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29 January 2020
Gainesville Physician and Ex-Wife Sentenced to Federal Prison for Health Care Fraud Conspiracy, Health Care Fraud, and Money LaunderingRead the Press Release
GAINESVILLE, FLORIDA –Lawrence Keefe, U.S. Attorney for the Northern District of Florida, announced the sentencings of Erik M. Schabert, 48, a physician, and his ex-wife, Mika Kamissa Harris, 49, both of Gainesville, Florida. A jury found both guilty on health care fraud and money laundering charges involving more than $8 million.
While owning and operating Reliant Family Practice in Gainesville, Harris and Schabert attempted to defraud health care benefit programs of more than $8 million by submitting fraudulent claims.
Between January 2013 and July 2016, Reliant Family Practice received over
$4.4 million from Medicare and Blue Cross Blue Shield for fraudulent claims for chemical peels and dermabrasions relating to false diagnoses of rosacea and actinic keratosis.Harris was convicted of conspiracy to commit health care or wire fraud, and 48 counts of health care fraud. Additionally, she was convicted of 41 counts of money laundering as a result of spending the fraudulently obtained proceeds on such things as paying off her home mortgage, adding a swimming pool and other home improvements, obtaining plastic surgery, purchasing commercial property, and funding an annuity for herself. Harris was sentenced to 90 months prison, followed by
3 years supervised release.Schabert was convicted of conspiracy to commit health care or wire fraud, and 24 counts of health care fraud. Schabert was sentenced to 42 months prison, followed by 3 years supervised release.
“Society places a large measure of trust in the hands of licensed physicians, and it is profoundly disturbing when a respected professional abuses that trust by falsely billing for treatments that were not medically necessary or which were never actually provided,” U.S. Attorney Keefe said.
“In addition, this doctor’s actions undermined the trust placed in him by his patients.”"Fraudsters like Dr. Schabert should pay a hefty price for violating both the Hippocratic Oath and his standing as a trusted Medicare provider”, said Special Agent in Charge Omar Pérez Aybar, U.S.
Department of Health and Human Services Office of Inspector General. "Our watchdog agency and network of partners will continue to aggressively investigate physicians and other health care providers who bill Medicare for unnecessary services just to boost their own profits.”In addition to receiving sentences of imprisonment and supervised release, Harris and Schabert were jointly ordered to pay $4,471,572.52 in restitution to Blue Cross Blue Shield. The government has already forfeited Harris’ residence, the commercial property, and over $260,000 in an annuity account.
"Health care fraud costs our country tens of billions of dollars a year, and rooting out these schemes is central to the well-being of our citizens and the overall economy," said Rachel L.
Rojas, Special Agent in Charge of the FBI Jacksonville Division. "The FBI is committed to aggressively investigating and bringing to justice those who undermine our health care system."Assistant United States Attorneys Justin M. Keen and Frank T. Williams prosecuted the case, which was jointly investigated by the Department of Health and Human Services, Office of Inspector
General, the Federal Bureau of Investigation, and the Internal Revenue Service– Criminal
Investigation."Special Agents of the IRS will continue to bring our financial expertise to assist our law enforcement partners in combatting large-scale healthcare fraud, “stated Ronald A. Loecker, Assistant Special Agent in Charge for IRS Criminal Investigation, Tampa Field Office.” Fraud of this magnitude must be countered through robust investigation of these trusted professionals.”
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 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, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former union official sentenced to 30 months for identity theft and failure to file tax returnsRead the Press Release
HONOLULU, Hawaii – Nathan Y.G. Lum, 62, of Honolulu, Hawaii, was sentenced today in federal court by United States District Judge Derrick K. Watson to 30 months of imprisonment and one year of supervised release, and ordered to pay restitution in the amount of $314,178.27. On March 28, 2019, Lum pleaded guilty to aggravated identity theft in connection with theft of government funds and failure to file a tax return.
US Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, Lum was the former division director of the International Longshore and Warehouse Union Local 142, Longshore Division (ILWU). From 2011 through 2017, Lum willfully failed to file any federal or State of Hawaii tax returns that should have reported his income from the ILWU and other sources. In failing to do so, he failed to pay the IRS and State of Hawaii approximately $280,743.27 that he owed in taxes. In most years, Lum earned over $200,000.00 in gross pay from the ILWU. In addition, Lum failed to report approximately $90,000.00 in payments that he received personally from California-based Relativity Media company in 2012 and 2013 in connection with efforts to secure Hawaii tax credits from the State Legislature while he was an official of the ILWU.
Further, after Lum’s father passed away, between 2013 and 2016, Lum forged his father’s signature on over fifty checks that Lum wrote from his deceased father’s bank account and deposited into Lum’s personal account. In total, Lum obtained approximately $33,435.00 in his father’s Social Security benefits that Lum was not entitled to receive. Lum spent these funds on his personal expenses.
“The sentenced imposed today holds Lum accountable for his flagrant violation of federal law. It sends a message to all in Hawaii that no one in Hawaii, regardless of position or privilege, is above the law. Those who hold positions of trust, such as leaders of Hawaii’s public and private sector unions, are fully accountable for their conduct, and when they intentionally violate federal law, my Office will work with law enforcement to ensure that there are consequences.”
“Nathan Lum earned a significant income based partly on his criminal conduct and position of influence. He knew he had an obligation to file his income tax return, but chose not to,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation continues to pursue greedy individuals who fail to file and pay their fair share of tax.”
The case was investigated by the Internal Revenue Service Criminal Investigation, Department of Labor, Federal Bureau of Investigation, and the Social Security Administration Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Rebecca A. Perlmutter.
Former oil and gas employee charged with using company card for $850K of personal useRead the Press Release
HOUSTON – A criminal information has been filed against a 58-year-old Bryan resident for his suspected role involving wire fraud, announced U.S. Attorney Ryan. K. Patrick.
James Day Burke is expected to make his initial appearance before U.S. Magistrate Judge Dena H. Palermo at 2 p.m. today.
He is charged with one count of wire fraud.
Burke was employed as the bookkeeper at Rustex Inc., an oil and energy company that is headquartered in Bryan.
From approximately May 2010 to approximately August 2018, Burke allegedly made unauthorized charges on company credit cards for personal expenses.
The information alleges Burke defrauded the company out of $855,872.42 as a result of his scheme.
If convicted, he faces a possible sentence of up to 20 years in federal prison and a $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
A criminal information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Former Vice President of First Bank & Trust Pleads Guilty to EmbezzlementRead the Press Release
Abingdon, VIRGINIA – The former Vice President of Electronic Banking for First Bank & Trust pled guilty today in U.S. District Court in Abingdon to federal embezzlement charges, United States Attorney Thomas T. Cullen announced.
Lisa Tiller, 39, of Lebanon, Va., waived her right to be indicted and pleaded guilty today to one count of embezzlement by a bank employee.
According to information submitted to the court during today’s guilty plea hearing by Assistant United States Attorney Zachary T. Lee, Tiller was the Vice President of Electronic Bank for First Bank & Trust for approximately 17 years. On or about August 5, 2019, Tiller contacted an E-commerce representative with First Bank & Trust and had the bank account of the Russell County Health Coalition added to her personal online banking profile. Between Aug 5, 2019 and August 16, 2019, Tiller made six transactions, transferring funds totaling $4,750 from the Russell County Health Coalition account to her personal account.
On August 20, 2019, First Bank & Trust began an audit of the transactions and contacted Tiller about the discrepancies. On that date, Tiller's husband deposited funds into Tiller's personal account sufficient to cover the loss and Tiller transferred $4,750 from her personal account to the Russell County Health Coalition account. She also admitted to bank leadership that she had wrongly transferred the funds from the Russell County Health Coalition Account.
On January 14, 2020, when interviewed by an investigator with the Russell County Sheriff’s Office, working as part of a federal financial fraud investigative team, Tiller admitted to the embezzlement of funds from First Bank & Trust.
The investigation of the case was conducted by the Russell County Sheriff’s Office. Assistant United States Attorneys Zachary T. Lee and Whit Pierce are prosecuting the case for the United States.
Former Partner of Manhattan Accounting Firm Sentenced for Two Fraud SchemesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that STEVEN L. HENNING, a certified public accountant (“CPA”) who was a partner at a Manhattan accounting firm, was sentenced today to 51 months in prison for participating in two wire fraud schemes. In the first, he falsely claimed to have entered into multimillion-dollar intellectual property deals and defrauded investors out of $2 million. In the second, he falsely claimed to have entered into client engagements and defrauded an employer out of over $240,000. HENNING was sentenced by United States District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “Over several years, Steven Henning committed brazen frauds, exploiting his stature and career accomplishments to defraud people who trusted and relied on him. Today he has received a significant prison sentence for his crimes.”
At the sentencing hearing, Judge Seibel said that HENNING is a “thief,” he committed “blatant fraud,” and his conduct was “extremely serious.”
According to the allegations in the Information to which HENNING pled guilty, as well as other public information:
HENNING, a CPA at a Manhattan accounting firm, established his own firm called OpportunIP, which he allegedly told victims was a company specializing in assisting other entities in taking intellectual property to the market. HENNING induced victims to invest in OpportunIP by providing them with fraudulent documents showing OpportunIP’s involvement in multimillion-dollar transactions that would reap millions of dollars in future profits. Ultimately, the victims learned that the deals did not exist, the documents were false and forged, and they were victims of an alleged scheme to defraud them out of millions of dollars.
As further alleged in the information, after leaving the Manhattan accounting firm, HENNING sought employment with a firm in Chicago, Illinois (the “Chicago Firm”). He induced the Chicago Firm to hire him and provide him with $240,000 in draw payments based on false and fraudulent statements about business he would bring to the Chicago Firm, including by sending the Chicago Firm fraudulent contracts.
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In addition to his prison term, HENNING was ordered to serve three years of supervised release, pay $938,246 in restitution and forfeit $938,246.
Mr. Berman praised the outstanding investigative work of the U. S. Postal Inspection Service and the SEC Office of Inspector General.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Margery B. Feinzig is in charge of the prosecution.
Former Dayton city commissioner sentenced to prisonRead the Press Release
DAYTON – A former Dayton City Commissioner was sentenced in U.S. District Court today to 12 months in prison for accepting a thing of value in connection with a local government.
