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Tuesday 7 January 2020
Manchester Man Sentenced to 14 Years for Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Israel Perez, 52, of Manchester, was sentenced to 168 months in federal prison for participating in a fentanyl trafficking conspiracy in a seven-defendant narcotics case, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in 2018 Perez conspired with other persons to distribute fentanyl as part of a drug trafficking organization. Investigators made controlled purchases of approximately 330 grams of fentanyl from Perez in Manchester between January and May of 2018.
Perez previously pleaded guilty on August 22, 2019.
Co-defendants Lucas Rios, Abelino Morales-Padilla, Jose Hiram Martinez Rolon, Karina Reyes, Samuel Ramos, and Billy Damuel Maldonado Cancel previously pleaded guilty to fentanyl trafficking charges in the same case. Cancel was sentenced to 33 months and Samuel Ramos was sentenced to 22 months.
“Fentanyl traffickers have caused substantial damage to families and communities throughout New Hampshire,” said U.S. Attorney Murray. “In order to protect the health and safety of our citizens, we work closely with federal, state and local law enforcement to identify, prosecute, and incarcerate fentanyl dealers. The substantial prison term imposed in this case should serve as a warning to all involved in this deadly trade.”
“Drug dealers like Perez may think they can hide from justice, but today’s sentence proves otherwise,” said Jason J. Molina, Acting Special Agent in Charge for HSI Boston. “HSI and our law enforcement partners will continue to investigate and dismantle organizations like this one that distribute deadly drugs with no regard for human life.”
This matter was investigated by the U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, the New Hampshire State Police, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney John Davis.
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Manchester Felon Sentenced to Ten Years for Unlawful Firearm PossessionRead the Press Release
CONCORD- Christopher Mann, 35, of Manchester, was sentenced on Monday to 120 months in federal prison for possessing a firearm after a felony conviction, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court in 2006, Mann was convicted in federal court of robbing a pizza restaurant in Concord using a gun and sentenced to 12 years in prison. Mann was released from federal custody to supervised release in August 2017. In early April 2018, Mann's supervised release was revoked for possessing methamphetamine.
On April 16, 2018, the United States Marshals Service executed an arrest warrant for Mann. Mann was arrested while in the passenger seat of car that was owned by his girlfriend, which was parked in a driveway in Manchester, New Hampshire.
After a Deputy U.S. Marshal placed Mann under arrest, the deputy saw a Glock .357 caliber handgun on the passenger seat where Mann had been sitting. Mann was then searched incident to arrest. During that search, officers recovered two magazines of ammunition in Mann’s pocket.
Mann previously pleaded guilty on August 19, 2019.
“In order to keep our community safe, we must keep guns out of the hands of criminals,” said U.S. Attorney Murray. “The law enforcement officers in this case helped protect the public by disarming and arresting a dangerous felon. This case demonstrates that those who commit gun crimes in New Hampshire should expect to serve substantial prison terms.”
“Working with our law enforcement partners to combat violent crime and to keep guns out of the hands of violent offenders is ATF’s top priority,” said Kelly D. Brady, Special Agent in Charge of the ATF Boston Field Division. “Today’s sentencing is another example of the importance of law enforcement partnerships and their effectiveness in protecting the safety and security of communities.”
"Mann’s arrest is yet another example of the diligent work of the U.S. Marshals Service and ATF working collaboratively to make New Hampshire streets safer,” said U.S. Marshal Nick Willard. “The professionalism and dedication to the case by Assistant US Attorneys Davis and Aframe brought about this just sentence.”
This matter was investigated by the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorneys Jennifer Cole Davis and Seth R. Aframe.
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Man admits to smuggling attempt that led to rollover accidentRead the Press Release
LAREDO, Texas – A 30-year-old Mexican national has pleaded guilty for his role in a conspiracy to transport aliens within the United States, announced U.S. Attorney Ryan K. Patrick.
On Oct. 7, 2019, authorities spotted a group of individuals crossing from the Mexican side of Falcon Lake via a boat and entering a red Ford Explorer in the United States. They located the SUV and attempted to get behind it. However, the driver – later identified Ruben Ernesto Mendoza-Zapata – fled the scene at a high rate of speed. During the pursuit, Mendoza-Zapata tried rounding a curve, but rolled the vehicle several times.
Law enforcement secured the scene and rescued the occupants, one of whom was pinned underneath the vehicle. At the time of the rollover, a 6-year-old boy was also in the SUV.
Mendoza-Zapata and two others were taken to the hospital but have since recovered.
Mendoza-Zapata, also in the United States illegally, claimed a man in Zapata approached him and offered to pay him to transport the undocumented aliens.
U.S. District Judge Marina Garcia Marmolejo accepted the plea and will set sentencing at a later date. At that time, Mendoza-Zapata faces up to 20 years in federal prison and a possible $250,000 fine. Not a U.S. citizen, he is expected to face removal proceedings following the sentence.
He has been and will remain in custody pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney David Fawcett is prosecuting the case.
Man Charged for Reporting a False Bomb ThreatRead the Press Release
A Tulsa man has been charged by Criminal Complaint for allegedly reporting that a drive-up nuclear suitcase bomb would be detonated at Tulsa International Airport, announced U.S. Attorney Trent Shores.
Anthony John Michalski, 64, of Tulsa, is charged with providing false information about bombs at an airport. According to the Criminal Complaint, Michalski called in the anonymous tip to the Tulsa International Airport at 2:33 p.m. on Dec. 24, 2019, stating the bomb would arrive within three hours of his phone call. At the end of the call, he stated that he needed to hang up before he was caught or killed.
“The U.S. Attorney’s Office and our law enforcement partners take seriously any terroristic threat that could put our community at risk. In this case, Mr. Michalski is charged with falsely claiming a nuclear device would be delivered and detonated at Tulsa International Airport on Christmas Eve,” said U.S. Attorney Trent Shores. “Law enforcement officials from the Tulsa Airport Police Department, Tulsa Police Department Explosive Detection K-9 Unit, FBI, and Transportation Security Administration immediately investigated the threat, canvassing the airport and surrounding garages. They found no credible threat to public safety. To have this team of agents and officers come together on Christmas Eve to ensure the safety of the public was most impressive. It’s also a reminder of the selfless sacrifice of law enforcement officers. They spend time away from their families to ensure ours are safe.”
On Dec. 28, 2019, Michalski was arrested. According to the Criminal Complaint, Michalski allegedly admitted to making calls related to the bomb threat at the airport. He claimed that he made the calls because he was being held hostage by a terrorist organization. Officers also discovered a cell phone call placed to the airport at 2:33 p.m. in the defendant’s call history.
The Tulsa Airport Police Department, Tulsa Police Department, FBI, and Transportation Security Administration conducted the investigation. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
This matter will proceed in U.S. District Court in Tulsa, where the Criminal Complaint is currently pending. A Criminal Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
Maine Man Pleads Guilty to Possessing a Firearm with an Obliterated Serial NumberRead the Press Release
Bangor, Maine: A Bangor-area man pleaded guilty yesterday in federal court in Bangor to possessing a firearm with an obliterated serial number, U.S. Attorney Halsey B. Frank announced.
According to court records, on December 14, 2018, Bangor police officers responded to a local homeless shelter to investigate a report that staff members had discovered a firearm in a resident’s belongings. The resident, Tykell Jones, 20, admitted to possessing the firearm, a Taurus 9 mm pistol, and acknowledged that the serial number had been obliterated at the time he purchased the pistol in a private sale.
Jones faces up to five 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 Bangor Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Ludlow Woman Sentenced for Bank FraudRead the Press Release
BOSTON – A Ludlow woman was sentenced today in federal court in Springfield for bank fraud.
Beth Zastawny, 53, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one day in prison and three years of supervised release. In the first year of supervised release, the defendant will be subject to home confinement. In May 2019, Zastawny pleaded guilty to one count of bank fraud and three counts of money laundering.
Zastawny committed bank fraud in connection with a $4.2 million loan package for her Chicopee-based company, Diecast Connections Company Inc. In January 2015, Blue Hills Bank, relying upon Zastawny’s false representations, extended the loans. Zastawny submitted fake financial statements to the bank, and made false representations about Diecast’s assets and liabilities in order to make it appear that Diecast’s financial condition was much stronger than it actually was. After obtaining the loan proceeds, Zastawny paid back creditors who had not been disclosed to the bank, and the funds were used for purposes not called for in the loan agreement between Diecast and Blue Hills Bank. In July 2016, Blue Hills Bank foreclosed on the loan after Zastawny failed to meet the terms of the loan agreement, which resulted in a substantial loss for the bank.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
Local Pain Management Doctor Pleads Guilty to Conspiracy to Distribute Controlled Substances and Health Care FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Eugene Gosy, 59, of Clarence, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to distribute controlled substances and healthcare fraud. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorneys Jonathan P. Cantil, Brendan T. Cullinane, and Charles J. Volkert, who are handling the case, stated that in carrying out the conspiracy, Dr. Gosy and his employees at the Gosy Center, which included nurse practitioners and physician assistants working under Dr. Gosy’s direction and control, issued more prescriptions for controlled substances annually than any other prescriber or prescribing entity in New York State, including hospitals. Specifically, Dr. Gosy and his employees carried out their conspiracy by:
• prescribing controlled substances without conducting a physical examination and/or after conducting only a limited and inadequate physical examination;
• prescribing controlled substances in ways that were likely to cause, and did cause, dependence and addiction, and that contributed to existing addictions;
• issuing prescriptions for controlled substances in dosages and/or in combinations dangerous to the health and safety of the patient;
• issuing prescriptions for controlled substances despite indications that patients were abusing and misusing the prescribed controlled substances;
• prescribing controlled substances without monitoring or using objective treatment information;
• recommending a course of treatment, including the prescription of controlled substances, which caused patients to become so addicted to opioid drugs that some eventually utilized heroin and other street drugs, in order to satisfy their addiction;
• issuing prescriptions for controlled substances to patients despite knowing that such patients had overdosed, or had otherwise been hospitalized for conditions relating to misuse of controlled substances;
• continuing to prescribe controlled substances in the same manner, and failing to adapt practices to prevent additional deaths and overdoses, despite having notice that treatment they were following had resulted in obvious drug-seeking behavior and addiction; numerous patient overdoses; and patient deaths;
• signing death certificates, in the absence of an autopsy or medical examination, for deceased patients to whom Gosy and/or his employees had prescribed controlled substances despite aberrant behaviors;
• recommending a course of treatment, including the prescribing of controlled substances, which caused the death of at least six individuals, and contributed to the deaths of others;
• utilizing a telephonic patient prescription renewal process, whereby patients could obtain prescriptions for Schedule II, III and IV controlled substances that were prepared by persons who were not medically trained and issued by mid-level providers who had inadequate knowledge about the prescription and the patient, and without adequate review of the prescription and the patient’s chart;
• Dr. Gosy pre-signing blank prescriptions and permitting other persons to fill out the remaining information for the prescription, when he would leave the Buffalo area for extended periods;
• Dr. Gosy failing properly to review and sign his own patient file notes, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• Dr. Gosy failing properly to review patient file notes/reports prepared by mid-level providers working under his supervision and working in collaboration with him, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• failing adequately to review records provided to the office from other providers, and failing to obtain a complete patient history and information about present illness and conditions;
• prescribing controlled substances to individuals while failing to refer the patient to and/or ensure compliance with drug addiction treatment despite aberrant behaviors, and requests from patients and/or their family members for help with addiction;
• prescribing methadone to individuals exhibiting aberrant behaviors, outside of a methadone clinic setting, and without employing additional safety precautions or referring the patient to addiction treatment;
• Dr. Gosy, beginning in 2008, circumventing state and federal regulations by prescribing buprenorphine for the treatment of narcotics addiction, improperly using his regular DEA number, and sometimes labeling the prescriptions as for “pain management,” even when the drug was being prescribed primarily for the purpose of treating narcotics addiction;
• Dr. Gosy issuing prescriptions to patients for buprenorphine, a Schedule III controlled substance, for the treatment of narcotics addiction, without having completed the required medical training course in order to be a “qualifying physician” to treat narcotics addiction;
• Dr. Gosy failing to complete training requirements, including Continuing Medical Education courses, Worker’s Compensation training, and Infectious Disease Control training, and instead requiring members of his office staff to take the online courses purporting to be the defendant; and
• Dr. Gosy engaging in prescribing patterns whereby high-risk patients that had run out of their prescribed opioids were given buprenorphine until Dr. Gosy could again prescribe other opioids.
