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Tuesday 17 December 2019
Trial Jury Finds Two New Orleans Residents Guilty of String of RobberiesRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that, on December 12, 2019, a federal jury returned a guilty verdict against JOHN WELDON and ERISTON WILSON relating to nine robberies of gas stations, convenience stores, and a bank.
According to the evidence presented at trial, between December 2018 and February 2019, WELDON and WILSON committed armed robberies of three gas stations on General de Gaulle Drive, multiple convenience stores on the West Bank and in the Seventh Ward, and a bank in Algiers. They carried firearms and wore blue gloves in each of the robberies.
At the conclusion of a three-day trial, the jury found WELDON and WILSON guilty on all counts each defendant faced. The defendants face a mandatory minimum sentence of 7 years in prison and a maximum life sentence. Sentencing is set for April 1, 2020 before U.S. District Judge Lance M. Africk.
U.S. Attorney Strasser praised the work of the FBI, which led this investigation and was assisted by the New Orleans Police Department and the Jefferson Parish Sheriff’s Office
Assistant United States Attorneys Kathryn McHugh, Greg Kennedy, and Michael Redmann are in charge of the prosecution.
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Three Defendants Arrested in Cellphone Account Takeover Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), announced charges against HENRY PEREZ, ASHLEY GOMEZ, and MISTY ALIZETTE INFANTE for participating in a multi-year cellphone account takeover fraud conspiracy that impersonated legitimate cellphone accountholders to fraudulently obtain smartphones and electronic devices that were charged to compromised accounts. The scheme also caused a number of individual victims across the United States to lose cellphone service for a period of time. PEREZ, GOMEZ, and INFANTE were all arrested today and were presented before Magistrate Judge Kevin N. Fox in Manhattan federal court. The case has been assigned to U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants participated in a sophisticated fraud that impersonated victims, changed victims’ account information so that victims would not receive fraud alerts, charged purchases to victims’ accounts, and deprived victims of cellphone service. Thanks to the dedicated work of our partners at HSI, these alleged cellphone fraudsters will now face the call of justice.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Regardless of the fraud or the methods employed by criminal elements, HSI and our partner law enforcement agencies will continue to unmask those responsible. The individuals arrested today allegedly used social engineering techniques to impersonate victim account holders which may have provided them with a false sense of anonymity, however, our special agents will continuously identify and bring those responsible to justice.”
According to the Indictment unsealed in Manhattan federal court:[1]
From June 2017 through December 2019, PEREZ, GOMEZ, and INFANTE were members of a criminal fraud ring that committed cellphone account takeover fraud and identity theft across the United States, including in the Southern District of New York. The scheme’s primary objective was to obtain new, valuable technological devices, including iPhones, and charge these purchases to someone else’s account, without the knowledge or consent of that victim accountholder. Over the course of the conspiracy, the scheme attempted to fraudulently obtain more than $1 million worth of devices and, in fact, fraudulently obtained more than $500,000 worth of devices, by charging purchases to victims’ accounts.
To conduct the scheme, members of the scheme, including HENRY PEREZ, used stolen identity information to impersonate a victim who had a cellphone account with a particular cellphone service provider (“Provider-1”). Members of the conspiracy then called customer service representatives of Provider-1 and used social engineering techniques to take over accounts by making various misrepresentations, including impersonating accountholders and indicating a purported need to regain access to their accounts. Through these misrepresentations, the conspiracy was able to gain unauthorized access to, and control of, accounts belonging to victim accountholders. Once they gained access, members of the conspiracy made various unauthorized changes to victim accounts, so that fraud alerts, and emails notifying an accountholder of account changes, were sent to them, rather than the legitimate accountholders. Members of the conspiracy then purchased new electronic devices – typically but not exclusively iPhones – which they charged to victim accounts, without the knowledge or consent of victims.
In many instances, the conspiracy arranged for the fraudulently ordered devices to be shipped to addresses under their control. In other instances, members of the scheme, including HENRY PEREZ, ASHLEY GOMEZ, and MISTY ALIZETTE INFANTE, personally entered stores operated by Provider-1 in order to pick up fraudulently obtained devices. In total, members of the conspiracy conducted in-store pickups of fraudulently obtained devices in at least 10 different states.
Once they had successfully exploited a particular victim’s account, members of the conspiracy typically relinquished control of that account, and moved on to exploiting other victim accounts. During the period in which the conspiracy compromised, and retained control of, a particular victim’s cellphone account, that victim typically lost cellphone service.
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The Indictment contains six counts. A chart containing the names, ages, residences, charges for each defendant, and maximum penalties, is set forth below. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised HSI’s El Dorado Task Force for its outstanding work on the investigation. He added that the investigation is continuing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant, Age, Hometown
Charges, Maximum Penalties
HENRY PEREZ, 32
Fort Lee, New Jersey
Wire fraud: 20 years’ imprisonment
Wire fraud conspiracy: 20 years’ imprisonment
Computer intrusion: 10 years’ imprisonment
Computer intrusion: 5 years’ imprisonment
Aggravated identity theft (2 counts): mandatory minimum term of 2 years’ imprisonment, consecutive to any other term of imprisonment
ASHLEY GOMEZ, 21
Bronx, New York
Wire fraud: 20 years’ imprisonment
Wire fraud conspiracy: 20 years’ imprisonment
Aggravated identity theft: mandatory minimum term of 2 years’ imprisonment, consecutive to any other term of imprisonment
MISTY ALIZETTE INFANTE, 23
Bronx, New York
Wire fraud: 20 years’ imprisonment
Wire fraud conspiracy: 20 years’ imprisonment
Aggravated identity theft: mandatory minimum term of 2 years’ imprisonment, consecutive to any other term of imprisonment
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Thompson Falls man charged with firearms crime after having been committed to mental institutionRead the Press Release
MISSOULA—A Thompson Falls man accused of possessing a firearm after having been found to suffer from a mental disorder appeared Dec. 16 on charges, U.S. Attorney Kurt Alme said.
Suede Jeffrey Shuttle, 25, appeared before U.S. Magistrate Judge Kathleen L. Desoto on a criminal complaint. The complaint charges Shuttle with person in possession of a firearm that has been previously adjudicated mentally defective or had been previously committed to a mental institution.
If convicted of the most serious crime, Shuttle faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
The complaint is merely an accusation, and Shuttle is presumed innocent until proven guilty.
Shuttle was detained pending further proceedings.
The complaint alleges that Shuttle, after having been advised by the Bureau of Alcohol, Tobacco, Firearms and Explosives that he was no longer allowed to possess firearms because he had been previously committed to a mental hospital, possessed a .308 caliber bolt action, military style rifle on Dec. 10.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the ATF and the Thompson Falls Police Department.
Pacer case reference. 19-73.
If the above cases is of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Thirteen Members of Peoria Street Gang Convicted of Racketeering Conspiracy; Acts of Gang Violence, Murder, Attempted MurderRead the Press Release
PEORIA, Ill. – A jury today convicted 13 members of the Peoria street gang known as Bomb Squad for conspiracy to organize and operate the gang as a criminal enterprise that has plagued the Peoria community with gun violence for years. These violent acts included murder, attempted murder, arson, and drug trafficking. After presentation of seven weeks of evidence, the jury deliberated over a period of three days before returning the guilty verdicts this afternoon.
U.S. Attorney John C. Milhiser; ATF Special Agent in Charge Tim Jones, Chicago Field Division; and, Peoria Chief of Police Loren Marion III made the announcement.
“These convictions represent the dedication and commitment of our law enforcement partners and serve to signal to others our pledge to continue to work together to investigate and prosecute those who commit violent acts in our community,” said U.S. Attorney Milhiser. “There is no higher priority than keeping our communities safe.” Milhiser also recognized U.S. Marshal Brendan Heffner and his team: “The Marshals Service has done tremendous work during this lengthy trial to manage 13 defendants in custody and maintain security throughout the trial.”
“These guilty verdicts and potentially long sentences these violent criminals face is reassuring to the communities they terrorized that law enforcement is on their side,” commented ATF Special Agent in Charge Tim Jones of the Chicago Field Division. “We will continue to relentlessly pursue these cases in collaboration with our local partners and appreciate the diligence the U.S. Attorney’s Office dedicated to bringing these criminals to justice.”
Peoria Police Chief Marion stated: “The Peoria Police Department recognizes the hard work and effort that went into this case. I would personally like to commend the officers and agencies involved in this investigation for the outstanding work that was done. Due to their hard work, several of Peoria’s most violent criminals have been taken off the street and they will no longer be able to inflict violence upon our community.”
The defendants were convicted of federal racketeering conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO). Under the RICO statute, the indictment alleged and the jury found, that from 2013 to the present, members and associates of Bomb Squad engaged in acts of violence, including murder, attempted murder, assault; and arson, to protect itself, its members, and associates from rival gangs and to protect the standing and reputation of Bomb Squad.
Those convicted of RICO conspiracy are: Eugene Haywood, 25; Raevaughn Rogers, 20; Kenwan Crowe, 21; Ezra Johnson, 24; Jahlin Wilson, 23; Andre Neal-Ford, 21; Lance Washington, 23; Torieuanno White, 25; Sherman Williams, 25; Lloyd Dotson, 29; Keith Gregory, 20; Mytrez Flora, 25; and Kentrevion Watkins, 21.
Sentencing of the defendants has been scheduled in mid-June. At sentencing, each defendant faces up to 20 years in prison with several facing more lengthy prison sentences including up to life.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department conducted the investigation with assistance from the Drug Enforcement Administration and Illinois State Police. Assistant U.S. Attorneys Ronald L. Hanna, Adam W. Ghrist, and Douglas F. McMeyer represented the government in the investigation and prosecution of the case in the Peoria Division, Central District of Illinois.
The charges are the result of an ongoing investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a partnership of federal, state and local law enforcement agencies working together to identify, disrupt and dismantle drug trafficking organizations and violent street gangs.
This case is prosecuted under Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The program was reinvigorated in 2017 as part of the Department of Justice’s renewed focus on targeting each community’s most violent criminals.
Third Conspirator Pleads Guilty to Participation in a Ponzi Scheme Involving $2.5B in Transactions and $1B in LossRead the Press Release
SACRAMENTO, Calif. — Robert A. Karmann, 53, of Clayton, pleaded guilty today to his participation in a massive fraud scheme involving a solar energy company in Benicia that defrauded investors of approximately $1 billion, U.S. Attorney McGregor W. Scott announced.
Those losses resulted from investment transactions in solar energy hardware valued at approximately $2.5 billion. Karmann is the third person to plead guilty to federal criminal charges relating to the fraud scheme since October.
According to court documents, between 2011 and 2018, the solar energy company manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the MSGs and claimed that they were used by cellphone companies to provide emergency power to cell towers in the case of a power failure. They were also claimed to be used to power lights at sporting and other events.
The company solicited investors by claiming that there were very favorable federal tax benefits associated with investments in alternative energy. The company structured the transactions in order to maximize the tax benefits to the investors. Investors would buy the MSGs without ever taking possession of them. They would pay a percentage of the sales price and finance the balance with the company. Then the investors would lease the MSGs back to the company, which in turn leased them to third parties. A portion of the lease revenue would be used to pay the investors’ debts to the company and to the investors. The third‑party leases, however, generated little income and the company paid early investors with funds contributed by later investors.
According to court documents, Karmann, a certified public accountant, joined the company in 2014 and became its Chief Financial Officer (CFO). Karmann and his co-conspirators used fraudulent financial statements and other false information to hide from investors the company’s use of later investor payments to pay financial obligations the company made to earlier investors—in a classic Ponzi scheme. In his role as CFO, Karmann managed and directed the periodic transfers of new investor money to pay the company’s obligations to existing investors. Karmann also disseminated false financial and other information to investors to mislead them about material aspects of the MSG investments. Karmann’s criminal conduct was intended to create the false impression for investors that the MSG investments were operating as promised, which helped lull existing investors, lured prospective investors, and caused investors to seek more than $1 billion in tax benefits from the Internal Revenue Service to which they were not entitled. Karmann also pleaded guilty to securities violations associated with the same investment fraud scheme.
On Oct. 22, Joseph W. Bayliss, 44, of Martinez, and Ronald J. Roach, of Walnut Creek, each pleaded guilty to related charges. The investigation into the fraud is ongoing.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS‑Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys André M. Espinosa and Kevin C. Khasigian are prosecuting the case.
Karmann is scheduled to be sentenced by U.S. District Judge John A. Mendez on March 31, 2020. Karmann faces a maximum statutory penalty of 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
South Florida Doctor Sentenced to 8 Years in Prison for Conspiring to Illegally Distribute OxycodoneRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Omar Pérez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division announced that Dr. Rodolfo Gonzalez Garcia, 65, of Weston, Florida was sentenced yesterday by U.S. District Judge Roy K. Altman to 8 years in prison, after previously pleading guilty to conspiring to dispense a controlled substance, Oxycodone.
According to the court record, including the agreed upon factual proffers in support of the defendants’ guilty pleas, from November 2016, through and including September 2018, Dr. Rodolfo Gonzalez Garcia, his wife Arlene Gonzalez, 59, also of Weston, Annie Suarez- Gonzalez, 35, of Chicago, Illinois, and Fidel Marrero-Castellanos, 57, of Hialeah, Florida and others, used West Medical Office, Inc. located in Hialeah (later named West Pines Medical Office) for illicit purposes (Case No. 19cr20055). During this time period, the defendants agreed to prescribe purported patients that had been brought to the office by patient recruiters, prescriptions for Oxycodone. They also agreed that patient recruiters could merely bring lists containing the names of purported patients directly to West Medical Office, instead of requiring the patients’ presence. In either scenario, the defendants agreed that the patient or patient recruiters would pay West Medical Office a certain cash amount per patient present in the office or per patient name on a list, in exchange for an Oxycodone prescription. Sometimes, these agreements—money for prescriptions—were directly with the purported patient. The defendants knew that these patients were Medicare and Medicaid beneficiaries, and that filling those prescriptions at pharmacies would result in the submission of claims to Medicare and Medicaid for payment of those prescriptions.
