Rounds of AmmunitionRead the Press Release
Ocala, Florida – Nicholas Allen Groves (35, Ocala) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Groves had been indicted on November 20, 2019.
According to the plea agreement, on November 6, 2019, federal agents executed a search warrant at Groves’s residence and seized 25 firearms (revolvers, pistols, rifles and shotguns), 3,171 rounds of ammunition, a homemade firearm silencer, and several 40 mm grenade shells. Experts later determined that 23 of the firearms had crossed state lines, making them the subject of federal prosecution. Groves, who has a previous felony conviction for assault-first degree (Maryland), is prohibited from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Marion County Sheriff’s Office, and the City of Ocala Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Clarksville Man Who Shot at Police Officers Pleads Guilty to Federal Firearms ChargeRead the Press Release
NASHVILLE, Tenn. – January 8, 2020 – – Elique Camacho, 22, of Clarksville, Tennessee, pleaded guilty yesterday in U.S. District Court to possessing a firearm after being convicted of a crime of domestic violence, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Camacho was indicted in July 2018, after an incident on June 24, 2018, where Clarksville police officers were called to the scene of a domestic assault and upon arrival, Camacho was attempting to leave the scene. As officers approached his vehicle, Camacho drove toward them and struck one of the officers with his vehicle and fled. As Clarksville officers pursued Camacho, he fired several rounds at the officers from his vehicle. One of the officers subsequently rammed and disabled Camacho’s vehicle, after which, he fled on foot and hid in a wooded area overnight, before being arrested the following day at a friend’s house. At the time of his arrest, Camacho was in possession of a 9mm handgun.
Camacho had previously been convicted of domestic assault in January 2017 and was prohibited from possessing a firearm.
The plea agreement calls for Camacho to receive a sentence of 10 years in prison when he is sentenced on May 18, 2020.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Clarksville Police Department. Assistant U.S. Attorney Brooke Schiferle is prosecuting the case.
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Chippewa County Man Sentenced to 30 Years in Prison for Producing Images of Child Sexual AbuseRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MATTHEW ERIC DOLVEN, 31, to 360 months in prison for producing and distributing images and videos depicting his sexual abuse of a minor. DOLVEN, who pleaded guilty to a two-count felony information on February 26, 2019, was sentenced today before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minnesota.
United States Attorney Erica MacDonald said, “Matthew Dolven’s egregious and despicable actions caused incalculable harm to the victim, harm that no child should ever have to endure. For his crimes, this child predator will spend the next 30 years in prison.”
According to the felony information and documents filed in court, between June 1, 2016, and June 27, 2018, DOLVEN sexually molested a minor victim and used a smartphone to record the abuse. DOLVEN used various social media platforms to distribute to others the child sexual abuse images and videos he produced.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case was the result of an investigation conducted by the FBI, the Chippewa County Sheriff’s Office, and the Montevideo Police Department.
Assistant U.S. Attorney Laura M. Provinzino and former Assistant U.S. Attorney Carol M. Kayser prosecuted the case.
Defendant Information:
MATTHEW ERIC DOLVEN, a/k/a “VEECE07,” 31
Sherburne County Jail
Convicted:
- Production of child pornography, 1 count
- Distribution of child pornography, 1 count
Sentenced:
- 360 months in prison
- 20 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Chicago Sex Trafficker Sentenced to Ten Years in PrisonRead the Press Release
CHICAGO — A Chicago man has been sentenced to ten years in federal prison for exploiting several young men and a woman in a national sex trafficking operation.
TIMOTHY DORSEY facilitated the prostitution of his victims in the Chicago area and throughout the country, including Arizona, California, Colorado, Georgia, Michigan, Missouri, Nevada and Texas. Dorsey sought customers for his victims through online advertisements that offered erotic massage services but contained code words to convey that sex acts would be included. He booked and funded his workers’ travel expenses to meet with individuals who responded to the ads, and he collected at least half of the illicit proceeds. Dorsey threatened to assault or kill anyone who left his sex trafficking operation.
Dorsey, 52, pleaded guilty last year to two counts of transporting an individual in interstate commerce to engage in prostitution. U.S. District Judge John J. Tharp., Jr., on Tuesday imposed the ten-year prison sentence. In determining the sentence, Judge Tharp found that the government demonstrated that Dorsey directed one his workers to murder a man who had left Dorsey’s organization to work on his own. The man was shot multiple times outside of a motel in Schiller Park on Feb. 27, 2015. The individual who fired the shots was convicted of murder in the Circuit Court of Cook County and sentenced to 50 years in prison.
Dorsey's sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The U.S. Attorney’s Office for the Middle District of Georgia and the Schiller Park Police Department provided valuable assistance.
“Timothy Dorsey recruited young men and women who were struggling with emotional and substance abuse issues into his national prostitution operation,” Assistant U.S. Attorneys Jared C. Jodrey and Maureen E. Merin argued in the government’s sentencing memorandum. “He preyed on young people with troubled family situations, mental health and drug abuse issues, and he emotionally and physically abused them while they were involved in his organization.”
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Chamberlain Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Chamberlain, South Dakota, man convicted on two counts of Abusive Sexual Contact with a Child Incapable of Consent was sentenced on January 2, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
James Blue, Jr., a/k/a “BJ”, age 39, was sentenced to 144 months in federal prison, followed by 8 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Blue was indicted by a federal grand jury on March 13, 2018. He pled guilty on October 8, 2019.
The conviction stemmed from multiple incidents between 2011 and 2015. During this time, Blue engaged in sexual acts with two minors who had not attained the age of 12 years, and who were incapable of appraising the nature of the conduct and declining participation and communicating an unwillingness to engage in the abusive sexual contact.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Blue was immediately turned over to the custody of the U.S. Marshals Service.
Carriere, MS Man Pleads Guilty to Intentionally Accessing a Protected Computer in Excess of AuthorizationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that COLBI TRENT DEFIORE, age 27, a resident of Carriere, Mississippi, pleaded guilty on January 7, 2020 before United States District Judge Jay A. Zainey to a one-count indictment with intentionally accessing a protected computer in excess of authorization for the purpose of commercial advantage and private financial gain, and in furtherance of the commission of a felony, in violation of 18 U.S.C. ' 1030(a)(2)(C).
According to court documents, DEFIORE worked as a seasonal employee for Company A, a Virginia-based company in the technology sector that supported the Centers for Medicare & Medicaid Services (CMS) by operating contact centers to assist with, among other things, Medicare enrollment. One of the centers, at which DEFIORE worked, was located in Bogalusa, Louisiana. On numerous occasions, up to at least November 12, 2018, DEFIORE improperly accessed and obtained, the personal identifying information of more than 8,000 individuals by improperly accessing the healthcare.gov database.
Specifically, DEFIORE conducted “bulk searches” of the database, which he was prohibited from doing, and was able to view the personal information of healthcare.gov customers. DEFIORE then copied the results of his searches onto a virtual clipboard and sent them to himself via email. After work hours, DEFIORE accessed Company A’s network remotely without authorization to retrieve his work email. DEFIORE used the personal information of at least five consumers to apply fraudulently for at least six credit cards, loans, and lines of credit for his personal benefit.
DEFIORE faces a maximum term of imprisonment of five years, a fine of up to $250,000, three years supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Zainey has been scheduled for April 7, 2020.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Burlington County Man Charged with Wire Fraud and Money Laundering for Defrauding Internet DonorsRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was indicted today for his role in a GoFundMe scheme that collected money from donors on the internet, purportedly to benefit a homeless man, U.S. Attorney Craig Carpenito announced today.
Mark D’Amico, 40, formerly of Bordentown, New Jersey, was indicted on one count each of conspiring to commit wire fraud and conspiring to commit money laundering, as well as on four substantive counts of wire fraud and 10 substantive counts of money laundering. He was previously charged by criminal complaint on Oct. 2, 2019.
On March 6, 2019, two conspirators – Katelyn McClure and Johnny Bobbitt Jr. – pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, respectively, in connection with the same scheme. They are both awaiting sentencing.
According to documents filed in this case and statements made in court:
In November 2017, D’Amico and McClure created a crowd source funding page on GoFundMe’s website, titled: “Paying It Forward.” The campaign solicited donations from the public, purportedly for the benefit of homeless veteran Bobbitt. D’Amico and McClure posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a good Samaritan and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited, with a goal of $10,000, to get Bobbitt off the streets and provide living expenses for him.
The story told by D’Amico and McClure was not true. McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure conspired to create the false story to obtain money from donors based on false information. The false story was quickly picked up by local and national news outlets and went viral. Approximately $400,000 from more than 14,000 donors throughout the country was raised in less than one month.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts by D’Amico for gambling, as well as for vacations, a BMW automobile, clothing, handbags and other personal items and expenses.
In mid-November 2017, when the donations had reached approximately $1,700, D’Amico and McClure told Bobbitt about the campaign and the false story. In December 2017, after D’Amico helped open a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
The charge of wire fraud conspiracy and the four substantive wire fraud charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of conspiracy to commit money laundering, as well as five of the substantive money laundering counts, each carry a maximum penalty of 10 years in prison and a fine of $250,000. The remaining five charges of money laundering charges each carry a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; and officers of the Florence Township Police Department for their work on the case.
The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorney Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Broken Arrow Woman Faces Charges for Wire Fraud and Filing a False Tax ReturnRead the Press Release
A Broken Arrow woman was arraigned Wednesday in U.S. District Court for stealing $654,579 from her employer. Brandy Okey, 39, is charged with wire fraud and filing a false tax return.
“The marketplace is dependent, in part, on the ethical, honest and lawful actions of those who work within it. That is especially true for someone in the position of chief financial officer,” said U.S. Attorney Trent Shores. “Unfortunately, as in this case, there are those who criminally exploit their positions of trust. The United States Attorney’s Office will continue to aggressively prosecute white collar criminals who thieve, embezzle, and otherwise defraud.”
According to court documents, Okey had access to finances and cash deposits in her position at a company in the Northern District of Oklahoma. Okey allegedly took the company’s cash deposits or a portion of the deposits for her own personal gain from December 2015 to September 2018. As part of her scheme, Okey shredded the original deposit slips or prepared new slips showing a lower deposit amount. On April 27, 2017, Okey is alleged to have transmitted a false report to the company’s board of directors in order to hide her crimes. Okey is further charged with filing a false tax return for the year 2017 when she failed to report approximately the $294,450 in income that she acquired through the scheme.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts is prosecuting the case.