Other practices adopted and used in defendant Gosy’s office included the following:
• Mid-level providers (Physician Assistants and Nurse Practitioners) were encouraged to maximize volume of patients seen. Providers who saw certain volumes of patients received monetary bonuses, and/or gifts. Providers who saw less patients were threatened with pay cuts. Providers also earned credit towards bonuses for performing certain, more lucrative procedures on patients.
• Beginning in 2012, a “script line” was established which allowed patients seeking prescriptions, who were not scheduled for an office visit, to call and request a prescription. The “script line” was attended to by individuals with no medical training or certification. They were responsible for drafting the requested prescriptions with the proper drug and dosage, checking the patient’s file for “alerts,” and the New York State iStop program, a Prescription Monitoring Program. Each week a mid-level provider was designated to sign all, or almost all, prescriptions requested through the “script line.” This typically amounted to hundreds of prescriptions per day, many of which were for patients whom the practitioner had never seen and/or with whom the practitioner had little or no familiarity.
• A system was in place for ordering urine drug tests whereby, once the test was ordered, an employee other than the treating practitioner would typically fill out the request form for the laboratory. As a result, the drug screens often tested for the presence or absence of drugs other than those actually prescribed to the patient. However, as part of the usual course of medical practice, urine drug tests should have been ordered and reviewed in consultation with the patient’s medical file, including history and list of current prescribed medications. This is because urine drug testing provided valuable objective information to assist in diagnostic and therapeutic decision making, provided confirmation of compliance with the treatment plan, and provided indication of overutilization of prescribed drugs, diversion/non-use of prescribed drugs, the use of prescription drugs not prescribed to a particular patient, and/or the use of alcohol or illicit street drugs.• As with the “script line,” toxicology results, including urine drug screens, were reviewed by a mid-level provider, many of whom had never seen the patient and/or with whom the practitioner had little or no familiarity. As a result, tests were often labeled as “consistent,” and not given appropriate attention, even when the tests showed the presence of a non-prescribed drug, or the lack of a prescribed drug.
• Patient records often contained incorrect or insufficient information to justify a diagnosis and warrant treatment. Mid-level providers frequently dictated their office notes, failed to review their notes after transcription, and “batch signed” large quantities of notes without review. In addition, Dr. Gosy rarely, if ever, signed his own notes, and arranged for others to affix his signature to office notes and patient files, in order to facilitate more expeditious billing.
“Recognizing that our fight against the opioid epidemic requires a 3-prong approach—which includes enforcement, treatment, and prevention—today’s plea represents the high-water mark of success in our enforcement efforts,” stated U.S. Attorney Kennedy. “Although even one death is still too many, through the aggressive prosecution posture adopted by my office, we have helped to turn the tide on the opioid epidemic in Erie County. This prosecution has helped to enhance communication and cooperation between the law enforcement and the medical communities. Together, we have come to recognize and take advantage of the direct link that exists between public health and public safety.”
“Dr. Gosy’s reckless prescribing endangered public welfare and continued to fuel the opioid epidemic that plagues our nation,” said Scott J. Lampert, Special Agent-in-Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Physicians will be held responsible for their prescribing practices. We look forward to continue working with our State and Federal law enforcement partners in fighting this epidemic and safeguarding taxpayer-funded government health programs.”
“There isn’t a fine line between a patient who needs pain medication for a legitimate reason and a customer needing a prescription to feed a habit,” said DEA Special Agent-in-Charge Ray Donovan. “Today’s plea is proof that Dr. Gosy knew the difference. I commend the DEA Buffalo Tactical Diversion Squad and the Western District of New York for their diligent efforts identifying, investigating and prosecuting illegal opioid sources of supply in order to save lives.”
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in- Charge, New York Field Division; the Federal Bureau of Investigation’s Western New York Health Care Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent-in-Charge Scott Lampert; the Army National Guard - New York National Guard Counterdrug Task Force, under the direction of Lt. Col. Nicholas Dean; the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; the New York State Office of the Workers’ Compensation Fraud Inspector General, under the direction of Inspector General Letizia Tagliafierro; and the New York State Bureau of Narcotics Enforcement.
Sentencing is scheduled for May 21, 2020, at 9:30 a.m. before Judge Geraci.
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Lewiston Man Sentenced to Prison for Crack TraffickingRead the Press Release
Portland, Maine: A Lewiston man was sentenced yesterday in federal court in Portland for distributing cocaine base, commonly known as “crack,” U.S. Attorney Halsey B. Frank announced.
U.S. District Court Judge Nancy Torresen sentenced Everton Jones, 23, to 16 months in prison and three years of supervised release. Jones pleaded guilty on August 22, 2019.
According to court records, on June 1, 2018, Jones sold approximately one-half ounce of crack to another individual at a residence in Lewiston.
The FBI’s Southern Maine Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Maine State Police; and the Lewiston Police Department investigated the case.
Lawton Woman Sentenced to Four Years in Prison for Bank and Wire FraudRead the Press Release
OKLAHOMA CITY – Lori Christine Woodson, 63, of Lawton, has been sentenced to four years in prison after pleading guilty to one count of bank fraud and one count of wire fraud, announced United States Attorney Timothy J. Downing.
According to an information filed on January 28, 2019, Woodson induced Fort Sill National Bank to loan her and another person $1,013,902 by making false representations to the bank. In particular, Woodson overstated the value of her interest in assets, including a condominium in Snowmass, Colorado, and a closely held real estate company. She additionally understated her liabilities to other banks by approximately $3 million. Also, according to the information, Woodson defrauded two acquaintances by misappropriating purported investments in Snowmass condominiums.
At a guilty plea hearing on April 22, 2019, Woodson admitted committing bank fraud and defrauding two acquaintances.
On January 7, 2020, U.S. District Judge Scott L. Palk sentenced Woodson to 48 months in prison and a three-year term of supervised release. Taking into account relevant conduct, the Court ordered restitution of $3,640,308.41 split among four bank victims and four individuals. The Court allowed Woodson to self-report on February 11, 2020, to complete her sentence.
This case is the result of an investigation by the Department of Treasury’s Office of Inspector General and the FBI Oklahoma City Field Office, with the assistance of the Comanche County District Attorney’s Office and the Oklahoma State Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Farrior.
Reference is made to court records for further information. To download a photo of U.S. Attorney Downing, click here.
Las Vegas Man Indicted on Child Sex Trafficking and Witness Tampering ChargesRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas resident made his initial appearance today, January 7, 2020, after being charged in a 15-count indictment for allegedly committing, among other crimes, sex trafficking of children and tampering with a witness, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
“Sex trafficking is one of the most devastating crimes, especially when vulnerable child victims are exploited,” said U.S. Attorney Trutanich. “January is Human Trafficking Prevention Month, and this case exemplifies the U.S. Attorney’s Office’s commitment to working with our law enforcement partners to bring justice to perpetrators.”
Jacques Anton Lanier, also known as John Dupree, was indicated by a Grand Jury on December 31, 2019, on eight counts of coercion and enticement, four counts of sex trafficking of children, one count of traveling interstate with intent to engage in illicit sexual conduct, one count of transfer of obscene material to a minor, and one count of tampering with a witness. Lanier appeared today before United States Magistrate Judge Daniel J. Albregts. A jury trial is scheduled for March 9, 2020, before United States District Judge Gloria M. Navarro.
According to allegations contained in the indictment, beginning in April 2017 through December 2017, Lanier coerced, enticed, and persuaded eight females under the age of 18 years old to engage in prostitution and sexual activities for which Lanier could be charged with a criminal offense. He recruited four of those victims to engage in a commercial sex act. Lanier also traveled across state lines to engage in illicit sexual conduct and transferred obscene matter to a victim under the age of 16 years old. In addition, Lanier is charged with tampering with a victim through intimidation, threats, and corruptly persuading that victim to evade legal process — and to recant a prior statement made to law enforcement — between April 2018 and March 2019.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation, Las Vegas Metropolitan Police Department, and North Las Vegas Police Department and is being prosecuted by Assistant United States Attorney Bianca R. Pucci.
This investigation is 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 the U.S. Attorneys’ Offices and the 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.justice.gov/psc.
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Kyle Man Sentenced to 15 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted by virtue of a federal jury trial for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on January 3, 2020, by U.S. District Judge Jeffrey L. Viken. The trial was held August 26-29, 2019.
Brendon Janis, age 35, was sentenced to 15 years in federal prison, followed by 5 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
From approximately the summer of 2015 through July 2018, Janis distributed multiple pounds of methamphetamine in the area of Kyle. He had multiple sub-distributors who assisted him. During the execution of a federal search warrant at his residence in April 2017, Janis had several handguns, which were forfeited.
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 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.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Badlands Safe Trails Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Badlands Task Force is comprised of law enforcement from the Federal Bureau of Investigation, Bureau of Indian Affairs Drug Enforcement Division, South Dakota Division of Criminal Investigation, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case. Multiple co-conspirators have already been sentenced and two more remain pending trial in May 2020.
Janis was immediately returned to the custody of the U.S. Marshals Service.
Kankakee Man Sentenced to 10 Years in Prison for Role in Armed Robbery of Champaign Sprint StoreRead the Press Release
URBANA, Ill. – Senior U.S. District Judge Michael M. Mihm today sentenced Andre L. Williams, 30, of Kankakee, Ill., to 10 years in prison for his role in the July 2016 armed robbery of a Champaign Sprint store. Williams has been in the custody of the U.S. Marshals since his arrest in October 2018, and will be transferred to the federal Bureau of Prisons to serve his sentence.
On May 24, 2019, Williams pleaded guilty to his role in the armed robbery of the Sprint store located on North Prospect in Champaign, Ill., on July 28, 2016. Williams also admitted his role in the armed robbery of another Sprint store, in Coldwater, Mich., that occurred on Aug. 27, 2016.