Joey D. Williams pleaded guilty to the crime in September 2019. As part of his sentence, Williams was also ordered to pay $28,000 in restitution.
Williams served as an elected commissioner of the City of Dayton from 2001 until 2018. In 2015, Williams accepted a construction project at his personal home by an individual for a greatly reduced price in exchange for influencing the awarding of city contracts to that same individual.
The individual’s business was subsequently awarded at least $150,000 in contracts with both the City of Dayton and CityWide Development Corporation, a non-profit organization that functioned as a development and financing arm of the City of Dayton. CityWide routinely awarded thousands of dollars in contracts to private companies for the demolition of homes in Dayton.
Williams accepted more than $35,000 in free benefits from the individual, including cash payments and the construction of a patio at his home.
In an attempt to conceal the fraud, Williams demanded the individual create a fake invoice, falsely reflecting that Williams had personally paid the individual for the home improvement project.
Others charged include RoShawn Winburn, Clayton Luckie, Brian Higgins, Steve Rauch, Joyce Cameron and James Cameron. Luckie was sentenced in November 2019 to four months in prison for mail fraud.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost and Ohio Auditor of State Keith Faber announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorneys Brent G. Tabacchi and Dominick S. Gerace are representing the United States in this case.
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Former Albion Man Sentenced for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Andrew Campbell, 33, formerly of Albion, NY, now living in North Carolina, who was convicted of possession of child pornography, was sentenced to serve 78 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated in July 2018, an individual contacted the Orleans County Sheriff's Office after discovering a disturbing video on a desktop computer that belonged to the defendant. The witness and Campbell lived together on and off and Campbell left the computer at the residence when he was made to vacate the residence by the witness in June 2018. In addition to the desktop computer, Witness 1 also turned over a laptop computer and hard drive.
A forensic analysis of the desktop, laptop, and hard drive revealed more than 65 image files and more than 20 videos containing child pornography. Some of the images depicted the sexual abuse or exploitation of an infant or toddler, and other depictions of violence.
The sentencing is a result of an investigation by the Orleans County Sheriff's Office, under the direction of Sheriff Randy Bower, and the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Gary Loeffert.
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Foley Woman Sentenced to 20 Years for Child Pornography OffensesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Krystal Sanspree, 31, of Foley, Alabama, was sentenced today in federal court on a charge of production of child pornography. Sanspree pled guilty to the charge in June of 2019.
According to court documents filed in connection with their guilty pleas, Foley Police Department received a tip that Sanspree’s co-defendant, Corey Steele, was in possession of images of child pornography. During the course of their investigation, Foley Police were able to determine that Sanspree and Steele were involved in a romantic relationship. During the course of their relationship, Steele requested that Sanspree take sexually explicit photos of a child. Sanspree complied, and subsequently sent the images to Steele. One image showed a prepubescent child naked from the waist down. One image showed Sanspree touching the child’s penis. Another image showed Sanspree putting her tongue on the child’s penis. The child was known to Sanspree and was four years old. When interviewed, Sanspree admitted to taking the photos. Steele admitted to requesting the photos and stated that he directed Sanspree to do the specific things portrayed in the photos. Both Steele and Sanspree were in possession of the images at the time of their arrest.
United States District Court Judge Callie V.S. Granade imposed a sentence of 240 months imprisonment. The judge ordered that Sanspree undergo mental health treatment while incarcerated. The judge also ordered Sanspree to serve a fifteen-year term of supervised release beginning upon her discharge from prison. Upon her release from prison, Sanspree will be required to register as a sex offender. Judge Granade ordered that Sanspree pay $10,100 in special assessments. Sanspree’s co-defendant is scheduled to be sentenced on April 15, 2020.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc
The case was investigated by the Foley Police Department and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Kacey Chappelear.
Florida Woman Guilty of Trafficking Drugs Through Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A 41-year-old Ft. Lauderdale, Florida woman has pleaded guilty to federal drug trafficking charges in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Shenita Denise Peterson pleaded guilty to possession with intent to distribute cocaine before U.S. District Judge Michael Truncale on Jan. 28, 2020.
According to information provided in court, on Aug. 23, 2019, Peterson was stopped by Beaumont Police for a traffic violation on Interstate Highway 10 in Beaumont, Texas. A search of the vehicle revealed approximately 45 individual kilograms of cocaine, which were concealed in the door panels of the vehicle. Peterson was indicted by a federal grand jury on Sep. 4, 2019 and charged with drug trafficking violations.
Under federal statutes, Peterson faces up to life in federal prison at sentencing. The maximum penalty prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Beaumont Police Department and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Florida Man Charged for Using A Firearm During and in Relation to A RobberyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the arrest and filing of a complaint charging Michael Nelson Snyder (28, Tampa) with using a firearm during and in relation to the armed robbery of a jewelry store. If convicted, Snyder faces a maximum penalty of life in federal prison.
According to the
complaint , Snyder committed armed robberies of two jewelry stores, a Zales in Hillsborough County on December 31, 2019, and a Helzberg Diamonds in Pasco County on January 19, 2020. During each of the robberies, Snyder stole more than $100,000 in jewelry.On the evening January 27, 2020, during the execution of a search warrant on Snyder’s home and car, federal agents and deputies from the Hillsborough County Sheriff’s Office and the Pasco Sheriff’s Office recovered a firearm and clothing that matched the clothing worn during the robberies. Pursuant to another warrant, law enforcement officers obtained Snyder’s fingerprints, which matched a print recovered following the Zales robbery.
This case is being prosecuted by Assistant United States Attorney Gregory T. Nolan. It is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, and the Hillsborough County Sheriff’s Office.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Fayetteville Man Sentenced to More Than 23 Years for Drug Dealing, Gun Possession, and Shooting SpreeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that Chief United States District Judge Terrence W. Boyle sentenced ROBERT TYCELL LOCKHART, 30, of Fayetteville, NC, today. LOCKHART was sentenced to 277 months imprisonment followed by a lifetime of supervised release.
LOCKHART had previously been convicted in federal court in the Eastern District of North Carolina on drug and firearm offenses. He was released from the federal Bureau of Prisons in April of 2018 after serving a 70 month sentence.
Almost immediately after he was released—and while he was under federal post-release supervision—LOCKHART began committing new crimes. He tested positive for drug use, and agents determined that he was again selling drugs.
On August 10 and August 14, 2018, agents successfully purchased cocaine base (commonly known as “crack”) from LOCKHART.
On August 15, 2018, agents observed multiple individuals approaching LOCKHART’s vehicle, which was parked at a gas station. LOCKHART walked into the gas station bathroom; agents approached him, and LOCKHART was found in possession of heroin, fentanyl, cocaine, cocaine base (crack), currency, and digital scales. In his vehicle, agents found a loaded handgun.
While on state bond for those charges, LOCKHART continued committing crimes. On October 29, 2018, he fired several shots at the vehicle of a victim, disabling the vehicle.
On November 10, 2018, LOCKHART fired a handgun at a second victim, striking the victim in the leg. LOCKHART’s bullet fractured the victim’s femur. LOCKHART later spoke to the victim’s mother and admitted to the shooting.
On December 2, 2018, LOCKHART fired a handgun at a third victim, striking the victim in the leg, fracturing the fibula. The victim sped away from LOCKHART and called 911. In a Wal-Mart parking lot, police found the victim, who had lost a significant amount of blood. A tourniquet was applied to the victim’s leg. The victim’s pulse stopped, and officers performed CPR until medics arrived. Fortunately, the victim survived. The victim later identified LOCKHART as the shooter.
On November 13, 2019, LOCKHART entered a plea of guilty to distribution of a quantity of cocaine base (crack) (Counts One and Two); possession with intent to distribute quantities of cocaine base (crack), cocaine, and fentanyl (Count Four); and possession of a firearm by a felon (Count Six).
The Court imposed a sentence of 240 months on Counts One, Two, and Four, and a sentence of 120 months on Count Six, concurrent with each other. Because LOCKHART committed the offenses while on federal supervised release, the Court imposed a sentence of 37 months, consecutive, for that violation. When LOCKHART is released from prison, he will be on federal supervised release for the remainder of his life.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fayetteville Police Department, and the Cumberland County Sheriff’s Office investigated this case. Assistant United States Attorney Scott A. Lemmon prosecuted this case for the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fayetteville Man Sentenced Under the Armed Career Criminal Act for Felon in Possession of A FirearmRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Charlie Foster, age 39, of Fayetteville, Arkansas, was sentenced yesterday to 210 months in federal prison followed by three years of supervised release for one count of being a Felon In Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, On March 5, 2019, Officers with the Springdale Police Department initiated a traffic stop on a black Toyota Avalon in Springdale Arkansas. The driver later identified as Foster appeared to be extremely nervous while speaking with Officers.
After learning that Foster was on parole with a search waiver on file, he was asked to exit the vehicle and a pat down search was conducted. During the search, Officers located a loaded .45 caliber pistol tucked inside Foster's waistband. The firearm had a round in the chamber. Foster was indicted by a federal grand jury in July 2018, and entered a guilty plea in February 2019.
Foster was sentenced under the Armed Career Criminal Act, which provides a sentencing range of fifteen years to life for individuals who have been convicted of federal gun crimes and have at least three prior felony convictions for crimes of violence and/or serious drug offenses.
This case was prosecuted as a part of the Department of Justice=s Project Safe Neighborhoods Initiative, which is aimed at reducing gun and gang violence, deterring illegal possession of firearms and improving the safety of residents in the Western District of Arkansas. Participants in the initiative include federal, state and local law enforcement agencies.
This case was investigated by the Springdale Police Department and the Bureau of Alcohol, Fire, Tobacco, and Explosives (ATF). Assistant United States Attorney David Harris prosecuted the case for the United States.
Expiring Ban on Fentanyl Analogues Is an Emergency Requiring Immediate Congressional ActionRead the Press Release
Fentanyl is a synthetic opioid 50 times stronger than heroin and 100 times more potent than morphine. While it can help alleviate severe pain when properly prescribed by a physician, fentanyl is also highly addictive and oftentimes deadly. We increasingly find it manufactured illegally in
China and Mexico, trafficked by the cartels into the United States, and sold on the streets at great societal costs.According to the Center for Disease Control and Prevention, more than 70,000 people died from drug overdoses in 2017, making it a leading cause of injury-related death in the United States.