Box Elder woman admits stabbing manRead the Press Release
GREAT FALLS – A Box Elder woman today admitted she stabbed a man in the hand and chest with a butterfly knife on the Rocky Boy’s Reservation last year, U.S. Attorney Kurt Alme said.
Katie Lynn Big Bow, 44, pleaded guilty to assault of a dating partner. Big Bow faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided and set sentencing for May 7. Big Bow was detained pending further proceedings.
The prosecution said in court records that the assault occurred on May 2, 2019 when Big Bow stabbed the victim with a butterfly knife in the left hand and upper chest at his house in Box Elder. The victim was transported to the Northern Montana Hospital for treatment. Big Bow and the victim are in a relationship.
Assistant U.S. Attorney Paulette Stewart is prosecuting the case, which was investigated by the FBI and Rocky Boy’s Chippewa Cree Law Enforcement.
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Bookkeeper Convicted of Wire Fraud Sentenced to Probation for Three YearsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that LATANYA A. BRITTON, age 41, a resident of LaPlace, Louisiana, was sentenced January 7, 2020 for Wire Fraud, in violation of Title 18, United States Code, Section 1343. Judge Vitter sentenced Britton to a term of probation for three (3) years, the first six (6) months to be served as a period of home incarceration. In addition, Britton was ordered to pay full restitution to the victims. Lastly, Britton will need to complete fifty (50) hours of community service.
According to court records, on January 22, 2018, BRITTON was hired as a bookkeeper in the client accounting services department at Accounting Firm A. Accounting Firm A was located in New Orleans, Louisiana and provided client accounting services to local businesses and individuals. Client B, a restaurant located in the New Orleans French Quarter, was a small business client of Accounting Firm A. BRITTON became the bookkeeper for Client B and was entrusted with the daily accounting and bill paying for Client B’s account. Accounting Firm A utilized a cloud-based accounting software called Restaurant 365 to manage the account for Client B. Restaurant 365 allowed BRITTON authorized access to Client B’s bank account. BRITTON’s position allowed her to issue checks to Client B’s vendors that contained an electronic signature of the managing shareholder of Client B.
On August 16, 2018, BRITTON established an entity named Lagniappe Accounting Services, L.L.C. (“Lagniappe”). Navy Federal Credit Union (“NFCU”) was a domestic financial banking institution headquartered in Vienna, Virginia. All check images received by NFCU either from a NFCU branch, ATM, e-deposit, or other channel, were transmitted to computer servers located in Vienna, Virginia. On August 24, 2018, BRITTON opened bank account No. ******2479 with NFCU under the name Lagniappe.
BRITTON devised and implemented a scheme to defraud Client B by embezzling approximately $32,000 from Client B’s bank account. BRITTON accessed Restaurant 365 software to delete approximately 31 check entries payable to Lagniappe that she fraudulently issued from Client B’s account. BRITTON opened an account with NFCU in the name Lagniappe in order to deposit funds she embezzled from Client B. BRITTON used her NFCU Lagniappe account debit card to pay for personal expenses at retailers such as Bed Bath & Beyond, Dillard’s, JCPenney’s, Old Navy, DSW, and at various nail spas. It was further part of the scheme and artifice to defraud, and in an effort to conceal her conduct, that on December 30, 2018, BRITTON made false statements in an email to Client B’s managing shareholder after he contacted BRITTON regarding a suspicious check written to Lagniappe. BRITTON was terminated from Accounting Firm A on January 3, 2019.
U.S. Attorney Peter G. Strasser praised the work of the United States Secret Service. The prosecution of the case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Billings man admits meth trafficking crimesRead the Press Release
BILLINGS – An investigation into a methamphetamine conspiracy led to a Billings man who admitted drug trafficking crimes today after agents found 30 pounds of meth and $11,380 cash in his vehicle, U.S. Attorney Kurt Alme said.
Jerry Ray Schuster, 56, pleaded guilty to conspiracy to possess with intent to distribute meth and to possession with intent to distribute meth. Schuster faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. District Judge Susan Watters presided and set sentencing for May 7. Schuster was released pending further proceedings.
The prosecution said in court records that an investigation into meth trafficking led to Schuster and a co-defendant, Byrne Mestas. Mestas, 62, of Billings, has pleaded not guilty.
Law enforcement served a search warrant at Schuster’s and Mestas’ trailer on May 3, 2019. In the trailer residence, agents found one pound of meth, three rifles, drug paraphernalia and receipts corroborating trips to California. A pound of meth is the equivalent of about 3,624 doses.
Agents executed a second search warrant three days later on four vehicles located at the Schuster and Mestas residence. A search of a Suzuki Swift registered to Schuster found 30 pounds of meth located in three backpacks, $11,380 in cash and receipts documenting a trip to California. Thirty pounds of meth is the equivalent of about 108,720 doses and has a street value of about $225,000. In the other three vehicles, agents found another pound of meth, 100 pills, cash and other items.
Assistant U.S. Attorney Julie Patten is prosecuting the case, which was investigated by the FBI Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
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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Armed Career Criminal Pleads Guilty to Possessing A Firearm and AmmunitionRead the Press Release
Ocala, Florida – Shelley Devaughn Cook (42, Ocala) today pleaded guilty to possessing a firearm and ammunition as a convicted felon. He faces a mandatory minimum sentence of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
Cook had been indicted on August 19, 2019.
According to the facts presented in court, detectives from the City of Ocala Police Department observed Cook with an open alcoholic beverage container in a public area, in violation of a city ordinance. Cook ignored repeated requests from the detectives to pour out his drink, then fled on foot as the detectives approached him. Once apprehended, the detectives discovered a loaded semi-automatic pistol in Cook’s waistband. Cook also had quantities of MDMA (ecstasy), heroin, fentanyl, and marijuana in his possession.
Cook has eight prior state felony convictions, including robbery with a deadly weapon (firearm), aggravated battery, felony battery, fleeing and eluding law enforcement, and illegal drug possession, and is therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Akron Man Pleads Guilty to Heroin ChargeRead the Press Release
CHARLESTON, W.Va. – An Akron man pled guilty to a heroin charge, announced United States Attorney Mike Stuart. Deangelo “O” Reeves, 34, pled guilty to possessing heroin with the intent to distribute it.
“An all too familiar occurrence,” said United States Attorney Mike Stuart. “Regardless of whether they are from Detroit or Akron, or right here at home, drug dealers caught peddling poisons in my District will be prosecuted to the fullest extent of the law.”
Reeves admitted that on March 5, 2018 he threw a bag of heroin out of his car while being followed by police on McKee Avenue in Charleston. The heroin had a street value of over $1,000 and Reeves admitted he had intended to distribute it.
Reeves faces up to 20 years in prison when sentenced on April 22, 2020.
The Metro Drug Enforcement Network Team (MDENT) investigated the case. United States District Judge C. Irene presided over the hearing. Assistant United States Attorney Stefan Hasselblad is handling the prosecution.
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Tuesday 7 January 2020
Whitefield Man Pleads Guilty to Illegally Possessing FirearmRead the Press Release
Bangor, Maine: A Whitefield man pleaded guilty today in federal court in Bangor to being a felon in possession of a firearm, U.S. Attorney Halsey B. Frank announced.
According to court records, on April 22, 2019, a Winthrop Police Department detective saw an individual, later identified as Samuel Caison, 36, carrying what appeared to be a firearm wrapped up in material in Augusta. The individual placed the firearm in the trunk of a car. Officers with the Augusta Police Department later located Caison driving the car and pulled him over. Officers found a .22 caliber rifle in the trunk. Caison was prohibited from possessing firearms due to multiple prior felony convictions, including convictions for Robbery in 2005, Aggravated Assault and Illegal Possession of a Firearm in 2010 and Terrorizing in 2013.
Caison faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Augusta Police Department, the Winthrop Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN, please visit http://www.justice.gov/psn.
Webster City Man Sentenced on Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while possessing a firearm was sentenced January 2, 2020, to 12 years in federal prison.
Jaime Candelario-Mercado, 38, from Webster City, Iowa, received the prison term after an August 28, 2019, guilty plea to conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking crimes.
At the guilty plea hearing, Candelario-Mercado admitted that from about April 2018 through January 2019, he and others conspired to distribute more than sixteen pounds of methamphetamine in the Webster City and Eagle Grove area. In June 2018, he was arrested along with another person with about 2 ounces of marijuana, 2 ounces of methamphetamine and a loaded handgun. On six separate occasions in January 2019, Candelario-Mercado and another distributed over 190 grams of pure methamphetamine to individuals cooperating with law enforcement. Defendant further admitted that he possessed a gun during his distribution of methamphetamine to protect his person, money and drugs.
Candelario-Mercado was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Candelario-Mercado was sentenced to 144 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Candelario-Mercado is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Wright County, Iowa Sheriff’s Office, and Iowa Division of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3005.
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Waxhaw, N.C. Man Charged with Orchestrating $800,000 Investment Scheme Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – Kamlesh Gopal Pardasani, 49, of Waxhaw, N.C., appeared in court this morning in Charlotte, on federal charges related to an $800,000 investment scheme he allegedly orchestrated, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The federal indictment was filed on June 19, 2018, in the Western District of North Carolina, and was unsealed on November 30, 2019, after Pardasani was arrested at the Philadelphia International Airport upon entering the United States from India.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, from August 2016 to June 2017, Pardasani executed a scheme to defraud at least five victims of more than $800,000, by inducing the victims to invest in his company, FreightGuru.com LLC (FreightGuru). As alleged in the indictment, to induce his victims to invest their money, Pardasani falsely represented that he would use the investors’ money to fund a specific shipment of goods, and that, once the shipment cleared, the victims’ return rate on their initial investment would be between 15% and 20%. Pardasani also lied to victims by falsely assuring them that their funds were secure and safe, when in fact he used the victims’ money to fund his lifestyle, pay off personal creditors, and to engage in high-risk securities trading in his personal trading account. The indictment also alleges that after failing to invest the victims’ funds as promised, Pardasani continued to make additional false and fraudulent representations to lull victims and provide excuses for failing to return the victims’ money.
Pardasani is charged with wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine, and money laundering, which carries a maximum prison term of 10 years and a fine of not more than twice the amount of criminally derived property in the transaction or $250,000.