Williams admitted that he recruited two men, Thomas James and Andre Nunn, to commit the armed robbery of the Champaign store. During the robbery, two customers and two employees were held at gun point and their wrists and ankles were bound with zip-ties. Williams admitted that he gave instructions and explained how to use the zip ties. Williams received the majority of the proceeds of the robbery, approximately $10,000, and gave the others involved less than $2,000. The 52 cell phones stolen from the store were transferred to William’s vehicle and taken to a location outside of Chicago to be sold to another person.
Others involved in the Champaign armed robbery have previously been convicted and sentenced to prison terms: Thomas James – 19 years; Andre Nunn 8 years, 4 months; Randy Williams, the getaway driver – 15 years; and Randy’s cousin Jaevontae Williams – 7 years.
In addition to the prison sentence, Williams was ordered to pay restitution of $32,021 to the Champaign Sprint store and $42,129 to the Coldwater, Michigan store.
The case was prosecuted by Assistant U.S. Attorneys Elly Peirson and Ryan Finlen. The charges were investigated by the Federal Bureau of Investigation, the Champaign Police Department, the Kankakee Police Department, and Illinois State Police.
Justice Department Announces Settlement with Walmart over Discrimination Claim by Naval ReservistRead the Press Release
WASHINGTON – The Department of Justice announced today the resolution of a lawsuit in which Naval Petty Officer Third Class Lindsey Hunger alleged that Walmart violated her rights when it failed to offer her employment at the Walmart store located at 2545 Rimrock Avenue in Grand Junction, Colorado because of her upcoming Naval Reserve commitments. Ms. Hunger had alleged that Walmart’s actions violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). The Department of Justice Civil Rights Division and United States Attorney’s Office represented Petty Officer Hunger in the lawsuit.
As part of the settlement, which includes backpay for Petty Officer Hunger, Walmart has agreed to review and revise its employment and internal hiring policies across the corporation. It has also agreed to revise the policies to include the following language: “Walmart prohibits discrimination against individuals, including applicants, based on their military service (including required military training obligations) or membership in the uniformed services.” Walmart will also ensure that “all supervisors, managers, and administrative staff” in the Grand Junction, Colorado store at issue receive training — developed in consultation with the United States —“on the requirements of USERRA and on employees’ and service members’ rights and obligations under the statute."
“Walmart is one of the nation’s largest employers and scores of dedicated servicemembers all across the United States will benefit from this settlement and Walmart’s agreement to update its employment and training practices,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “On behalf of a grateful nation, the Department of Justice will continue aggressively to enforce the federal civil rights laws on behalf of all servicemembers, including the citizen-soldiers of our National Guard and Reserve. Their sacrifice to serve should never jeopardize their ability to earn a living.”
“It is an honor to represent the men and women of our armed forces and ensure that their military training commitments do not deter employers from hiring them,” said U.S. Attorney Jason Dunn for the District of Colorado. “By obtaining Walmart’s agreement to amend its national hiring practices, this case will have a lasting impact.”
This lawsuit stems from a complaint that Ms. Hunger filed with the United States Department of Labor, which, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service, referred the matter to the Department of Justice.
The Justice Department’s Civil Rights Division, the United States Attorney’s Office for the District of Colorado, and the Department of Labor’s Veterans’ Employment and Training Service all give high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado and Andrew Braniff from the Department of Justice’s Civil Rights Division.
Johnstown Man Indicted on Drug ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The Indictment named Andrew R. Colvin, 27, as the sole defendant.
According to the Indictment presented to the court, on or about October 7, 2019, Colvin possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of marijuana. Further, on or about October 9, 2019, Colvin possessed with intent to distribute one gram or more of lysergic acid diethylamide (LSD), and a quantity of a mixture and substance containing a detectable amount of marijuana, cocaine, methylenedioxymethamphetamine (MDMA), ketamine, and tetrahydrocannabinol (THC).
The law provides for a maximum sentence of 15 years in prison and a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Department of Homeland Security, Homeland Security Investigation and the Cambria County Drug Task Force conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
James Michael Wells Sentenced to Life in Federal Prison for Murdering Two Coast Guard EmployeesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that James Michael Wells, 68, was sentenced today by U.S. District Judge Sharon L. Gleason to serve life in federal prison for the April 2012 murders of two U.S. Coast Guard (USCG) employees, Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle.
Wells was arrested in February 2013 for the murders of Hopkins and Belisle, who were both Wells’ co-workers at the USCG antenna maintenance facility, located at the USCG Communication Station (COMMSTA) on Kodiak Island, Alaska. Wells was convicted in 2014 and the case was reversed by the Ninth Circuit Court of Appeals in December 2017. After a three-week long re-trial that ended in October 2019, a federal jury convicted Wells of two counts of first degree murder, two counts of murder of an officer or employee of the United States, and two counts of possession and use of a firearm in relation to a crime of violence.
“James Wells has received the sentence he deserves for snuffing out the lives of two fine men,” said U.S. Attorney Bryan Schroder. “The thought of a Coast Guard employee plotting and killing two of his shipmates is shocking and abhorrent in an organization known for its core values of Honor, Respect, and Devotion to Duty. Petty Officer First Class James Hopkins and retired Chief Rich Belisle embodied those values, and their families can take comfort in two lives well-lived.”
“This case illustrates the tireless pursuit and determination of agents and prosecutors to ensure justice was served on behalf of the Hopkins and Belisle families, who remain in our thoughts,” said Jeffery Peterson, the Special Agent in Charge of FBI’s Anchorage Field Office. “This sentence is also particularly impactful, given the close relationship we at the FBI, and many Alaskans, have with the U.S. Coast Guard. The unique partnership shared between the FBI, U.S. Coast Guard Investigative Service, the Alaska State Troopers, and the U.S. Attorney’s Office was essential to this successful outcome.”
“This was a heinous and cowardly act committed upon two members of the Coast Guard family,” said Paul M. Shultz, the Special Agent in Charge of CGIS Northwest Region. “It is a relief that after nearly eight years, family and loved ones can find closure.”
Evidence at trial established that on April 12, 2012, between 7:09 and 7:14 a.m., Wells had shot and killed Hopkins and Belisle with a .44 revolver while working at their duty stations in the Rigger Shop at COMMSTA. First responders noted no evidence of a break-in or robbery and both men appeared to be victims of a targeted killing. Wells was due to arrive at the Rigger Shop the same time respectively as Hopkins and Belisle, but instead left two phone messages for Hopkins and Belisle, noted to be after the victims’ time of death, stating Wells was running late due to a flat tire. Wells ended up arriving to the Rigger Shop over an hour after his normal start time, immediately claiming to have had a flat tire.
USCG security videos captured Wells passing the Main Gate at Base Kodiak at 6:48 a.m. in his white Dodge truck on his way toward the Kodiak Airport, and returning back toward his residence at 7:22 a.m. However, a small blue SUV, owned by Wells, was captured on USCG security videos passing the Rigger Shop front entrance. The evidence showed Wells drove his white Dodge pickup truck to the airport, where he swapped vehicles and drove Nancy Wells’ blue Honda CR-V to COMMSTA to commit the murders. There was a 34-minute period of time for which James Wells could not account and that unexplained discrepancy captured the attention of the interviewing agents. Additionally, a tire with a nail in it was seized and through extensive testing, the examiner concluded that the nail had been manually inserted into the tire, undermining the foundation of Wells’ alibi that he had picked up a nail while driving to work on the morning of the murders.
At today’s sentencing hearing, U.S. District Judge Sharon L. Gleason made specific findings for the record that Wells threatened or unlawfully interfered with witnesses and that during the trial, Wells testified on several occasions in a “materially false manner.”
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution of this case, with support from the U.S. Coast Guard Investigative Service (CGIS), and the Alaska State Troopers (AST). Deputy Criminal Chief Steven Skrocki prosecuted the case along with Assistant U.S. Attorney Christina Sherman, and U.S. Coast Guard Commander Kelly Stevens, who was appointed as a Special Assistant U.S. Attorney.
Harrison County man charged with firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Al-Teric Garrett, of Clarksburg, West Virginia, was indicted today on a firearms charge, U.S. Attorney Bill Powell announced.
Garrett, age 28, is charged with one count of “Unlawful Possession of a Firearm.” Garrett, who was previously convicted of felony charges and prohibited from having a firearm, is accused of having a 9mm pistol in August 2019 in Harrison County.
Garrett faces up to 15 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Pittsburgh Man Pleads Guilty in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA- A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges related to narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Kyleif Harley, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl before United States District Judge William S. Stickman IV. The defendant acknowledged his responsibility for the distribution of 15 grams of a mixture of heroin and fentanyl. Mr. Harley is one of 37 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Intercepted communications demonstrated that Harley possessed and distributed heroin and fentanyl, and communicated directly with his co-defendant, Christopher Highsmith, who was among the leaders of the drug trafficking conspiracy, in order to develop his drug trafficking business. The court was further informed that during a traffic stop of Harley near Philadelphia on August 1, 2018, law enforcement officials seized 261 stamps bags of heroin, over 60 pills that tested positive for various forms of fentanyl, and items related to narcotics distribution that were purchased in the Western District of Pennsylvania. Harley later pleaded guilty to state charges that stemmed from the traffic stop.
Judge Stickman scheduled sentencing for July 6, 2020 at 10:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Mr. Harley remains in custody pending the sentencing hearing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Former Investment Banker Pleads Guilty to Insider TradingRead the Press Release
Audrey Strauss, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515, announced that BRYAN COHEN, a former investment banker based in New York, pled guilty today to conspiring to commit securities fraud. COHEN’s plea stems from stealing material, nonpublic information (“MNPI”) from the investment bank where he worked and passing it to a securities trader based in Switzerland.
COHEN was arrested on October 18, 2019, and pled guilty today before United States Magistrate Judge Debra Freeman. COHEN’s case is assigned to United States District Judge William H. Pauley III.
According to the Superseding Indictment and statements made in open court:
COHEN was an investment banker working in the investment banking division of a global investment banking advisory firm (“Investment Bank A”). By virtue of his employment at Investment Bank A, COHEN had access to MNPI relating to corporate transactions, and was under duties and obligations to keep that MNPI strictly confidential. COHEN previously worked in the London office of Investment Bank A, and later transferred to its New York office.
Notwithstanding his duties to keep the MNPI confidential, between 2015 and 2017, COHEN stole MNPI from Investment Bank A and passed it to a securities trader based in Switzerland in order to enable the securities trader to place timely, profitable trades based on the MNPI. COHEN informed the securities trader about corporate acquisitions and provided updates about how the deals were progressing over time. Some of the inside information that COHEN provided related to companies whose securities were listed on United States exchanges. The information that COHEN provided ultimately resulted in substantial profits for the traders who received it and traded based on it. In exchange for providing MNPI he stole from Investment Bank A, COHEN received benefits, including cash, from the securities trader.
COHEN took steps to conceal his scheme, including communicating through prepaid, “burner” cellphones, which he picked up at a Manhattan business, and receiving cash in person and through intermediaries.
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COHEN, 33, pled guilty to one count of conspiring to commit securities fraud. This charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the work of the FBI. She further thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation. She added that the FBI’s investigation was ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper, Daniel Tracer, and Drew Skinner are in charge of the prosecution.