Sixty-eight percent of those deaths involved a prescription or illicit opioid; in roughly half of those cases, the fatal opioid was fentanyl. We see those same trends continuing here in the
Southern District of Illinois. Last month, the Madison County coroner reported that most of the drug overdose deaths his office reviewed in 2019 involved fentanyl. The stories of local families directly impacted by those deaths are heartbreaking.Efforts to curb illicit fentanyl trafficking have been challenged by the proliferation of numerous chemical variations. These variations – known as fentanyl “analogues” – produce the same powerful opioid effects as fentanyl but remain chemically distinct. Because federal law identifies and regulates dangerous drugs according to their chemical properties, the ever-changing permutations of these fentanyl analogues pose a significant problem. If a particular chemical compound is not listed on the schedule of controlled substances, law enforcement is powerless to take action against it.
Thankfully, for the past two years, this challenge has been alleviated through federal regulation.
On February 6, 2018, in recognition of the unprecedented escalation in opioid-related overdoses as well as the White House directive to declare the opioid crisis a national public health emergency, the Drug Enforcement Administration (DEA) used its emergency regulatory authority to place all nonscheduled fentanyl-like substances on the list of banned substances. Today, anyone who possesses, imports, distributes, or manufactures any illicit, fentanyl-like substance is subject to criminal prosecution.But that all can change next week. The DEA’s regulatory prohibition on fentanyl analogues is set to expire on February 6, 2020. “We need immediate legislative action so law enforcement can continue to regulate fentanyl,” said U.S. Attorney Steve Weinhoeft. “Fentanyl is a serial killer drug. The
DEA continues to intercept variations of it being illicitly imported into the United States and distributed by criminal networks, causing overdose deaths across the country, including here in
Southern Illinois. I urge extend the ban on fentanyl analogues so law enforcement will have the tools we need to keep our communities safe.”Ex-Postal Service employee indicted on theft chargesRead the Press Release
HOUSTON – A 33-year-old resident of Houston has been charged with five counts of theft of public money and five counts of issuing postal money orders without receiving payment, announced U.S. Attorney Ryan K. Patrick.
Tranese Nicole Mitchell is set to appear before U.S. District Judge Dena H. Palermo this afternoon.
A federal grand jury returned the 10-count indictment Dec. 10.
Mitchell was employed as a lead sales and service clerk at the U.S. Postal Service (USPS) in Houston, according to the charges. During that time, the indictment alleges she committed the theft and improper issuance of money orders from approximately June 2018 through December 2018.
Each count of theft of public money carries a possible sentence of up to 10 years in federal prison, issuing postal money orders without receiving payment carries a possible sentence of up to five years, upon conviction. Each conviction also carries a possible $250,000 maximum fine.
USPS - Office of Inspector General conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Elizabeth City Man Sentenced to 10 Years Imprisonment on Child Pornography ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, Chief United States District Judge Terrence W. Boyle, sentenced ALAN SIGFRED ANDERSEN, 57, of Elizabeth City, NC to 120 months’ imprisonment, followed by a lifetime term of supervised release. ANDERSEN pled guilty on November 13, 2019 to one count of possession of child pornography.
In October 2017, an investigation into a file sharing network identified ANDERSEN’s IP address as advertising known child pornography files. The investigation also revealed that files containing child pornography were directly downloaded from ANDERSEN’s IP address. Following the identification of ANDERSON’s residence, law enforcement obtained a search warrant for his home. On February 28, 2018, Special Agents with Homeland Security Investigations (HSI) and the Pasquotank County Sheriff’s Office executed the search warrant and numerous devices were seized from ANDERSON’s house.
ANDERSEN agreed to speak with investigators and, during the interview, admitted to downloading and storing child pornography. A forensic review of the seized devices revealed multiple devices containing more than 16,000 images and videos of child pornography.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
Homeland Security Investigations, the Cary Police Department, and Pasquotank County Sheriff’s Office conducted the investigation of this case. Assistant United States Attorney Bryan M. Stephany represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Eight Individuals Indicted for Fraudulently Facilitating Hundreds of Foreign Nationals in Illegally Remaining in the U.S. in Immigration Fraud Scheme Have Been SentencedRead the Press Release
Eight individuals from around the country who were charged with conspiracy to commit visa fraud and harboring aliens for profit, have been sentenced, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Vance Callender of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.
Sentenced were:
Barath Kakireddy, 30, of Lake Mary, FL, sentenced to 18 months;
Suresh Kandala, 32, of Culpeper, VA, sentenced to 18 months;
Phanideep Karnati, 36, of Louisville, KY, sentenced to 6 months;
Prem Rampeesa, 27, of Charlotte, NC, sentenced to 12 months and one day;
Santosh Sama, 29, of Fremont, CA, sentenced to 24 months;
Avinash Thakkallapally, 29, of Harrisburg, PA, sentenced to 15 months
Aswanth Nune, 27, of Atlanta, GA, sentenced to 12 months and one day;
Naveen Prathipati, 27, of Dallas, TX, sentenced to 12 months and one day
According to court records, from approximately February 2017 through January 2019, the defendants, a group of foreign citizens, conspired with each other and others to fraudulently facilitate hundreds of foreign nationals in illegally remaining and working in the United States by actively recruiting them to enroll into a metro Detroit private university that, unbeknownst to the conspirators, was operated by HSI special agents as part of an undercover operation. As part of the scheme, the defendants/recruiters assisted foreign citizen “students” in fraudulently obtaining immigration documents from the school and facilitated the creation of false student records, including transcripts, for the purpose of deceiving immigration authorities. The illegal documents obtained as a result of the conspirators’ actions were based on false claims, false statements, and fraud since the purported foreign students had no intention of attending school, nor attended a single class, and were not bona fide students. All participants in the scheme knew that the school had no instructors or actual classes. The defendants intended to help shield and hide their customers/”students” from United States immigration authorities for money and collectively profited in excess of a quarter of a million dollars as a result of their scheme.
“As this case shows, the well-intended international student visa program can be exploited and abused,” stated United States Attorney Matthew Schneider. “These foreign “students” weren’t students at all – they were scam artists trying to stay in our country illegally, and they all fully knew there were no classes to attend.”
“Today’s sentencing of the final criminal defendant in HSI’s University of Farmington investigation makes it unequivocally clear that every individual who participated in this scheme knew it was an illegal pay-to-stay scam,” said Vance Callender, HSI Detroit special agent in charge. “Building off lessons learned from the September 11 attacks, HSI is dedicated to protecting the homeland in part by ensuring the integrity of the Student Visa Program so it can continue to benefit everyone. Unscrupulous schools whose sole motive is profit and not education do exist and this investigation not only exposed these types of criminals, but has helped create a feeling of omnipresence by law enforcement that will make others think twice before exploiting the program.”
Since 2015, the case was investigated by special agents from the Detroit HSI field office.
The case was prosecuted by Assistant U.S. Attorneys Ronald Waterstreet, Timothy McDonald and Brandon Helms with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.
East Bay Resident Sentenced to Eight Years in PrisonRead the Press Release
OAKLAND – Kevin Marshall Stevenson was sentenced on January 28, 2020, to eight years in prison for brandishing a firearm in furtherance of an armed bank robbery, announced United States Attorney David L. Anderson and John Bennett, Special Agent in Charge of the FBI’s San Francisco Field Division. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
Stevenson, 35, pleaded guilty to the charge on October 1, 2019. According to his plea agreement, Stevenson admitted that on January 19, 2018, he entered the East West Bank in Oakland, California, intending to rob it, and carrying an unloaded firearm. Stevenson pointed the firearm at multiple bank employees and demanded that they provide him money from the bank registers and the vault. Bank employees were forced to give Stevenson $302,462 in cash before he fled the scene.
Stevenson was apprehended by BART and Oakland police officers as he entered the Lake Merritt BART station. Both the stolen money and the firearm were recovered.
On May 3, 2018, a federal grand jury indicted Stevenson, charging him with one count of armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d); one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1); and one count of brandishing a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A)(ii). Stevenson pleaded guilty to brandishing the firearm during and in relation to a crime of violence, namely, armed bank robbery, and the remaining counts were dismissed.
In addition to the prison term, Judge White sentenced the defendant to a five-year period of supervised release to begin at the conclusion of his prison term. Stevenson has been in custody since his arrest and will begin serving his prison term immediately.
Assistant U.S. Attorney Samantha Schott is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the FBI, BART Police Department, and Oakland Police Department.
Detroit Man Pleads Guilty to Sex TraffickingRead the Press Release
A Detroit man pleaded guilty today to conspiring with others to force and coerce at least 6 women to engage in prostitution in the Detroit area, announced U.S. Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation, Detroit Division.
Pleading guilty was Jhamall K. McGaughy, 37.
According to court records, McGaughy admitted that he recruited women whom he knew struggled with drug addictions and used that addiction for his profit. McGaughy gave drugs to them at first, including heroin and crack cocaine, but then required them to work as prostitutes in order to get money to buy more drugs from him. McGaughy knew that the women would suffer from excruciating withdrawal symptoms, known as being “dope-sick,” if they did not receive regular doses of drugs, and he manipulated the supply of drugs to keep them on the edge of dope-sickness to coerce them into acts of prostitution. McGaughy also used force against some of the women if they tried to purchase drugs from other suppliers.
Under the terms of McGaughy’s plea agreement, he is looking at a minimum of 10 years in federal prison when he is sentenced on May 5, 2020.
The case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorneys Thomas Franzinger and Dan Hurley.
Crack Dealers Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that two men involved in a New Haven-based drug trafficking organization were sentenced today in Hartford federal court. U.S. District Judge Vanessa L. Bryant sentenced MARVIN SPRUILL, 27, of West Haven, to 57 months of imprisonment and three years of supervised release, and CARNELL EDWARDS, 49, of Bridgeport, to 30 months of imprisonment and five years of supervised release.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Jermayne Butler. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in and around New Haven. Both Spruill and Edwards purchased crack from other members of the conspiracy and sold the drug in smaller quantities to their own customers.
Butler, Spruill, Edwards and several other members of the organization were arrested on federal criminal complaints on February 6, 2018. On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging 19 individuals with various offenses.