The details contained in the indictment are allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Charlotte Field Office led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Waterford Man Sentenced to Prison for Distributing OxycodoneRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RODNEY COTE, 54, of Waterford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to nine months of imprisonment, followed by six months of home confinement and three years of supervised release, for distributing oxycodone.
According to court documents and statements made in court, in February 2018, law enforcement learned that Cote was obtaining a monthly prescription for 120 80mg oxycodone pills and selling the pills for cash. The investigation revealed that Cote had been filling the monthly prescription for at least three years. On four occasions between May and July 2018, investigators made controlled purchases of 120 pills from Cote in exchange for $2,000. On September 20, 2018, investigators purchased 240 pills for $5,000. Cote was arrested on November 7, 2018, after he agreed to sell another 240 pills.
On March 4, 2019, Cote pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone.
As part of his sentence, Cote was ordered to forfeit $19,700.
Cote, who is released on a $75,000 bond, was ordered to report to prison on April 7, 2020.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Van Zandt County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 51-year-old Edgewood, Texas man has pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Timothy Dwayne Henson pleaded guilty to conspiracy to possess with intent to distribute methamphetamine before U.S. Magistrate Judge John D. Love on Jan. 7, 2020.
According to information presented in court, on two separate occasions in July 2018, Henson sold methamphetamine during controlled purchases in Van Zandt County. On Sep. 9, 2018, law enforcement executed a search warrant at his residence in Van Zandt County and recovered methamphetamine. Henson admitted to being involved in a conspiracy to obtain and distribute methamphetamine, and that he was directly responsible for the distribution of at least 500 grams of methamphetamine. Henson was indicted by a federal grand jury on Aug. 8, 2018 and charged with federal drug trafficking crimes.
Under federal statutes, Henson faces up to 40 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.
United States files False Claims Act complaint against Community Health NetworkRead the Press Release
Indianapolis – The United States has filed a complaint against Community Health Network Inc. (Community) in the U.S. District Court for the Southern District of Indiana, the Department of Justice announced today. Community, an integrated health care system in central Indiana, is alleged to have violated the Stark Law and thereby submitted false claims to the Medicare program.
The Stark Law prohibits a hospital from billing Medicare for services referred by a physician with whom the hospital has an improper financial relationship that does not meet any statutory or regulatory exception. The government’s complaint alleges that Community had employment relationships with a number of physicians that did not meet any Stark Law exception because the compensation Community paid to the physicians was well above fair market value and because Community conditioned paying bonuses on physicians achieving a minimum target of referral revenues to the hospital. The complaint alleges that Community received referrals from these physicians in violation of the Stark Law and submitted claims to Medicare knowing that the claims for those referred services were not eligible for payment.
“Improper financial relationships between hospitals and physicians corrupt clinical decision-making, threaten patient care, and ultimately drive up Medicare costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We are committed to eliminating these improper inducements and thereby ensuring the Medicare program remains fiscally sound to serve our nation’s senior citizens.”
“Our goal at the U.S. Attorney’s Office is to serve the citizens and help ensure safety in their communities,” said U.S. Attorney Josh Minkler for the Southern District of Indiana. “Hospitals are responsible for not only the health and well-being of their patients, but are also required to establish a compliance program in order to protect against improper payments, fraud and abuse as a condition of enrollment in the Medicare program.”
The United States filed its complaint in a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).
This case is being handled by the Justice Department’s Civil Division and the United States Attorney’s Office for the Southern District of Indiana, with assistance from the Office of Inspector General of the Department of Health and Human Services. The case is captioned United States and the State of Indiana ex rel. Thomas Fischer v. Community Health Network, Inc., et al. No. 1:14-cv-1215 (RLY-DKL) (S.D. Ind.).
The claims in which the United States has intervened are allegations only, and there has been no determination of liability.
United States Files False Claims Act Complaint against Community Health NetworkRead the Press Release
The United States has filed a complaint against Community Health Network Inc. (Community) in the U.S. District Court for the Southern District of Indiana, the Department of Justice announced today. Community, an integrated health care system in central Indiana, is alleged to have violated the Stark Law and thereby submitted false claims to the Medicare program.
The Stark Law prohibits a hospital from billing Medicare for services referred by a physician with whom the hospital has an improper financial relationship that does not meet any statutory or regulatory exception. The government’s complaint alleges that Community had employment relationships with a number of physicians that did not meet any Stark Law exception because the compensation Community paid to the physicians was well above fair market value and because Community conditioned paying bonuses on physicians achieving a minimum target of referral revenues to the hospital. The complaint alleges that Community received referrals from these physicians in violation of the Stark Law and submitted claims to Medicare knowing that the claims for those referred services were not eligible for payment.
“Improper financial relationships between hospitals and physicians corrupt clinical decision-making, threaten patient care, and ultimately drive up Medicare costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We are committed to eliminating these improper inducements and thereby ensuring the Medicare program remains fiscally sound to serve our nation’s senior citizens.”
“Our goal at the U.S. Attorney’s Office is to serve the citizens and help ensure safety in their communities,” said U.S. Attorney Josh Minkler for the Southern District of Indiana. “Hospitals are responsible for not only the health and well-being of their patients, but are also required to establish a compliance program in order to protect against improper payments, fraud and abuse as a condition of enrollment in the Medicare program.”
The United States filed its complaint in a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).
This case is being handled by the Justice Department’s Civil Division and the United States Attorney’s Office for the Southern District of Indiana, with assistance from the Office of Inspector General of the Department of Health and Human Services. The case is captioned United States and the State of Indiana ex rel. Thomas Fischer v. Community Health Network, Inc., et al. No. 1:14-cv-1215 (RLY-DKL) (S.D. Ind.).
The claims in which the United States has intervened 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.
UNC Agrees to Pay More Than $4.5 Million to the United States Following Self-Disclosure of Errors in Grant Accounting ProceduresRead the Press Release
GREENSBORO, N.C. - The University of North Carolina at Chapel Hill (UNC) has agreed to pay the government $4,552,058.03 to resolve an overpayment resulting from errors in grant accounting procedures from January 1, 2007 through June 30, 2011, and from October 1, 2014 through March 31, 2017, U.S. Attorney Matthew G. T. Martin for the Middle District of North Carolina announced.
This settlement results from self-disclosures to the National Institutes of Health (NIH) of the U.S. Department of Health and Human Services (HHS) and later to the U.S. Attorney’s Office for the Middle District of North Carolina. UNC first discovered errors in 2011, and subsequently made written self-disclosures to the United States relating to grant closeout procedures. UNC later made an additional self-disclosure relating grant accounting issues, after it implemented new financial system software. Due to these errors, the University inadvertently retained excess funds, charged salary costs to awards after the award term had ended, and retained excess cash. UNC fully cooperated with the government’s investigation of the self-disclosures, and has implemented changes to its Office of Sponsored Research to ensure future compliance.
“Our office is committed to ensuring that federal grant dollars are properly applied and accounted for,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “We appreciate UNC’s disclosure of these issues and hope this matter serves as a reminder to other institutions that receive tax dollars that they must have controls in place to ensure federal tax dollars are used as intended.”
The settlement in this matter was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of North Carolina, the HHS Office of Inspector General (“HHS-OIG”), and the NIH Division of Program Integrity.
Recipients of federal awards who identify potential violations of law that may have resulted in the submission of improper claims relating to those awards should know that it is Department of Justice policy that entities or individuals that make proactive, timely, and voluntary self-disclosures will receive credit during the resolution of such matters.
In addition, recipients of HHS awards may self-disclose conduct to HHS-OIG. On July 11, 2019, HHS-OIG released new Grant Self-Disclosure Program Guidance, which is available on its website. The Program provides HHS award recipients and sub-recipients with a framework for disclosing, coordinating, evaluating, and resolving potential violations of law relating to their awards or sub-awards.
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Two Portland Residents Indicted for Illegally Possessing Same Stolen HandgunRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that two Portland residents have been charged with unlawfully possessing the same stolen handgun.
Christopher Eugene Miller, 28, and Kebrin Larry Jones, 27, are charged in a two-count indictment with unlawfully possessing a stolen Taurus model PT-845, .45 caliber handgun.
Miller and Jones join Desmond Boris Washington, 34, also of Portland, who was previously charged in a separate criminal case for unlawfully possessing the same handgun. All three defendants are convicted felons and not permitted to possess firearms.
Agents recovered the stolen firearm while executing a search warrant on Washington’s Portland residence. All three defendants memorialized their unlawful possession of firearms in a publicly-available music video posted to YouTube.
Miller was arraigned today by U.S. Magistrate Judge Stacie F. Beckerman. Miller and Jones, who was arraigned separately last week, were both ordered detained pending trial. Washington was arraigned in November 2018 and awaits a three-day trial beginning March 3, 2020.
This case was investigated by Homeland Security Investigations and is being prosecuted by the U.S. Attorney's Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Two New Jersey Men Sentenced to Prison for Phony Debt Elimination SchemeRead the Press Release
NEWARK, N.J. – Two New Jersey men were today sentenced to prison terms for their respective roles in using phony monetary instruments to obtain luxury vehicles and other high value items; one of the defendants was additionally convicted of bankruptcy fraud, U.S. Attorney Craig Carpenito announced.
Germaine Howard King, a/k/a “Germaine Howard,” 47, of Elizabeth, New Jersey, was sentenced to 70 months in prison, and Daniel D. Dxrams, currently known as “Daniel Kusi,” formerly known as “Danny D. Dxrams,” 41, of Maplewood, New Jersey, was sentenced to 57 months in prison. U.S. District Judge John Michael Vasquez imposed the sentences today in Newark federal court.
King was convicted for his role in a scheme to defraud banks and other lenders using phony money orders to fraudulently discharge a $400,000 mortgage, to fraudulently obtain two Mercedes Benz (one 2007 and one 2010) cars, and to pay off credit card bills. In addition, King was convicted of a scheme to use phony cashier’s checks to pay off his co-defendant’s five luxury cars.
Dxrams was convicted for his role in a scheme to fraudulently pay off a Rolls Royce, Bentley, and three Mercedes Benz cars (two 2015 cars and one 2016 car). In addition, Dxrams was convicted of bankruptcy fraud and making a false oath during a bankruptcy proceeding.