Former Clearwater Anesthesiologist Agrees to Pay $102,126 to Resolve Civil Healthcare Fraud AllegationsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces today that Dr. Jayam Krishna Iyer has agreed to pay the United States $102,126.98 to resolve allegations that she violated the False Claims Act while practicing as a pain management physician. These civil claims are related to Iyer’s guilty plea to criminal health care fraud in 2018, which involved her billing Medicare for office visits when the patient was not present for the visit and for issuing prescriptions for Schedule II controlled substances.
The settlement arises from a lawsuit filed by the United States styled United States v. Jayam Krishna Iyer, M.D., et al., Case No. 8:18-cv-446-WFJ-JSS (M.D. Fla.).
In 2017, the United States Attorney’s Office’s Civil Division opened a civil investigation into whether Iyer had prescribed medically unnecessary prescriptions for opioids in violation of the False Claims Act. Separately, on August 24, 2018, Iyer pleaded guilty to one count of criminal health care fraud based on her fraudulent claims for office visits. As part of the criminal plea agreement, Iyer agreed to forfeit $51,521 paid by Medicare as a result of the fraud and to pay restitution. She was sentenced to serve six months in federal prison. Iyer also agreed to surrender her Florida medical license, as well as the DEA registration which had permitted her to prescribe controlled substances for her patients, and to not reapply for a DEA registration for 20 years. Iyer further agreed to permanent exclusion from Medicare, Medicaid, and all other federal healthcare programs. On February 20, 2019, the United States sued Iyer under the False Claims Act to collect civil damages and penalties based on her admissions as part of her criminal plea.
“By using all of the tools available to law enforcement, including civil enforcement, we in the Middle District of Florida will continue to target medical professionals who flood our streets with dangerous opioids without regard for the health and welfare of their patients,” said U. S. Attorney Maria Chapa Lopez.
“Writing prescriptions for controlled substances without examining patients – as alleged in this case – indicates that a health care professional is more concerned with profits than patients,” said Special Agent in Charge Omar Pérez Aybar of the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s settlement reaffirms our commitment to ensuring that physicians fulfill their professional obligation to serve their patients’ health needs as well as appropriately bill government health care programs.”
Today’s settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, assisted by the Department of Health & Human Services, Office of Inspector General, and the Federal Bureau of Investigation. Assistant United States Attorney Lindsay Saxe Griffin led the civil investigation.
Florida Man Pleads Guilty in High-Profile Macon, Georgia Mail Theft CaseRead the Press Release
MACON, Ga. – A Miami, Florida man pleaded guilty to stealing mail and checks out of a Macon mailbox, an action that triggered the victim to hold the defendant at gunpoint in an effort to prevent his escape, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Jeremy Brown, 31, entered a guilty plea to one count of theft of mail before U.S. District Judge Marc Treadwell today. Defendant Brown is facing a maximum term of five years in prison, a maximum fine of $250,000 and three years supervised release. Sentencing is scheduled for April 1, 2020. There is no parole in the federal system.
According to the stipulation of fact entered in court, the victim observed a white Ford Mustang driven by Brown stopping at the mailboxes at his home and his parents’ home next door on June 12, 2018. Suspecting the individuals inside the vehicle were stealing mail, the victim reviewed his personal security camera footage, which confirmed that mail was being stolen from his mailbox. The victim alerted his mail carrier the following day. The mail carrier called the victim before delivering the mail on June 13, 2018. The victim positioned his vehicle in a neighbor’s driveway so he could block the individuals he suspected were stealing his mail if they came again. Brown returned in the same white Mustang, and again removed mail from the mailbox. The victim blocked the road with his vehicle, called law enforcement and held the suspects at gunpoint until law enforcement arrived. Brown admitted to stealing mail, which included a $1,041 check made payable to the victim, as well as two additional checks in the amount of $15,555.02 and $700, made payable to other individuals.
“Theft of mail is a serious federal offense and violators will be prosecuted,” said U.S. Attorney Charlie Peeler. “I want to thank the Bibb County Sheriff’s Office for quickly responding to this situation, and the U.S. Postal Inspection Service for their excellent work in this matter.”
The case was investigated by the U.S. Postal Inspection Service and the Bibb County Sheriff’s Office. Assistant U.S. Attorney William Keyes is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Final Operation Independence Day Defendant Pleads Guilty to Attempted Receipt of Child PornographyRead the Press Release
A Skiatook man pleaded guilty in U.S. District Court Tuesday to attempted receipt of child pornography, announced U.S. Attorney Trent Shores.
Corey Daniel Vessar, 31, is the final defendant to enter a guilty plea in the Northern District of Oklahoma after being arrested as a result of Operation Independence Day, a month-long operation to apprehend predators and recover victims of child exploitation and sex trafficking.
“Corey Vessar tried to convince someone he believed to be a 14-year-old girl to send him sexually graphic images. Thankfully it was an undercover officer and not actually someone’s child,” said U.S. Attorney Trent Shores. “I respect the investigators and prosecutors willing to perform the difficult work of investigating these predators. Every day, these officers bear witness to the perverse actions of predators who seek to groom and exploit our children. The service of police officers and federal agents who pursue justice for children - the most innocent among us - is to be commended.”
In his plea agreement, Vessar admitted that from June 11 to June 18, 2019, he attempted to receive child pornography from an individual he believed to be a 14-year-old female. Instead, he was communicating with an undercover officer. During the discussions, Vessar sent the “girl” sexually explicit pictures and videos of himself and also requested she send explicit images.
U.S. District Judge Claire V. Eagan set sentencing for April 13, 2020.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
Operation Independence Day is part of the broader Project Safe Childhood initiative. PSC combats the growing epidemic of child sexual exploitation and abuse and was launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fentanyl Trafficker Sentenced to 7 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANGEL RODRIGUEZ, also known as “Red,” 26, formerly of Manchester, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, law enforcement identified Rodriguez as a significant distributor of fentanyl. On February 4, 2019, investigators arranged a controlled purchase of 200 grams of fentanyl from Rodriguez in exchange for $13,000. Rodriguez was arrested on that date after he met the purchaser an automotive business on Wethersfield Avenue in Hartford in possession of approximately 200 grams of fentanyl. At the time of his arrest, Rodriguez also possessed a loaded 9mm pistol and approximately $2,600 in cash. A subsequent search of Rodriguez’s Manchester residence revealed more than 200 grams of marijuana, a .45 caliber rifle, three boxes of ammunition, and other firearm-related items.
200 grams of fentanyl is the equivalent of approximately 8,000 doses.
On October 15, 2019, Rodriguez pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Rodriguez, who is currently released on a $100,000 bond and residing in Hartford, is required to report to prison on March 25, 2020.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Fayetteville Man Sentenced to 6 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced yesterday that Chad Skirvin, age 38, of Fayetteville, Arkansas, was sentenced yesterday to 72 months in federal prison followed by fifteen years of supervised release on one count of Accessing the Internet with Intent to View Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, investigators with the Internet Crimes Against Children (ICAC) Taskforce conducted a search of Skirvin’s residence and located multiple computer devices. A forensic review of the devices revealed numerous images of child pornography.
Skirvin was indicted in May of 2019 and entered a guilty plea in September of 2019.
This case was investigated by the Department of Homeland Security, the Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Evans Landscaping owner sentenced to prison for defrauding city, state small business programsRead the Press Release
CINCINNATI – The owner of Evans Landscaping, Inc. was sentenced in U.S. District Court today to 21 months in prison for defrauding the City of Cincinnati and other public entities through fraudulent small business contracts.
Doug Evans, 57, of Newtown, Ohio, and Jim Bailey, vice president of operations for Evans Landscaping, were convicted following a jury trial in December 2018. Evans Landscaping, Inc. was also convicted of the fraud scheme.
Evans Landscaping is an Ohio company headquartered in Cincinnati that performs demolition, site-work, grading, hauling, recycling and landscaping services. Given the size and ownership of the company, Evans Landscaping does not qualify as a small business enterprise (SBE).
In order to qualify for the City of Cincinnati’s SBE program, a company must be independently controlled, operated and managed by a qualifying individual whose net worth does not exceed certain limits. The program also requires that the company be directly responsible for providing the supplies or services to the City without relying upon others who are not owners or employees of the company.
Similarly, the State of Ohio has established an Encouraging Diversity, Growth, and Equity program (EDGE) for economically disadvantaged businesses that are at least 51% owned and controlled by an economically disadvantaged person. The size of the business must not exceed the definition of a “small business.”
In 2008, the defendants (along with others) established, controlled and operated a demolition company, Ergon Site Construction, LLC, for the benefit of Evans Landscaping. Ergon’s president and owner, Korey Jordan, had no prior experience in the field but provided IT services for Evans Landscaping. Ergon (with the help of the coconspirators) fraudulently obtained a certification as an SBE contractor with the City of Cincinnati while concealing Evans Landscaping’s involvement in and control over Ergon. Ergon also fraudulently obtained a State of Ohio EDGE contractor certification as a minority-owned business.
Evans and Evans Landscaping provided startup funds to Ergon. Jordan did not make any capital contributions to the establishment of the company.
Evans Landscaping personnel prepared and filed the legal documentation to register Ergon as an LLC, created the company’s name and logo, ordered Ergon apparel, and bought equipment labels with Ergon’s logo.
Evans paid Jordan a monthly salary through the Ergon payroll and Evans Landscaping employees handled virtually all of the accounting and office management functions of Ergon. For example:
Evans Landscaping officers and employees directed virtually all field and construction operations of Ergon, including on-site supervision and the managing of Ergon field workers.
From 2011 through 2014, Ergon bid on and received more than 100 residential demolition contracts with the City of Cincinnati, totaling approximately $1.9 million, by leveraging Ergon’s fraudulent SBE status.
In a similar fashion, during the same timeframe, Evans Landscaping bid on State demolition and construction projects – particularly public school, university and municipal projects – by claiming Ergon would provide a percentage of the services and receive part of the funds to be paid.
On at least one occasion, Evans Landscaping listed a different subcontractor, won the contract, and performed the work without using, paying or even notifying the EDGE subcontractor named.
Specifically, Evans Landscaping, Doug Evans and Bailey were convicted of two counts of conspiracy to commit wire fraud and three counts of wire fraud.
Korey Jordan (president of Ergon), Maurice Patterson (former CFO of Evans Landscaping), John Dietrich (former CFO of Evans Landscaping) and Michael Moeller (former manager at Evans Landscaping) have pleaded guilty in relation to this case. Patterson, Dietrich and Bailey are all scheduled for sentencing later this week.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Ohio Attorney General Dave Yost announced the sentence imposed today by U.S. District Court Judge Michael R. Barrett. Assistant Deputy Criminal Chief Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter are representing the United States in this case.
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El Salvadoran National Involved in Bridgeport Shooting Death Admits Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that DOUGLAS ALEXANDER RIVAS, 37, a citizen of El Salvador, pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to illegal reentry by a removed alien.