The defendants played various roles in the conspiracy. Marrero-Castellanos acted as a patient recruiter, bringing lists and paying cash in exchange for a prescription for the names on his list. Marrero-Castellanos took the patients with their prescriptions to pharmacies, including Medicare Part D participating pharmacies, to fill the aforementioned prescriptions. When he got the prescriptions based on just a patient list, he provided the aforementioned prescriptions to pharmacies, including Medicare Part D participating pharmacies. Sometimes, the patients went to the pharmacies on their own. All of the recruited patients gave Marrero-Castellanos their Oxycodone pills. Marrero-Castellanos sold those pills to others. Suarez-Gonzalez and Arlene Gonzalez facilitated the exchange of cash for prescriptions and filled out prescriptions. At times, Arlene Gonzalez wore a white lab coat and patients referred to her as a doctor, which she was not. She would bring pre-signed prescriptions to the clinic, and later signed prescriptions for oxycodone in her husband’s name, along with other staff members. These activities occurred even when Dr. Gonzalez Garcia was not in the office.
To facilitate the conspiracy, Dr. Gonzalez Garcia provided prescriptions for Oxycodone, even though he did not provide patients with a meaningful consultation or examination commensurate with prescribing oxycodone according to national standards and norms, nor those of the State of Florida, for such prescriptions. Dr. Gonzalez Garcia referred to himself as “El Chapo of Oxycodone." As a result of the conspiracy, Dr. Gonzalez Garcia unlawfully distributed Oxycodone.
Co-defendants Arlene Gonzalez and Suarez-Gonzalez pled guilty to conspiracy to pay and receive health care kickbacks and were sentenced to 4 months in prison and 1 year of probation, respectively. Co-defendant Marrero-Castellanos pled guilty to conspiracy to pay and receive health care kickbacks and conspiracy to distribute controlled substances and was sentenced to 13 months in prison. The co-defendants were ordered to collectively pay $26,306 in restitution.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and DEA. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Lindsey Lazopoulos Friedman. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Six Indicted for Claiming Benefits for Properties Destroyed in Paradise Camp Fire that Were Not Their True ResidencesRead the Press Release
SACRAMENTO, Calif. — On Thursday, Dec. 12, a federal jury returned indictments against six defendants who made false claims for benefits in connection with the 2018 Camp Fire and received funds from FEMA to compensate for their losses, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “In 2018, in the aftermath of the Carr Fire and Camp Fire, we encouraged the public to report any suspected fraudulent activity and promised to aggressively pursue and prosecute fraud and abuse. Today we are announcing federal charges against individuals who abused the goodwill of the taxpayers and claimed losses that they had not incurred. These investigations are ongoing, and we are not done holding people accountable for fraudulent claims.”
Amanda Thandi, Special Agent in Charge Department of Homeland Security, OIG, Office of Investigations, of the San Diego Field Office stated: “The Department of Homeland Security (DHS), Office of Inspector General (OIG) remains committed to eradicating these and other cases of disaster fraud. As a result of the recent indictments, these individuals will no longer benefit from illegally manipulating the programs designed for assessing the critical needs, home repairs, replacement of personal property, and shelter for persons displaced from their residences due to the California wildfires.”
“Disaster fraud re-victimizes communities devastated physically and emotionally by natural disaster by diverting federal funds from communities and stealing from the victims with significant needs. This is why the FBI is committed to working closely with our local, state, and federal partners to identify and investigate allegations of fraud related to disaster recovery and we want people to both protect themselves and report fraud as it is discovered,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Together, we continue to aggressively pursue those who prey upon innocent victims of natural disasters and the people who want to help them.”
On Nov. 8, 2018, the “Camp Fire” started in Butte County and burned for approximately 18 days. It burned approximately 153,336 acres, destroyed approximately 13,972 residential structures and caused approximately 85 deaths. The Camp Fire is known as the deadliest and most destructive wildfire in California history. On Nov. 12, 2018, the President declared that a major disaster existed in California, and as a result of this declaration, some residents of Butte County who were affected by the fire were eligible to apply for disaster assistance from FEMA.
FEMA provides Direct Housing Assistance to eligible applicants, such as a manufactured home or trailer for use as temporary housing. FEMA also may provide rental assistance to rent alternative housing accommodations. This assistance is available to eligible individuals whose primary residence was damaged or destroyed by the fire regardless of whether they own or rent the home. In certain circumstances, residents can also receive benefits to replace or repair personal property (including standard appliances, essential clothing, standard room furnishing, and essential tools) damaged or destroyed due to a disaster.
The following defendants have been charged with one count of fraud in connection with a major disaster or emergency benefit. According to the charges, they each falsely claimed that a residence in Paradise that had been destroyed in the fire was their primary residence.
Deborah Laughlin, 64, falsely claimed 7209 Skyway, Apt 18 in Paradise as her primary residence and received $9,674.70 in benefits and a FEMA trailer. According to court documents, on Nov. 3, 2018, Laughlin was arrested at her residence in Willows and remained in jail until Nov. 13, 2018, which was several days after the Camp Fire began.
Evan Palmer, 30, of Chico, falsely claimed 4440 Clark Road, #1 in Paradise as his primary residence and received $26,490.67 for his travel trailer that was destroyed in the fire. His primary residence, however, was in Chico.
Kristy Marie Tapp, 34, falsely claimed 5152 Pentz Road in Paradise as her primary residence and received $3,263.91 in benefits. She filed her application for assistance after the Butte County Sheriff had issued a public notification identifying a couple, aged 67 and 70, as deceased victims of the fire. Tapp falsely claimed they were her landlords.
Patrick Prigmore, 54, falsely claimed 1040 Pearson Road in Paradise as his primary residence and received $12,837.71 in benefits and a FEMA trailer.
Two indictments remain sealed.
These cases are the result of investigations by the Department of Homeland Security, Office of Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley Weger is prosecuting the cases.
If convicted, the defendants face up to 30 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
California residents are encouraged to watch for and report any suspicious activity or potential fraud from scam artists, identity thieves, and other criminals who may try to prey on vulnerable survivors of this disaster. Anyone with knowledge of fraud, waste, or abuse may call the Federal Emergency Management Agency’s (FEMA) Disaster Fraud Hotline at (866) 720-5721 or report it to the Federal Trade Commission at ftccomplaintassistant.gov. You may also send an email to [email protected].
School Owner Pleads Guilty to Defrauding Department of Veterans Affairs Program Dedicated to Rehabilitating Disabled Military VeteransRead the Press Release
WASHINGTON – The owner of a physical security school pleaded guilty today to defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with disabilities.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
Francis Engles, 63, of Bowie, Maryland, pleaded guilty to one count of wire fraud. The plea was entered before U.S. District Judge John D. Bates of the District of Columbia. Sentencing has been scheduled for April 2, 2020.
According to admissions made in connection with Engles’s guilty plea, Engles was the owner and operator of Engles Security Training School (Engles Security). In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment (VR&E) program, which provides disabled U.S. military veterans with services. Thereafter, Engles Security obtained over 80 percent of its total revenue from the VA in exchange for purporting to provide certain courses to disabled military veterans.
To further the scheme, Engles falsely represented to the VA that he was providing veterans with months-long courses for 40 hours per week and over 600 total hours. In fact, Engles Security offered veterans far less than what Engles represented to the VA. In some instances, he offered only a few hours of class per day for several weeks. Some veterans did not attend more than one day of class. Engles nevertheless sent to the VA “Certificates of Training” stating that veterans had completed courses that they had not completed or, in some instances, had not taken at all. Similarly, Engles submitted letters to the VA falsely stating that the veterans were employed by Engles’ private security business. Engles also instructed veterans to sign attendance sheets for classes that they did not in fact attend. In total, Engles obtained $337,960 from the VA for the purported education of veterans.
Engles also attempted to obstruct the investigation into his fraud. During an interview with federal agents, Engles lied about veteran students’ attendance at the school, among other things. Later, when Engles Security was served with a grand jury subpoena, Engles prevented his employee from producing responsive documents that she had gathered. Some of these documents were later discovered in the government’s search of Engles Security’s office.
In February 2019, four other individuals were sentenced in related cases following their guilty pleas. James King, a former VA employee, was sentenced to serve 11 years in prison for committing bribery, defrauding the VA, and obstructing justice. Albert Poawui, the owner of Atius Technology Institute, was sentenced to serve 84 months in prison for committing bribery. Sombo Kanneh, Poawui’s employee, was sentenced to serve 20 months in prison for conspiracy to commit bribery. Michelle Stevens, the owner of Eelon Training School, was sentenced to serve 30 months in prison for committing bribery.
The FBI’s Washington Field Office and the VA Office of Inspector General are investigating the case. Trial Attorneys Simon J. Cataldo and Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Peter Lallas of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
School Owner Pleads Guilty to Defrauding Department of Veterans Affairs Program Dedicated to Rehabilitating Disabled Military VeteransRead the Press Release
The owner of a physical security school pleaded guilty today to defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with disabilities.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
Francis Engles, 63, of Bowie, Maryland, pleaded guilty to one count of wire fraud. The plea was entered before U.S. District Judge John D. Bates of the District of Columbia. Sentencing has been scheduled for April 2, 2020.
According to admissions made in connection with Engles’s guilty plea, Engles was the owner and operator of Engles Security Training School (Engles Security). In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment (VR&E) program, which provides disabled U.S. military veterans with services. Thereafter, Engles Security obtained over 80 percent of its total revenue from the VA in exchange for purporting to provide certain courses to disabled military veterans.
To further the scheme, Engles falsely represented to the VA that he was providing veterans with months-long courses for 40 hours per week and over 600 total hours. In fact, Engles Security offered veterans far less than what Engles represented to the VA. In some instances, he offered only a few hours of class per day for several weeks. Some veterans did not attend more than one day of class. Engles nevertheless sent to the VA “Certificates of Training” stating that veterans had completed courses that they had not completed or, in some instances, had not taken at all. Similarly, Engles submitted letters to the VA falsely stating that the veterans were employed by Engles’s private security business. Engles also instructed veterans to sign attendance sheets for classes that they did not in fact attend. In total, Engles obtained $337,960 from the VA for the purported education of veterans.
Engles also attempted to obstruct the investigation into his fraud. During an interview with federal agents, Engles lied about veteran students’ attendance at the school, among other things. Later, when Engles Security was served with a grand jury subpoena, Engles prevented his employee from producing responsive documents that she had gathered. Some of these documents were later discovered in the government’s search of Engles Security’s office.
In February 2019, four other individuals were sentenced in related cases following their guilty pleas. James King, a former VA employee, was sentenced to serve 11 years in prison for committing bribery, defrauding the VA, and obstructing justice. Albert Poawui, the owner of Atius Technology Institute, was sentenced to serve 84 months in prison for committing bribery. Sombo Kanneh, Poawui’s employee, was sentenced to serve 20 months in prison for conspiracy to commit bribery. Michelle Stevens, the owner of Eelon Training School, was sentenced to serve 30 months in prison for committing bribery.
The FBI’s Washington Field Office and the VA Office of Inspector General are investigating the case. Trial Attorneys Simon J. Cataldo and Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Peter Lallas of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Rowan County Doctor Sentenced for Unlawful Distribution of Prescription OpioidsRead the Press Release
GREENSBORO, N.C. – A Salisbury medical doctor who unlawfully prescribed oxycodone was sentenced to prison, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
DR. OKECHUKWU DIMKPA, age 50, of Salisbury, North Carolina, was sentenced to a total of 46 months’ imprisonment by United States District Judge Catherine C. Eagles on December 16, 2019. DIMKPA was also ordered to serve 3 years of supervised release following his imprisonment, and to pay a $50,000 fine. DR. DIMKPA pleaded guilty on September 11, 2019, to six counts of knowingly causing to be distributed oxycodone, a schedule II controlled substance, while acting outside the course of professional practice and without a legitimate medical purpose.
Court records show DR. DIMKPA, an Internist and former owner and operator of Care Plus Urgent Care in Kannapolis, was over-prescribing prescription pain medication, specifically, oxycodone. In 2016, investigators learned that DR. DIMKPA was prescribing opioids to known “drug seekers” with little or no physical examination and for cash. One person who was prescribed oxycodone by DR. DIMPKA died in 2016 from Acute Combined Drug Toxicity.
As part of the plea agreement, DR. DIMKPA was required to surrender his DEA Registration numbers, effectively barring him from prescribing controlled substances.
“Our office is focused on stemming the tide of opioid abuse by prosecuting opioid dealers, whether they are on the street corner or wearing a white coat in a medical office. This investigation demonstrates the exceptional coordination between federal, state, and local authorities to address the over-prescription of opioids,” stated United States Attorney Matthew G.T. Martin.
The case was investigated by the Drug Enforcement Agency, Federal Bureau of Investigation, Department of Health and Human Services, the North Carolina State Bureau of Investigation, and the Cabarrus County Sheriff's Office. The case was prosecuted by Assistant United States Attorney Michael A. DeFranco. This case was brought by the Opioid Fraud and Abuse Detection Unit of the Middle District of North Carolina, which is focused on identifying and prosecuting medical professionals who are contributing to the opioid epidemic.