Two co-defendant were sentenced by Judge Vasquez on Dec. 18, 2019: Melissa Reynolds, 43, of Elizabeth, who previously pleaded guilty to an information charging her with conspiracy to commit mail fraud, mail fraud affecting financial institutions, and bank fraud, was sentenced to one year and one day in prison, five years of supervised release, restitution of $587,081 and forfeiture of $548,242; Arthur N. Martin 3rd was sentenced to time served (one day), three years of supervised release and fined $12,000.
According to documents filed in this case and the evidence at trial:
King conspired with Reynolds to make fraudulent money orders on their home computers. They mailed these phony money orders to a credit union in an effort to fraudulently pay off their two Mercedes Benz cars. Although the credit union rejected both bogus money orders, King and Reynolds mailed correspondences to the credit union falsely claiming that the debt was satisfied. They then stopped paying their car loans, and King kept the car. King and Reynolds mailed a fraudulent money order in the amount of $432,000 to a financial institution to pay off their mortgage. The financial institution erroneously accepted the fraudulent payment and credited it as a payoff for the mortgage. When the financial institution filed a suit seeking to reinstate the fraudulently discharged mortgage, King and Reynolds continued to allege in court that the mortgage had been paid and submitted a phony receipt for the bogus money order. King also made and mailed fraudulent money orders in an attempt to pay off his credit card bills.
Dxrams, King, and Reynolds conspired to fraudulently pay off Dxrams’ five luxury cars. They sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain a 2012 Bentley for free. Dxrams sold the car to a third party for approximately $82,000 and then issued a bank check to King for approximately $25,000. The defendants also used this scheme in an effort to fraudulently obtain three Mercedes-Benz cars and a Rolls Royce.
Dxrams was also convicted of bankruptcy fraud and making a false oath before the bankruptcy court. In December 2017, Dxrams filed a bankruptcy petition under penalty of perjury. He falsely concealed his ownership of a car rental business and the gross receipts he earned through this car rental business, his sale of the Bentley, his receipt of money from a personal injury lawsuit, his ownership of firearms, and his marital status, among other things. In January 2018, Dxrams appeared before the bankruptcy trustee and, after being placed under oath, made false statements concerning his bankruptcy petition and his sale of the Bentley.
In addition to the prison terms, Judge Vasquez sentenced King to five years of supervised release and restitution of $597,781. Dxrams was sentenced to three years of supervised release, restitution of $93,236 and forfeiture of $82,000.
U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi with the investigation leading to the convictions.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman, of the National Security Unit, in Newark.
Defense counsel:
King: Pro Se
Dxrams: Michael Orozco Esq., Woodland Park, New Jersey
Reynolds: Robert J. Degroot Esq., and Oleg Nekritin Esq., NewarkTwo Individuals Plead Guilty to the Robbery of A Red Lake RestaurantRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of ROBERT LEE JOURDAIN, SR., 26, to one count of robbery. JOURDAIN entered his plea today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota. On December 19, 2019, JOURDAIN’s co-defendant COURTNEY JOHN BARRETT, JR., 30, also pleaded guilty to one count of robbery. The defendants will be sentenced at a later date.
According to the defendants’ guilty pleas and documents filed in court, on May 1, 2019, at approximately 9:30 pm, JOURDAIN and BARRETT entered the Snack Shack on the Red Lake Indian Reservation armed with weapons. BARRETT held his weapon to an employee’s head while JOURDAIN brandished his weapon. The defendants stole approximately $73 from the cash register and $83 from an employee’s purse.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Special Assistant U.S. Attorney Gina L. Allery is prosecuting the case.
Defendant Information:
ROBERT LEE JOURDAIN, SR., 26
Red Lake, Minn.
Convicted:
- Robbery, 1 count
COURTNEY JOHN BARRETT, JR., 30
Red Lake, Minn.
Convicted:
- Robbery, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Associates of Nuestra Familia Prison Gang Plead Guilty to Federal RICO ConspiracyRead the Press Release
SAN JOSE – Erik Lopez, a/k/a Bimbo, and Alejo Alex Alegre, IV, a/k/a Chino, pleaded guilty today to racketeering conspiracy charges for their respective roles as associates of the Nuestra Familia prison gang, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty pleas were accepted by the Honorable Beth L. Freeman, United States District Judge. Five additional members of the prison gang have pleaded guilty to related conspiracy charges, one of whom Judge Freeman sentenced today to seven years in prison.
According to the plea agreements, between December 2, 2012, and April 14, 2014, Lopez, 25, and Alegre, 28, both were members of the Nuestra Familia/Salinas Norteños Enterprise. The Enterprise consisted of members and associates of the Nuestra Familia prison gang as well as Norteño street gangs in Salinas, Calif., and the surrounding areas. Members and associates of the Enterprise agreed to commit crimes such as murder, narcotics trafficking, and other acts of violence through a pattern of racketeering activity. Norteño gang members pledge their allegiance and loyalty to Nuestra Familia and are instructed on its rules, rituals, and obligations. Gang rules and discipline are maintained by assaulting and threatening those individuals who violate the rules or pose a threat to the organization. Inside prisons and local jails, all members and associates of Nuestra Familia and Norteños work together to maintain the structure and follow the rules of the Enterprise.
In their plea agreements, Lopez and Alegre admit to participating in the distribution of narcotics to other inmates at Monterey County Jail. Also, the plea agreements describe the roles of the defendants in “removals” as a means of violently enforcing the most important of the gang’s rules while they were in the jail. The term “removal” refers to a violent attack designed to remove (from both the custodial housing unit and the gang itself) a member of the gang who committed a serious violation of the gang’s rules. A removal is accomplished by having one or more “hitters” stab the victim and then having at least two “bombers” assault the target by punching and kicking the victim without weapons. The purpose of the subsequent beating is to inflict upon the victim maximum damage while giving the hitters time to wash themselves and get rid of weapons.
Alegre admitted that he participated in the November 13, 2013, removal of a victim from one of the housing units of the Monterey County Jail. Alegre admitted that he was the hitter for the removal and repeatedly stabbed the victim in the head, torso, and arms. Alegre acknowledged that immediately after the victim was stabbed, two bombers began punching and kicking the victim to allow Alegre to escape being caught by guards with the stabbing weapon.
Lopez admitted that he participated in the December 2, 2012, removal of a victim from one of the housing units at the Monterey County Jail. Lopez admitted that he was a bomber in the attack and that he and another bomber punched and kicked the victim to inflict the maximum damage possible and to allow the hitter to escape. Lopez acknowledged that the victim was stabbed in the chest and back over 20 times by the hitter. Lopez also admitted being a bomber on the February 25, 2013, removal of a victim. Lopez punched and kicked the victim after a hitter stabbed the victim in the head.
On September 27, 2018, a federal grand jury indicted Lopez, Alegre, and several other defendants with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d). Both Lopez and Alegre also were charged with conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), and conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6). Alegre was also charged with attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), and assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(3). Lopez was also charged with felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Both defendants pleaded guilty to the racketeering conspiracy charge, wherein they admitted that murder was an object of the conspiracy. If they comply with their plea agreements, the additional charges will be dismissed at sentencing.
Judge Freeman scheduled the sentencing hearing for Lopez for April 7, 2020, and the sentencing hearing for Alegre for May 5, 2020. Pursuant to the terms of their plea agreements, both Lopez and Alegre have agreed that a reasonable and appropriate disposition of their respective cases would include a term of imprisonment of 10 years. 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.
The following additional defendants have pleaded guilty to crimes as part of the criminal Enterprise and are scheduled to be sentenced in the case:
Name
Charges
Sentencing
Michael James Rice a/k/a Redwood
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Scheduled for March 3, 2020
Jeffrey Lopez, a/k/a T-Bone
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Scheduled for March 17, 2020
Juan Alvarez, a/k/a Chucky
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Scheduled for March 31, 2020
Ramon Montoya, a/k/a Little Ray
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Scheduled for March 31, 2020
Additionally, today, Judge Freeman sentenced Alberto Moreno, a/k/a Doughboy, to seven years in prison for his role in the criminal RICO Enterprise. Moreno, 26, pleaded guilty to racketeering conspiracy on November 12, 2019. In his plea agreement, Moreno admitted that he was a member of the Enterprise and that he participated in the distribution of narcotics to other inmates at Monterey County Jail. Moreno also admitted that he participated as a bomber in an April 29, 2013, attack, in which the victim was stabbed in the head by the hitter.
Assistant U.S. Attorneys Claudia A. Quiroz and Stephen Meyer are prosecuting the case. The prosecution is the result of an investigation by the FBI with assistance from the Salinas Police Department, the Monterey County Sheriff’s Office, the California Highway Patrol, and the California Department of Corrections and Rehabilitation.
Twice-Deported Belizean National with Three Prior Felony Convictions Indicted for Illegally Reentering the United StatesRead the Press Release
LOS ANGELES – A twice-deported Belizean national who currently is serving a nine-year sentence in a California prison for a domestic violence-related conviction was charged today with one felony count of illegal re-entry into the United States following his deportation.
Akeem Garnett, 37, a.k.a. “Akeen Dean Garnett” and “Emerson Edmund Hewitt,” whose most recent residence was in Beverly Hills, was named in a one-count federal grand jury indictment that alleges he illegally re-entered the United States.
According to the indictment, Garnett was deported from the United States on September 1, 2016 and November 16, 2017. He was most-recently found in Los Angeles County on April 9, 2019.
Garnett is charged with re-entering and remaining in the United States knowingly and voluntarily without having obtained permission from the United States Attorney General or the Secretary of Homeland Security following his deportation.
Garnett’s criminal history includes a conviction in Los Angeles Superior Court for attempted first-degree residential burglary in 2011, for which he was sentenced to two years in state prison, according to the indictment. In 2012, Garnett was convicted in Los Angeles Superior Court of first-degree residential burglary with enhancements for committing the offense while on bail and for the benefit of a street gang, the indictment alleges. He was sentenced to nine years in state prison for that offense, the indictment states.
Currently, Garnett is incarcerated at North Kern State Prison in Delano after being convicted in July 2019 of corporal injury on a spouse, with an enhancement for personally causing great bodily injury.
He is expected to be brought to federal court in Los Angeles to face the federal illegal re-entry charge in the coming months.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Garnett faces a statutory maximum sentence of 10 years in federal prison.
U.S. Immigration and Customs Enforcement investigated this case.