According to court documents and statements made in court, in March 2003, Rivas was convicted in Connecticut state court of misdemeanor offenses, including criminal trespass in the first degree, criminal mischief in the second degree, and reckless endangerment in the first degree. For these convictions, he received an 11-month suspend sentence and three years of probation. In March 2007, Rivas was removed to El Salvador.
Rivas subsequently illegally reentered the U.S.
On April 25, 2017, Rivas was arrested, in Florida, in connection with the shooting death of a 36-year old man at the El Paraiso Restaurant in Bridgeport on September 25, 2016. He has been detained since his arrest.
Judge Underhill scheduled sentencing for March 30, 2020, at which time Rivas faces a maximum term of imprisonment of two years.
On November 8, 2019, in relation to the 2016 shooting death, Rivas pleaded guilty in state court to manslaughter in the first degree, and criminal possession of a firearm. He awaits sentencing for these offenses.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Eau Claire Felon Sentenced to 30 Months for Possessing FirearmRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Lamont Davis, 30, Eau Claire, Wisconsin, was sentenced today by U.S. District William M. Conley to 30 months in federal prison for being a felon in possession of a firearm. This prison term will be followed by three years of supervised release.
In July 2019, a hospital in Eau Claire came into contact with a minor who said Davis was drunk, physically abusive to his children, and that he had a gun. Eau Claire police officers responded to Davis’s residence and arrested him after finding him in possession of a 9mm pistol. Davis reached for his weapon when the officers encountered him. Davis had been previously convicted of felony offenses, including assault, and was prohibited from possessing a firearm.
Judge Conley said Davis is a “profound alcoholic who has yet to address this problem,” and that he has “caused domestic disturbances that have terrorized his girlfriend and children.”
The charge against Davis was the result of an investigation conducted by the Eau Claire Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Julie Pfluger.
The charge against Davis was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
East Bay Drug Trafficker Sentenced to Five Years in Prison for Possession of FirearmsRead the Press Release
OAKLAND – Donta Lashaun Perry was sentenced today to 60 months and one day in prison for being a felon in possession of a firearm and for possessing firearms in connection with drug trafficking, announced United States Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
Perry, 31, of San Leandro, Calif., pleaded guilty to the charges on October 1, 2019. According to his plea agreement, Perry admitted that he possessed a 9mm handgun and an AR 15 short barreled rifle when the California Highway Patrol arrested him on March 7, 2018. In the agreement, Perry also admitted that on that date he was a convicted felon who was not eligible to possess a firearm. Perry further admitted that he possessed marijuana, that he intended to distribute the drugs, and that he possessed his firearms in furtherance of his drug trafficking, including to defend his drugs against potential theft.
Perry initially was charged by the Alameda County District Attorney’s Office, but absconded after posting bail. He remained a fugitive for approximately 10 months until his arrest in the Western District of Oklahoma in March 2019.
A superseding information was filed on September 30, 2019, charging Perry with one count of felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1), and one count of using, carrying, or possessing a firearm during and in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c). Perry pleaded guilty to both charges.
In addition to the prison term, Judge White ordered Perry to serve a three-year period of supervised release and to pay a $200 special assessment.
Special Assistant United States Attorney Christopher Vieira is prosecuting the case, with the assistance of Lenora Hamilton. This case is the result of an investigation by the ATF and the California Highway Patrol.
Eagle Butte Man Sentenced on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of two counts of Assault Resulting in Serious Bodily Injury was sentenced on January 3, 2020, by U.S. District Judge Roberto A. Lange.
Oscar Lance Whiteman, age 31, was sentenced to 54 months in federal prison, followed by 3 years of supervised release on each count, to run concurrently, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Whiteman was indicted by a federal grand jury on September 4, 2019. He pled guilty on October 7, 2019.
The conviction stemmed from an incident on August 11, 2019, where Whiteman assaulted a female and a male, which resulted in serious bodily injury to both victims.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Whiteman was immediately remanded to the custody of the U.S. Marshals Service.
Dominican National Living in Lawrence Sentenced for Possession of Fentanyl with Intent to DistributeRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for possession with intent to distribute fentanyl.
Santos Obispo Guerrero Lara, 35, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (approximately seven months). In October 2019, Guerrero Lara pleaded guilty to one count of possession with intent to distribute fentanyl.
Lara attempted to sell approximately 20g of fentanyl to an undercover agent. Lara was arrested in Lawrence on June 6, 2019, as part of a 10-week coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Jason J. Molina, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Boston made the announcement today. Valuable assistance was provided by the Andover Police Department. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Criminal Division prosecuted the case.
District Man Sentenced to Five Years for Shooting at Seventh District Police OfficerRead the Press Release
WASHINGTON – John Hudson, Sr., 31, of Washington, DC, was sentenced on January 6, 2020 to 60 months’ imprisonment and five years of supervised release after pleading guilty to one count of Felony Assault on a Police Officer While Armed back on November 1, 2019. He was sentenced by the Honorable Rainey Brandt yesterday morning in the Superior Court of the District of Columbia.
U.S. Attorney Jessie K. Liu and Chief Peter Newsham, Metropolitan Police Department made the announcement.
According to the government’s evidence, on September 18, 2019, at approximately 2:15 a.m., a Metropolitan Police Department Officer, in a marked patrol car and full police uniform, observed the defendant drive through a red light at the intersection of Suitland Parkway SE and Stanton Road SE. The officer attempted to initiate a traffic stop, but the defendant fled from the officer in his vehicle, ultimately crashing at the intersection of Morris Road SE and Elvans Road SE. When the MPD officer got out of his patrol car on Morris Road SE, the defendant ran straight towards him, passed the officer, and fired two shots over his shoulder at him. The officer returned fire, but the defendant disappeared into the tree line off Morris Road SE.
Upon canvassing the area, officers recovered a Glock 26 9mm handgun near the tree line where the defendant entered the woods. The handgun had a 31 round capacity magazine inside, with 23 cartridges remaining. On Morris Road SE, near where the officer was pursuing the defendant, multiple cartridge casings were recovered. Two of those cartridge casings matched the cartridge casings inside the magazine of the Glock 26 9mm recovered from the scene.
The defendant was ultimately apprehended by Seventh District officers in the woods shortly after the events took place. The MPD officer identified the defendant on scene as the man who shot at him. The defendant was placed under arrest, and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of Victim Witness Advocate Elsa Maltese and Assistant United States Attorney Kimberly Paschall, who investigated and prosecuted the matter.
Director of Not-For-Profit in Henderson, N.C. Sentenced for Theft of Federal FundsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced COMULUS LATEZES BRIDGES, 41, of Douglasville, Georgia to 15 months imprisonment, followed by 3 years of supervised release and was ordered to pay $209,877 in restitution. On July 10, 2019, BRIDGES pled guilty to theft of federal childcare and adult food program funds.
The U.S. Department of Agriculture’s (USDA) Child and Adult Care Food Program (CACFP) is a federal program that, among other things, is designed to provide food assistance to young children in out-of-home care. The At-Risk Afterschool Meals (ARAM) component of CAFCP offers federal funding to qualifying afterschool programs that serve meals and snacks to children in low-income areas.
BRIDGES was the director of Beyond the Barriers Outreach, Inc. (“BTBO”), a not-for-profit organization headquartered in Henderson, North Carolina. In 2012, BTBO, through BRIDGES, applied for and was approved to participate in the ARAM component of CACFP. BTBO was authorized to receive reimbursement for afterschool meals and snacks that BRIDGES claimed would be served to school-aged students at its afterschool center located in Henderson.
BTBO participated in CACFP from January 2013 to April 2016. During this period, BRIDGES submitted monthly claims for reimbursement for daily meals and snacks purportedly served to as many as 90 students at its Henderson afterschool center. However, the investigation revealed that BRIDGES’ claims were false. Soon after BTBO was approved by CACFP, BRIDGES moved to Georgia and did not operate an afterschool program in Henderson. Due to BRIDGES’ non-payment of utility bills, the afterschool center was without electricity, gas, and water/sewer services most of the time period during which BRIDGES claimed to operate an afterschool program.
As a result of the fraud, BRIDGES received $209,887 in unauthorized payments. Most of the fraudulently obtained funds were diverted to BRIDGES’ personal expenses in Georgia, such as restaurants, gas, apartment lease, cell phone bill, beauty supplies, massages, and payments associated with a Chapter 13 bankruptcy proceeding.
The United States Department of Agriculture, Office of Inspector General conducted the investigation. Assistant United States Attorney Toby Lathan represented the government.
Decatur Man Indicted on Charges of Child Exploitation, Child PornographyRead the Press Release
URBANA, Ill. – A grand jury today returned an indictment that charges Daniel A. Betty, 27, of the 100 block of S. 29th Street, Decatur, Ill., with sexual exploitation and enticement of a minor and receiving child pornography in September 2019.
Betty was previously arrested and charged in a criminal complaint on Dec. 16, 2019. Betty made his initial court appearance on Dec. 16, before U.S. Magistrate Judge Eric I. Long, in Urbana, who ordered that Betty remain detained in the custody of the U.S. Marshals Service.
According to the affidavit filed in support of the criminal complaint, Betty met a minor female from Champaign, Ill., using the social application “Spotafriend.” According to the affidavit, Spotafriend advertises itself as a “swiping app for teens ages 13-19,” that uses internet and cellular data to connect individuals to become friends. The app claims that it “is not a teen dating app.”
According to the affidavit, Betty allegedly portrayed himself as a 17-year-old male from Decatur, Ill. Using the app, Betty allegedly began communication with the minor female, and in October 2019, Betty drove from Decatur to Champaign and met the minor. Prior to meeting, Betty had told the minor he was 19 years old.
If convicted, the statutory maximum penalty for sexual exploitation of a minor (two counts) is a minimum 15 years to 30 years in prison; for enticement of a minor, the penalty is 10 years to life; and for receiving child pornography the penalty is five to 20 years in prison.
Assistant U.S. Attorney Elly M. Peirson is representing the government in the prosecution. The charges are the result of an investigation by the Champaign and Decatur Police Departments in cooperation with the Champaign County State’s Attorney’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Connecticut Resident Admits Making Numerous Hoax ThreatsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that GARY JOSEPH GRAVELLE, also known as Roland Prejean, 52, last residing in New Haven, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to seven charges related to his threatening to kill, injure and intimidate people and explode property in Connecticut and elsewhere. He also admitted that he violated the conditions of his supervised release that followed his earlier federal convictions for sending threatening communications.
According to court documents and statements made in court, in September 2018, Gravelle used the U.S. mail, e-mail and telephone to threaten to harm people and explode property in Connecticut, Vermont and Washington. Certain letters that Gravelle mailed contained a white powdery substance and statements that the substance was Anthrax, a biological agent and toxin. Gravelle made threats to various mental health providers and facilities in New Haven, U.S. Probation Officers, a U.S. District Court Judge, an international airport in Vermont, a federal prison in Washington, occupants of a building in Old Saybrook, a credit union in Bristol, and organizations and religious centers in Connecticut. He also sent a letter threatening to kill the President of the United States.
Gravelle pleaded guilty to five counts of maliciously conveying false information about an explosive, an offense that carries a maximum term of imprisonment of 10 years on each count; one count related to the sending of hoax Anthrax letters, and offense that carries a maximum term of imprisonment of five years, and one count of making threats against the President, an offense that carries a maximum term of imprisonment of five years.