Spruill and Edwards each pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine base “crack.”
Butler also pleaded guilty and awaits sentencing.
This matter has been investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
Covington Neurologist Sentenced to 24 Months in Prison for His Guilty Plea to Conspiracy to Unlawfully Dispense Oxycodone and Hydrocodone and Conspiracy to Commit Health Care FraudRead the Press Release
NEW ORLEANS, La. - U.S. Attorney Peter G. Strasser announced that ANIL PRASAD, M.D., age 63, a resident of Covington, Louisiana was sentenced on January 28, 2020 by U.S. District Judge Jane Triche Milazzo to 24 months’ imprisonment followed by (3) three years of supervised release, with the condition that the first 12 months of supervised release be served on home confinement in connection with his guilty plea to conspiracy to unlawfully distribute controlled substances and conspiracy to commit health care fraud. In addition, PRASAD agreed to pay $1,657,461.15 in restitution to the Medicare and Medicaid programs.
According to court documents, PRASAD admitted that he conspired with others to unlawfully distribute and dispense controlled substances—including oxycodone and hydrocodone—at a medical clinic that was, in actuality, a pill mill. PRASAD admitted that he rarely performed face-to-face examinations of patients at the clinic to determine whether any medical necessity existed for the controlled substances that he dispensed to them. Instead, PRASAD admitted that he pre-signed prescriptions for controlled substances for patients. Those patients then picked up the prescriptions from the clinic after making a cash payment to the clinic. PRASAD also admitted that he pre-signed prescriptions before traveling internationally, and that patients would pick up those prescriptions while he was out of the country. Further, PRASAD admitted that he knew certain patients who received the pre-signed prescriptions used their Medicare and Medicaid benefits to fill the prescriptions at area pharmacies. In total, Medicare and Medicaid paid approximately $1,657,461.15 for those prescriptions.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, the Department of Health and Human Services, the Louisiana Attorney General’s Office’s Medicaid Fraud Control Unit, the Drug Enforcement Administration, and the Department of Veterans Affairs for their work investigating the case.
The case is being prosecuted by Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sharan Lieberman.
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Court Sentences North Carolina Bloods Gang Members for Racketeering Conspiracy Involving MurderRead the Press Release
Four North Carolina members of the United Blood Nation (UBN or Bloods) street gang were sentenced in Charlotte, North Carolina, after pleading guilty to federal Racketeer Influenced and Corrupt Organizations (RICO) conspiracy charges, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney R. Andrew Murray of the Western District of North Carolina.
Tyquan Ramont Powell, aka Savage, 24, of Charlotte, North Carolina, Lamonte Kentrell Lloyd, aka Murda Mo and Moo, 26, of Scotland Neck, North Carolina, Thomas Oliver, aka T.O., Recon, Rex, and Mr. Trippbadd, 34 of Gastonia, North Carolina were each sentenced by Chief U.S. District Court Judge Frank D. Whitney to serve 35 years in prison followed by 3 years of supervised release. Each of these defendants pleaded guilty to RICO conspiracy charges involving murder. Judge Whitney also sentenced Marquel Michael Cunningham, aka Mayhem, 23, of Kings Mountain, North Carolina, to 15 years in prison followed by 3 years of supervised release following his guilty plea to RICO conspiracy and his role in an attempted murder.
According to court documents and evidence presented at May 2018 and October 2019 trials of co-defendants, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. The UBN has a militaristic structure, with positions of Godfather, High, Low, Five-Star to One‑Star Generals and soldiers. UBN members use distinct hand signs and written codes, which are used to identify other members and rival gang members, as well as to try to thwart law enforcement efforts against them.
Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies and wire fraud, among other forms of illegal racketeering activity.
According to court documents, Powell and Lloyd were members of the UBN and together committed two murders and three attempted murders in January and February of 2016. Powell and Lloyd committed the first murder in Scotland Neck, North Carolina, by shooting into a car with three occupants because they believed one of the occupants was cooperating with law enforcement and intended to testify in a criminal case against a close associate of the defendants. Bullets struck all three occupants and the intended target of the shooting was killed. The defendants then fled to, among other places, Charlotte, North Carolina, where they received refuge and resources from UBN members and associates while attempting to evade arrest.
Powell and Lloyd also committed murder in Gastonia, North Carolina, while attempting to rob four victims using handguns. When the victims resisted the defendants’ robbery attempt, Powell fired his gun and killed one of the victims, who was attempting to flee to safety. Powell and Lloyd also attempted to rob another victim in Charlotte, North Carolina. Lloyd shot the victim in the back of the head, but the victim was effectively treated for his injuries at the hospital and lived.
According to court documents and evidence presented at an October 2019 trial of a co-defendant, Oliver drove himself and four other UBN members from Cleveland County, North Carolina, to Chapel Hill, North Carolina, in order to rob an 18-year-old victim of marijuana and money. Oliver coordinated the crimes as a local UBN leader, and was present when his fellow gang members shot and killed the robbery victim and attempted to kill the victim’s friend, who survived a gunshot wound to his arm.
Also according to court documents, Cunningham committed an armed robbery for the UBN, as well as an assault of a fellow UBN member for violating UBN gang rules. Court documents and evidence presented at sentencing also showed that Cunningham was present in a car with UBN co‑conspirators in November 2014 when they saw a man who Cunningham believed to be a member of the rival gang called the Crips. Cunningham pointed the man out to his fellow Bloods and flashed UBN gang hand signs. Occupants of the car then opened fire on the victim, exited the car, and chased the victim while shooting approximately a dozen times. No one was injured in the attempted murder.
In May 2017, 83 UBN gang members were indicted in the Western District of North Carolina for RICO conspiracy and other crimes. In all, 82 defendants have been adjudicated guilty from the investigation. A jury convicted three top leaders of the UBN of racketeering conspiracy in May 2018, one defendant was convicted of racketeering conspiracy and wire fraud conspiracy at a bench trial in July 2019, and a jury convicted four defendants of racketeering conspiracy and other charges in October 2019.
The investigation was conducted by the FBI’s Charlotte Field Office; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Department of Public Safety Adult Corrections and Juvenile Justice; North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Congress Must Ban Fentanyl AnaloguesRead the Press Release
In 2017, nearly 50,000 Americans died from an opioid overdose. In 2018, synthetic opioids accounted for over 28,000 overdose fatalities across the United States. Hundreds of those victims died here, in the Carolinas. They were our friends, our colleagues, our neighbors. And while we are encouraged by a recent decline in the reported death toll, the untimely loss of any life to this drug scourge is too great of a tragedy. As law enforcement leaders, this epidemic requires our continued and sustained attention.
One of the deadliest synthetic opioids is fentanyl, a drug 50 times more potent than heroin, and 100 times more powerful than morphine. Incredibly small quantities – measured like the grains of salt – can kill the average person.
Illegal fentanyl is manufactured in high-volume labs in China and Mexico, and its chemical structure is easily altered to create new drugs, called fentanyl analogues. Analogues can be created simply by alerting just a single molecule.
Prior to 2018 drug traffickers were able to run sophisticated operations and evade law enforcement and prosecution by altering the chemical composition of fentanyl just enough to skirt the law. Even more frightening, the compounding done in illicit labs varies so much that no one can be sure of the amount they are ingesting.
To address this problem, in 2018, the Drug Enforcement Administration (DEA) used its authority to temporarily ban all fentanyl-related substances and closed a loophole used by drug traffickers to exploit our laws and profit off our people.
At the same time, it is important to note that the Trump Administration was able to persuade the Chinese government to prohibit fentanyl analogues as well.
However, the DEA’s order expires on February 6, 2020, and, unless Congress acts, many fentanyl analogues will become legal. Congress’s inaction will deliver a serious blow to our efforts to prosecute drug organizations and dealers who traffic in fentanyl. Further, it will make it more difficult to put behind bars those responsible for the deaths of our loved ones.
The United States Senate recently approved a temporary extension of the DEA’s temporary order. That is a good start. But, in order to stem this deadly epidemic, we need Congress to act decisively and permanently declare all fentanyl analogues illegal. Congress’ action will permanently arm law enforcement with the tools necessary to protect our communities from these deadly illicit drugs.
Critics of a permanent ban argue that the bill does not include a public health approach to the overdose crisis. We wholeheartedly agree that only a comprehensive approach will stem the tide of this public health crisis. Indeed, each of our U.S. Attorney’s offices collaborates with health care professionals, social services providers, and a wide range of community groups to implement comprehensive solutions to address this problem. But, strong criminal laws are a critical component of the Nation’s response to this crisis, and time is short. Mexican and Chinese drug traffickers eagerly await the expiration of the DEA’s temporary order to flood our communities with their increasingly deadly analogue poisons.
We join U.S. Attorney General William Barr and our fellow United States Attorneys across the country in calling upon Congress to permanently ban all fentanyl-related drugs. The lives of countless Carolinians depend upon swift and decisive action.
*Higdon, Martin and Murray are the United States Attorneys for the Eastern, Middle and Western Districts of North Carolina, respectively. Mr. Crick is the Acting United States Attorney for the District of South Carolina.
Carnegie Heroin Dealer Who Led Police on High-Speed Chase Down Route 28 Sentenced to 12 Years in PrisonRead the Press Release
PITTSBURGH - A resident of Carnegie, Pennsylvania, has been sentenced in federal court to 144 months imprisonment and five years supervised release on his conviction of possession with the intent to distribute a kilogram or more of heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Joy Flowers Conti imposed the sentence on William Thompson, age 37, formerly of 750 Freedom Drive.
According to information presented to the court, on August 7, 2015, law enforcement attempted to stop Thompson, who was then operating a Porsche Cheyenne without a license. Thompson led the police on a high-speed chase on Route 28 in which speeds reached in excess of 100 miles per hour. Thompson eventually crashed and fled on foot, but law enforcement eventually captured him. A search of his vehicle revealed that Thompson was in possession of what later laboratory analysis determined was more than one kilogram of heroin.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Department, Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Thompson.
Camden County Man Admits Role in Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A member of a Camden drug-trafficking organization pleaded guilty today to distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.
Carlos Perez, 46, of Pennsauken, New Jersey, admitted his role in a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden; he pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin, crack cocaine, fentanyl and powder cocaine.