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Rockford Man Sentenced to 15 Months in Prison for Aiming Laser Pointer at AircraftRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court by U.S. District Judge Philip G. Reinhard to 15 months in prison for aiming the beam of a laser pointer at an aircraft.
BRENTON WELLS, 45, admitted in a written plea agreement that on Dec. 6, 2018, while standing in the backyard of a residence in Rockford, he knowingly aimed his laser pointer at an aircraft flying over the residence. Wells also admitted that he continued to aim his laser pointer at the aircraft for a period of time even as the aircraft moved through the sky over the residence. Wells pleaded guilty to the charge on Aug. 20, 2019.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; Dan O’Shea, Rockford Chief of Police; and on behalf of the Department of Homeland Security: Marc Sledge, Director of Air and Marine Operations, Great Lakes Air and Marine Branch, and James Gibbons, Special Agent-in-Charge of the Chicago Field Office of Homeland Security Investigations. The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Richmond Mail Carrier Sentenced for Accepting BribesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 13 months in prison for accepting bribes in exchange for packages believed to contain marijuana that had been sent through the United States mails.
According to court documents, Christopher Grant, 59, accepted multiple bribes over a nearly one-year period from several different individuals while working as a U.S. mail carrier. In exchange, Grant gave those individuals at least 20 suspected marijuana parcels, all of which had been shipped from other states to vacant addresses and false aliases along Grant’s route. One such parcel was intercepted, searched, and found to contain over 11 pounds of marijuana. To hide his crimes, Grant attempted to alter U.S. Postal Service tracking records to falsely show that he had delivered the packages as addressed. Grant was confronted after surveillance recordings showed him accepting five cash bribes from individuals receiving the suspected marijuana parcels.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Imari Niles, Special Agent in Charge, U.S. Postal Service, Office of Inspector General; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge David J. Novak. Assistant U.S. Attorney Kaitlin G. Cooke prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-125.
Repeat Crack Dealer Sentenced to More than Fifteen Years in Federal PrisonRead the Press Release
A Dubuque man who distributed crack cocaine near playgrounds was sentenced on December 16, 2019, to over fifteen years in federal prison.
Cory Dukes, age 33, from Dubuque, Iowa, received the prison term after a July 1, 2019 guilty plea to the distribution of cocaine base within 1000 feet of a protected location.
In a plea agreement, Dukes admitted to knowingly selling crack cocaine to a confidential informant near two playgrounds in Dubuque, Iowa. Dukes has three previous convictions for selling narcotics in Dubuque near protected locations.
Dukes was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dukes was sentenced to 188 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Dukes is being held by the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Elizabeth Dupuich and was investigated by the Dubuque Drug Task Force and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1014.
Follow us on Twitter @USAO_NDIA.
Reno Man Sentenced to over Eight Years in Prison for Role in Conspiracy to Distribute MethamphetamineRead the Press Release
RENO, Nev. – A Reno resident was sentenced Monday to eight years and two months in federal prison for transporting 10 pounds of methamphetamine from California for sale in Nevada, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Leon DeJesus Munera, aka Looney, 29, pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
According to court documents, on April 24, 2018, co-defendant Jose Mora asked Munera to drive to Orange County, California, to pick up a load of methamphetamine for him. Munera and co-defendant Kelsea Riley drove to California to pick up the drugs. Upon arrival in California, Munera picked up six large bundles of methamphetamine, weighing ten pounds, in the parking lot of a restaurant near an amusement park. On their return drive to Reno, Munera and Riley were stopped by police and the methamphetamine was recovered. In addition to drug trafficking, Munera assisted Mora with transporting firearms to co-defendant Alberto Acosta.
These charges stem from an investigation by the FBI’s Safe Streets Task Force with assistance from federal, state, and local law enforcement partners, including the Reno Police Department and the Washoe County Sheriff’s Office. Assistant U.S. Attorneys James E. Keller and Andolyn Johnson prosecuted the case.
Munera and 16 co-defendants were charged for their alleged roles in the drug conspiracy. All 16 defendants have pleaded guilty. Two have been sentenced, and the remainder await sentencing.
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Reno Felon Sentenced for Dealing MethamphetamineRead the Press Release
RENO, Nev. – James “Jimmy” Evans Sr., 49, of Reno, was sentenced today to 12 ½ years in federal prison to be followed by five years of supervised release for possession with intent to distribute nearly one pound of methamphetamine, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill for the Drug Enforcement Administration (DEA).
According to court documents, investigators had received information about Evans selling drugs from the garage of his residence. On July 23, 2018, law enforcement had a warrant to search the residence where Evans lived with Bobby Jo Kissel (his wife and co-defendant), along with two of Evans’ cars, for drugs, firearms, and related evidence. Before the search warrant was executed, a detective with the Sparks Police Department learned that Evans had not updated his residential address, which was required as part of his ex-felon registration. The detective observed Evans drive a van to a suspected drug stash location and then to a gas station.
At the gas station, the detective approached Evans, who admitted that he failed to properly update his address. During the interaction, a Washoe County Sheriff’s Office K-9 handler deployed his police dog to the van Evans had been driving. The police dog smelled drug odors from the van. Inside, Evans had a backpack containing 925 grams of pure methamphetamine, 144 grams of heroin, 35 grams of marijuana, and a digital scale. Evans was immediately arrested.
Meanwhile, other law enforcement investigators executed the search warrant at Evans’ residence. Among other things, they recovered an unregistered assault rifle with no serial number, a loaded semi-automatic 9mm pistol that had been reported stolen from Lassen County, and 423 grams of methamphetamine. Kissel was present at the residence during the search warrant execution and, after waiving her Miranda rights, she admitted knowing that Evans was selling methamphetamine. Law enforcement then obtained a search warrant for the suspected drug stash location, where investigators recovered a stolen .357 revolver and pure methamphetamine.
This case resulted from an investigation by the DEA, the Sparks Police Department, and the Washoe County Sheriff’s Office. Assistant U.S. Attorney Jim Keller prosecuted the case.
Evans pleaded guilty in September 2019 to possession with intent to distribute at least 500 grams of methamphetamine. Kissel pleaded guilty to misprision of felony, which means knowing that a felony was committed, taking affirmative steps to conceal the crime, and failing to notify the authorities. She faces up to three years in prison at a sentencing hearing set on January 22, 2020.
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Rapid City Man Sentenced to 75 Years in Federal Prison for Aggravated IncestRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of two counts of Sexual Exploitation of a Minor and one count of Aggravated Incest was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Henry Chase Alone, a/k/a Henry Black Elk, age 36, was sentenced on December 16, 2019, to 2 consecutive terms of 30 years in federal prison sentences, followed by a lifetime of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund as to the Sexual Exploitation of a Minor charges. Chase Alone was sentenced to an additional 15 years in federal prison, followed by a lifetime of supervised release, and another $100 special assessment to the Federal Crime Victims Fund for the Aggravated Incest charge, for a total of 75 years in federal prison. Chase Alone was also ordered to pay $6,000 in restitution to the victims of sexual exploitation.
Chase Alone was found guilty of the charges following a federal jury trial in Rapid City on January 10, 2019. Evidence at trial established that Chase Alone received custody of a young girl in November 2016 and almost immediately upon her arrival at his home, began sexually abusing her. Chase Alone used threats and fear of violence to physically and sexually abuse her for years. Through the ongoing investigation, child pornography was found on Chase Alone’s computer. Videos and still photos established Chase Alone recorded himself and the victim engaging in sexual intercourse.
This case was investigated by the Internet Crimes Against Children Taskforce, the Federal Bureau of Investigation, the Pennington County Sheriff’s Office, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Chase Alone was immediately turned over to the custody of the U.S. Marshals Service.
Randolph County man charged with drug and firearms crimesRead the Press Release
ELKINS, WEST VIRGINIA – Christopher Daniel Smith, of Elkins, West Virginia, was indicted today on drug and firearms charges, U.S. Attorney Bill Powell announced.
Smith, age 36, is charged with one count of “Possession with Intent to Distribute Methamphetamine,” one count of “Maintaining a Drug-Involved Premises,” one count of “Possession with Intent to Distribute Heroin,” and one count of “Unlawful Possession of a Firearm.” Smith, who was previously convicted of a felony and is prohibited from having a firearm, is accused of having methamphetamine, heroin, a .380 caliber pistol, a .45 caliber pistol, and a .22 caliber rifle in January 2018 in Randolph County.
Smith faces up to 20 years incarceration and a fine of up to $1,000,000 for each drug count and faces up to 10 years incarceration and a fine of up to $250,000 for the firearms count. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Mountain Region Drug & Violent Crimes Task Force; the Randolph County Sheriff’s Office; and the Elkins Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ponte Vedra Man Sentenced to 5 Years in Federal Prison and Ordered to Pay $8.9 Million in Restitution for Fraud and Money LaunderingRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Bryan L. Brewer (44, Ponte Vedra) to five years in federal prison for wire fraud, bank fraud, and money laundering. Brewer also was ordered to pay $8.9 million in restitution.
Brewer had pleaded guilty on August 1, 2019.
According to court documents, Brewer engaged in two fraud schemes that resulted in him receiving more than $8 million. In one scheme, Brewer solicited an individual to invest in a company that manufactured paddleboards by the name of USBoardco (also known as WatersEdge). As part of the scheme, Brewer sent the victim copies of bank statements, tax returns, and other financial documents that had been falsified to inflate the sales, profits, income, and bank account balance for the company. In reliance upon those and other misrepresentations, the victim invested over $1 million.
The second scheme related to some real estate located in Seminole County. In 2012, an investor loaned more than $4 million to assist Brewer in the purchase of the property. In return, the investor obtained a mortgage on the property. A couple of years later, Brewer defrauded a bank into lending his companies $7.75 million that involved Brewer forging documents and using a fake email account that he had created for his investor. This scheme consisted of two parts. First, Brewer forged a letter that transferred the mortgage from his investor to an entity that Brewer controlled. Second, Brewer forged an estoppel letter from his investor that falsely promised that the investor would release his mortgage for $3.5 million. Brewer used a fake email account that he had established for the investor to send the forged estoppel letter and to pretend to be the investor in communications with the bank. Relying upon the forged letters and his other misrepresentations, the bank loaned one of Brewer’s companies $7.75 million.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Piedmont Doctor Pays $52,500 to Settle Civil Penalty ClaimsRead the Press Release
OKLAHOMA CITY – MAURICE CORMAN, M.D., has agreed to pay $52,500 to settle civil penalty claims stemming from allegations that he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced United States Attorney Timothy J. Downing.
Dr. Corman practices family medicine in Piedmont, Oklahoma. The United States alleges that from June 29, 2016, to November 27, 2018, he acquired vials of testosterone from a pharmacy and failed to maintain any records of the acquisitions as required by law. Dr. Corman also failed to keep any records related to the dispensing of the testosterone he acquired.
To resolve these allegations, Dr. Corman agreed to pay $52,500 to the United States.
In reaching this settlement, Dr. Corman did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration, Office of Diversion Control. Assistant U.S. Attorneys Ronald R. Gallegos and Amanda R. Johnson prosecuted the case.
Philadelphia Man Pleads Guilty to Federal Attempted Robbery and Firearms Charges After Receiving Shockingly Lenient Plea Deal on State Charges from Philadelphia District Attorney’s OfficeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jovaun Patterson, 30, of Philadelphia, Pennsylvania entered a plea of guilty before United States District Court Judge Mitchell S. Goldberg on charges of one count of attempted robbery which interferes with interstate commerce (known as Hobbs Act robbery), and one count of using, carrying, and discharging a firearm during and in relation to a crime of violence. These charges stem from the defendant’s attempted armed robbery on May 5, 2018, of the KCJ, Inc. convenience store during which Patterson shot the store owner Li (“Mike”) Poeng with an assault rifle, leaving Mr. Poeng in a coma and eventually confined to a wheelchair.
Prior to federal prosecutors filing these charges by Indictment in February 2019, Patterson was arrested by Philadelphia police for the May 5, 2018 incident and charged with attempted murder, aggravated assault, robbery–threat of immediate serious injury, possession of a firearm by a prohibited person, possession of a firearm on a street in Philadelphia, possession of an instrument of crime, simple assault, and reckless endangerment of another person. On November 15, 2018, the Philadelphia District Attorney’s Office permitted Patterson to enter a negotiated guilty plea to charges of only aggravated assault, robbery–threat of immediate serious injury, and possession of an instrument of crime. The DA’s Office also agreed to a sentence of only 3½ to 10 years’ imprisonment. That plea deal was in line with the soft-on-crime priorities of Philadelphia District Attorney Larry Krasner. Thereafter, the U.S. Attorney’s Office stepped in to bring federal charges and ensure justice was done.
“Violent crime is a severe and growing problem in Philadelphia, and fighting that trend is a top priority of my Office,” said U.S. Attorney McSwain. “The Philadelphia District Attorney, Mr. Krasner, does not share that priority – preferring to look out for violent offenders like Mr. Patterson, who received a ridiculously lenient plea deal because of Mr. Krasner. I can assure the citizens of Philadelphia that my Office sees the problem and is working hard to do what we can to stem the rising tide by bringing federal charges when we are able, which is what occurred here. Now, this defendant will face a potential sentence that reflects the severity of his crime.”
“ATF’s top priority is combating violent crime; one of the ways we accomplish that mission is by keeping firearms out of the hands of violent offenders,” said Donald Robinson, Special Agent in Charge, ATF Philadelphia Field Division. “This case is a perfect example of the collaborative effort between ATF, our partners at the Philadelphia Police Department and the United States Attorney’s Office in targeting violent offenders and protecting our communities.”