On July 19, 2013, Gravelle was sentenced in Bridgeport federal court to 70 months of imprisonment, followed by three years of supervised release, for mailing numerous threatening letters in 2010. Gravelle was released from prison in 2015 and, in September 2018, was still under federal supervision.
In pleading guilty, Gravelle also admitted that he failed to comply with conditions of his supervised release, namely not violating any federal or state law by engaging in the threatening conduct in September 2018.
Judge Dooley scheduled sentencing for March 26, 2020.
Gravelle has been detained since his arrest on September 8, 2018.
This matter was investigated by the Federal Bureau of Investigation, U.S. Marshals Service, U.S. Secret Service, and U.S. Postal Inspection Service, with the assistance of the U.S. Bureau of Prisons, Connecticut State Police, Connecticut Department of Energy and Environmental Protection, and many local police and fire departments, including departments from Bristol, Guilford, Groton, Hartford, Middletown, New Haven, Old Saybrook, Southington and Stamford, Yale University, and Burlington, Vermont. This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Connecticut Man Sentenced to Prison for Conspiring to Distribute Heroin, Fentanyl and CrackRead the Press Release
Bangor, Maine: A Waterbury, Connecticut man was sentenced yesterday in federal court in Bangor for conspiring to distribute heroin, fentanyl and cocaine base (crack), U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Luis “Flacco” Hernandez, 38, to 45 months in prison and three years of supervised release. Hernandez pleaded guilty on May 20, 2019.
According to court records, between January 2016 and July 2017, Hernandez conspired with others to distribute heroin, fentanyl and crack transported to Penobscot County from Waterbury, Connecticut. Hernandez sold the drugs and supervised other dealers, as well as “runners” who delivered drugs to others in Penobscot County.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Connecticut Man Pleads Guilty to Federal Drug ChargeRead the Press Release
Bangor, Maine: A Waterbury, Connecticut man pleaded guilty today in federal court in Bangor to possessing heroin with intent to distribute, U.S. Attorney Halsey B. Frank announced.
According to court records, on March 26, 2018, officers with the Indian Township Police Department conducting a child welfare check at a residence in Indian Township discovered Carlos Pemberton, 42, in a bedroom. Pemberton was in possession of a backpack and duffle bag that contained, among other items, heroin and drug paraphernalia. He was also in possession of $7,266.00 in cash.
Pemberton faces up to 20 years in prison, a $1,000,000 fine and a minimum three-year term of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Indian Township Police Department and the U.S. Drug Enforcement Administration investigated the case.
Colorado U.S. Attorney Announces Settlement with Walmart over Discrimination Claim by Naval ReservistRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn and the Department of Justice Civil Rights Division announced today the resolution of a lawsuit in which Naval Petty Officer Third Class Lindsey Hunger alleged that Walmart violated her rights when it failed to offer her employment at the Walmart store located at 2545 Rimrock Avenue in Grand Junction, Colorado because of her upcoming Naval Reserve commitments. Ms. Hunger had alleged that Walmart’s actions violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”). The United States Attorney’s Office represented Petty Officer Hunger in the lawsuit.
As part of the settlement, which includes backpay for Petty Officer Hunger, Walmart has agreed to review its employment and internal hiring policies across the corporation. It has also agreed to revise the policies to include the following language: “Walmart prohibits discrimination against individuals, including applicants, based on their military service (including required military training obligations) or membership in the uniformed services.” Walmart will also ensure that “all supervisors, managers, and administrative staff” in the Grand Junction, Colorado store at issue receive training—developed in consultation with the United States—“on the requirements of USERRA and on employees’ and service members’ rights and obligations under the statute”.
“It is an honor to represent the men and women of our armed forces and ensure that their military training commitments do not deter employers from hiring them,” said U.S. Attorney Jason Dunn. “By obtaining Walmart’s agreement to amend its national hiring practices, this case will have a lasting impact.”
“Walmart is one of the nation’s largest employers and scores of dedicated servicemembers all across the United States will benefit from this settlement and Walmart’s agreement to update its employment and training practices,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “On behalf of a grateful nation, the Department of Justice will continue aggressively to enforce the federal civil rights laws on behalf of all servicemembers, including the citizen-soldiers of our National Guard and Reserve. Their sacrifice to serve should never jeopardize their ability to earn a living.”
This lawsuit stems from a complaint that Ms. Hunger filed with the United States Department of Labor, which, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service, referred the matter to the Department of Justice.
The United States Attorney’s Office for the District of Colorado, the Justice Department’s Civil Rights Division, and the Department of Labor’s Veterans’ Employment and Training Service all give high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado and Andrew Braniff from the Department of Justice’s Civil Rights Division.
Clearfield County Felon Charged with Federal Firearms Law ViolationRead the Press Release
JOHNSTOWN, Pa. – A resident of Curwensville, Pa., was indicted on January 7, 2020, by a federal grand jury on a charge of violating federal firearms and ammunition laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Chancellor M. Shaw, 25, as the sole defendant.
According to the indictment presented to the court, on September 16, 2019, Shaw was found in possession of a firearm and ammunition. On June 26, 2018, Shaw was convicted in the Court of Common Pleas of Clearfield County, of the crimes of flight to avoid apprehension and fleeing or attempting to elude a police officer, which are crimes punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms or ammunition.
The law provides for a maximum sentence of 10 years in prison and a fine of $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 of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Pennsylvania State Police conducted the investigation that led to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
City of Atlanta Director of the Office of Contract Compliance sentenced to more than two years in federal prison for wire and tax fraudRead the Press Release
ATLANTA – Larry Scott has been sentenced to federal prison for failing to disclose to the City of Atlanta that while he served as the Director of Contract Compliance, he also secretly worked as the business manager for consulting firm that was hired by businesses who wanted construction contracts in the Atlanta-metropolitan area.
“Scott’s conviction and sentence close yet another chapter in the disappointing saga of corruption within the City of Atlanta government,” said U.S. Attorney Byung J. “BJay” Pak. “Based on his executive-level positions, Scott was trusted to serve the citizens of Atlanta. By failing to disclose his own business interests, however, Scott betrayed the program he was charged to protect – and, as a result, tarnished the integrity of Atlanta’s disadvantaged business program.”
“This sentencing is a warning to any public official who would contemplate abusing their power for personal gain,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Anyone who tries to take advantage of a trusted position by illegally profiting from it will be pursued. The FBI will continue its efforts to end public corruption in Atlanta and anywhere in the state of Georgia.”
“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject and we hope today’s sentencing sends a message that intentionally filing a false tax return is a prosecutable crime regardless of your position,” said Thomas Holloman, IRS Criminal Investigations, Special Agent in Charge, Atlanta Field Office. “We should not forget that the ultimate victims in this case are the people of Atlanta– those honest taxpayers who diligently file correct tax returns each year and pay their fair share of tax.”
According to U.S. Attorney Pak, the charges and other information presented in court: the City of Atlanta - Mayor’s Office of Contract Compliance, advertises that they strive “to mitigate the effects of past and present discrimination against women and minority businesses, [and] to promote full and equal business opportunity for all persons doing business with the City of Atlanta” by “linking small, minority, female and disadvantaged businesses with City of Atlanta, business opportunities.”
From 2002 to 2019, Scott held several positions with the City of Atlanta, including, serving as the: (a) Senior Contract Compliance Manager in the Office of Contract Compliance; (b) Director of Procurement in the Department of Watershed Management, and (c) the Director of the Office of Contract Compliance. In those positions, Scott earned between $57,000 and $98,000 per year. In total, from 2012 to 2017, Scott earned approximately $530,000 as an employee with the City of Atlanta.
On February 23, 2011, Scott incorporated Cornerstone U.S. Management Group, LLC (“Cornerstone”) with the Georgia Secretary of State as a for-profit corporation. Cornerstone is a consulting firm for businesses seeking construction contracts in the Atlanta-metropolitan area and elsewhere. In its Articles of Organization, Cornerstone listed Scott as its organizer and registered agent. From 2012 until November 2017, Scott served as Cornerstone’s business manager. In that role and during that six-year period, Cornerstone paid Scott between approximately $1,000 and $5,000 per month. In total, from 2012 to 2017, Scott earned approximately $220,000 as Cornerstone’s business manager.
According to the City of Atlanta’s Code of Ethics, certain City of Atlanta officials and employees must disclose all “positions of employment held by the official or employee in any business … for all or any portion of the year, including a description of the type of business and the existence and nature of any business done by the employer entity with the city.” The City of Atlanta’s Code of Ethics further requires that these officials and employees disclose, “[e]ach and every source of income from any business received by such official or employee in excess of $5,000 derived from any single source in the preceding calendar year.”
As the City of Atlanta’s Senior Contract Compliance Manager, Director of Procurement, and Director of Contract Compliance, the City of Atlanta required Scott to complete annually a Financial Disclosure Statement listing any outside employment and sources of income of more than $5,000 per year for calendar years 2012 to 2017.
From 2012 to 2017, Scott electronically filed six false Financial Disclosure Statements, each executed under penalty of perjury. On each Financial Disclosure Statement, Scott knowingly failed to disclose that he had been employed by Cornerstone and that he had received more than $5,000 in annual income from Cornerstone.
From 2012 to 2017, Scott earned approximately $220,000 from Cornerstone while serving as a full-time management or executive level employee with the City of Atlanta. Scott never disclosed to the City of Atlanta his employment with and income from Cornerstone. Scott knew that if he had disclosed his income from Cornerstone on his annual Financial Disclosure Statements, the City of Atlanta could have terminated Scott.
From 2012 to 2017, Scott also filed six false and fraudulent federal income tax returns – in that Scott failed to report the majority of the income that he earned from Cornerstone on his tax returns. For example, in 2015, Scott earned approximately $156,036 in income – (a) $99,136 as the City of Atlanta’s Director of Contract Compliance; and (b) $56,900 as Cornerstone’s business manager. Yet, on his 2015 federal income tax return, Scott falsely listed his “total income” as only $101,630.
On September 4, 2019, Larry Scott, 55, of Atlanta, pleaded guilty to a criminal information charging him with one count each of wire and tax fraud. Based on those convictions, Scott was sentenced to two years in prison to be followed by three years of supervised release and was ordered to pay approximately $125,000 in restitution.
The FBI and IRS Criminal Investigation investigated this case.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, Stephen H. McClain, Chief of the Complex Frauds Section, and Sekret Sneed prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Career Offender Is Sentenced to 15 Years in Prison on Drug ChargesRead the Press Release
STATESVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Keyon Shaqual Miller, 29, of Statesville, was sentenced to 15 years in prison on drug charges. In addition to the prison term imposed, Miller was ordered to serve three years under court supervision upon completion of his prison term.
Court records show that, from at least November 2018 to December 2018, Miller was trafficking narcotics in Statesville and surrounding areas. According to statements made in court and in filed court documents, over the course of the investigation, Miller sold crack cocaine and firearms – including two SKS type rifles – to an individual working with law enforcement. On October 7, 2019, Miller pleaded guilty to distribution and possession with intent to distribute crack cocaine. At today’s hearing, Miller’s sentence was enhanced because of his prior felony convictions, which include Common Law Robbery and Robbery with a Dangerous Weapon, which classified Miller as a career offender under the United States Sentencing Guidelines.