Twelve other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, Kaliel Johnson, and David Velez – previously have pleaded guilty in this case. The charges against six other defendants remain pending.
According to documents filed in this case and statements made in court:
Members of the drug-trafficking organization sold heroin, crack cocaine, powder cocaine, and fentanyl – in and around Camden. An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the Camden drug-trafficking organization.
The count to which Perez pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of a life in prison, and a $10 million fine. His sentencing is scheduled for May 4, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster in Philadelphia; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
For the six defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Teri Lodge Esq., Marlton, New Jersey
California’s Four U.S. Attorneys Agree It’s Time for a Permanent Ban on Fentanyl AnaloguesRead the Press Release
The following statement was issued by the four U.S. Attorneys who serve California: Nicola T. Hanna (Central District of California), David L. Anderson (Northern District of California), Robert S. Brewer (Southern District of California) and McGregor W. Scott (Eastern District of California)
In 2017, almost 50,000 Americans died from opioid overdoses. In California alone, there were 2,428 fatal opioid overdoses in 2018. And it’s getting worse. In San Francisco and Los Angeles counties, for instance, opioid fatalities have increased by 54% and 41%, respectively, since 2016. San Diego County and the Central Valley are also experiencing unprecedented levels of fatal opioid overdoses. This is a crisis, and illicitly produced fentanyl is largely responsible.
To fight this epidemic, law enforcement must have all the necessary tools at their disposal. One such tool is the Drug Enforcement Administration’s (DEA) 2018 order making all fentanyl-related drugs illegal in the United States. Unfortunately, that order was temporary and will expire in less than two weeks. The Senate recently passed bipartisan legislation approving a 15-month extension of the temporary order. While this is a step in the right direction, and the House should pass the Senate’s bill, a longer term solution is needed. We need a permanent ban on all fentanyl-like drugs.
Illicit fentanyl is manufactured in labs in China and Mexico and smuggled into the United States. It is 50 times more powerful than heroin and 100 times more powerful than morphine. So powerful, in fact, that only a couple milligrams – the size of a few grains of salt – can kill the average person.
Fentanyl, however, is unique. Because it is made in labs using chemicals, its structure is easily manipulated. And the drug cartels that manufacture and traffic this synthetic poison into our neighborhoods understand American laws and know how to exploit them. They know that by changing a single molecule in the chemical structure of fentanyl, they have essentially created a new drug. One that, unlike fentanyl, is not illegal in the United States. These drugs, known as “fentanyl analogues,” do as fentanyl does: create more addicts and kill more Americans. The analogues – which can be up to 100 times more potent than fentanyl and 10,000 times more potent than morphine – will become legal if Congress fails to act.
The DEA’s 2018 decision to temporarily schedule – that is, to make illegal – all fentanyl-related substances was a response to the extraordinary legal loophole exploited by drug traffickers. In April 2019, China also outlawed all fentanyl-related substances. This is extraordinary progress, with one caveat. Unlike China’s law, the United States’ has an expiration date.
On Feb. 6, 2020, the DEA’s temporary order expires, and all drugs seized by U.S. investigators over the past two years that have tested positive as fentanyl analogues will no longer be illegal. If Congress fails to pass the legislation it will have a dramatic impact not just on the prosecutors and law enforcement officers who spend their lives investigating and prosecuting drug dealers, but on communities already hard hit by the opioid epidemic, many of which are right here in California.
Despite the tireless efforts of law enforcement, California continues to be a main thoroughfare for fentanyl and fentanyl-like drugs arriving from China and Mexico. In 2019, federal law enforcement agents seized approximately three-quarters of a ton of fentanyl at the six ports of entry we share with Mexico and in all places in between. That’s 20 percent more than in 2018. And our federal resources are not infinite; we need all the help we can get. Passing this legislation would provide invaluable support to us as prosecutors and the entire law enforcement community as we continue to combat the opioid crisis in California and throughout America.
A number of organizations have voiced opposition to the proposed legislation, arguing that the bill does not “embrace public health approaches to the overdose crisis.” We agree that a comprehensive approach to the crisis is needed, and a permanent fentanyl analogue ban should be viewed as part of a holistic effort. But time is running out. There is no doubt that drug traffickers are eagerly awaiting the temporary order’s expiration to start flooding our communities with these dangerous drugs. The passage of this legislation is quite literally a matter of life and death.
There should be nothing partisan about declaring fentanyl analogues illegal. There is certainly nothing partisan about saving lives and bringing justice to those who profit from addiction and death. For the safety of our communities, we urge Congress to pass legislation making permanent the DEA’s temporary scheduling of all fentanyl-related drugs.
California's Four U.S. Attorneys Agree It’s Time for a Permanent Ban on Fentanyl AnaloguesRead the Press Release
The following statement was issued by the four U.S. Attorneys who serve California: David L. Anderson (Northern District of California), Robert S. Brewer (Southern District of California), Nicola T. Hanna (Central District of California), and McGregor W. Scott (Eastern District of California).
In 2017, almost 50,000 Americans died from opioid overdoses. In California alone, there were 2,428 fatal opioid overdoses in 2018. And it’s getting worse. In San Francisco and Los Angeles counties, for instance, opioid fatalities have increased by 54% and 41%, respectively, since 2016. San Diego County and the Central Valley are also experiencing unprecedented levels of fatal opioid overdoses. This is a crisis, and illicitly produced fentanyl is largely responsible.
To fight this epidemic, law enforcement must have all the necessary tools at their disposal. One such tool is the Drug Enforcement Administration’s (DEA) 2018 order making all fentanyl-related drugs illegal in the United States. Unfortunately, that order was temporary and will expire in less than two weeks. The Senate recently passed bipartisan legislation approving a 15-month extension of the temporary order. While this is a step in the right direction, and the House should pass the Senate’s bill, a longer term solution is needed. We need a permanent ban on all fentanyl-like drugs.
Illicit fentanyl is manufactured in labs in China and Mexico and smuggled into the United States. It is 50 times more powerful than heroin and 100 times more powerful than morphine. So powerful, in fact, that only a couple milligrams – the size of a few grains of salt – can kill the average person.
Fentanyl, however, is unique. Because it is made in labs using chemicals, its structure is easily manipulated. And the drug cartels that manufacture and traffic this synthetic poison into our neighborhoods understand American laws and know how to exploit them. They know that by changing a single molecule in the chemical structure of fentanyl, they have essentially created a new drug. One that, unlike fentanyl, is not illegal in the United States. These drugs, known as “fentanyl analogues,” do as fentanyl does: create more addicts and kill more Americans. The analogues – which can be up to 100 times more potent than fentanyl and 10,000 times more potent than morphine – will become legal if Congress fails to act.
The DEA’s 2018 decision to temporarily schedule – that is, to make illegal – all fentanyl-related substances was a response to the extraordinary legal loophole exploited by drug traffickers. In April 2019, China also outlawed all fentanyl-related substances. This is extraordinary progress, with one caveat. Unlike China’s law, the United States’ has an expiration date.
On Feb. 6, 2020, the DEA’s temporary order expires, and all drugs seized by U.S. investigators over the past two years that have tested positive as fentanyl analogues will no longer be illegal. If Congress fails to pass the legislation it will have a dramatic impact not just on the prosecutors and law enforcement officers who spend their lives investigating and prosecuting drug dealers, but on communities already hard hit by the opioid epidemic, many of which are right here in California.
Despite the tireless efforts of law enforcement, California continues to be a main thoroughfare for fentanyl and fentanyl-like drugs arriving from China and Mexico. In 2019, federal law enforcement agents seized approximately three-quarters of a ton of fentanyl at the six ports of entry we share with Mexico and in all places in between. That’s 20 percent more than in 2018. And our federal resources are not infinite; we need all the help we can get. Passing this legislation would provide invaluable support to us as prosecutors and the entire law enforcement community as we continue to combat the opioid crisis in California and throughout America.
A number of organizations have voiced opposition to the proposed legislation, arguing that the bill does not “embrace public health approaches to the overdose crisis.” We agree that a comprehensive approach to the crisis is needed, and a permanent fentanyl analogue ban should be viewed as part of a holistic effort. But time is running out. There is no doubt that drug traffickers are eagerly awaiting the temporary order’s expiration to start flooding our communities with these dangerous drugs. The passage of this legislation is quite literally a matter of life and death.
There should be nothing partisan about declaring fentanyl analogues illegal. There is certainly nothing partisan about saving lives and bringing justice to those who profit from addiction and death. For the safety of our communities, we urge Congress to pass legislation making permanent the DEA’s temporary scheduling of all fentanyl-related drugs.
Bremen, Indiana Man SentencedRead the Press Release
SOUTH BEND – Jason Clevenger, 35, of Bremen, Indiana was sentenced by U.S. District Court Judge Damon R. Leichty following a guilty plea for being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Mr. Clevenger was sentenced to 30 months in prison followed by 1 year of supervised release.
According to documents in this case, Mr. Clevenger passed five fake $20 bills to a Four Winds-South Bend casino patron for a genuine $100 bill. After the patron realized that the bills were fake, it was reported to casino security. A review of casino security footage showed Mr. Clevenger meeting another man and moving what appeared to be a long gun from Mr. Clevenger’s car in the casino parking lot to the other man’s car. The two men drove off the casino property, but returned to the casino a few hours later. When Mr. Clevenger returned, police arrested him on an outstanding warrant. A .22 rifle and a 9 mm pistol were recovered from the car in which Mr. Clevenger had been riding. Mr. Clevenger has a previous felony conviction and is prohibited by law from possessing firearms.
“This crime occurred on federally-recognized tribal land, held in trust for the Pokagon Band of Potawatomi Indians,” said U.S. Attorney Thomas L. Kirsch II. “The United States has an important relationship with the Pokagon Band, and is committed to working with the Pokagon Band to protect the safety of its tribal citizens, while respecting the Pokagon Band’s sovereignty and culture. We will continue to focus our efforts on those committing federal crimes on the Pokagon Band’s tribal land.”