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.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
Pennsylvania Doctor Pleads Guilty to Fraud and Drug Importation ChargesRead the Press Release
A Pennsylvania doctor pleaded guilty to fraud and drug importation charges for his role in a scheme to illegally import medications not approved by the U.S. Food and Drug Administration (FDA) and administer these medications to his patients, and unlawfully distributing oxycodone to his patients.
Thomas J. Whalen, D.O., 65, a Havertown, Pennsylvania, rheumatologist pleaded guilty to one count of health care fraud, one count of importation contrary to law and two counts of distribution of controlled substances before U.S. District Judge Timothy J. Savage of the Eastern District of Pennsylvania. Sentencing is scheduled for April 1, 2020, before Judge Savage.
“The defendant endangered his patients’ health and safety by importing and administering non-FDA approved medications,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This plea shows that medical professionals who prioritize profit over patient care will face the consequences for their crimes.”
“This guilty plea from Dr. Whalen is the latest example of my office’s commitment to stopping health care fraud and diversion,” said U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania. “We work closely with our partners in the Fraud Section’s Health Care Fraud Strike Force and will continue to root out fraud in the medical profession. Specifically, we are committed to stopping criminals in the medical profession from stealing from public programs, threatening the safety of patients, and pushing illegal pills onto the streets.”
“Dr. Whalen placed the health of countless patients at risk by administering non-FDA approved drugs,” said Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Philadelphia Office. “Such medications are not paid for by Medicare due to the risk they may pose to patient health. Our watchdog agency, along with our law enforcement partners, will continue to protect the public and root out dangerous and costly fraud schemes.”
“Dr. Whalen has pleaded guilty to the unlawful distribution of oxycodone, which is a powerful prescription painkiller,” said Special Agent in Charge Jonathan A. Wilson of the U.S. Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Of particular concern is that he knowingly prescribed oxycodone to patients who were abusing illegal street drugs such as cocaine and heroin. Doctors have a professional and moral obligation to treat patients who are struggling with substance use disorder – not enable it.”
“Dr. Whalen imported and used non-FDA approved drugs from Turkey and the United Kingdom, without any regard for the safety and health of his patients. In addition, he prescribed powerful pain killers to patients already struggling with addiction,” said Acting Special Agent in Charge William Walker of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Philadelphia. “Doctors take an oath to do no harm. This oath was clearly betrayed by not only committing healthcare fraud for his own financial gain, but by contributing to our nation’s opioid crisis. Thanks to our partnership with Customs and Border Protection, we have brought one more person to justice, and many more individuals out of harm’s way.”
“When health care professionals import unsafe, untested prescription drugs from outside the drug supply chain that the FDA oversees, the American public's health and trust are jeopardized,” said Special Agent in Charge Mark S. McCormack of the FDA’s Office of Criminal Investigations (FDA-OCI), Metro Washington Field Office. “The FDA is committed to pursuing and bringing to justice those who attempt to subvert the safeguards of our closed drug supply by distributing unapproved products.”
“Dr. Whalen falsely billed federal benefit programs, pocketing over a million dollars he wasn’t entitled to,” said Special Agent in Charge Michael T. Harpster of the FBI’s Philadelphia Field Office. “Between that and his unlawful diversion of prescription opioids, Whalen was doing damage on many levels. The FBI will continue to crack down on crooked medical professionals more interested in their profits than their patients.”
In pleading guilty, Whalen admitted that, from about January 2014 through March 2018, he illegally imported non-FDA-approved biologic medications, including Remicade, Synvisc, Synvisc-One, Orencia, Prolia/Xgeva and Boniva. Rather than purchase FDA-approved versions of these medicines from authorized distributors, Whalen devised a scheme to purchase much cheaper foreign, non-FDA-approved versions of these medications. Unbeknownst to his patients, Whalen injected or infused his patients with the non-FDA-approved medications and then falsely billed federal health care benefit programs approximately $2.3 million and was paid directly approximately $1.1 million, and pocketed the profits for himself, he admitted.
Whalen also admitted to unlawfully distributing oxycodone by prescribing oxycodone to patients outside the course of his professional practice and without a legitimate medical purpose. In particular, with two patients, Whalen prescribed oxycodone despite knowing from a review of patients’ urine drug screen tests that the patients were using illicit drugs, including heroin and cocaine, and/or that each was not taking the mediations that Whalen prescribed.
HHS-OIG, DEA, HSI, FDA-OCI and the FBI investigated the case with assistance from U.S. Customs and Border Protection. Trial Attorney Debra Jaroslawicz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Paul J. Koob of the Eastern District of Pennsylvania are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Owner of Purported U.K. Investment Firm and Two Richmond-Area Men Charged for Roles in Investment Fraud SchemeRead the Press Release
The owner of a purported investment company based in the United Kingdom and two alleged co-conspirators were charged in an indictment unsealed yesterday for their alleged participation in an investment fraud scheme by which they allegedly stole at least $6.2 million from victim investors.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Inspector in Charge Delany De Leon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group and Special Agent in Charge David Archey of the FBI’s Richmond Field Office made the announcement.
Brian Michael Bridge, 46, of London, England, the owner of Chimera Group Ltd.; James Michael Johnson, 68, of Richmond, Virginia; and James Leonard Smith, 54, of Midlothian, Virginia, were each charged in an indictment filed in the Eastern District of Virginia with one count of conspiracy to commit wire fraud and one count of wire fraud. Johnson and Smith made their initial appearances in Richmond today. Bridge remains at large.
The indictment alleges that Bridge – working with Johnson and Smith in the Richmond area – operated a worldwide scheme through Chimera Group Ltd. The scheme operated as an advance fee scheme which involved the defendants as promoters who promised to pay the victims a sum of money at a later date in exchange for an upfront advanced payment. Among other misrepresentations, Bridge, Johnson and Smith allegedly told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these letters were fabricated, the indictment alleges. The indictment also alleges that the defendants used escrow attorneys who were themselves part of the scheme in order to give the victims the appearance that their money would remain secure until the defendants’ promises had been kept. Upon receiving the victims’ funds, those attorneys immediately forwarded the money out of their escrow accounts to the defendants and affiliated individuals, the indictment alleges.
The indictment alleges that the defendants stole at least $6.2 million from their victims.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service’s Criminal Investigations Group and FBI’s Richmond Field Office investigated the case. Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia are prosecuting the case. The Criminal Division’s Office of International Affairs and the Securities Division of the Virginia State Corporation Commission also provided assistance.
Operation High Tide Results in 20 Convictions on Drug and Gun ChargesRead the Press Release
NORFOLK, Va. – Federal and local law enforcement officials today announced the results of Operation High Tide, a proactive, large-scale narcotics and firearms trafficking investigation that focused on high-impact targets driving crime in some of the hardest hit neighborhoods in Hampton Roads.
In early September, over 100 law enforcement agents, officers, and other personnel executed Operation High Tide, which resulted in the arrests of nearly two dozen individuals involved in selling drugs and guns in Norfolk, Chesapeake, and Portsmouth.
To date, Operation High Tide has resulted in 20 convictions and the recovery of approximately 78 firearms, over 7 kilograms of cocaine, nearly a kilogram of crack cocaine, over 625 grams of heroin, over 100 grams of fentanyl, 75 grams of acetyl fentanyl, 12 pounds of marijuana, 621 grams of hash oil, 24 grams of MDMA (commonly known as ecstasy), 120 grams of methamphetamine, and over $560,000 in cash. The narcotics seized have a street value of nearly $1 million.
“Armed criminals are the principal players involved in the deadly cycles of drug turf battles and gang conflicts that deprive our neighborhoods and families of the peace and security they deserve,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Operation High Tide is the latest highly-coordinated effort from federal, state, and local law enforcement to tackle violent crime in Hampton Roads. Further, this operation is emblematic of Attorney General Barr’s Project Guardian, which was announced last month and focuses on those who use firearms during narcotics trafficking and the trafficking of firearms. Through this operation, we are making our strong partnership known and felt in Hampton Roads, as we apprehend and remove from the streets those individuals who have committed serious offenses and put the safety of our communities in danger. This coordinated operation reflects the skilled and brave work of our federal, state and local law enforcement partners, and is part of a law enforcement surge in this priority enforcement area for EDVA.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) initiated Operation High Tide in collaboration with the Chesapeake and Norfolk Police Departments and the Virginia State Police. The operation identified individuals throughout Hampton Roads who were illegally selling firearms, fentanyl, heroin, cocaine, and other narcotics.
“This investigation focused on the most violent offenders in the Chesapeake, Norfolk, and Portsmouth communities,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “ATF’s priority is reducing violent crime. Criminals often utilize firearms as tools of their trade causing harm to our communities. This case illustrates ATF’s commitment to effective law enforcement partnerships and dedication to keeping our cities safe.”
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
Below is a table which lists the name, age, hometown, and respective charge(s) to which each defendant pleaded guilty.
Name, Age
Hometown
Charges
Sentencing
Brian D. Best, 34
Virginia Beach
Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
Feb. 27, 2020
Antisha Carrington, 25
Virginia Beach
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana
Feb. 21, 2020
Kawanta D. Epps, 40
Norfolk
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana; Distribution of Heroin
Feb. 19, 2020
Anthony L. Green, 48
Chesapeake
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana; Distribution of Heroin
March 12, 2020
Corey L. Jones, 50
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
Feb. 19, 2020
Dominic D. Jones, 26
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
Feb. 11, 2020
Malcolm D. Jones, Sr., 45
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Distribution of Heroin, Fentanyl; Distribution of Acetyl Fentanyl
Feb. 5, 2020
Shon E. Melton, 30
Portsmouth
Distribution of Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime; Possession of an Unregistered National Firearms Act Firearm
March 26, 2020
Gary Norfleet, 52
Chesapeake
Possession with Intent to Distribute Cocaine; Felon in Possession of a Firearm
Feb. 11, 2020
Jermaine C. Parker, 35
Chesapeake
Distribution of Fentanyl; 2 counts of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
Feb. 3, 2020
Corey S. Reed, 38
Norfolk
Distribution of Heroin; Possession with Intent to Distribute Heroin
Jan. 9, 2020
Jameel M. Simmons, 37
Portsmouth
Possession with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
Jan. 23, 2020
Jelami M. Smith, 43
Portsmouth
Distribution of Heroin
Feb. 2, 2020
Robert B. Spruill, 39
Chesapeake
Conspiracy to Distribute and Possess Methamphetamine
Feb. 27, 2020
Hasheed Mills, 25
Portsmouth
Distribution of Heroin; Possession of a Firearm in Furtherance of a Drug-Trafficking Crime; Distribution of Cocaine
Feb. 28, 2020
Tajh Rodgers, 29
Portsmouth
Robbery Affecting Commerce; Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence; and 3 counts of Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
Jan. 9, 2020
Glenn Farris, 36
Norfolk
Using a Communication Facility to Commit, Cause, and Facilitate the Distribution of Controlled Substances
Feb. 12, 2020
Malcom Jones, Jr., 25
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin
Feb. 18, 2020
Raewkon A. Pierce, 24
Portsmouth
Distribution of Cocaine
March 16, 2020
Johnnie Ross, 29
Portsmouth
Distribution of Fentanyl
March 31, 2020
G. Zachery Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Larry D. Boone, Chief of Norfolk Police; Col. K.L. Wright, Chief of Chesapeake Police; Greg Underwood, Norfolk Commonwealth’s Attorney, and Nancy Parr, Chesapeake Commonwealth’s Attorney, made the announcement.
This case was investigated by the ATF’s Norfolk Field Office, the Chesapeake, Norfolk, and Portsmouth Police Departments, and the Virginia State Police, with the assistance of the FBI, DEA, NCIS, and the U.S. Marshals.
Attorneys from the Drug and Violent Crime Unit of the Norfolk Division of the U.S. Attorney’s Office, including Kristin G. Bird, Andrew C. Bosse, John F. Butler, Megan M. Cowles, Sherrie Capotosto, Kevin M. Comstock, Joseph E. DePadilla, William B. Jackson, Darryl Mitchell, and William D. Muhr are prosecuting the cases.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:19-CR-111; 2:19-CR-80, 141, 145, 146, 147, 148, 149, 150, 151, 154, 155; and 2:18-CR-138.
North Florida Man Sentenced to 30 Years Imprisonment After Conviction on Child Pornography ChargesRead the Press Release
GAINESVILLE, FLORIDA – Joseph Donald Roberts, 43, of Branford, Florida, was sentenced to 30 years
imprisonment for possession, receipt, and production of child pornography, some involving
prepubescent children. The sentence, imposed in federal court on Monday, was announced by Lawrence
Keefe, U.S. Attorney for the Northern District of Florida.“The more we hold offenders accountable and do our part to prevent sexual violence and support
survivors, the further we will go in ending the blight of child sexual abuse,” Keefe said. “The
U.S. Attorney’s Office is wholly committed to this effort and will continue to do everything in its
power to bring these vile offenders to justice.”On May 18, 2018, investigators identified a subject using the internet within Florida to distribute
and receive images and videos of child pornography. Further investigation led to the seizure of
numerous computers and electronic storage devices from Roberts’ residence in Branford. A forensic
examination of the devices revealed that Roberts had hundreds of images and videos depicting the
sexual exploitation of children, including prepubescent children. Further examination determined
that Roberts had also used his cell phone in an attempt to create sexually explicit videos
depicting a minor engaged in sexually explicit conduct.“This strong sentencing represents the severity of this crime,” said Micah McCombs, Homeland
Security Investigations’ Tampa Assistant Special Agent in Charge. “Thanks to our HSI special
agents, the Florida Department of Law Enforcement, and the Gilchrist County Sheriff’s Office, this
child predator is off our streets and is being held accountable for the tremendous harm he has
done.”Child pornography is a brutal crime because each image or movie represents an assault on an
innocent child who has been sexually abused,” said FDLE Tallahassee Special Agent in Charge Mark
Perez. “We will continue to work with our law enforcement partners to address these
heinous acts.”Roberts was indicted by a grand jury and later convicted in a two-day jury trial. The trial jury
made a special finding that the images possessed by Roberts included children younger than 12.The case was investigated by the Florida Department of Law Enforcement and Homeland Security
Investigations. The case was prosecuted by the Northern District of Florida’s Child Exploitation
and Human Trafficking Coordinator, Assistant United States Attorney Frank Williams.The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as
the nation’s principal litigators under the direction of the Attorney General. To access public
court documents online, please visit the U.S. District Court for the Northern District of Florida
website. For more information about the U.S. Attorney’s Office, Northern District of Florida,
visit http://www.justice.gov/usao/fln/index.html.North Carolina Tax Return Preparer Sentenced to Prison for Tax FraudRead the Press Release
A Raleigh, North Carolina, man was sentenced to 45 months in prison today for conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney for the Eastern District of North Carolina, Robert J. Higdon Jr.