Miller is currently in custody. He will be ordered to report to the federal Bureau of Prisons to begin serving his sentence, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the Bureau of Alcohol, Tobacco, Firearms & Explosives, the North Carolina State Bureau of Investigation, the Statesville Police Department, and the Iredell County Sheriff’s Office for their investigation of this case.
U.S. Attorney Murray also thanked Sarah M. Kirkman, District Attorney for Iredell County, for her office’s assistance in this case.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Camdenton Man Pleads Guilty to Romance Fraud Scheme on the Day of TrialRead the Press Release
JEFFERSON CITY, Mo. – A Camdenton, Missouri, man who was scheduled to go to trial yesterday, instead pleaded guilty to a $78,000 fraud scheme in which he used his victim’s credit cards without authorization.
Ivan Joseph Stark, Jr., 47, pleaded guilty before U.S. District Judge Stephen R. Bough on Monday, Jan. 6, to one count of bank fraud and one count of aggravated identity theft.
Stark became romantically involved with his victim, identified in court documents as “C.H.,” after they met on a dating website. Stark, who used an alias and omitted details regarding his past prison sentence, obtained C.H.’s credit cards on March 1, 2018. Stark obtained the credit cards by falsely telling C.H. he intended to repair an electronic sign and sell the sign for a profit. Stark falsely claimed he already had a buyer for the sign. Stark promised to repay C.H. for purchases he made with C.H.’s credit cards using the proceeds from the sale of the sign. Stark also promised to split a portion of the proceeds of the sale with C.H. In reality, there was no electric sign or project to repair any sign.
Stark obtained a total of $78,280 through this scheme. One of the credit cards, for example, was used to make a $10,180 down payment on a 30-foot trailer from Flying A. Motorsports. Another credit card was used to make a $1,500 down payment on a Dodge Ram truck, which was made over the phone with another woman who purported to be the victim.
Stark opened a Square account under the name AVR Industries. Stark falsely represented to Square that AVR was a taxicab and limousine business, when in fact, no such business was in operation. Stark conducted approximately $43,000 in transactions through Square, using C.H.’s credit cards, to make payments to AVR. As a result of these transactions, $41,817 was deposited into Stark’s personal bank account.
Stark, without C.H.’s knowledge or consent, requested a credit limit increase on two of C.H.’s
credit cards.Stark ultimately charged one of C.H.’s credit cards to a balance above $43,000. Stark made an electronic payment from his personal account in the amount of $21,947, payable to C.H.’s credit card, knowing that his account contained insufficient funds to cover the payment. Before his unfunded payment was reversed, however, Stark made approximately $21,154 in charges to C.H.’s credit card. This resulted in a statement balance of $43,607, which was $21,607 over the card’s credit limit.
Under federal statutes, Stark is subject to a sentence of up to 30 years in federal prison without parole for bank fraud and a mandatory sentence of two years in federal prison without parole for aggravated identity theft, which must be served consecutively. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashley S. Turner and Lauren E. Kummerer. It was investigated by the FBI and the Camden County, Mo., Sheriff’s Department.
Browning man admits assaulting, injuring womanRead the Press Release
GREAT FALLS – A Browning man today admitted assaulting a woman by throwing her to the ground, breaking her arm and injuring her shoulder, on the Blackfeet Reservation last year, U.S. Attorney Kurt Alme said.
Dylan Jace Arrow Top Knot, 20, pleaded guilty to assault resulting in serious bodily injury. He faces a maximum 10 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. Arrow Top Knot was released pending further proceedings.
In court records filed in the case, the prosecution said that Arrow Top Knot was intoxicated when he went to the victim’s house in Browning on April 12, 2019. Arrow Top Knot began hitting the victim’s vehicle. When the victim went outside to see what was going on, Arrow Top Knot began assaulting her and threw her to the ground. The victim landed on her left side, seriously injuring her shoulder and breaking her upper arm. The victim required medical treatment in Montana and Washington.
Arrow Top Knot told investigators he did not remember what happened that night because he had been drinking and blacked out. He expressed remorse for hurting the victim and gave the investigator an apology letter for the victim.
Assistant U.S. Attorney Kalah Paisley is prosecuting the case, which was investigated by the Bureau of Indian Affairs and Blackfeet Law Enforcement Services.
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Bronx Man Arrested for Sex TraffickingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of DAVID WILLIAMS, a/k/a “Pap,” a/k/a “Pap Avilii,” a/k/a “Daddy,” for operating a sex trafficking enterprise, in connection with which WILLIAMS kidnapped, raped, and trafficked an adult victim (“Victim-1”) and also trafficked a minor victim (“Victim-2”). WILLIAMS will be presented before United States Magistrate Judge Debra Freeman later today.
U.S. Attorney Geoffrey S. Berman said: “David Williams allegedly kidnapped, raped, and forced women into prostitution – one of whom was just 14 years old – in operating his human sex trafficking enterprise. It is reprehensible that a person would forcibly coerce another human being into sex and seek to profit from it, and for allegedly doing so, Williams now faces life in prison. Human trafficking continues to be a priority for this Office, and I commend the FBI’s Child Exploitation and Human Trafficking Task Force for aggressively pursuing cases to bring sexual predators to justice.”
FBI Assistant Director William F. Sweeney Jr. said: “The victims in this investigation are living, breathing humans; not property or goods to be sold for sex. As law enforcement, we will do everything we can to stop criminals from preying on children and vulnerable women, but shockingly these cases don’t go away. As a community, we must do more to stop the cycle of demand for this despicable criminal activity, and do more to protect these victims.”
NYPD Commissioner Dermot Shea said: "The NYPD, along with our partners at the Southern District and the FBI, share an unwavering commitment to ensuring that anyone who would seek to profit through the abuse and exploitation of another person – especially at-risk youth – is brought to justice swiftly and successfully. "
According to the allegations in the Complaint unsealed today in federal court[1]:
From at least in or about December 2018 up to and including at least in or about February 2019, WILLIAMS ran a sex trafficking enterprise (the “Business”), along with another person (“CC-1”), who also worked as a prostitute for WILLIAMS.
In February 2019, WILLIAMS and CC-1 kidnapped Victim-1, who was an adult, in Atlantic City, New Jersey, and transported her to the Bronx, New York, to work as a prostitute for the Business. During the time that Victim-1 was held by WILLIAMS and CC-1, WILLIAMS and CC-1 advertised Victim-1 for sex and also forced Victim-1 to engage in sex acts with clients in exchange for money. When Victim-1 expressed resistance to being trafficked for sex, WILLIAMS brandished a gun and threatened to hurt Victim-1 unless she complied. On at least one occasion, WILLIAMS raped Victim-1 after threatening her with a gun.
In or about December 2018, WILLIAMS and CC-1 recruited Victim-2, who was 14 years old at the time, to work as a prostitute for the Business. During the ensuing months, until in or about February 2019, WILLIAMS and CC-1 advertised Victim-2 for sex and directed Victim-2 to engage in sex acts with clients in exchange for money. WILLIAMS and CC-1 forced Victim-2 to turn over the money Victim-2 earned from prostitution.
* * *
WILLIAMS is charged with: (1) conspiracy to commit sex trafficking by force, threats of force, fraud, or coercion and sex trafficking of a minor, (2) sex trafficking by force, threats of force, fraud, or coercion, (3) sex trafficking of a minor, (4) coercion and enticement under the Mann Act, (5) coercion and enticement of a minor under the Mann Act, and (6) kidnapping. Conspiracy to commit sex trafficking by force, threats of force, fraud, or coercion and sex trafficking of a minor, in violation of 18 U.S.C. § 1594(c), carries a maximum term of life in prison. Sex trafficking by force, threats of force, fraud or coercion, in violation of 18 U.S.C. § 1591(a) and (b)(1), carries a mandatory minimum term of 15 years in prison and a maximum term of life. Sex trafficking of a minor, in violation of 18 U.S.C. § 1591(a) and (b)(2), carries a mandatory minimum term of 10 years in prison and a maximum term of life. Coercion and enticement under the Mann Act, in violation of 18 U.S.C. § 2422(a), carries a maximum prison term of 20 years. Coercion and enticement of a minor under the Mann Act, in violation of 18 U.S.C. § 2422(b), carries a mandatory minimum prison term of 10 years and a maximum term of life. Kidnapping, in violation of 18 U.S.C. § 1201, carries a maximum term of life in prison. The maximum potential sentences and the mandatory minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and, in particular, the New York Child Exploitation and Human Trafficking Task Force. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jun Xiang and Danielle M. Kudla are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bangor Woman Sentenced to Prison for Conspiring to Distribute Heroin, Fentanyl and CrackRead the Press Release
Bangor, Maine: A Bangor woman was sentenced yesterday in federal court in Bangor for conspiring to distribute heroin, fentanyl and cocaine base (crack), U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Sammantha Johnson, 30, to 30 months in prison and three years of supervised release. Johnson pleaded guilty on February 26, 2019.
According to court records, between January 2016 and February 2017, Johnson conspired with others to distribute heroin, fentanyl and crack transported to Penobscot County from Waterbury, Connecticut. Johnson distributed the drugs in the Bangor area and facilitated the drug-dealing activities of other members of the conspiracy.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Arizona Man Charged with 10 Kilos of FentanylRead the Press Release
St. Louis – Daniel Cervantes Felix, 18, of Maricopa, Arizona, was charged in a criminal complaint for his involvement in the possession with the intent to distribute 10 kilograms of fentanyl.
According to the complaint, on January 6, 2020, St. Louis County police officers pulled over a GMC Sierra vehicle being driven by Felix after he violated various traffic laws. Felix granted consent to search his vehicle. Officers discovered multiple kilo size bricks totaling 10 kilograms of fentanyl.
Felix has been charged with one count of possession with the intent to distribute a controlled substance. He faces a statutory mandatory minimum of 10 years in prison if convicted. He is presumed to be innocent unless and until proven guilty.
“This is a fine example of the productive, collaborative relationships we enjoy with our Federal partners,” Colonel Jon M. Belmar, Chief of Police, stated. “I am incredibly proud of the work by the officers and agents. They stopped the distribution of this deadly substance before it could reach our communities and poison our families, friends, and neighbors.”
“The allegations in this case involves the second largest seizure of fentanyl in this district. This amounts to millions of doses of fentanyl – enough to destroy or end the lives of hundreds of thousands of Missourians. This conduct simply will not be tolerated by law enforcement. We are grateful to the St. Louis County police and DEA agents involved in this on-going investigation. Their seizure of this poison has saved many, many lives,” stated U.S. Attorney Jeff Jensen.
The charge is the result of a joint investigation between the St. Louis County Police Department’s Multi-Jurisdictional Drug Task Force and the Drug Enforcement Administration.
Monday 6 January 2020
Yukon Man Pleads Guilty to Accepting Bribes as a Postal CarrierRead the Press Release
OKLAHOMA CITY – JUSTUS REX ELLIOTT, 26, of Yukon, has pleaded guilty to accepting a bribe as a public official, announced U.S. Attorney Timothy J. Downing.