Pokagon Police Chief William Lux said, “The Pokagon Band of Potawatomi Indians is a federally-recognized sovereign nation and is committed to working with our law enforcement partners in the U.S. government to protect all who visit its trust land and to prosecute those who violate the law on Pokagon land. The conviction of Mr. Clevenger is a great example of team work between our officers, Pokagon Tribal Police Investigations Unit and the St. Joseph County Police Department. We appreciate the support of the FBI and U.S. Attorney Kirsch in prosecuting Mr. Clevenger for crimes committed while at Four Winds South Bend, which is on sovereign Pokagon Band land.”
This case was investigated by the Federal Bureau of Investigation in coordination with the Pokagon Band Tribal Police Department and the St. Joseph County Police Department. The case was handled by Assistant U.S. Attorney Luke N. Reilander.
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Brazilian National Pleads Guilty to Producing False Identification DocumentsRead the Press Release
BOSTON – A Brazilian national pleaded guilty today in federal court in Boston with producing a false identification document, aiding and abetting and Social Security card fraud.
Cristiano Ribeiro De Moura, 32, who previously resided in Framingham, pleaded guilty to one count of producing an identification document, authentication feature, or false identification document; aiding and abetting; and one count of Social Security card fraud. Ribeiro De Moura was indicted in October 2019. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 28, 2020.
Ribeiro De Moura sold four counterfeit Lawful Permanent Resident cards and four counterfeit Social Security cards in July and August 2019. Ribeiro De Moura charged $350 for a set of fake documents, which included one Lawful Permanent Resident card and one Social Security card. The buyers provided their name and date of birth, and Ribeiro De Moura provided the Social Security number.
The charge of producing a false identification document provides for a sentence of up to 15 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of Social Security card fraud provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Bay Area CEO Convicted of Fraud and Money LaunderingRead the Press Release
SAN FRANCISCO – Lawrence J. Gerrans was convicted by a federal jury in United States District Court today of wire fraud and money laundering in connection with a scheme to defraud the medical device company he ran, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett of the San Francisco Division. The verdict issued today following a two-week trial before the Honorable Edward M. Chen, U.S. District Judge.
“The defendant siphoned millions of dollars from the medical device company he was entrusted to run, and then tried to cover up that crime,” stated U.S. Attorney Anderson. “Insider schemes like these injure companies, employees, and investors, and undermine the public’s trust in our business community. The investigation and prosecution of corporate fraud is a priority for our office. Our corporate fraud strike force will continue to pursue speedy and certain justice for white collar criminals in the Bay Area and throughout the Northern District of California.”
The jury found Gerrans, 49, of San Anselmo, Calif., guilty on five counts of wire fraud, in violation of 18 U.S.C. § 1343; one count of engaging in monetary transactions in criminally derived property, in violation of 18 U.S.C. § 1957; three counts of making false statements to a government agency, in violation of 18 U.S.C. § 1001(3); one count of contempt of court, in violation of 18 U.S.C. § 401(3); one count of witness tampering, in violation of 18 U.S.C. § 1512(b)(1); and one count of obstruction of justice, in violation of 18 U.S.C. § 1503.
Evidence at trial showed that Gerrans, the president and chief executive officer of San Rafael-based medical device company Sanovas, employed a number of fraudulent methods to siphon funds out of Sanovas. From January 12, 2015, through March 16, 2015, Gerrans systematically transferred more than $2.6 million from Sanovas to himself and two shell companies he controlled, Halo Management Group and Hartford Legend Capital Enterprises. That money was then used for an all-cash purchase of a luxury home in San Anselmo, at a purchase price of $2,570,000. At least $2.3 million of this money was laundered through Hartford Legend before being paid to the escrow account to purchase the house.
Evidence at trial also showed that Gerrans made false statements to a newly-created board of directors to seek their approval for a lucrative compensation plan and for reimbursement of retirement account funds that Gerrans had liquidated in 2013 and 2014. Evidence at trial showed that Gerrans had used the retirement account funds for personal expenditures, including a Maserati, a diamond ring, and rent on his personal residence, but he told the board of directors he had used the retirement account funds to benefit Sanovas. In another part of the scheme to defraud, evidence also showed that in 2017 Gerrans used a Sanovas corporate credit card for lavish personal expenditures, including a $44,000 vacation timeshare, $12,500 for high-end carpets for his home, and $32,000 to pay the property taxes on his personal residence.
Evidence at trial further showed that Gerrans provided false documents to the FBI during the criminal investigation, and that after he was first charged in the case he violated a court-ordered bond condition, attempted to tamper with a witness, and obstructed justice.
A federal grand jury indicted Gerrans on August 27, 2019, by a second superseding indictment, charging him with five counts of wire fraud, in violation of 18 U.S.C. § 1343; one count of engaging in monetary transactions in criminally derived property, in violation of 18 U.S.C. § 1957; three counts of making false statements to a government agency, in violation of 18 U.S.C. § 1001(3); one count of contempt of court, in violation of 18 U.S.C. § 401(3); one count of witness tampering, in violation of 18 U.S.C. § 1512(b)(1); and one count of obstruction of justice, in violation of 18 U.S.C. § 1503. The jury convicted Gerrans on all counts.
Judge Chen scheduled the defendant’s sentencing hearing for May 20, 2020.
Gerrans faces maximum statutory penalties of twenty years imprisonment and a $250,000 fine, plus restitution, for each violation of 18 U.S.C. § 1343; ten years imprisonment and a $250,000 fine or twice the amount of the criminally derived property, for each violation of 18 U.S.C. § 1957; five years imprisonment and a $250,000 fine, for each violation of 18 U.S.C. § 1001(3); twenty years of imprisonment and a $250,000 fine, for each violation of 18 U.S.C. § 1512(b)(1); ten years of imprisonment and a $250,000 fine, for each violation of 18 U.S.C. § 1503; and a term of imprisonment to be determined by the court and a $250,000 fine, for each violation of 18 U.S.C. § 401(3). However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robin Harris and Lloyd Farnham are prosecuting the case with the assistance of Patricia Mahoney, Kimberly Richardson, and Phillip Villanueva. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Barre Man Sentenced to 52 Months on Gun OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on January 27, 2020, Roland Alston, age 35, was sentenced to 52 months in jail by Chief Judge Geoffrey Crawford in United States District Court in Rutland, Vermont. Alston had previously pleaded guilty to possessing a handgun as a convicted felon in December 2018. At the time of the plea, Alston also admitted that he possessed the firearm in connection with his drug trafficking. Judge Crawford also imposed a three-year period of supervised release to be served after Alston completed his jail sentence.
On December 19, 2018, Barre police arrested Alston at a residence on 30 Eastern Ave. after finding a .22 caliber North American Arms Black Widow handgun, ammunition, crack cocaine, and Xanax in Alston’s bedroom. Alston admitted at sentencing that he had also possessed at least two other firearms. Court records show that Alston was engaged in drug trafficking both before and after his state arrest in December 2018. Alston was arrested on the federal charges in May 2019 and held in jail pending his plea and sentence.
The case resulted from the collaborative efforts of the Barre Police Department and the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney Paul J. Van de Graaf represented the government. Alston was represented by Assistant Federal Public Defender Steven Barth.
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 year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
All of the defendants accused in an oxycodone distribution operation have admitted to their roles.Read the Press Release
CLARKSBURG, WEST VIRGINIA – All 34 individuals have admitted to their roles in an oxycodone disitribution operation spanning two states and four North Central West Virginia counties that resulted in a 129-count federal indictment.
Those individuals who have pled to drug charges include the hyperlinked names below. Twenty-nine of those have also been sentenced to a combined 73 years incarceration. Click on their names to view the latest press release about their individual cases.
- Terry Thomas
- Michael Wesley
- Sean Bernard Williams
- Christopher Lloyd
- Darmatrice Love
- Robert Brown, Jr.
- Andrew Thomas
- Sean Miller Phillips, Jr.
- Devante Maddox
- Konshawntas Boyd
- Brianna Blackman
- Tiffany Edwards
- Codey Bonnette
- Leon Jamar Maddox
- Amanda Gifford
- Floyd Pancoast
- Jason Pancoast
- Christopher Moriarty
- Carlee Cuppet
- Brittany Brown
- Ariel Blosser
- Amanda Maddox
- Brandy Miller
- Anna May Martin
- Kimberley Mozie
- Jason Perry
- Holly Jo Exline
- Makyna Kancso
- Marjorie Sue Webster
- Thomas Keener, II
- Jayla Shade
- Jesse Tichenor
- Bobbie Jo Phillips
- Kenyata Boudreaux
Assistant U.S. Attorney Zelda E. Wesley is handling the cases on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office. The US Marshals Service, the Internal Revenue Service, the Monongalia County Processing and Transport Personnel, the Greater Harrison County Drug Task Force MHIT Group, the Mountain State Drug Task Force, the Three Rivers Drug Task Force-Fairmont, and the Fairmont Police Department assisted in the arrest operation in June 2017. In addition, West Virginia State Police and the Monongalia County Sheriff’s Office allowed the use of their spaces to coordinate those efforts.
28 January 2020
Whitman Man Pleads Guilty to Sexually Exploiting ChildrenRead the Press Release
BOSTON – A Whitman man pleaded guilty today in federal court in Boston in connection with sexually exploiting children via a social media app.
Matthew Murphy, 22, pleaded guilty to five counts of sexual exploitation of children. Sentencing is set for May 19, 2020. Murphy was arrested and charged by criminal complaint in March 2019 and has been in custody since.
According to the charging documents, the investigation began when law enforcement learned that Murphy, posing as a teenage girl, used a Snapchat account to extort nude photographs from a Massachusetts middle school boy. Agents obtained portions of the Snapchat account Murphy had created in the fake identity and uncovered evidence of similar extortion of dozens of other minors in the area. The indictment charges Murphy with using five separate Snapchat accounts to sexually exploit children.
The charges of sexual exploitation of children each provide for a minimum mandatory sentence of 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Whitman Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
White River Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on January 28, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Andrea Ruth Barrera, age 32, was sentenced to 78 months in federal prison, followed by 4 years of supervised release, a $500 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Barrera was indicted by a federal grand jury on July 16, 2019. She pled guilty on November 4, 2019.
The conviction stemmed from a conspiracy beginning on September 1, 2018, and continuing until July 16, 2019, wherein Barrera, knowingly and intentionally, combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute and possess with intent to distribute over 50 grams of methamphetamine. On March 5, 2019, during the conspiracy, Barrera possessed a loaded handgun and approximately forty-one rounds of ammunition along with a small amount of methamphetamine and several items of drug paraphernalia near Mission, South Dakota.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Barrera was immediately remanded to the custody of the U.S. Marshals Service.