According to court documents and statements made in court, from 2011 through 2014, Garvey Imhotep conspired with others to file false tax returns for clients of several tax return preparation businesses, including Tax Kings, Two Brothers Tax Service, and Taxes Done Right. Imhotep and his co-conspirators filed returns claiming false education expenses and other fraudulent items in order to increase clients’ tax refunds. To conceal his involvement and evade Internal Revenue Service (IRS) detection, Imhotep used tax preparer identification numbers that are assigned to other individuals. Imhotep’s conduct caused a tax loss of more than $1.5 million to the United States.
In addition to the prison term, U.S. District Judge James C. Dever III, ordered Imhotep to serve three years of supervised release and to pay $2,144,888 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant United States Attorney Ethan Ontjes and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Admits Role in Defrauding Banks in $3.5 Million ‘Shotgun’ Loan SchemeRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to carry out a $3.5 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Craig Carpenito announced.
Saoud “Sam” Rihan, 59, pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of conspiracy to commit bank fraud.
According to documents filed in the case and statements made in court:
Rihan was a business partner of Simon Curanaj, 65, of Yonkers, New York. From 2012 through January 2014, Rihan, Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.
In 2013, Rihan and Curanaj executed a deed to transfer ownership of a Bronx property to people identified in the complaint as “Individual 1” and “Individual 2,” neither of whom lived at the property. Rihan offered Individuals 1 and 2 $10,000 cash payments for acting as straw borrowers but never paid them. Rihan and Curanaj then applied for three HELOCs valued at $750,000 from multiple banks in the name of Individual 2.
Rihan and Curanaj hid the fact that the same Bronx property was pledged as collateral in all three applications. The applications also fraudulently inflated Individual 2’s income. In addition, at the time the applications were made, the value of the Bronx property, which was encumbered by a mortgage, was far less than the amount of the HELOC loans that Rihan and the real estate broker applied for.
The victim banks eventually issued loans to Individual 2 in excess of $370,000. After the victim banks funded the HELOCs and deposited money into Individual 2’s bank accounts, Individual 2 disbursed almost all of the funds to Rihan, Curanaj, and others. In 2014, Individual 2 defaulted on all the HELOC loans.
The overall scheme resulted in over $3.5 million in losses to the victim banks.Rihan faces a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 25, 2020.
Curanaj previously pleaded guilty to his role in the scheme and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak in Newark; and special agents of the FBI, under the direction Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.Defense Counsel: Jeffrey Garrigan Esq., Jersey City, New Jersey
New Jersey man charged with sex offender registry violationRead the Press Release
ELKINS, WEST VIRGINIA – Jason Steven Kokinda, of Hammonton, New Jersey, was indicted today on a sex offender registry charge, U.S. Attorney Bill Powell announced.
Kokinda, age 41, is charged with one count of “Failure to Update Sex Offender Registration.” Kokinda is required to update his sex offender registration. He is accused of traveling from New Jersey, New York, Vermont, and Delaware to West Virginia without updating his registration in August 2019 in Randolph and Pendleton Counties.
Kokinda faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The United States Marshal Service, the West Virginia State Police, and the Elkins Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Convicted of Promoting Tax Fraud SchemeRead the Press Release
A federal jury sitting in Camden, New Jersey, convicted an Atlantic City man of conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to evidence presented at trial, between 2015 and 2016, Kenneth Crawford Jr., and his co-conspirators promoted and sold a “mortgage recovery” tax fraud scheme in which they obtained for their clients fraudulent refunds from the Internal Revenue Service (IRS). Crawford promoted the scheme to individuals who were facing foreclosure or behind on their mortgage payments, and represented to them that they could extinguish their outstanding mortgage debts by filing tax forms with the IRS. As part of the scheme, Crawford and his co-conspirators caused clients to file forms that fraudulently claimed that a substantial amount of taxes had already been withheld from them. These false withholding claims caused the IRS to authorize significant refunds to which the clients were not entitled. As a result of Crawford’s scheme, more than $2.5 million in fraudulent refunds were sought from the IRS, of which the IRS paid out more than $1.3 million. Crawford charged his clients a fee of roughly 25 percent of the refund obtained.
When the IRS discovered the fraud and attempted to recover the previously issued refunds, Crawford provided clients with false and fraudulent documents to send to the IRS, directed clients to conceal from the IRS his role in filing the false returns, and advised clients to remove funds from bank accounts in their names in order to thwart IRS collection efforts.
U.S. District Judge Robert B. Kugler scheduled sentencing for March 20, 2020. As a result of his conviction, Crawford faces a statutory maximum sentence of five years in prison for the conspiracy charge, five years in prison for each false claim count, and three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution, and monetary penalties.
Crawford is currently detained pending sentencing as a result of his conviction, and for previously violating his conditions of pretrial release.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Sean Green and Assistant Chief John Kane, who are prosecuting the case. He also thanked the United States Attorney’s Office for the District of New Jersey for its assistance and support during the investigation and prosecution of this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
NDTX Round-Up December 17Read the Press Release
SENTENCING – NELSON PABON
On December 6, Nelson Pabon, 48, was sentenced to 16 years and 8 months in federal custody for conspiracy to possess with intent to distribute methamphetamine. Pabon had informed undercover officers that because of his advance knowledge of canine sweeps of luggage, he was well-positioned to sneak drugs onto commercial flights for cash. Pabon is the lead defendant of 10 coconspirators in this case. If you would like to read more about this case, please click here. This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division. This case is prosecuted by AUSA George Leal, John de la Garza, and John Kull.
GUILTY PLEA – DARYL HENRY
On December 12, Daryl Henry, 24, pled guilty to a hate crime act, conspiracy to commit hate crimes, kidnapping, and carjacking. Henry faces up to life in federal custody for his crimes. Henry admitted Grindr, a social media dating platform primarily used by gay men, was used to lure gay men to a vacant apartment, where they were beaten, taunted, and held against their will. This case was investigated by the Federal Bureau of Investigation, and the Dallas Police Department and is prosecuted by AUSA Nicole Dana. Click here to read more about this case.
GUILTY PLEA – RICARDO MONTES-GARCIA
On December 10, Ricardo Montes-Garcia, 53, pled guilty to possession with the intent to distribute methamphetamine. Montes-Garcia was spotted by police officers as he was leaving his residence and entering his vehicle with a black rectangular object and a white plastic bag. When officers observed a traffic violation, Montes-Garcia gave consent for a search. Officers found the rectangular object to contain 1,972 grams of methamphetamine. In a later search of his home, officers found 8,885 grams of methamphetamine, $36,833 in drug proceeds, and a methamphetamine conversion laboratory. He faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Adminstration and prosecuted by AUSA John Kull.
SENTENCING – JONATHAN ALEXANDER BAIRES
On December 12, Jonathan Alexander Baires, 20, was sentenced to 10 years in federal custody for attempted murder in aid of racketeering. Baires, a member of the MS-13 gang and the Irving Loco Salvatruchas clique, attempted to murder a man who Baires and his coconspirators assumed were a member of the rival 18th Street gang. The victim was ambushed by the gang members in a park, along with three other victims. Fortunately, the fatal attack was unsuccessful. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, the Irving Police Department, and the Dallas Police Department and prosecuted by AUSA Gary Tromblay.
SENTENCING – JOSE ARMANDO SARAVIA-ROMERO
On December 12, Jose Armando Saravia-Romero, 20, was sentenced to 4 years and 9 months in federal custody for assault with a dangerous weapon in aid of racketeering. Saravia-Romero, a member of the MS-13 gang and the Irving Loco Salvatruchas, attacked and robbed a victim at a gas station. Saravia-Romero and his associates offered the victim cocaine and beer, and when the victim refused to pay, they attacked him with a metal bat and stole his wallet. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, the Irving Police Department, and the Dallas Police Department and prosecuted by AUSA Gary Tromblay.
Montgomery County Man Pleads Guilty to Sexually Exploiting MinorsRead the Press Release
WICHITA, KAN. - A Cherryvale, Kan., man pleaded guilty today to federal charges of sexually exploiting minors, U.S. Attorney Stephen McAllister said.
Austin Ballew, 21, Cherryvale, Kan., pleaded guilty to five counts of sexually exploiting a child and three counts of sex trafficking of a minor. In his plea, Ballew admitted he used Facebook to pose as an African-American teenager or young man to communicate with minor females in southeast Kansas towns. An investigation began when a victim’s parents contacted the Independence (Kansas) Police Department. Investigators learned that Ballew, calling himself Deandre Johnson, was soliciting other minor females for sex acts and child pornography.
Ballew offered victims money and marijuana to send him sexually explicit videos of themselves. He also threatened victims that he would make their videos public unless they kept cooperating with him.
Sentencing is set for March 23. The parties have agreed to ask the court for a sentence somewhere in a range of 15 years to 25 years in federal prison. McAllister commended the Independence Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Member of Lightfoot Drug Trafficking Organization Pleads Guilty to Distributing Large Quantities of CocaineRead the Press Release
PITTSBURGH – A former resident of Donora, PA, has pleaded guilty to federal narcotics charges, United States Attorney Scott W. Brady announced today.
Brett Fincik, age 45, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 500 grams or more of cocaine in front of United States District Court Judge Mark R. Hornak.
According to information presented to the court, from January 2015 to November 2017, Fincik conspired with others to import large quantities of cocaine and marijuana into Western Pennsylvania. Once the narcotics were in Western Pennsylvania, Fincik would then resell large quantities of cocaine to customers in Allegheny, Westmoreland, and Washington Counties.
The law provides for a mandatory minimum sentence of not less than 10 years in prison and a maximum of life and/or a fine of not more than $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Timothy M. Lanni and Shaun Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
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.
Manhattan U.S. Attorney Files Lawsuit Against Omnicare, Country’s Largest Long-Term Care Pharmacy, and Parent Company CVS for Fraudulently Billing for Drugs Dispensed to Elderly and Disabled Individuals Without Valid PrescriptionsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), announced today that the United States has filed a civil healthcare fraud lawsuit against OMNICARE, INC., and its parent company, CVS HEALTH CORPORATION. The Government’s Complaint seeks damages and civil penalties under the False Claims Act for fraudulently billing federal healthcare programs for hundreds of thousands of non-controlled prescription drugs dispensed based on stale, invalid prescriptions to elderly and disabled individuals. These individuals lived in assisted living facilities, group homes, independent living communities, and other non-skilled residential long-term care facilities. The illegally dispensed drugs include antipsychotics, anticonvulsants, and antidepressants.
The lawsuit alleges that OMNICARE failed to obtain new prescriptions from patients’ doctors after the old ones had expired or run out of refills. Instead, OMNCIARE just assigned a new number to the old prescription and kept on dispensing drugs for months, and sometimes years, after the prescriptions had expired. OMNICARE internally referred to these as “rollover” prescriptions. As set forth in the Complaint, OMNICARE submitted, or caused to be submitted, false claims for payment for these illegally dispensed drugs to Medicare, Medicaid, and TRICARE.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Omnicare put at risk the health of tens of thousands of elderly and disabled individuals living in assisted living and other residential long-term care facilities by dispensing drugs for months, and sometimes years, without obtaining current, valid prescriptions from doctors. A pharmacy’s fundamental obligation is to ensure that drugs are dispensed only under the supervision of treating doctors who monitor patients’ drug therapies. Omnicare blatantly ignored this obligation in favor of pushing drugs out the door as quickly as possible to make more money. This Office will continue to hold accountable those who put at risk people’s health and safety just to turn a profit.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Failing to consult doctors as to whether prescriptions should be refilled places patients’ health and medical care at serious risk. These automatic rollover refills could have significant consequences for vulnerable people in long term-care facilities. We will continue working with law enforcement partners to protect people depending on these taxpayer-funded government health programs.”
The following allegations are based on the Complaint that was filed in Manhattan federal court today:
OMNICARE is the country’s largest provider of pharmacy services to long-term care facilities, operating approximately 160 pharmacies in 47 states across the United States. Every year, OMNICARE dispenses tens of millions of prescription drugs to long-term care facilities, including assisted living and other non-skilled residential facilities that serve elderly and disabled individuals. CVS acquired Omnicare in May 2015, and shortly thereafter assumed an active role in overseeing OMNICARE’s operations, including pharmacy dispensing practices and systems.
From 2010 until 2018, OMNICARE and CVS allowed OMNICARE pharmacies to dispense non-controlled prescription drugs to tens of thousands of elderly and disabled individuals living in assisted living and other residential long-term care facilities across the country based on prescriptions that had expired, were out of refills, or were otherwise invalid. OMNICARE repeatedly disregarded prescription refill limitations and expiration dates that would have triggered doctor visits to evaluate whether the drug should be renewed, choosing instead to push drugs out the door as fast as possible based on stale, invalid prescriptions. OMNICARE managers exerted pressure on overwhelmed pharmacy staff to fill prescriptions quickly so that OMNICARE could submit claims and collect payments. Many pharmacies had to process and dispense thousands of orders each day.