This matter is being prosecuted by Special Assistant United States Attorney Matthew C. Chan of the General Crimes Section.
Tampa Bay Autism Service Provider Agrees to Pay $675,000 to Resolve Civil Healthcare Fraud AllegationsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces today that Behavioral Consulting of Tampa Bay (“BCOTB”) has agreed to pay the United States $675,000 to resolve allegations that BCOTB violated the False Claims Act by submitting false or fraudulent claims to the TRICARE program, a health care program for uniformed service members, retirees, and their families.
The United States initiated an investigation after an audit by TRICARE’s managed care support contractor (Humana Military Program Integrity) revealed alleged false or fraudulent claims to TRICARE for applied behavior analysis therapy (“ABA”) and other services to TRICARE beneficiaries with autism spectrum disorder. Today’s settlement resolves allegations that BCOTB submitted claims to TRICARE that (1) misrepresented the identity of the rendering provider, (2) misrepresented the service provided, (3) requested payment for more units of time than supported by the medical record, and (4) were not substantiated by a medical record, and therefore requested payment for services that were not rendered.
“Companies that commit to providing intensive behavioral treatment to children with autism, at a pivotal time in their development, should be held accountable for their actions,” said U.S. Attorney Maria Chapa Lopez. “Our Office is committed to protecting our military service members and their families and the programs that make it possible for their children with special needs to receive these vital services.”
"In this case, the provider's overbilling cheated TRICARE out of money meant for children's therapeutic services," stated Special Agent-in-Charge Cynthia Bruce of the Defense Criminal Investigative Service (DCIS) Southeast Field Office. "DCIS will aggressively pursue those who exploit government programs intended to help our military service members, veterans, and their families and will dedicate all needed resources to bring them to justice."
Today’s settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, assisted by the Defense Criminal Investigative Service and Humana Military Program Integrity. Assistant United States Attorney Lindsay Saxe Griffin led the civil investigation.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
St. Louis City Man Pleads Guilty to Robbing Fireworks Stand in St. Charles County at GunpointRead the Press Release
St. Louis, MO –Duianete Moore, 38, of St. Louis City, MO, pleaded guilty to federal felony charges of robbery, possession of a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm. Moore appeared in federal court today before United States District Judge Ronnie L. White who accepted his plea and set his sentencing date for April 7, 2020.
According to court documents, Moore engaged in on-going criminal activity throughout the spring and summer of 2018, including the theft of firearms from vehicles on four separate occasions. Further, on June 26, 2018, Moore and a female rushed into Crazy Cheap Fireworks tent in St. Charles County. Moore pointed a firearm at the employees, demanded they lay on the ground and not to look at him. Victims had their wallets and cell phones taken by Moore and the female. Three cash registers were taken containing U.S. currency from the proceeds of fireworks sales. At the time of Moore’s subsequent arrest, Moore possessed a backpack containing a loaded .45 caliber semi-automatic pistol with a drum magazine.
Moore faces up to 20 years in prison on the robbery charge. In addition, Moore faces between seven years and life in prison on the charge of possession of a firearm in furtherance of a crime of violence and not more than ten years on the felon in possession charge. Each count carries a fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Tom Mehan is handling the case.
Rosebud Man Indicted for Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Gabriel White Lance, age 20, was indicted on September 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 3, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 23, 2019, White Lance knowingly engaged in, and attempted to engage in, a sexual act with a minor female.
The charge is merely an accusation and White Lance is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Lance was released on bond pending trial. A trial date has not been set.
Rochester Man Sentenced to 120 Months for Fentanyl Trafficking and Gun CrimesRead the Press Release
CONCORD – Matthew MacLeod, 34, of Rochester, was sentenced to 120 months in federal prison for possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 7, 2018, officers from the Rochester Police Department conducted a traffic stop of a vehicle driven by MacLeod. During a later search of the vehicle, officers found multiple drugs, including cocaine and over 40 grams of fentanyl. MacLeod possessed the drugs with the intent to sell them. Officers also seized a firearm from the vehicle.
MacLeod previously pleaded guilty on September 17, 2019.
“Drug dealers present a serious threat to all of our citizens,” said U.S. Attorney Murray. “Dealers who possess firearms while doing business pose an even greater danger to the safety of everyone around them. To protect Granite Staters from violent crime, we will not hesitate to seek long prison sentences for armed drug dealers."
"Matthew MacLeod chose to deal deadly narcotics, he chose to drive armed with a gun, and he chose to endanger the lives of his customers," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "He'll now spend the next 10 years of his life behind bars for his role in New Hampshire's opioid epidemic.”
This matter was investigated by the Federal Bureau of Investigation and the Rochester Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Rapid City Man Sentenced to 10 Years in Prison on Drug ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Dustin Seegrist, age 37, was sentenced on January 3, 2020, to 10 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Seegrist possessing more than 310 grams of methamphetamine and 2 firearms at Rapid City in September 2018, which was found in a backpack hidden underneath Seegrist’s sweatshirt after he came into contact with a Rapid City police officer.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Seegrist was immediately turned over to the custody of the U.S. Marshals Service.
Pittsburgh Felon Charged with Unlawful Possession of a Pistol and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on January 7, named Aaron Lyons, 25, of Pittsburgh, Pennsylvania as the sole defendant.
According to the Indictment, on or about November 19, 2019, Lyons, a convicted felon, unlawfully possessed a .40 caliber Smith and Wesson pistol and 11 rounds of .40 caliber ammunition. The Indictment also alleges that the defendant had been convicted in April 2018 of unlawfully possessing a firearm as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reductions 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 prevent and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Paterson Police Sergeant Arrested for Conspiracy to Violate Civil Rights and Filing a False Police ReportRead the Press Release
NEWARK, N.J. – A sergeant with the Paterson Police Department was arrested today and charged with conspiring to violate the civil rights of an individual in Paterson and with falsifying a corresponding police report, U.S. Attorney Craig Carpenito announced.
Police Officer Michael Cheff, 49, of Paterson, was arrested by the FBI this morning and charged by complaint with conspiring to deprive an individual of civil rights under color of law and with falsifying a police report. Cheff is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Certain Paterson police officers stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. These officers also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from them. Cheff routinely received a portion of these stolen monies from some of these officers and signed off on corresponding false police reports about the underlying incidents. In 2016, Cheff told one of the officers to start “tagging,” or logging into evidence, some of the money that the officer was stealing, because effecting narcotics arrests without logging money into evidence would otherwise raise questions.
On Nov. 14, 2017, three officers stopped and arrested an individual and one of the officers stole a few hundred dollars from that individual. The officers then went to the individual’s apartment, and Cheff joined them. One officer stayed behind to guard the arrested individual, who was handcuffed in a police car, while the others, including Cheff, obtained consent to search the apartment by lying to the individual’s mother.
Cheff and the other two officers then searched the individual’s room. Cheff located a safe inside a closet in the room and took money and narcotics from the safe. He handed a small portion of the money to one of the officers and told the officer to log it into evidence. Cheff put the rest of the money in his pocket. At the Paterson police station, in a bathroom, Cheff gave the officer who had stayed behind to guard the individual a portion of the stolen money and gave a portion of the stolen money to one of the officers who had searched the apartment with him.
Cheff also approved a police report that falsely stated that the officers had recovered $319 from a shelf in the individual’s room. In fact, Cheff knew that he had stolen a substantial sum of money from a safe in the room.
Later that day, one of the officers sent text messages to another officer discussing Cheff’s theft of money. The officer said, among other things, that Cheff “got us for over a stack today,” that “there was a safe” and that Cheff “grabbed the cash.” According to the individual whose apartment was searched, the safe contained approximately $2,700, and all of it was missing after the search was completed.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison. The false records charge carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Oklahoma City Man Sentenced to Three Decades for Possessing a Gun While Dealing DrugsRead the Press Release
OKLAHOMA CITY – TYRONE LEROY OUTLEY, 27, of Oklahoma City, Oklahoma, has been sentenced to 360 months in prison for possessing crack cocaine with intent to distribute, as well as possessing a firearm in furtherance of a drug-trafficking crime, announced U.S. Attorney Timothy J. Downing.
Outley was indicted on November 8, 2017, with three counts—possession of crack cocaine with intent to distribute, possession of a firearm in furtherance of a drug-trafficking crime, and felon in possession of a firearm—all of which stemmed from his March 15, 2017, arrest by Oklahoma City Police Department officers. At trial, the government presented evidence that Mr. Outley attempted to flee from law enforcement and refused to submit when caught by police. During the ensuing struggle, Outley repeatedly reached for his jacket pocket, which was later found to contain a loaded .22 caliber revolver. Also in that pocket was what the arresting officer described as a large crack rock. At the time of the offense, Mr. Outley had twice been convicted of possession of cocaine base with intent to distribute in the prior four years. He was also serving four deferred, suspended, or probationary sentences from state violations.
On October 11, 2018, the jury found Outley guilty on all counts. A subsequent Supreme Court decision led to the government dismissing the felon in possession count.
On December 16, 2019, U.S. District Judge Stephen P. Friot sentenced Outley to 300 months in prison on the drug count, to be followed by 60 months of imprisonment on the firearm count. Judge Friot also imposed fifteen years of supervised release.
This case is the result of an investigation by the Oklahoma City Police Department and the Federal Bureau of Investigation—Oklahoma City Field Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service. Assistant U.S. Attorneys David McCrary and Wilson McGarry prosecuted the case.
This case is part of the work of the Organized Crimes and Drug Enforcement Task Force, the Department of Justice’s signature initiatives to address and reduce drug-related criminal activity.
Norwood Woman Pleads Guilty to Distributing Synthetic Marijuana into State Correctional FacilitiesRead the Press Release
BOSTON – A Norwood woman pleaded guilty yesterday in federal court in Boston to distributing synthetic marijuana into state correctional facilities.
Caitlin Marcey, 27, pleaded guilty to distribution of a controlled substance before U.S. District Judge Patti B. Saris who scheduled sentencing for April 28, 2020. Marcey was arrested and charged in June 2019.
Marcey mailed papers soaked in synthetic marijuana, or “K2,” to Massachusetts correctional facilities. The most common means of doing so is by soaking or spraying synthetic marijuana onto documents and then transporting those documents, either in person or by mail, into the jail, where they can be smoked. It is also common to attempt to include documents soaked in synthetic marijuana in mailings disguised as legal mail, as this mail is generally not subjected to rigorous screening due to attorney-client privilege.