Watford City, ND Man sentenced to 10 years in Federal Prison for Possession of a Firearms and Ammunition by a Convicted FelonRead the Press Release
BISMARCK – United States Attorney Drew H. Wrigley announced that on January 27, 2020, United States District Judge Daniel L. Hovland sentenced Willie Israel Navarette, age 42, Watford City, ND, on charges of Possession of Firearms and Ammunition by a convicted felon. A jury convicted Navarette of Possession of Firearms and Ammunition by a Convicted Felon on October 23, 2019, in Bismarck. Judge Hovland sentenced Navarette to serve 10 years imprisonment, followed by three years of supervised release and ordered to pay $100 special assessment to the Crime Victims’ Fund.
This case began when Navarette was stopped for a traffic offense during the early morning hours of May 30, 2018 in Williston, ND. Navarette, the driver and sole occupant could not produce identification. The officer observed a loaded gun magazine in the vehicle as Navarette exited. The officer also observed an empty gun holster on Navarette’s belt. Officers searched Navarette’s vehicle and located a loaded 40-caliber Glock, two rifles, an assortment of ammunition, marijuana, and drug paraphernalia.
Navarette was prohibited from legally possessing a firearm and ammunition due to a 2009 federal conviction in the Western District of Texas for felon in possession of a firearm. He was on federal supervision at the time of the offense in North Dakota.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms; US Probation Office, Western District of Texas; and the Williston Police Department, and prosecuted by Assistant United States Attorney David Hagler.
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Washington Man Sentenced to 92 Months in Federal Prison for Possession of a Stolen SilencerRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Joseph W. Aarnes, age 38, of Spokane, Washington, was sentenced today after having pleaded guilty on July 16, 2019, to possession of a stolen firearm. United States District Judge Salvador Mendoza, Jr. sentenced Aarnes to a 92-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on June 6, 2018, Aarnes was arrested by the Washington State Department of Corrections (DOC). Two days later, a third party notified DOC that there was a firearm “silencer,” also known as a suppressor, among Aarnes’ personal belongings at a residence. After obtaining consent to search the residence, officers seized a Gemtech, model Outback 2d, silencer. Investigators determined the silencer had been reported stolen. Under federal law, a “silencer” is considered a firearm.
William D. Hyslop said, “Possession of a stolen ‘silencer’ presents unnecessary risks to the community. The United States Attorney’s Office for the Eastern District of Washington will continue to prosecute aggressively those individuals who illegally possess firearms and ammunition. I commend the outstanding work of the FBI, ATF, Washington State Department of Corrections, and the Spokane Police Department in investigating this case.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Federal Bureau of Investigation, Spokane Regional Safe Streets Task Force, the Spokane Regional Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Washington State Department of Corrections, and the Spokane Police Department. For more information about Project Guardian, please see: https://www.justice.gov/ag/project-guardian-memo-2019/download.
This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
VA Employee Charged with Embezzling $70,000 Using Mobile Payment ApplicationRead the Press Release
BOSTON – A Department of Veteran Affairs (VA) employee was charged in federal court in Boston with embezzling nearly $70,000 in VA funds.
Michael Donaher, 41, of Lakeville, was charged with one count of embezzlement and theft of public money, property or records. Donaher was arrested today and released on conditions following an initial appearance in federal court in Boston.
According to the complaint, Donaher works as an Inventory Management Specialist for the Veterans Affairs Medical Facility in Brockton and is responsible for purchasing various equipment necessary for use in the facility. It is alleged that Donaher conducted fraudulent transactions using his government-issued purchase cards and routed the proceeds to his personal bank account. Donaher attempted to conceal these fraudulent purchases by making it appear as if the purchases were made through a large company – FW Webb – that the VA frequently used for legitimate business, when, in fact, they were actually made through a company Donaher created through Square, Inc., a mobile payment company. These purchases were not for actual items ever received by the VA. Furthermore, Donaher attempted to hide this fact by annotating the items as having been received within the VA’s accountability system. According to the complaint, Donaher fraudulently routed approximately $70,000 of VA funds to his personal account since the scheme began in 2016.
The charging statute provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jeffrey Stachowiak, Acting Special Agent in Charge of the Department of Veteran Affairs, Office of the Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Intervenes in Lawsuit Against Surgical Care Affiliates, Inc., Orlando Surgery Center, and Former Orlando Doctor Alleging Fraudulent Billing and Illegal Kickback PaymentsRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announced today that the United States has filed a federal civil lawsuit against Surgical Care Affiliates, Inc., the Orlando Center for Outpatient Surgery, L.P., and Dr. Patrick T. Hunter, alleging that they falsely billed Medicare and TRICARE, over a seven-year period, for unnecessary kidney stone procedures, and engaged in an illegal kickback arrangement in which Dr. Hunter referred patients to the Orlando Center. The complaint alleges that Dr. Hunter violated the federal False Claims Act by performing lithotripsy procedures, which use shockwaves to destroy kidney stones, when there were no kidney stones present. The complaint further alleges that SCA and the Orlando Center knew of Dr. Hunter’s unnecessary lithotripsy procedures, and continued to bill the facility component of Dr. Hunter’s procedures to the federal government.
According to the government’s allegations, SCA and the Orlando Center engaged in multiple peer reviews indicating that Dr. Hunter told patients they had kidney stones when he had not identified any. Despite this, the government alleges, SCA and the Orlando Center continued to pay Dr. Hunter per procedure for each patient he referred to the Orlando Center. The payments were not commensurate with fair market value, resulting in payments of over $5 million for the use of two machines that were valued at less than $40,000. It is further alleged that SCA requested a fair market value analysis, which required an annual cap of less than $800,000 be paid to Dr. Hunter; and that SCA and the Orlando Center then paid Dr. Hunter over $1.3 million, well in excess of what had been required by the fair market value analysis.
The United States’ complaint is filed in a whistleblower lawsuit originally filed in 2016, by Scott Thompson, SCA’s Director of Compliance when the allegations took place. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the United States for false claims for government funds and to receive a share of any recovery. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover treble damages plus civil penalties ranging from $5,500 to $11,000 for each false claim submitted by the defendants.
The United States filed a Suggestion of Death with its complaint, stating that Dr. Hunter died in 2019. A motion filed by the government requests the substitution of the personal representative of Dr. Hunter’s estate as a defendant in the case.
The claims asserted against SCA, the Orlando Center, and Dr. Hunter’s estate are allegations only, and there has been no determination of liability.
This case is being investigated by the Department of Justice, the U.S. Department of Health and Human Services – Office of Inspector General, and the Defense Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Jeremy Bloor.
Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
United States Files Civil Complaints Seeking Temporary Restraining Orders Against Telecom Carriers Facilitating Many Millions of Fraudulent RobocallsRead the Press Release
WASHINGTON – The United States filed two civil complaints today seeking temporary restraining orders in landmark cases against five companies and three individuals allegedly responsible for carrying many millions of fraudulent robocalls from foreign call centers to individuals in the United States, the Department of Justice announced. The complaints allege that the companies were warned numerous times that they were carrying fraudulent robocalls—including government and business imposter calls—but they continued to facilitate the delivery of these calls. The calls, most of which originated in India, led to substantial financial losses suffered by elderly and vulnerable victims in the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Jeffrey A. Rosen, Deputy Attorney General, Jody H. Hunt, Assistant Attorney General of the Justice Department’s Civil Division, Gary Barksdale, Chief Postal Inspector, United States Postal Inspection Service (USPIS), and Gail S. Ennis, Inspector General, Social Security Administration (SSA), made the announcement.
The two cases announced today contain similar allegations. The defendants in one case are Ecommerce National, LLC d/b/a TollFreeDeals.com, SIP Retail d/b/a sipretail.com, and their owner/operators Nicholas Palumbo and Natasha Palumbo of Scottsdale, Arizona. The defendants in the other case include Global Voicecom, Inc., Global Telecommunication Services Inc., KAT Telecom, Inc., aka IP Dish, and their principal Jon Kahen, of Great Neck, New York. In each case, the Department of Justice has sought an order immediately halting the defendants’ transmission of allegedly unlawful robocall traffic. A federal court has entered a temporary restraining order against the Global Voicecom defendants.
In the cases announced today, the United States alleges that the defendants operate voice over internet protocol (VoIP) carriers, which use a broadband internet connection rather than traditional phone lines to carry telephone calls. Numerous foreign-based call centers and VoIP carriers are alleged to have used the defendants’ VoIP carrier services to pass fraudulent robocalls to victims in the United States. The complaints specifically allege the defendants served as “gateway carriers,” making them the entry point for foreign-initiated calls into the U.S. telecommunications system and that the defendants carried many millions of robocalls. For example, the complaint against the owners/operators of Ecommerce National d/b/a TollFreeDeals.com alleges that the defendants carried 720 million calls during a sample 23-day period, and that more than 425 million of those calls lasted less than one second because the calls did not connect or the recipients immediately hung up, indicating that they were robocalls. The complaint further alleges that many of the 720 million calls were fraudulent and used “spoofed,” or faked, caller ID numbers. The calls facilitated by the defendants falsely threatened victims with a variety of catastrophic government actions, including termination of Social Security benefits, imminent arrest for alleged tax fraud and deportation for supposed failure to fill out immigration forms correctly.
“We are using all available tools and resources to stop foreign call center scammers—and for the first time their U.S.-based enablers—from conning elderly and vulnerable victims in New York and throughout the United States,” stated United States Attorney Donoghue. “Protecting individuals from schemes that result in catastrophic losses to the victims is a priority of this Office and the Department of Justice.”
“Robocalls are an annoyance to many Americans, and those that are fraudulent and predatory are a serious problem, often causing devastating financial harm to the elderly and vulnerable members of our society,” stated Assistant Attorney General Hunt. “The Department of Justice will pursue to the fullest extent of the law individuals in the United States who knowingly facilitate imposter fraud calls, using both criminal and civil tools where appropriate. And we look forward to working closely with law enforcement colleagues in India and elsewhere around the world to identify those behind these calls so that we can bring them to justice.”