Instead of requesting new prescriptions when old ones expired, OMNICARE allowed prescriptions to “roll over.” At OMNICARE, “rolling over” a prescription meant that when a prescription expired, OMNCIARE’s computer systems would assign the old prescription a new number and the pharmacy would continue to dispense the drug indefinitely without the need for a prescription renewal. Depending on the computer system used, OMNICARE also sometimes assigned a fake number of authorized refills to a prescription – usually 99 allowable refills for Medicare patients – to allow for continuous refilling. OMNICARE pharmacies “rolled over” prescriptions for elderly and disabled individuals living in more than 3,000 residential long-term care facilities, including assisted living facilities operated by the largest long-term care providers in the country, such as Brookdale Senior Living, Atria Senior Living, Sunrise Senior Living Services, and Five Star Senior Living.
Senior OMNICARE and CVS management knew that pharmacies were routinely dispensing drugs without valid prescriptions, but they failed to begin to address the problem until after they found out about this Office’s investigation. Indeed, OMNICARE’s Compliance Department succinctly acknowledged the problem in an internal April 2015 email in which one Regional Compliance Officer stated: “An issue that I am running into more and more in multiple states concerns the ability of our systems to allow prescriptions to continue to roll after a year to a new prescription number without any documentation or pharmacist intervention.” A compliance officer then forwarded the email to the head of OMNICARE’s Third Party Audit group, who responded that she had a “potential solution (programmed last year) but no one is rolling it out now.”
OMNICARE’s practice of illegally dispensing drugs to elderly and disabled individuals living in residential facilities exposed these vulnerable individuals to a significant risk of harm. In contrast to traditional skilled nursing homes, where residents have access to 24-hour medical care supervised by doctors, assisted living and other non-skilled residential facilities offer more limited medical care, or none at all. In particular, these facilities generally do not have doctors on staff to oversee and monitor residents’ drug therapy.
Many of the prescription drugs dispensed by OMNICARE without valid prescriptions treat serious, chronic conditions, such as dementia, depression, and heart disease. They include antipsychotics, anticonvulsants, cardiovascular medications, anti-depressants, and other drugs that can have dangerous side effects and need to be closely monitored by doctors, particularly when taken in combination with other drugs by elderly patients. By repeatedly dispensing potent drugs without current and valid prescriptions, OMNICARE jeopardized the health and safety of tens of thousands of individuals who continued to take the same drugs for months, and sometimes years, without consulting their doctors to determine whether the medications were still clinically appropriate.
A large percentage of the long-term care residents served by OMNICARE are beneficiaries of federal healthcare programs. By dispensing drugs without valid prescriptions, OMNICARE presented, or caused to be presented, hundreds of thousands of false claims to Medicare, Medicaid, and TRICARE. These claims were ineligible for payment. In addition, OMNICARE knowingly transmitted false information to these federal healthcare programs that made it appear that drug dispensations were supported by current, valid prescriptions from physicians when in fact they were not.
The Government intervened in two private whistleblower lawsuits before Chief Judge Colleen McMahon that had previously been filed under seal pursuant to the False Claims Act.
Mr. Berman thanked HHS-OIG for its assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Mónica P. Folch are in charge of the case.
Manhattan Fund Manager Charged with Misappropriating Clients’ MoneyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an indictment charging DONALD LAGUARDIA with securities fraud, wire fraud, and investment adviser fraud in connection with his operation of a now-bankrupt New York-based investment firm, L-R Managers, LLC. Over several years, LAGUARDIA, the chief executive officer and co-founder of L-R Managers, misappropriated more than $1.5 million from private investment funds managed by the firm and used the stolen money to finance his personal and business expenses. LAGUARDIA was arrested this morning in Lavallette, New Jersey. The case is assigned to U.S. District Judge Lewis A. Kaplan. LAGUARDIA will be presented before Judge Kaplan in Manhattan federal court later today.
U.S. Geoffrey S. Berman said: “As alleged, Donald Laguardia stole from investors through a series of lies. He violated his clients’ trust by siphoning their money to bankroll his business and line his own pockets. Now, Laguardia faces prosecution for his alleged crimes.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Laguardia showed a reckless disregard for his clients when he allegedly misappropriated their investment money to fund personal and business expenses. This is a clear case of greed overshadowing honest business practices.”
According to the allegations contained in the Indictment,[1] unsealed today in Manhattan federal court:
From in or about 2013 through in or about 2017, LAGUARDIA solicited millions of dollars from investors for the LR Global Frontier Master Fund and two related feeder funds (collectively, the “Frontier Funds”), which had a stated focus on investments in “frontier” markets in Latin America, Central and Eastern Europe, the Middle East, Africa, and Asia. Contrary to LAGUARDIA’s representations, and in breach of his duties to investors in the Frontier Funds, LAGUARDIA misappropriated investors’ money to finance L-R Managers’ payroll, rent for its office space on Park Avenue in Manhattan, and hundreds of thousands of dollars in charges on the firm’s credit card, among other unauthorized expenses. At least $191,000 of the misappropriated money went directly to, or for the benefit of, LAGUARDIA personally.
In one example, in 2013, LAGUARDIA solicited an $800,000 investment in the Frontier Funds from an investor (“Investor-1”). Upon receipt of Investor-1’s money, an L-R Managers employee sent an email to LAGUARDIA and another person asking for approval to forward the $800,000 to the Frontier Funds. LAGUARDIA responded, “Dont [sic] wire anything yet!” LAGUARDIA then caused approximately $390,000 of Investor-1’s investment never to be transmitted to the Frontier Funds, but instead to be used to pay himself approximately $52,000 and for various other personal and business expenses.
By September 2015, L-R Managers faced substantial financial difficulties. On September 1, 2015, an L-R Managers principal sent an email to LAGUARDIA and others at the firm stating that it would be “ethically troubling to accept money into the [Frontier Funds] when [L-R Managers] can no longer support . . . payroll and mission critical services.” Nevertheless, just a few days later, a new investor solicited by LAGUARDIA (“Investor-2”) made a $2 million investment into the Frontier Funds. Prior to this investment, LAGUARDIA concealed his firm’s near insolvency from Investor-2 and did not disclose that the Frontier Funds had been paying substantial expenses for L-R Managers, contrary to the representations in the funds’ offering documents. LAGUARDIA then proceeded, over the course of several months, to use a substantial portion of Investor-2’s investment in the Frontier Funds to continue paying himself and subsidizing his firm’s business expenses.
* * *
LAGUARDIA, 52, of Lavallette, New Jersey, is charged with one count of securities fraud, one count of wire fraud, and one count of investment adviser fraud. LAGUARDIA faces a maximum sentence of 20 years in prison on each of the securities and wire fraud counts and a maximum sentence of five years in prison on the investment adviser fraud count.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant will be determined by the judge.
Mr. Berman praised the investigative work of the USPIS. Mr. Berman also thanked the Securities & Exchange Commission, which previously brought a related civil action against LAGUARDIA.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham and Daniel Loss are in charge of the prosecution.
The charges contained in the Indictment 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 Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to 3 Years for Embezzling over $1 Million from Grant County BusinessRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Curtis Tarver, 55, Spring Grove, Minnesota, was sentenced yesterday by U.S. District Judge James Peterson to three years in prison for wire fraud. The wire fraud charge stems from Tarver’s embezzlement from Rapid Die and Molding Company (“RDM”) in Cassville, Wisconsin, and its sister company Hawley Products in Paducah, Kentucky. Tarver pleaded guilty to this charge on August 20, 2019.
Tarver worked for RDM and was eventually promoted to Chief Financial Officer (CFO) for RDM and Hawley Products (“the companies”). As CFO, Tarver was responsible for handling all financial matters for the companies, including, but not limited to, disbursing payments, depositing and transferring funds, and balancing bank accounts. In this role, Tarver had access to and utilized a variety of financial accounts belonging to the companies, including bank accounts, commercial credit accounts, and PayPal.
The investigation revealed that from 2006 until January of 2018, Tarver devised and participated in a scheme to embezzle money from the companies. Tarver embezzled money from the companies in a variety of ways, including: 1) using the companies’ credit cards to make personal purchases; 2) using the companies’ checks for personal purchases; 3) issuing the companies’ checks to himself; 4) transferring the companies’ funds to his personal bank accounts using PayPal; 5) direct transfers from the companies’ bank accounts to his personal bank accounts. For example, on November 30, 2015, Tarver transferred $9,200 from RDM’s PayPal account to his personal PayPal account. Tarver subsequently transferred the $9,200 to his personal account at Navy Federal Credit Union.
The investigation further revealed that Tarver used the embezzled funds for a variety of personal expenditures, including, but not limited to, home improvements, recreational vehicles, travel, and dining. Tarver also provided the embezzled funds directly to other people as gifts or loans. In total, Tarver embezzled over $1,023,649.44 from the companies.
The charge against Tarver is the result of an investigation by the Federal Bureau of Investigation with assistance from the Cassville Police Department. The prosecution of the case has been being handled by Assistant U.S. Attorney Aaron Wegner.
Louisiana Man Pleads Guilty to Trafficking Protecting BirdsRead the Press Release
WASHINGTON – A Louisiana resident and owner of a freight forwarding company, pleaded guilty on December 16, 2019 in federal court in the Eastern District of Louisiana, on a charge of trafficking exotic birds protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Paul Tallman of Kenner, Louisiana, owner of Aerotyme-Inc., pleaded to the charges, which stemmed from a scheme by codefendant William McGinness to ship birds from California to the Port of New Orleans for export to Taiwan in order to avoid a 2015 Taiwanese ban on the import of all California birds due to the risk of highly pathogenic avian flu. The shipment contained 86 birds, including three falsely labeled macaws.
“This illegal scheme flouted federal and international laws meant to protect exotic birds from exploitation as well as international efforts to contain infectious disease,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “This case shows well how federal law enforcement protects our nation’s resources, its biodiversity, and the public’s health from criminal enterprises.”
On Dec. 11, 2019, McGinness pleaded guilty to conspiracy to smuggle and make false statements in violation of the Lacey Act, as well as a false statement charge. Another codefendant, Rene Rizal, also pleaded guilty to a false statement charge.
McGinness had Tallman and Rizal create and certify false paperwork in order to facilitate the shipment of the birds from New Orleans. McGinness trucked the birds from California to Aerotyme Inc. in Kenner, Louisiana, where he and Tallman submitted false paperwork, including a veterinary health certificate certifying that the birds were disease free, to agents of the U.S. Fish and Wildlife Service. Federal law enforcement officers seized 14 birds prior to export.
Codefendants Wayne Andrews, a bird breeder, and Alex Madriaga, a veterinarian, both from California, previously pleaded guilty to creating false documents to facilitate McGiness’ plan to transport the birds from California to Louisiana. Andrews’ and Madriaga’s sentencings are scheduled for Jan. 15, 2020. Rizal’s, McGinness’ and Tallman’s sentencings are scheduled for March 4, 2020.
The maximum sentence for Tallman is one year in prison and a fine of up to $100,000. The maximum sentence for McGinness and Rizal is five years in prison, three years of post-release supervision, and a fine of up to $250,000. Andrews and Madriaga face a maximum sentence of one year in prison and a fine of up to $100,000.
The U.S. Fish and Wildlife Service, Office of Law Enforcement investigated this case. Trial Attorney Mary Dee Carraway of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Missy Bücher of the Eastern District of Louisiana are prosecuting the case.
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Lewis County man charged with firearms violationsRead the Press Release
ELKINS, WEST VIRGINIA – Samuel Lee Donaldson, Jr., of Weston, West Virginia, was indicted today on a firearms charges, U.S. Attorney Bill Powell announced.
Donaldson, age 35, is charged with two counts of “Unlawful Possession of a Firearm.” Donaldson, who was previously convicted of domestic battery and prohibited from having a firearm, is accused of having a 9mm pistol in October 2019 in Lewis County.
Donaldson faces up to 10 years incarceration and a fine of up to $250,000 for each count. 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lewis County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Leader of Alien Smuggling Ring Sentenced to 10 Years in PrisonRead the Press Release
TUCSON, Ariz. – On December 11, 2019, Senior U.S. District Judge Raner C. Collins sentenced defendant Audias Sanchez-Colin to 10 years in prison for Conspiracy to Transport Illegal Aliens for Profit and Illegal Reentry into the United States of a Removed Alien. The defendant was one of 26 codefendants who had been previously charged in this conspiracy.
From 2016 through 2018, the defendant was the leader of multiple, large-scale alien smuggling organizations. He and his co-defendants smuggled into the United States approximately 150 unlawful aliens, including 13 juveniles. The co-conspirators also laundered over $1 million in fraudulent proceeds from their alien smuggling operations.
The investigation was conducted by the Department of Homeland Security Investigations. The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Tucson.
Justice Department awards more than $333 million to fight opioid crisisRead the Press Release
$1.1 Million will support efforts to combat drugs and crime in the Eastern District of Tennessee.
Knoxville, Tenn. – The Justice Department’s Office of Justice Programs announced awards of more than $333 million to help communities affected by the opioid crisis. $1.1M will help public safety and public health professionals in the Eastern District of Tennessee combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.
“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.
“As the opioid crisis continues, cheaper and more powerful opioid drugs, such as fentanyl, are increasingly being sought out by those who are addicted to prescription opioids. These fentanyl drugs are especially deadly, whether taken alone or with other narcotics such as methamphetamine. We will continue to work with local, state, and federal leaders to help educate the public regarding the dangers involved with the improper use and abuse of these dangerous substances,” said United States Attorney J. Douglas Overbey.