In November 2018, investigators at the Souza Baranowksi Correctional Center (SBCC) in Lancaster, Mass., monitored recorded jail calls during which Marcey arranged for the delivery of synthetic marijuana. Investigators subsequently intercepted mail sent by Marcey that purported to be an attorney mailing to an SBCC inmate. The records inside the mailing tested positive for synthetic marijuana.
The charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; Worcester County Sheriff Lew Evangelidis; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Lelling’s Worcester Branch Office are prosecuting the case.
North Texas Residents Indicted for Illegal Kickback ConspiracyRead the Press Release
PLANO, Texas – Three North Texas residents have been indicted for conspiring to pay for patient referrals in violation of the Anti-Kickback Statute in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown. The indictment was unsealed today.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally-funded programs, including Medicare, TRICARE, and Medicaid. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
Sultan Satar Sattar, 64, and his wife Bibi Zabeda Sattar, 61, of Fort Worth, Texas, and Jeffrey Paul Cornwell, a/k/a "Boomer," 43, of McKinney, Texas, were indicted by a federal grand jury on December 11, 2019. The indictment alleges that the defendants conspired to make an unlawful kickback arrangement involving payments for the referral of federal health care beneficiaries, in violation of 18 U.S.C. § 371. According to the indictment, the illegal arrangement concerned the referral of testing services to clinical laboratories located in Richmond, Virginia, and Frisco, Texas, in exchange for per-test compensation.
The Sattars were arraigned on December 30, 2019, before U.S. Magistrate Judge Kimberly Priest Johnson. Cornwell's initial appearance took place on January 7, 2020, also before Judge Johnson.
If convicted, the Sattars and Cornwell each face up to 5 years in federal prison.
This case is being investigated by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Defense Criminal Investigative Service, and the State of Texas Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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New York Man Indicted in Pittsburgh on Drug ChargeRead the Press Release
PITTSBURGH - A resident of Brooklyn, New York, has been indicted by a federal grand jury on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Quaruan Chance, age 31, as the sole defendant.
According to the Indictment, Chance was found to be in possession of 500 grams or more of cocaine.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine not to exceed $5,000,000, a term of supervised release of at least four years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police 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.
New Jersey Man Detained in RI on Enticement, Interstate Travel to Engage in Illicit Sexual Conduct ChargesRead the Press Release
PROVIDENCE – A New Jersey man arrested by Rhode Island State Police and Homeland Security Investigations on Sunday after he traveled to Rhode Island to allegedly engage in sexual activity with a person he believed to be a 9th grade girl he befriended online has been ordered detained in federal custody, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
It is alleged that Amish Jayant Patel, 47, of Swedesboro, New Jersey, communicated online for nearly a month with a person he thought to be a 14-year-old, 9th grade Rhode Island female. It is alleged that during the online exchange of messages, Patel sent the girl photographs of himself and sexually explicit pictures. It is alleged that he arranged to meet with the girl in Rhode Island on January 5, 2020, to engage in illicit sexual activity. He allegedly told the girl he would purchase alcohol for them to share when they met.
The person he was actually communicating with was a Rhode Island State Police Detective assigned to the Internet Crimes Against Children Task Force.
According to court documents, when Patel arrived at T.F. Green Airport on Sunday he was followed by undercover law enforcement officers and agents as he deplaned, he traveled to a local liquor store where he purchased alcohol, and then to a pre-determined location where he was expecting to meet with the 14-year-old girl. He was arrested without incident.
Patel appeared in U.S. District Court in Providence on Monday and was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond, charged by way of a federal criminal complaint with enticement and travel in interstate commerce to engage in illicit sexual conduct.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Naugatuck Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANA NUNEZ, also known as Ana Pagoaga, 48, of Naugatuck, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to filing false tax returns.
According to court documents and statements made in court, Nunez owned and operated Nunez MultiServices, LLC, a tax return preparation service located in Naugatuck. From tax year 2011 and continuing at least through tax year 2014, Nunez falsified information on tax returns she prepared for clients and caused the returns to be filed with the Internal Revenue Service. On the returns, Nunez routinely inflated income or created fictitious income; falsified expenses, including education and child care expenses, and falsified deductions, such as business mileage.
Nunez pleaded guilty to two counts of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years on each count. A sentencing date is not scheduled.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Susan L. Wines and John T. Pierpont, Jr.
Missouri Woman Sentenced to Ten Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on January 3, 2020, Chanel Traci Huff, age 34, of Maryville, Missouri, was sentenced by United States District Court Chief Judge John A. Jarvey for conspiracy to distribute methamphetamine. Huff was sentenced to 120 months in prison to be followed by a term of supervised release of five years.
On February 2, 2019, Mills County law enforcement conducted a traffic stop of Huff’s vehicle and officers located 381 grams of methamphetamine and $7,000 in drug proceeds in her car. A search warrant was executed at Defendant’s residence and officers seized $15,000 in drug proceeds and a pistol.
This matter was investigated by the Southwest Iowa Narcotics Enforcement Task Force, Mills County Sheriff’s Office, Nodaway County (Missouri) Sheriff’s Office, and the Maryville (Missouri) Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Minnesota Man Sentenced to 5 Years on Methamphetamine ChargeRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that William Huff, 54, St. Paul, Minnesota, was sentenced today by Chief U.S. District Judge James D. Peterson to five years in federal prison for possessing methamphetamine with intent to distribute. Huff pleaded guilty to this charge on September 25, 2019.
On April 20, 2019, Wisconsin State Patrol troopers stopped Huff for speeding in Dunn County and determined that his driver’s license had been revoked. Due to the suspicious behavior of Huff and his passenger, troopers searched his vehicle. During the search, troopers found two bags containing a total of 131 grams of methamphetamine. During a post-arrest interview, Huff admitted that he had purchased the methamphetamine in Minnesota and planned to sell it in Eau Claire, Wisconsin.
The charge against Huff was a result of an investigation conducted by the Wisconsin State Patrol, the Dunn County Sheriff’s Office, and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Minneapolis Sex Offender Found Guilty of Child Pornography OffensesRead the Press Release
United States Attorney Erica H. MacDonald today announced JOHN EDWIN KUHNEL, 40, was convicted on nine counts of receipt of child pornography and two counts of possession of child pornography. KUHNEL was found guilty following a two-day bench trial before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. KUHNEL will be sentenced at a later date.
“Mr. Kuhnel, a twice convicted child predator, must now face the consequences of his actions,” said U.S. Attorney Erica MacDonald. “Justice has prevailed in this case.”
As proven at trial, KUHNEL obtained and possessed child pornography images and videos while being supervised for a 2010 Hennepin County conviction for second-degree criminal sexual conduct. On November 29, 2016, following a meeting with his probation officer, KUHNEL admitted to unauthorized internet activity in violation of the terms of his supervision. Law enforcement’s forensic examination of KUHNEL’s two laptop computers revealed more than 33,000 child pornography images and videos. KUHNEL was instructed to return to the probation office the following day but, instead, KUHNEL fled the state and remained a fugitive until he was arrested in another state in 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department and the Hennepin County Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Emily A. Polachek.
Defendant Information:
JOHN EDWIN KUHNEL, 40
Minneapolis, Minn.
Convicted:
- Receipt of child pornography, 9 counts
- Possession of child pornography, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Middle District of Florida U.S. Attorney’s Office Collects More Than $98 Million in Locally Handled Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
Tampa – United States Attorney Maria Chapa Lopez announced today that the Middle District of Florida (MDFL) collected $98,607,097 in locally handled criminal and civil actions in the fiscal year ending September 30, 2019 (FY 2019). Of this amount, $79,862,063 was collected in local civil actions and $18,745,043 was collected in criminal actions.
The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $268,562,280 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the district’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $188,700,217 in these high profile, jointly handled cases. This represents the second largest recovery amount for a single year in the history of the district.
Additionally, the Office’s Asset Recovery Division, led by Chief Anita Cream, recovered $28,791,743 in asset forfeiture actions last fiscal year. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2019, nearly $10 million forfeited in the MDFL in this and prior years was returned to victims of the criminal offenses upon which the forfeitures were based, and more than $2.8 million was shared with federal, state, and local law enforcement agencies.
“The coordinated efforts between federal, state, and local partners have resulted in the recovery of millions of dollars from those who have used fraud and other means to violate federal laws,” said U.S. Attorney Chapa Lopez. “These recovered funds will serve to hold those responsible accountable for their misconduct and offenses, help victims recover from their losses, and assist law enforcement in pursuing justice.”
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
CIVIL HEALTHCARE FRAUD ENFORCEMENT CASE SUMMARIES
United States v. Regency, Inc., Case No. 8:19-civ-903 (M.D. Fla.)
The MDFL Civil Division, working in parallel with its Asset Recovery Division and Criminal Division, obtained an emergency temporary restraining order and preliminary injunctions that secured a historic $50 million in cash and other valuable property owned by 13 criminal healthcare fraud targets, pending resolution of criminal claims. The asset freeze is the largest of its kind on record. The defendants in this civil case are alleged to have engaged in a vast healthcare fraud scheme that generated a deluge of false claims for unnecessary orthotic braces that were shipped to Medicare beneficiaries. Boiler room call centers “cold called” Medicare beneficiaries and generated leads for store front durable medical equipment companies to exploit. The medical need for the orthotics was certified by internet doctors who had no relationship with the beneficiaries receiving the equipment.
United States v. Jayam Iyer, MD, Case No. 8:19-civ-446 (M.D. Fla.)
This civil case was worked in parallel with a criminal prosecution of a Clearwater anesthesiologist who was a national outlier prescriber of opiate medications. The parallel investigation resulted in an indictment and guilty plea for health care fraud that brought a six month prison sentence for the physician. Dr. Iyer also surrendered her DEA registration that permitted her to prescribe controlled substances, and her Florida medical license. She was excluded from participation in Medicare and Florida Medicaid programs, and has agreed to pay $102,126 to resolve civil claims under the False Claims Act.
Press releases: https://www.justice.gov/usao-mdfl/pr/clearwater-doctor-sentenced-prison-health-care-fraud
https://www.justice.gov/usao-mdfl/pr/former-clearwater-anesthesiologist-agrees-pay-102126-resolve-civil-healthcare-fraud
United States ex rel. Heaphy v. Miraca Life Sciences, Case No. 8:16-civ-3328 (M.D. Fla.)