According to a one-count information filed on December 4, 2019, Elliott accepted bribes while acting as a U.S. Mail Carrier. In particular, he diverted packages he knew to contain controlled substances from the address specified on the packages to other individuals in exchange for money and controlled substances.
Elliott pleaded guilty on January 6, 2020, before U.S. District Judge Patrick Wyrick. He admitted that he worked as a mail carrier in Moore, Oklahoma, and he diverted packages primarily containing marijuana and marijuana vape pens sent from California. According to a plea agreement, the amount involved in the bribes does not exceed $15,000.
At sentencing, Elliott faces a maximum penalty of 15 years in prison, a fine of up to $250,000, and a term of up to three years of supervised release. Sentencing will take place in approximately 90 days.
This case is a result of an investigation by the United States’ Postal Service’s Office of Inspector General, the United States Postal Inspection Service, the Moore Police Department, and the Oklahoma City Police Department.
Reference is made to public filings for more information.
Winter Garden Man with Numerous Felony Convictions Sentenced to 12 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Kenneth Bernard Smith (55, Winter Garden) to 12 years in federal prison for possessing a loaded firearm and ammunition as a convicted felon, and for possessing with the intent to distribute heroin and cocaine. Smith had previously pleaded guilty to the offenses.
According to court documents, on February 8, 2019, deputies from the Orange County Sherriff’s Office responded to a call regarding a fatal drug overdose that had occurred in an apartment in Winter Garden, where Smith was the sole resident. The deputies found materials used in drug distribution, as well as more than 550 rounds of ammunition in the apartment. At the time, Smith had multiple prior felony convictions for drug distribution.
On February 20, 2019, law enforcement officers conducted an undercover purchase of cocaine from Smith. On March 6, 2019, officers executed a warrant at Smith’s home and seized cocaine and heroin, packaged for distribution, along with a loaded 10 mm firearm. As a previously convicted felon, Smith is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Orange County Sheriff’s Office, and the Winter Garden Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.
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.
Victim Assistance Advisory for Patients of Jessica Joyce Spayd’s Eagle River Wellness CenterRead the Press Release
Anchorage, Alaska – In October 2019, U.S. Attorney Bryan Schroder announced that Special Agents with the Drug Enforcement Administration arrested 48-year-old Jessica Joyce Spayd, a former licensed Advanced Nurse Practitioner and owner of Eagle River Wellness, alleging illegal distribution of opioids such as oxycodone, methadone, and hydromorphone.
On Dec. 30, 2019, Senior U.S. District Judge Ralph R. Beistline issued an order directing the government to employ alternative victim notification procedures so that any member of the community at large who believes they may be a crime victim is made aware of their potential rights.
The government is asking that members of the community who believe they may be a victim of overprescribed opioids by ANP Jessica Spayd, Eagle River Wellness, to please contact (907) 271-3041 to reach the Victim-Witness Unit at the U.S. Attorney’s Office, District of Alaska.
Former patients of Spayd’s or their families may still be facing the aftermath of overprescribed opioid narcotics. The victim-witness program of the U.S. Attorney’s Office, District of Alaska, provides information, services, and support to individuals during federal prosecutions.
Case updates will be provided on the U.S. Attorney’s Office, District of Alaska website at https://www.justice.gov/usao-ak/united-states-v-spayd. Please also be aware of these free, confidential resources that may be of assistance:
- Always call 911 if it’s a life-threatening emergency.
- To find supportive services, dial 2-1-1 to call United Way. Operational hours are 8:30 a.m. – 5 p.m., Monday – Friday. If you call after-hours, please leave a message. Phone calls will be returned the next business day. 2-1-1 provides information and referral service that connect people to vital community, health and social services provided by a range of nonprofit, government and tribal agencies.
- SAMHSA has a national helpline to assist with finding behavioral health support or substance use management at 800-662-HELP (4357), TTY: 800-487-4889, or online at https://findtreatment.samhsa.gov/. Calls are manned 24/7 and are routed to the DHSS Division of Behavioral Health during DHSS operational hours.
- Help is available 24/7 through Alaska's crisis hotline, Careline, which provides help for people who are either in crisis or who are dealing with isolation or depression. Call 1-877-266-HELP (4357).
- For Patient Information and Frequently Asked Questions Regarding Discontinued Prescriptions: http://www.dhss.alaska.gov/dph/Director/Pages/opioids/news.aspx
The charges in the complaint and indictment are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- Always call 911 if it’s a life-threatening emergency.
United States Obtains $1.65 Million Resolution for Fraudulent Medicaid Billing Against Behavioral Health Clinic in Northeast PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Tree of Life, Inc., and its owners and operators, Ada and Victor Vidal, agreed to settle allegations under the False Claims Act and Anti-Kickback Statute that they submitted thousands of fraudulent Medicaid claims for outpatient mental health services that were never rendered to their patients, including forgery of psychiatrists’ and therapists’ signatures on patient progress notes and treatment plans. As part of the settlement with the United States, Tree of Life and the Vidals agreed to pay $1.65 million and will be excluded from participating in federal healthcare programs. As a result, Tree of Life has closed its operations effective December 31, 2019.
Tree of Life was a for-profit, behavioral health clinic in Northeast Philadelphia that provided outpatient psychiatric and psychotherapy mental health services to individuals, including to low income patients. Between 2008 and 2013, Tree of Life allegedly submitted thousands of fraudulent Medicaid claims for outpatient mental health services. Specifically, Tree of Life billed Medicaid for services never rendered, billed Medicaid for falsely inflated services, created false patient progress notes and billing sheets, and forged psychiatrists’ and therapists’ signatures on patient progress notes and treatment plans. Tree of Life also allegedly submitted billing for therapy provided by unqualified individuals and the clinic paid kickbacks to a social worker for referrals of patients.
The government further contends that Tree of Life’s fraudulent scheme included the submission of bogus claims for therapy sessions provided to clients who were hospitalized at the time of the alleged therapy session, submission of claims for therapy sessions provided by therapists who no longer worked for Tree of Life at the time of the alleged therapy session, and submission of claims for therapy sessions allegedly provided on days when the office was closed. Tree of Life even submitted claims for clients who were deceased at the time of the alleged therapy. As a consequence, federal healthcare payers, including Medicaid, overpaid Tree of Life by millions of dollars.
“The fraud in this case is particularly egregious as it affects the treatment and care of low-income Philadelphians seeking mental health services,” said U.S. Attorney McSwain. “Receiving payments from Medicaid and not providing the billed services to those individuals who deserve appropriate treatment cheats those patients who need care, in addition to defrauding the federal government and therefore, American taxpayers. This resolution represents our commitment to holding accountable those who engage in fraud that affects the residents of Philadelphia and the Eastern District of Pennsylvania.”
“Exclusion is an important tool in our ongoing battle against health care fraud,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “We will continue to work closely with the United States Attorney’s Office to ensure the integrity of taxpayer funds and to protect beneficiaries of federal healthcare programs, while excluding from federal programs those providers who engage in fraud.” Under the terms of the Settlement Agreement, Tree of Life agreed to be excluded for 25 years, Ada Vidal agreed to be excluded for 20 years, and Victor Vidal agreed to be excluded for 15 years.
This settlement resolved a lawsuit filed under the False Claims Act in the U.S. District Court for the Eastern District of Pennsylvania by the former Clinical Director of Tree of Life, Erika Desjardins. Under the qui tam or whistleblower provisions of the False Claims Act, private citizens are permitted to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The False Claims Act also permits the government to intervene and take over the lawsuit, which occurred in this case. The qui tam complaint was filed by Robert A. Davitch, Esquire of Sidkoff, Pincus & Green, P.C. and Sidney L. Gold, Esquire of Sidney L. Gold & Associates, P.C. “We thank the relator and the relator’s counsel for their invaluable contribution in this case. Without this type of information from citizens, detecting fraud and conserving government program funds would be much more difficult,” said U.S. Attorney McSwain. The whistleblower in this case, Ms. Desjardins, will receive $330,000 as her share of the recovery. She allegedly confronted Ada Vidal about the fraud and was allegedly fired for refusing to participate in the scheme.
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 at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorney Veronica J. Finkelstein and health care fraud auditor George Niedzwicki. Additional assistance was provided by health care fraud auditors Denis Cooke and Dawn Wiggins.
The case is captioned Erika Desjardins v. Tree of Life Behavioral Services, Inc.; Tree of Life Professional Behavioral Health Services, Inc.; and Tree of Life Professional Behavioral Health Systems, Civil Action No. 14-2039 (E.D. Pa.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Two Statesville Area Men Are Sentenced to Prison for Theft of FirearmsRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Kenneth D. Bell handed down prison terms today to two Statesville-area men for the theft of four firearms, announced Andrew Murray, U.S. Attorney for the Western district of North Carolina.
Niseem Booquan Clay, 19, was sentenced to 57 months in prison, followed by three years of supervised release. Clay pleaded guilty on September 26, 2019, to conspiracy to steal or carry away any firearm from a Federal Firearms Licensee and steal or carry away any firearm from a Federal Firearms Licensee. Devin Quamaine Templeton, 23, was ordered to serve 48 months in prison and two years of supervised release. Templeton pleaded guilty on September 17, 2019, to possession of a firearm by a felon.
According to admissions made in court in connection with their guilty pleas and information introduced today at their sentencing hearing, on September 19, 2018, in the early morning hours, Clay and Templeton broke into Mr. G’s Pawn & Trade, a business located in Taylorsville, N.C. The defendants stole four firearms from the pawn shop, and drove away in a stolen SUV vehicle. Five days later, on September 24, 2018, witnesses called 911 to report that an attempted armed robbery was taking place at a closed gas station in Haywood County. A short time later, law enforcement in Buncombe County initiated a traffic stop of the same stolen SUV vehicle. Templeton was the driver of the vehicle, and Clay was a passenger in the back seat. Over the course of the traffic stop, law enforcement recovered three of the four stolen firearms, and 52 rounds of ammunition.
Clay and Templeton are currently in custody. They will be ordered to report to the federal Bureau of Prisons to begin serving their sentence, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the Bureau of Alcohol, Tobacco, Firearms & Explosives, the North Carolina State Bureau of Investigation, the Taylorsville Police Department, the Haywood County Sheriff’s Office, and the Buncombe County Sheriff’s Office for their investigation of this case.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Two People Plead Guilty in Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Two members of a drug-trafficking organization today admitted their roles in distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.
Jameel Byng, 26, and Kaliel Johnson, 27, both of Camden, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to their roles in a conspiracy based on the 500 block of Pine Street in Camden and responsible for selling heroin, crack cocaine and cocaine. Byng pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin and powder cocaine. Johnson pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin.
Nine other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, and Jasmin Velez – previously have pleaded guilty in this case. The charges against eight other defendants in this case remain pending.
According to documents filed in this case and statements made in court:
An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the drug-trafficking organization in which Byng and Johnson participated.
The count to which Byng pleaded guilty carries a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. The count to which Johnson pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Prosecutor Acting Camden County Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations against the other defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel:
Byng: Tamika McKoy Esq., Camden
Johnson: Edward F. Borden Esq., Cherry Hill, New Jersey