“The opioid crisis is a major issue in East Tennessee. We appreciate the issuance of this grant and plan to use it to reduce opioid abuse and for treatment and recovery programs in Sevier County,” said Sevier Mayor Larry Waters.
“KLF is excited to work with the Department of Justice to continue to make an impact against the opioid crisis in E.TN. With this grant award, we will invest in at risk youth through education that equips their mentors and caregivers on how to prevent opioid misuse. In order to make a large, efficient and effective impact, we have developed and launched a multi-agency collaborative name Knoxville Area Mentoring Initiative that includes KLF’s Amachi Knoxville, Big Brother Big Sisters of East Tennessee, Girls on the Run of Greater Knoxville, The Joy of Music School and YMCA of East Tennessee. Working together we can provide the tools necessary for our young people to stand strong,” said Chris Martin, President of Knoxville Leadership Foundation.
The awards will support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.
The following awards were made to organizations in the Eastern District of Tennessee:
Sevier County Government - $600,000
Knoxville Leadership Foundation - $500,000Information about the programs and awards announced are available here. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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Justice Department Awards over $62 Million to Support Health and Safety of Law Enforcement OfficersRead the Press Release
The Department of Justice’s Office of Justice Programs today announced it has awarded funding totaling over $62 million to provide services designed to protect officers and improve overall public safety. OJP’s Bureau of Justice Assistance and National Institute of Justice awarded grants to law enforcement departments, local jurisdictions, and training, technical assistance and research organizations throughout the United States.
“The Office of Justice Programs stands proudly with the Attorney General and the President in our commitment to the 700,000 sworn law enforcement professionals who selflessly put their lives on the line to keep us all safe,” said OJP’s Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Bulletproof vests, body-worn cameras, health and safety research—these resources will provide officers the training, equipment and strategies needed to enable them to do their jobs effectively and keep them safe from harm.”
The FBI’s official crime data for 2019 reflects a decrease in the number of law enforcement officers feloniously killed between 2018 and 2019 (43 killed through September 2018 and 32 killed as of Sept. 30, 2019). There was also a slight decrease in the number of law enforcement officers reported accidentally killed in 2019 (29) as compared to the same reporting period in 2018 (33).
Still, there were almost 60,000 assaults against officers in 2018, according to the latest data available from the FBI.
Nearly $23 million will support the training and implementation of law enforcement agencies’ body-worn camera programs. Another $21 million will reimburse jurisdictions for up to 50 percent of the cost of body armor vests, while over $14.8 million will support law enforcement safety and wellness programs, research and services.
In addition, over $3 million is allocated for research and evaluation of safety, health and wellness priorities. These investments include the development of ballistic vests, studies of in-vehicle safety and the evaluation of less-lethal technologies to increase police and public safety.
A full list of the awards, organized under specific grant programs and listed awardees by state, is available online at https://go.usa.gov/xpxd3.
Additional information about Fiscal Year 2019 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Awards over $8.7 Million to Fight Opiod Crisis, Combat Drugs and Crime in North FloridaRead the Press Release
TALLAHASSEE, FLORIDA – The Justice Department’s Office of Justice Programs (OJP) announced awards of more than $8,742,871 to help public safety and public health professionals in the Northern
District of Florida combat substance abuse and respond effectively to overdoses, part of $333 million awarded nationwide to help communities affected by the opioid crisis. The awards were
announced by OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan.“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless
and hopeless,” Sullivan said. “This epidemic—the most deadly in our nation’s history—is introducing
new dangers and loading public health responsibilities onto the public safety duties of our law
enforcement officers. The Department of Justice is here to support them during this unprecedented
and extremely challenging time.”With more than 130 people dying from opioid-related overdoses every day, the Department of Justice
has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump
Administration is providing critical funding for a wide range of activities— from preventive
services and comprehensive treatment to recovery assistance, forensic science services, and
research—to help save lives and break the cycle of addiction and crime.“Winning the fight against opioid addiction will require not just effective law enforcement, but
also a comprehensive and coordinated approach from community organizations and service providers at
the local level,” said Lawrence Keefe, United States Attorney for the Northern District of Florida.
“These grants will go a long way to support the efforts of those combatting this plague in
hometowns and neighborhoods across the Northern District of Florida.”The awards announced support an array of activities designed to reduce the harm inflicted by these
dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment
professionals coordinate their response to overdoses. Funds will also provide services
for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs, and support opioid-related research.Awards were made to three organizations in the Northern District of Florida:
Florida Office of the State Courts Administrator $1,492,871
Institute for Intergovernmental Research $6,000,000
Big Brothers Big Sisters of America $1,250,000
Information about the programs and awards announced is available here. For more information about
OJP awards, visit the OJP Awards Data webpage.The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine
T. Sullivan, provides federal leadership, grants, training and technical assistance, and other
resources to improve the nation’s capacity to prevent and reduce crime, assist victims, and enhance
the rule of law by strengthening the criminal and juvenile justice systems. More information about
OJP and its components can be found at www.ojp.gov.The United States Attorney's Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
available public court documents online, please visit the U.S. District Court for the Northern
District of Florida website. For more information about the United States Attorney’s Office,
of Florida, visit http://www.justice.gov/usao/fln/index.html.Justice Department Awards More Than $333 Million to Fight Opioid CrisisRead the Press Release
LEXINGTON, Ky.– The Justice Department’s Office of Justice Programs today announced awards of more than $333 million to help communities affected by the opioid crisis. $9,980,656 will help public safety and public health professionals in the Eastern District of Kentucky combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.
“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.
“The opioid crisis is one of the most acute problems we face in the Eastern District of Kentucky, and solving it will take a coordinated response by all stakeholders, including law enforcement, the healthcare and treatment community, and many others,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We are grateful for the support of the Department of Justice, as these awards will undoubtedly assist law enforcement and public health efforts in our District, and throughout the Commonwealth.”
The awards announced today support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.
The following awards were made to organizations in the Eastern District of Kentucky
- Kentucky Justice and Public Safety Cabinet- $4,990,407
- Kentucky Administrative Office of the Courts-$2,500,000
- Kentucky Cabinet for Health and Family Services- $990,249
- Mountain Comprehensive Care Center, Inc.- $750,000
- Kentucky Justice and Public Safety Cabinet- $750,000
Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov
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Iraqi Man Pleads Guilty to Willfully Violating Order of SupervisionRead the Press Release
Bangor, Maine: An Iraqi national pleaded guilty today in federal court in Bangor to willfully failing to comply with the terms of release under supervision, U.S. Attorney Halsey B. Frank announced.
According to court records, Mustafa Hatem Abdulkadhim Al Shuwaili, 27, entered the U.S. in 2012. An immigration judge ordered him removed to Iraq in December 2015. In October 2018, pending his removal from the U.S., he signed an Order of Supervision with the Department of Homeland Security, U.S. Immigration and Customs Enforcement. The order prohibited him from committing any crimes while on release, among other conditions. On June 11, 2019, he was convicted in Penobscot County of felony Domestic Violence Assault, with Priors.
Al Shuwaili faces up to one year in prison and a $100,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
U.S. Immigration and Customs Enforcement investigated the case.
Indonesian Citizen and Three Indonesian Companies Charged with Violating U.S. Export Laws and Sanctions Against IranRead the Press Release
Sunarko Kuntjoro, 68, a citizen of Indonesia, and three Indonesian-based companies, PT MS Aero Support (PTMS), PT Kandiyasa Energi Utama (PTKEU), and PT Antasena Kreasi (PTAK), were charged today in the United States District Court for the District of Columbia on Dec. 10, 2019, with violating U.S. export laws related to U.S. sanctions against Iran.
The charges were announced by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Nasir Khan, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement Washington Field Office, and Special Agent in Charge Nick Annan, U.S. Department of Homeland Security, Homeland Security Investigations San Diego.
An eight-count indictment returned today charges Kuntjoro and PTMS, PTKEU, and PTAK, with conspiracy to unlawfully export U.S.-origin goods and technology to Iran and to defraud the United States. Kuntjoro and PTMS also face charges for unlawful export and attempted export to an embargoed country, conspiracy to launder monetary instruments, and false statements. As set forth in the indictment, the U.S.-origin goods were destined for an Iranian aviation business end user, Mahan Air, and the defendants conspired to make a financial profit for themselves and other conspirators, and to evade export regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA), the Iranian Transactions and Sanctions Regulations (ITSR), the Export Administration Regulations, and the Global Terrorism Sanctions Regulations (GTSR). The United States Department of Treasury designated Mahan Air as Specially Designated National and Blocked Person (SDN) under the GTSR on Oct. 12, 2011.
According to the indictment, between March 2011 and July 2018, Kuntjoro, the majority owner and President Director of PTMS, conspired with Mahan Air; Mustafa Oveici, an Iranian executive for Mahan Air; and others, including an American person and company. Mahan Air was designated an SDN for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force. The United States Department of Commerce has placed Mahan on its Denied Parties List and Mustafa Oveici on the Entity List. The conspiracy involved transporting goods owned by Mahan through PTMS, PTKEU and PTAK to the United States for repair and re-export to Mahan in Iran and elsewhere. The conspirators caused the U.S.-origin goods to be exported from the United States without obtaining valid licenses from the United States Department of the Treasury Office of Foreign Assets Control and the United States Department of Commerce.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the United States Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C.
Kuntjoro faces statutory maximum sentences of five years in prison and a $250,000 fine for the charge of conspiracy to violate IEEPA and defraud the U.S. government; a maximum of 20 years in prison and a $1 million fine for each of the individual charges of violating IEEPA; a maximum of 20 years in prison and a $500,000 fine on the charge of conspiracy to launder monetary instruments; and a maximum of five years in prison and a $250,000 fine for the false statement charge. 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 a judge.
The investigation was conducted by special agents from the United States Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, with assistance from special agents from Homeland Security Investigations in San Diego and Miami.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Indonesia Citizen and Three Indonesian Companies Charged with Violating U.S. Export Laws and Sanctions against IranRead the Press Release
WASHINGTON – Sunarko Kuntjoro, 68, a citizen of Indonesia, and three Indonesian-based companies, PT MS Aero Support (PTMS), PT Kandiyasa Energi Utama (PTKEU), and PT Antasena Kreasi (PTAK), were charged today in the United States District Court for the District of Columbia on December 10, 2019, with violating U.S. export laws related to U.S. sanctions against Iran.
The charges were announced by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Nasir Khan, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement Washington Field Office, and Special Agent in Charge Nick Annan, U.S. Department of Homeland Security, Homeland Security Investigations San Diego.
An eight-count indictment returned today charges Kuntjoro and PTMS, PTKEU, and PTAK, with conspiracy to unlawfully export U.S.-origin goods and technology to Iran and to defraud the United States. Kuntjoro and PTMS also face charges for unlawful export and attempted export to an embargoed country, conspiracy to launder monetary instruments, and false statements. As set forth in the indictment, the U.S.-origin goods were destined for an Iranian aviation business end user, Mahan Air, and the defendants conspired to make a financial profit for themselves and other conspirators, and to evade export regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA), the Iranian Transactions and Sanctions Regulations (ITSR), the Export Administration Regulations, and the Global Terrorism Sanctions Regulations (GTSR). The United States Department of Treasury designated Mahan Air as Specially Designated National and Blocked Person (SDN) under the GTSR on Oct. 12, 2011.
According to the indictment, between March 2011 and July 2018, Kuntjoro the majority owner and President Director of PTMS, conspired with Mahan Air; Mustafa Oveici, an Iranian executive for Mahan Air; and others, including an American person and company. Mahan Air was designated an SDN for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force. The United States Department of Commerce has placed Mahan on its Denied Parties List and Mustafa Oveici on the Entity List. The conspiracy involved transporting goods owned by Mahan through PTMS, PTKEU and PTAK to the United States for repair and re-export to Mahan in Iran and elsewhere. The conspirators caused the U.S.-origin goods to be exported from the United States without obtaining valid licenses from the United States Department of the Treasury Office of Foreign Assets Control and the United States Department of Commerce.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the United States Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C.
Kuntjoro faces statutory maximum sentences of 5 years in prison and a $250,000 fine for the charge of conspiracy to violate IEEPA and defraud the U.S. government; a maximum of 20 years in prison and a $1 million fine for each of the individual charges of violating IEEPA; a maximum of 20 years in prison and a $500,000 fine on the charge of conspiracy to launder monetary instruments; and a maximum of 5 years in prison and a $250,000 fine for the false statement charge. 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 a judge.
The investigation was conducted by special agents from the United States Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, with assistance from special agents from Homeland Security Investigations in San Diego and Miami.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Indictment Returned Charging Two Foreign Nationals with Violating U.S. Money Laundering and Sanctions Laws Against IranRead the Press Release
WASHINGTON - Issam Shammout of Jordan, 48, and Ali Abdullah Alhay of Saudi Arabia, 61, were charged with violating U.S. export laws and sanctions against Iran in the United States District Court for the District of Columbia. The announcement was made by U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Jill Sanborn of FBI Minneapolis, and Acting Director of the Office of Export Enforcement John Sonderman of the U.S. Department of Commerce.
A 17-count indictment returned on Tuesday December 16, 2019 charges Shammout and Alhay with conspiracy to acquire U.S. origin aircrafts and parts to supply to end-users in Iran, specifically Mahan Air, a specially designated national. The indictment alleges that the defendants concealed from companies, financial institutions that clear U.S. dollar transactions, and the U.S. government that the U.S.-origin goods were destined for Mahan Air, all as part of a scheme to enrich the defendants and other conspirators, and to evade the regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA), the Iranian Transactions and Sanctions Regulations (ITSR), and the Export Administration Regulations (EAR).