A nationwide pathology group paid $63.5 million to resolve claims by two separate whistleblowers that it had provided kickbacks to referring physicians in the form of subsidies for electronic health records and technology consulting.
Press release: https://www.justice.gov/opa/pr/pathology-laboratory-agrees-pay-635-million-providing-illegal-inducements-referring
United States ex rel. Simon v. HealthSouth, Inc., Case No. 8:12-civ-236 (M.D. Fla.)
A nationwide provider of rehabilitation services paid $48 million to settle allegations by whistleblowers in six separate qui tam cases that the provider had defrauded the Medicare program through false information that distorted the medical conditions of patients in order to gain higher reimbursement from the program.
Press release: https://www.justice.gov/opa/pr/encompass-health-agrees-pay-48-million-resolve-false-claims-act-allegations-relating-its
Fagron Holding USA, LLC
A supplier of ingredients used in compounded pain cream medications created by specialty pharmacies agreed to pay $22.05 million to resolve allegations in two qui tam cases that it had defrauded the Department of Defense’s TRICARE program and the federal Workers’ Compensation program through a scheme that falsely inflated the average wholesale price of the ingredients. Because reimbursement depends upon the pricing reported to price listing agencies, the scheme permitted the supplier’s pharmacy customers to bill federal programs for thousands of dollars per prescription more than they were entitled to claim.
Press release: https://www.justice.gov/usao-mdfl/pr/compound-ingredient-supplier-fagron-holding-usa-llc-pay-2205-million-resolve
Celink
A Michigan based reverse mortgage loan servicer paid $4.25 million to resolve claims that it had improperly claimed interest payments from the Department of Housing and Urban Development’s Federal Housing Administration insurance program. HUD regulations impose specific requirements upon servicers claiming interest, and Celink’s claims to the agency failed to disclose facts that defeated its claims.
Press release: https://www.justice.gov/usao-mdfl/pr/celink-agrees-pay-425-million-resolve-its-alleged-liability-relating-its-servicing
United States ex rel. Webb v. Advanced Biohealing, Case No. 8:14-civ-1055 (M.D. Fla.)
Kevin Rakin, the CEO of a medical device manufacturer, paid $2.5 million to resolve allegations by a qui tam relator that he had conceived and implemented a nationwide kickback scheme that incentivized overutilization of a wound care medical device. In 2017, the manufacturer had settled kickback allegations against it in return for $350 million.
Press release: https://www.justice.gov/usao-mdfl/pr/former-advanced-biohealing-ceo-pay-25-million-settle-false-claims-act-allegations
United States ex rel. Hawks v. Heart & Vascular Inst. of Florida, Case No. 8:16-civ-1574 (M.D. Fla.)
An Orlando area vascular surgeon, Irfan Siddiqui, paid $2.23 million to resolve allegations by one of his patients that he had defrauded Medicare through false claims for medically unnecessary vein ablation services and up-coded evaluation and management services. He also had allegedly falsified patient records to justify claims for reimbursement.
Press release: https://www.justice.gov/usao-mdfl/pr/davenport-vascular-surgeon-agrees-pay-223-million-settle-health-care-fraud-claims
United States ex rel. Oha v. Advanced Pain Management and Spine Specialists, Case No. 2:15-civ-350 (M.D. Fla.)
The co-owner of the largest pain management practice in southwest Florida, Dr. Jonathan Daitch, paid $1.7 million to resolve civil fraud claims against him individually, that alleged he had submitted false claims to Medicare for medically unnecessary urine drug testing services. The co-owner of the practice, Dr. Michael Frey, earlier pleaded guilty to having received kickbacks from a local durable medical equipment provider and paid $2.8 million in a separate settlement to resolve civil fraud claims against him arising from kickback practices and for ordering medically unnecessary lab tests.
Press releases: https://www.justice.gov/usao-mdfl/pr/fort-myers-doctor-agrees-pay-more-17-million-resolve-allegations-fraud
https://www.justice.gov/usao-mdfl/pr/fort-myers-pain-management-physician-sentenced-eighteen-months-prison-kickback-scheme
United States ex rel. de Oca v. Conway Lakes NC, LLC, Case no. 6:16-civ-1374 (M.D. Fla.)
An Orlando skilled nursing facility, Conway Lakes NC, LLC, along with its former Administrator, Matthew File, its management company, Clear Choice Health Care, LLC, Clear Choice’s part-owner and President, Jeffrey Cleveland, Clear Choice’s part-owner and Senior Vice President, Geoffrey Fraser, and an Orlando-area orthopedic surgeon, Dr. Kenneth Krumins, agreed to pay $1.5 million to resolve a qui tam relator’s allegations that they had engaged in a kickback scheme concerning the referral of Medicare and TRICARE patients. Dr. Krumins received payments under a sham “medical director” agreement to induce him to illegally refer Medicare and TRICARE patients to Conway Lakes for rehabilitation services that were billed to the United States. Dr. Krumins’s settlement agreement also resolves allegations that he engaged in a similar kickback scheme with a related home health agency.
Press release: https://www.justice.gov/usao-mdfl/pr/orlando-skilled-nursing-facility-physician-and-related-providers-agree-pay-15-million
Mexican man convicted of trafficking cocaineRead the Press Release
LAREDO, Texas – A 22-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has pleaded guilty to charges of conspiring to import approximately nine kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
Leonardo Baltazar Martinez-Garza entered to entered the United States through the Lincoln-Juarez Port of Entry in Laredo Oct. 28, 2019, driving a 2009 black Chevrolet Optra. At initial inspection, he presented a border crossing card as a Mexican national and denied having any contraband.
Authorities referred him to secondary inspection where another officer with a trained service K-9 alerted to the possible presence of narcotics. A subsequent X-ray inspection revealed numerous anomalies within the dashboard behind a firewall. Law enforcement searched the vehicle and eventually discovered eight bundles weighing approximately 9.20 kilograms of a substance that tested positive for cocaine.
Martinez-Garza admitted he had been hired to illegally import narcotics into the United States from Mexico. He expected to be paid $1,000 after he successfully dropped off his vehicle at the Mall Del Norte in Laredo with the narcotics.
U.S. District Judge Marina Garcia Marmolejo accepted the guilty plea and set sentencing for April 22, 2020. At that time, he faces up to life in federal prison.
Martinez-Garza has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’ s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.
Meridian Man Pleads Guilty under Project EJECT to llegally Possessing a GunRead the Press Release
Jackson, Miss. – Edmond Dewayne Miller, 22, of Meridian, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 4, 2019, the Lauderdale County Sheriff’s Office responded to a noise complaint concerning loud music and multiple episodes of gunfire at Miller’s residence. Miller’s neighbors told the deputies that there had been consistent gunfire over a period of several days. One neighbor said that he had heard bullets pass near him while he was on his tractor in a pasture that bordered Miller’s property.
Two deputies went to Miller’s residence and spoke with him concerning the loud music and gunfire. The deputies cautioned Miller concerning the use of firearms in the area of other houses and asked him to turn down the music. At that time, the deputies were unaware that Miller had a prior felony conviction for aggravated assault. Miller agreed to turn down the music and indicated he would be more careful where he and his friends and family fired their weapons.
After leaving Miller’s residence the deputies were contacted by the same neighbors who told them that the music had been turned back up. One deputy returned to Miller’s residence and found Miller heading through the wood line in the direction of the complaining neighbor’s residence with a .40 caliber pistol in his waistband. The deputy stopped Miller and took custody of the firearm.
The deputies soon discovered that the firearm was stolen and that Miller was a convicted felon.
Miller was indicted by a federal grand jury on August 6, 2019. He will be sentenced on April 10, 2020, by Judge Jordan. Miller faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Member of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Sentenced to Five Years in PrisonRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 60 months in prison for participating in a scheme that used secret card-reading devices and pinhole cameras on various New York and New Jersey bank locations to steal at least $390,141.
U.S. Attorney Craig Carpenito, District of New Jersey; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Special Agent in Charge Brian Michael of the Department of Homeland Security, Homeland Security Investigations (HSI), Newark made the announcement.
Bogdan Rusu, 39, of Queens, New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Rusu and others engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York and New Jersey. Rusu and others captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts. As part of the scheme, Rusu and others installed devises on ATMs in New Jersey and elsewhere to illegally obtain customer account information, including account numbers and personal identification numbers. Rusu and others would then transfer the illegally obtained information to counterfeit payment cards and use those counterfeit cards to steal money from the accounts. Eleven other defendants charged in this scheme have pleaded guilty.
In addition to the prison term, Judge Salas sentenced Rusu to three years of supervised release and restitution of $390,141.
U.S. Attorney Carpentio and Assistant Attorney General Benczkowski credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Michael in Newark; special agents of the U.S. Secret Service, Boston Field Office; East Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; Medford, Massachusetts, Police Department; Ludlow, Massachusetts Police Department; and the Massachusetts State Police, with assistance from the victim banks, with the investigation leading to today’s guilty plea. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts, Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Angelica Sinopole of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Member of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Sentenced to 60 Months in PrisonRead the Press Release
A New York man was sentenced today to 60 months in prison followed by three years of supervised release for participating in a scheme that used secret card-reading devices and pinhole cameras on various New Jersey bank locations to steal at least $390,141.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito for the District of New Jersey, Special Agent in Charge Brian Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Newark, and Special Agent in Charge Thomas P. Baker of the U.S. Secret Service, Boston Field Office, made the announcement.
Bogdan Rusu, 39, of Queens, New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud. Judge Salas imposed the sentence today in Newark federal court.
According to court documents and statements made in court, from August 2014 to November 2016, Rusu and others engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York and New Jersey. Rusu and others captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts. As part of the scheme, Rusu and others installed devises on ATMs in New Jersey and elsewhere to illegally obtain customer account information, including account numbers and personal identification numbers. Rusu and others would then transfer the illegally obtained information to counterfeit payment cards and use those counterfeit cards to steal money from the accounts. 11 other defendants charged in this scheme have pleaded guilty.
HSI, along with special agents of the U.S. Secret Service, Boston Field Office; Massachusetts State Police; TD Bank Fraud Investigations; East Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; Ludlow, Massachusetts, Police Department, and Medford, Massachusetts, Police Department, with assistance from the victim banks, conducted the investigation. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts, Springfield Division assisted in the investigation and prosecution.
Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section and Assistant U.S. Attorney Angelica Sinopole of the U.S. Attorney’s Office Criminal Division Organized Crime and Gangs Unit in Newark prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Marion County man charged with child pornography chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Allen Bowman, of Fairmont, West Virginia, was indicted today on child pornography charges, U.S. Attorney Bill Powell announced.
Bowman, age 31, is charged with two counts of “Production of Child Pornography.” Bowman is accused enticing a minor into sexually explicit conduct for the purpose of pictures to distribute electronically. The crimes are alleged to have occurred in July 2019 in Marion County.
Bowman faces at least 15 years and up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The FBI, the Marion County Sheriff’s Office, and the Monongah Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Sues Dutchess County-Based Dover Greens for Violating Asbestos Safety RulesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter Lopez, Regional Administrator for the U.S. Environmental Protection Agency (“EPA”), Region 2, announced today that the United States has filed a civil lawsuit against DOVER GREENS, LLC (“DOVER GREENS”), for violations of the Clean Air Act (“CAA”) and EPA’s National Emissions Standards for Asbestos (“Asbestos NESHAP”) during renovation of the former Harlem Valley Psychiatric Center in Wingdale, New York (the “Campus”). DOVER GREENS violated the CAA and Asbestos NESHAP when it failed to take the necessary precautions and follow the proper protocols pertaining to the removal, handling, and disposal of asbestos. The Asbestos NESHAP is designed to protect the public health by preventing exposure to airborne asbestos fibers during building demolition or renovations, waste packaging, transportation, and disposal.
Along with the lawsuit, the United States has filed a consent decree, agreed to by DOVER GREENS, that resolves the violations through payment of a $575,000 financial penalty and the imposition of injunctive relief, including a requirement that DOVER GREENS provide medical monitoring to individuals potentially exposed to airborne asbestos fibers as a result of these violations. The consent decree remains subject to Court approval.
U.S. Attorney Geoffrey S. Berman said: “Despite knowing that it was required to comply with asbestos safety regulations, Dover Greens conducted renovations in flagrant violation of those regulations, risking the health of members of the public and workers at the facility. The consent decree ensures that Dover Greens will protect people from asbestos exposure in its further work on the Campus and provides medical monitoring for individuals who may have been exposed to asbestos due to Dover Greens’ conduct. Also, by requiring Dover Greens to pay a substantial penalty, we have sent a strong message that this conduct will not be tolerated.”
EPA Regional Administrator Peter Lopez stated: “We are determined to protect public health and the environment. The Clean Air Act and EPA’s National Emissions Standards for Asbestos have been set in place to do just that. This settlement sends the important message that we will not allow groups or individuals to skirt the law and put people at risk.”
The complaint filed in Manhattan federal court today alleges that in October 2013, DOVER GREENS violated the CAA and Asbestos NESHAP when it rushed to renovate numerous buildings at the Campus (the “October 2013 Work”) in order to prepare the Campus to host a fundraiser. DOVER GREENS knew that its buildings contained asbestos and that asbestos work practice regulations must be followed. However, it repeatedly failed to comply with these regulations in its work. In particular, the complaint alleges that DOVER GREENS violated Asbestos NESHAP requirements to inspect the Campus properly and notify EPA before commencing renovation activities; to remove, store, and dispose of asbestos-containing materials safely; and to have a trained representative present during the renovation. As a result of its conduct, DOVER GREENS’ employees, contractors, and the individuals who attended this fundraiser faced an increased risk of asbestos exposure.
The complaint also alleges that during EPA’s investigation, DOVER GREENS failed to provide EPA access and information, as required by the CAA.
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In the consent decree lodged with the federal court today, DOVER GREENS admits, acknowledges, and accepts responsibility for the fact that it “failed to follow EPA regulations concerning asbestos when conducting the October 2013 Work.” DOVER GREENS further admits, acknowledges, and accepts responsibility for the following:
- DOVER GREENS failed to inspect the buildings at issue thoroughly for the presence of regulated asbestos-containing material (“RACM”) and notify EPA prior to commencing the October 2013 Work.
- DOVER GREENS failed to (a) ensure that all RACM was removed before beginning the renovation; (b) ensure that all RACM was adequately wetted before stripping it from buildings; and (c) ensure that all RACM remained wet until it was collected and contained for disposal.
- DOVER GREENS failed to seal all asbestos-containing materials in leak-tight containers while wet and failed to label containers or plastic bags containing RACM with proper warning labels and the name of the waste generator or the location at which waste was generated.
- DOVER GREENS failed to (a) dispose of asbestos waste at a proper disposal site; (b) ensure that properly marked vehicles were used to transport asbestos containing waste; (c) and maintain waste shipment records; and
- DOVER GREENS failed to have a trained representative present during the October 2013 Work.
- The October 2013 Work disturbed asbestos in numerous buildings, potentially exposing DOVER GREENS’ employees, contractors, and guests to asbestos.
- When EPA sought to investigate the October 2013 Work, DOVER GREENS failed to provide EPA inspectors with access to the Campus and failed to provide complete responses to EPA’s requests for information.
Pursuant to the consent decree, DOVER GREENS will pay a civil penalty of $575,000. The consent decree also requires DOVER GREENS to offer an initial asbestos medical surveillance exam and, if necessary, pay for ongoing medical surveillance for each individual who may have been exposed to asbestos as a result of the October 2013 Work. Further, DOVER GREENS agrees under the consent decree to conduct routine inspections of and, if necessary, repairs to all buildings on the Campus in order to prevent the release of asbestos fibers into the environment; ensure that warning signs are properly posted on Campus buildings; provide annual asbestos awareness training to DOVER GREENS’ maintenance employees; comply with a detailed Asbestos Operations & Maintenance Plan designed to minimize the potential for asbestos exposure to DOVER GREENS’ employees, building occupants, visitors, and workers; and comply in all respects with the CAA and Asbestos NESHAP when conducting asbestos abatement activity.
To provide public notice and to afford members of the public the opportunity to comment, the consent decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
U.S. Attorney Berman thanked the attorneys and enforcement staff at EPA Region 2 for their critical work in this matter.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Jacob Bergman is in charge of the case.
Manhattan U.S. Attorney Sues Chinatown Meat Distributor for Violations of Federal Meat and Poultry Inspection ActsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Carmen Rottenberg, Administrator of the U.S. Department of Agriculture’s (“USDA”) Food Safety and Inspection Service (“FSIS”), announced today the filing of a complaint and the entry of a consent decree against defendants CHUNG SHING MEATS, INC., also known as NEW CHUNG HING MEATS, INC., and its present and former owners or operators, WING HONG CHEUNG, MIAO HE FENG, YIU KWAN CHEUNG, and TIAN LUN FENG (collectively, the “defendants”), for violations of the Federal Meat Inspection Act and Poultry Products Inspection Act and related regulations at the defendants’ meat distributorship in Chinatown, Manhattan.
U.S. Attorney Geoffrey S. Berman said: “The owners and operators of Chung Shing Meats, Inc., disregarded federal regulations designed to ensure that food on people’s kitchen tables is wholesome and unadulterated. The defendants repeatedly sold uninspected meat products, in some instances selling uninspected beef bones as ‘Confucius Style Duckling.’ No style of duckling is composed of beef bones, let alone uninspected and potentially tainted beef bones. The defendants put people at risk. Today’s consent decree ensures that Chung Shing Meats will follow the law, protecting the public health and allowing consumers to have confidence in the safety of the food they buy.”
USDA FSIS Administrator Carmen Rottenberg said: “The defendants repeatedly violated food safety laws by selling misbranded meat and poultry products and thereby put consumers at risk for foodborne illnesses. The consent decree agreed to by the defendants ensures that they are not selling any uninspected meat or poultry products and outlines specific ramifications if the provisions of the decree are violated.”
According to the Complaint filed in Manhattan federal court:
The Federal Meat Inspection Act (“FMIA”) and Poultry Products Inspection Act (“PPIA”) protect the public health by imposing a set of inspections, labeling, and packaging requirements for meat and poultry products. These requirements allow consumers to have confidence in the safety of their meat and poultry products and permit public health officials to trace problems to their source.
For years, the defendants repeatedly violated federal law by selling uninspected and misbranded meat and poultry products to retailers in New York City from their facility at 19 Catherine Street, New York, New York. The defendants routinely prepared and sold meat and poultry products without meeting the minimum federal meat inspection and identification requirements of the FMIA and the PPIA, including by misbranding or repackaging meat and poultry products without the marks of federal inspection. USDA has identified FMIA and PPIA violations by the defendants that include selling uninspected or misbranded roast pork, pork chops, roast ducks, beef brisket, Silkie chickens, and other beef, poultry, and pork products. In all, USDA’s inspections have uncovered over 400 pounds of meat products sold or offered for sale in violation of the FMIA and PPIA. Although USDA inspectors repeatedly warned the defendants, they did not conform their conduct to the law.
In the consent decree entered today, the defendants admit, acknowledge, and accept responsibility for the following:
- The defendants have repeatedly sold non-federally inspected and misbranded meat and poultry products to retailers for resale, in violation of federal law.
- Among other instances, on or about April 29, 2019, May 2, 2019, and April 6, 2018, the defendants sold for resale non-federally inspected sliced beef meat, non-federally inspected pork baby ribs, non-federally inspected beef shin meat, or non-federally inspected beef bones misbranded as Confucius Style Duckling.
Pursuant to the consent decree, the defendants are enjoined from (1) selling or transporting any meat or poultry products required to be inspected and passed by USDA’s Food Safety and Inspection Service that have not been inspected and passed by USDA inspectors; (2) preparing or processing meat or poultry products in unsanitary conditions; and (3) engaging in any other conduct that would violate the FMIA, PPIA, and related regulations. The consent decree also requires the defendants to keep records that fully disclose transactions involving meat or poultry products and to complete mandatory training in relevant federal law and regulations. The defendants are subject to additional actions, including civil monetary penalties, termination of exempt status, contempt sanctions, and other relief, if they violate the provisions of the consent decree.
Mr. Berman thanked the USDA for its investigative efforts on this matter.
This case is being handled by this Office’s Environmental Protection Unit of the Civil Division, as part of its Food Safety Initiative. Assistant United States Attorney Steven J. Kochevar is in charge of the case.