A related verified civil complaint in rem filed in July 2017 in the District of Columbia against $17,035,935 in funds for benefit of Al Naser airlines has also been unsealed. These funds were allegedly involved in this scheme to launder funds in to the United States to illicitly procure airplanes destined for Mahan Air. A criminal forfeiture allegation against the funds and nine airplanes was also included in the indictment against Shammout and Alhay.
“We will continue to aggressively prosecute those who violate our export control laws and use every measure available under the law, to include civil forfeiture, to recover funds for the victims of terrorism,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “These laws serve to prevent hostile countries from obtaining and proliferating goods that could be used to harm our nation.”
"Today's indictment underscores an important fact that those who support this type of procurement effort by Mahan Air will be thoroughly investigated by the FBI and prosecuted to the fullest extent of the law," said FBI Minneapolis Special Agent in Charge Jill Sanborn. "We applaud the efforts of our agents and other partners for their outstanding work on this significant case," Sanborn added.
“The Department of Commerce and our interagency partners will relentlessly pursue any commercial entity which flagrantly disregards American laws to support the spread of terrorism," said Acting Director of the Office of Export Enforcement John Sonderman. “This is just the latest in a string of actions dating back to 2008 to end Mahan Air's systematic violation of U.S. export controls.”
According to the indictment, beginning around August 2012 through May 2015, Shammout and Alhay conspired to purchase and deliver U.S.-made engine parts valued at over ten percent of the value of the aircraft, subjecting them to the strictures of IEEPA and the Iran Sanction Regulations. The conspiracy utilized the U.S. correspondent banking system to process the illicit transactions as they were in U.S. Dollars, and at no time were U.S. financial institutions alerted that they were financing Mahan Air’s aircraft supply.
Mahan Air has been designated by the U.S. Department of the Treasury since October 12, 2011 as a Specially Designated National for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force. The Department of Commerce has placed Mahan on its Denied Parties List.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the United States Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C.
If convicted, Shammout and Alhway would face a maximum of 20 years imprisonment.
The investigation was conducted by special agents from the FBI Minneapolis Field Office and U.S. Department of Commerce, Bureau of Industry and Security Office of Export Enforcement Washington D.C. Field Office.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorneys Zia M. Faruqui, Chris Brown, and Arvind Lal, Special Assistant U.S. Attorney Chris Kaltsas, National Security Division Trial Attorney Dave Recker, and Paralegal Specialist Rosalind Pressley, all from the U.S. Attorney’s Office for the District of Columbia, are representing the government. Former Intelligence Analyst Lia Anter also provided support of this investigation.
Illegal Alien with 7 DUI Convictions Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A Mexican national was sentenced today 13 months in prison for illegal re-entry by a previously deported alien.
“Juan Navarro-Hernandez has a staggering seven DUI convictions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This is precisely the type of defendant and criminal immigration case we are focused on here in EDVA. Those who illegally enter the United States, and then choose to commit further crimes here, pose a great danger to the safety of our communities. We will continue to work with our law enforcement partners and immigration authorities to prosecute and remove these criminals from our communities.”
According to court documents, Juan Navarro-Hernandez, 50, of Guanajuato, Mexico, was deported from the United States at taxpayer expense in February 2001. Sometime later, Navarro-Hernandez snuck back into the United States again, and on May 19, 2019, Navarro-Hernandez was found unlawfully in the United States when he was arrested by Chesapeake Police for driving under the influence (DUI). Navarro-Hernandez has a total of seven convictions in state court for DUI.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-111.
Honolulu Police Officer Pleads Guilty to Civil Rights OffensesRead the Press Release
John Rabago, 43, of Honolulu, Hawaii, pleaded guilty yesterday before U.S. District Judge Leslie E. Kobayashi to one count of conspiring to deprive a person of his civil rights, and one count of acting under color of law to deprive the same individual of his civil rights.
“As a police officer sworn to uphold and defend the laws of our nation, Rabago abused his authority and violated an individual’s constitutional rights,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This abuse of authority was unacceptable, and the Department of Justice will continue to vigorously prosecute law enforcement officers who commit civil rights offenses.”
“Officer Rabago violated his obligation to serve, not victimize, the public,” said U.S. Attorney Kenji M. Price for the District of Hawaii. “My office will continue to hold law enforcement officers like him accountable for criminal conduct that undermines the well-deserved respect that many of our law enforcement officials earn on a day-to-day basis in Hawaii.”
“Sadly, this officer abused his authority and violated the trust of the public he had been sworn to serve. But our community must remain confident that no one is above the law and the FBI investigates these matters vigorously. When officials violate the public’s trust, they undermine the hard work of all law enforcement officers here in Hawai’i and across the nation," said Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office.
According to court documents, on Jan. 28, 2018, Rabago, a police officer with the Honolulu Police Department, was on duty when he conspired with another officer to force an individual to lick a urinal in a public bathroom.
Rabago’s co-defendant, former HPD officer Reginald Ramones, 43, pleaded guilty to misprision of a felony on Sept. 25, 2019. As part of that guilty plea, Ramones admitted that he was aware that Rabago committed a federal felony on Jan. 28, 2018, but Ramones failed to notify federal authorities of Rabago’s illegal conduct. Ramones further admitted that he was present for a separate and unrelated incident prior to January 2018 in which Rabago made another individual place his head in a public bathroom toilet in order to avoid arrest.
The conspiracy charge carries a maximum penalty of ten years imprisonment and a $250,000 fine; and the deprivation of rights under color of law charge carries a maximum penalty of one-year imprisonment and a $100,000 fine.
This case was investigated by the Honolulu Division of the FBI. It is being prosecuted by Trial Attorney Timothy Visser of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Thomas Brady for the District of Hawaii.
Holland Man Sentenced to More Than Five Years in Prison for Obstruction of JusticeRead the Press Release
Mark Baker Used Facebook to Publicize and Threaten Cooperating Witnesses in a Methamphetamine Trafficking Conspiracy Prosecution
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today that on December 16, 2019, Mark Adrian Baker, 27, of Holland, Michigan, was sentenced to serve 63 months in the Federal Bureau of Prisons for aiding and abetting obstruction of justice. U.S. District Judge Paul L. Maloney also imposed a 3-year period of supervised release. In sentencing Baker, Judge Maloney made clear that this was a serious offense that threatened the very essence of the federal criminal justice system.
On July 31, 2019, Baker pleaded guilty to endeavoring to influence, obstruct, or impede the due administration of justice by publicizing the names of witnesses in an underlying methamphetamine trafficking conspiracy prosecution in a corrupt effort to impede their testimony. Specifically, at the direction of the methamphetamine trafficking conspiracy’s leader, Matthew James Boeve, who was in custody at the Newaygo County Jail awaiting trial on federal drug charges, Baker posted to Facebook lists of witness names, and photographs of police reports with the names of witnesses underlined and with the following captions:
"LETS PLAY A GAME… HOW MANY SNITCHES DOES IT TAKE TO CATCH Matt Boeve??? READ THE DAMN FACTS AND STOP BEING SOME DAMN TWACKS!!!! #freemattboeve #doingitright #snitchbitches"
"Share and tag so my boy boeve ppls can all see this bullshit in the papers on his case… [wink emoji] [rat emoji] #freemattboeve … #breathlessly … #goviralwithit"
The threatening posts caused at least one cooperating witness to contact law enforcement, fearing retaliation for his or her cooperation in the methamphetamine conspiracy prosecution. The posts are shown below, but with the government having subsequently obscured the witness names.
In announcing the sentence, U.S. Attorney Birge stated, "Witnesses who come forward to testify in criminal prosecutions play a vital role in our justice system. When we work with witnesses, we make their safety a priority. Any threats, harassment, or attempts to obstruct or prevent their testimony will be met with serious consequences, including years in federal prison."
"WEMET takes witness safety and protection very seriously," said D/F/Lt. Andy Fias, WEMET Section Commander. "We appreciate the swift action taken by the U.S. Attorney’s Office – Western District of Michigan in assisting us in this investigation. This case brought another organization to justice, responsible for trafficking large quantities of crystal methamphetamine into west Michigan. It is just another great example of the partnership we have with our federal partners in law enforcement."
On September 3, 2019, Boeve pleaded guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, and aiding and abetting obstruction of justice for his role in the threatening Facebook posts. Boeve is scheduled to be sentenced on January 6, 2020, and faces a mandatory minimum term of 10 years in prison and a maximum term of life in prison.
The Holland Police Department, the West Michigan Enforcement Team (WEMET) of the Michigan State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated this case and the underlying methamphetamine trafficking conspiracy. Assistant United States Attorney Daniel T. McGraw prosecuted the case.
Havertown Doctor Pleads Guilty to Unlawfully Importing Foreign, Injectable Drugs and Unlawfully Distributing OxycodoneRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Thomas J. Whalen, D.O., 65, of Havertown, Pennsylvania, pled guilty to charges related to his unlawful importation of foreign, non-FDA approved injectable medications that he falsely billed to health care benefit programs in the amount of nearly $2.3 million. The Delaware County rheumatologist also pleaded guilty to unlawfully distributing oxycodone. Whalen knowingly prescribed oxycodone to patients actively using illicit drugs, including heroin and cocaine.
Whalen pled guilty to an Information charging him with one count of health care fraud, one count of importation contrary to law, and two counts of distribution of a controlled substance. He is scheduled to be sentenced on April 1, 2020, by U.S. District Judge Timothy J. Savage, who accepted his plea. Whalen faces a maximum possible sentence of 70 years’ imprisonment, a $2,500,000 fine, 3 years’ supervised release, and a $400 mandatory special assessment.
Whalen owned and operated Rheumatology Consultants, P.C., doing business as Whalen Rheumatology Group, with locations in Havertown, PA, Exton, PA, and Wilmington, DE. As part of his practice, Whalen used medications administrated by injection and infusion to treat his patients. These medications, including Remicade Synvisc, Synvisc-One, Orencia, Prolia/Xgeva, and Boniva, are made of living cells and are expensive. Rather than purchase FDA-approved versions of these medicines from authorized distributors, Whalen devised a scheme to purchase much cheaper foreign, non-FDA approved versions of these medications. Unbeknownst to his patients, Whalen injected or infused his patients with the non-FDA approved medications and then billed federal health care programs, pocketing approximately $1.1 million in illicit gains.
Whalen also prescribed oxycodone to patients abusing illicit drugs. The Information lists two patients to whom Whalen prescribed oxycodone despite receiving multiple urine drug screening results for each that revealed that the patients were simultaneously abusing cocaine and heroin.
“This guilty plea from Dr. Whalen is the latest example of my Office’s commitment to stopping health care fraud and diversion,” said U.S. Attorney McSwain. “We work closely with our partners in the Fraud Section’s Health Care Fraud Strike Force and will continue to root out fraud in the medical profession. Specifically, we are committed to stopping criminals in the medical profession from stealing from public programs, threatening the safety of patients, and pushing illegal pills onto the streets.”
“Dr. Whalen placed the health of countless patients at risk by administering non-FDA approved drugs. Such medications are not paid for by Medicare due to the risk they may pose to patient health,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General. “Our watchdog agency, along with our law enforcement partners, will continue to protect the public and root out dangerous and costly fraud schemes.”
“Dr. Whalen has pleaded guilty to the unlawful distribution of oxycodone, which is a powerful prescription painkiller. Of particular concern is that he knowingly prescribed oxycodone to patients that were abusing illegal street drugs such as cocaine and heroin,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Doctors have a professional and moral obligation to treat patients that are struggling with substance use disorder – not enable it.”
“Dr. Whalen imported and used non-FDA approved drugs from Turkey and the United Kingdom, without any regard for the safety and health of his patients. In addition, he prescribed powerful pain killers to patients already struggling with addiction,” said William Walker, Acting Special Agent in Charge of HSI Philadelphia. “Doctors take an oath to do no harm. This oath was clearly betrayed by not only committing healthcare fraud for his own financial gain, but by contributing to our nation’s opioid crisis.” Walker continued, “Thanks to our partnership with Customs and Border Protection, we have brought one more person to justice, and many more individuals out of harm’s way.”
“When healthcare professionals import unsafe, untested prescription drugs from outside the drug supply chain that the FDA oversees, the American public health and trust are jeopardized,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations Metro Washington Field Office. “The FDA is committed to pursuing and bringing to justice those who attempt to subvert the safeguards of our closed drug supply by distributing unapproved products.”
The U.S. Department of Health and Human Services, Office of Inspector General, the Drug Enforcement Administration, Homeland Security Investigations, the Food and Drug Administration, Office of Criminal Investigations, and the Federal Bureau of Investigation investigated the case. Trial Attorney Debra Jaroslawicz with the Criminal Division’s Fraud Section and Assistant United States Attorney Paul J. Koob are prosecuting the case.
Hattiesburg Man Sentenced to over 8 Years in Federal Prison under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Hattiesburg, Miss. – Jordan Reshard Poole, 29, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 100 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation, and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Poole was also ordered to pay a $4,000 fine.
On July 17, 2017, Poole was found in possession of a firearm after police engaged with Poole and another individual in a high speed chase in Lamar County. Poole was previously convicted of multiple felonies in Forrest County, including arson. He most recently was found guilty of felony burglary and was sentenced in January 2015 to two years of confinement, consecutive to an earlier felony sentence.
Poole pled guilty before Judge Starrett on July 31, 2019. In sentencing Poole, Judge Starrett cited the seriousness of the facts leading up to Poole’s arrest.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and Hattiesburg Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.