“Anyone who engages in deceptive practices like imposter fraud should know, regardless of where they are, they will not go undetected and will be held accountable,” stated USPS Chief Inspector Barksdale. “We will continue to work alongside the Department of Justice and our other partners to prevent and deter ongoing harm.”
“Today’s events are the culmination of months of hard work, and a critical step in holding these and other companies accountable for being the link between overseas scammers and their victims,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to pursue those who exploit the U.S. telephone system and allow scammers to deceive consumers using the good name of Social Security. I want to thank the Department of Justice’s Transnational Elder Fraud Strike Force and our law enforcement partners for their support throughout this investigation.”
The government is represented by Assistant U.S. Attorneys Bonni Perlin, Evan Lestelle and Dara Olds of the U.S. Attorney’s Office for the Eastern District of New York, and Trial Attorneys Ann Entwistle and Bart Dunn of the Civil Division’s Consumer Protection Branch. The SSA’s Office of Inspector General, the USPIS, the Office of Inspector General for Tax Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s El Dorado Task Force provided investigative support. The Federal Trade Commission and the Federal Communications Commission provided pertinent data.
The claims made in the complaints are allegations that, if the case were to proceed to trial, the government must prove to receive a determination of liability.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, in March 2019, the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
U.S. Attorney’s Office Collects More Than $3.5 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
GREENSBORO, N.C. - United States Attorney Matthew G.T. Martin announced today that the Middle District of North Carolina collected $3,516,486 in criminal and civil actions in Fiscal Year 2019. Of this amount, $2,721,999 was collected in criminal actions and $794,487 was collected in civil actions.
“The federal prosecutors and support staff in our office work hard to protect our citizens, to safeguard precious taxpayer resources, and to collect money owed to crime victims and to the government,” said U.S. Attorney Martin. “Their diligent efforts enable us to seek justice for crime victims every day and hold accountable those who seek to profit from illegal activity.”
In 2019, the Middle District of North Carolina recovered $624,731 from a single defendant in the case of USA v. Douglas Alan Corriher; 1:16CR205-1. Corriher was prosecuted for Conspiracy to Impede the Internal Revenue Service and was ordered to pay restitution in the amount of $7,556,882.38. The IRS will receive the funds collected.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the District working with partner agencies and divisions, collected $2,386,587 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice and Department of Treasury Assets Forfeiture Funds are used to restore funds to crime victims and for a variety of law enforcement purposes.
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U.S. Attorney Jeff Jensen's Statement on the Importance of the Emergency Prohibition of Fentanyl AnaloguesRead the Press Release
The emergency prohibition of fentanyl analogues expires on February 6. Without action by Congress, law enforcement will not have the tools needed to protect Missouri families from the onslaught of these extraordinarily dangerous substances.
Illicit fentanyl and its analogues kill hundreds of Missourians annually. Fentanyl is 80 times more powerful than heroin and only a few grains can cause a fatal overdose. Additionally, distributors are now mixing fentanyl with other drugs which increases the risk for unsuspecting buyers and for overdose deaths.
Examples of the problem can be found in this courthouse constantly. Within the last two weeks, law enforcement officers seized a shipment of 10 kilograms of fentanyl on Interstate 44 in Saint Louis County, Missouri. That is roughly 22 pounds of poison capable of killing tens of thousands of Missourians. The courier from Arizona was 18 years old and now could face decades in prison. Just yesterday, Shannon Rennee Bradley, 25, of Washington, Missouri, pled guilty for her role in the distribution of heroin and fentanyl that killed a 24-year old Washington, Missouri woman.
If Congress fails to act, this office and our law enforcement partners will lose an effective tool that we need to protect Missouri families from the onslaught of these extraordinarily dangerous substances. Congress must take action immediately to extend the scheduling of these dangerous substances because this fight is far from over.
U.S. Attorney Jay E. Town Statement on Pending Expiration of Emergency Prohibition of Fentanyl AnaloguesRead the Press Release
“The emergency prohibition of fentanyl analogues expires on February 6 without congressional action. Fentanyl and its analogues are responsible for hundreds of fatal and non-fatal overdoses in the Northern District. Without action by Congress, my partners and I will not have the tools we need to protect families in the Northern District from the onslaught of these extraordinarily dangerous substances.
“We have seen a transition in the source of fentanyl finding its way into communities in the Northern District. Opioids, especially fentanyl, are deadly and are responsible for too many overdoses in the Northern District. It’s everywhere, in every community. Every socio-economic status, group, or class is vulnerable to the trappings of illegal drug use and the death and destruction caused by opioids, especially fentanyl and its analogues.
“In September, I traveled with a delegation to Mexico and saw the labs where the cartels produce this poison that is coming into our nation by the ton. I witnessed firsthand the lengths the drug cartels will go to fuel the disease of addiction. Many of the precursor chemicals used to produce fentanyl are shipped into Mexico from China. I have also spent a career watching the devastation that drug addiction, and inevitable overdose, has on our families, our children, and our communities. The cartels are increasing fentanyl production right now, all destined for the United States. Fentanyl serves as a synthetic wrecking ball to our country and must be policed aggressively so that more Americans are spared the near-certain death that too often stems from its mere presence.
“For your illustration, in 2007 there were 36,000 fatal overdoses in America, with nearly 19,000 from opioids. By 2017, due in part to the introduction of fentanyl, the total number of fatal overdoses spiked to more than 70,000 with over 47,000 resulting from opioids. While the number of fatal overdoses seems to have leveled off, or perhaps is declining, those numbers record levels of fatal overdoses. The Center for Disease Control has found that Alabama had a significant rise in opioid overdose deaths in recent years. Opioids are responsible for 68% of all overdose deaths in United States, with fentanyl being both ubiquitous and deadly. To illustrate further, many of our first responders now carry naloxone to counter the possible deadly effects of coming into contact with fentanyl when treating patients, victims, or just in the collection of evidence after an arrest.
“I join my colleagues in the Department of Justice in urging Congress to give us the tools we need to continue our efforts against the distribution of fentanyl and its analogues here in Alabama and across the United States. This fight is far from over. Now is not the time to leave our fight in the dressing room. Congress must take action immediately to extend the scheduling of these dangerous substances. Lives are quite literally at stake.”
Background: In an effort to combat this deadly drug epidemic, DEA issued a temporary emergency two-year order in February 2018 that made all fentanyl-related substances illegal. Our country has seen a marked supply impact from DEA’s temporary scheduling of fentanyl-related substances during the past two years, with a 50 percent decrease in fentanyl-related substances encountered across the United States. However, DEA’s emergency authority expires at midnight on February 6, 2020, unless Congress acts to extend it.
U.S. Attorney Erica H. MacDonald Statement on Pending Expiration of Emergency Prohibition of Fentanyl AnaloguesRead the Press Release
“At midnight on February 6, the Drug Enforcement Administration’s temporary emergency prohibition of fentanyl analogues will expire, unless Congress acts to extend it. Fentanyl and its analogues are highly potent and extremely lethal. Fentanyl, which is 50 times more potent than heroin and 100 times more potent than morphine, poses a significant threat to public safety, even a very small quantity can cause a fatal overdose. The DEA’s temporary emergency prohibition has served as a critical tool for law enforcement, allowing us to more effectively combat the illegal trafficking of these deadly substances, but it is only temporary. If the temporary emergency prohibition expires on February 6, the criminals trafficking in fentanyl analogues will operate with impunity and the lives of Minnesotans will be put at risk. My job as United States Attorney for the District of Minnesota is to keep individuals, families and communities safe; therefore, I implore Congress to act now and pass permanent legislation. American lives depend on it.”
Background: In an effort to combat this deadly drug epidemic, DEA issued a temporary emergency two-year order in February 2018 that made all fentanyl-related substances illegal. Our country has seen a marked supply impact from DEA’s temporary scheduling of fentanyl-related substances during the past two years, with a 50 percent decrease in fentanyl-related substances encountered across the United States. However, DEA’s emergency authority expires at midnight on February 6, 2020, unless Congress acts to extend it.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney Don Cochran Urges Congress to Extend Emergency Scheduling of Fentanyl AnaloguesRead the Press Release
NASHVILLE, Tenn. – January 28, 2020 – The emergency prohibition of fentanyl analogues expires on February 6 without congressional action. Fentanyl and its analogues are responsible for thousands of overdose deaths in Tennessee and we are among the states with the highest number of overdose deaths in the nation. Without action by Congress, my colleagues and I will not have the tools we need to protect Tennessee families from the onslaught of these extraordinarily dangerous substances.
Initially originating from China in smaller quantities, Tennessee, like many states across our nation, has seen a transition in the source of fentanyl making its way into our communities. In a dangerous turn of events, law enforcement officials are now intercepting load after load of Mexican cartel-produced fentanyl. The cartels are using their established and prolific distribution networks to deliver fentanyl – a substance that is exponentially more dangerous than both methamphetamine and heroin.
Just four days ago, officers with the Metropolitan Nashville Police Department recovered nearly 12 pounds of fentanyl from a vehicle travelling on an interstate near Downtown Nashville and earlier this month, more than ¼ pound of fentanyl was seized from a home in a Sumner County neighborhood. This substance is so lethal that only a few grains can be deadly. We continue to be very aggressive in prosecuting these cases and just today announced the indictments of nine individuals in the Clarksville, Tennessee area who are charged in a conspiracy to distribute heroin/fentanyl.
According to recent data, by the end of the third quarter of 2019, the number of overdose deaths in Nashville had already escalated to make it the deadliest year on record with 337 deaths. This is three times the number of overdose deaths just three years ago and the majority of these deaths involved fentanyl. The number of instances by first responders of Narcan deployment to reverse the overdose effects is also escalating at an alarming rate. We must take every available action to reverse this deadly epidemic and we must act now.
I am urging Congress to give us the tools we need to continue our efforts against the distribution of fentanyl and its analogues here in Tennessee. This fight is far from over. We need every tool we have to target this dangerous drug. Congress must take action immediately to extend the scheduling of these dangerous substances.
Background: In an effort to combat this deadly drug epidemic, DEA issued a temporary emergency two-year order in February 2018 that made all fentanyl-related substances illegal. Our country has seen a marked supply impact from DEA’s temporary scheduling of fentanyl-related substances during the past two years, with a 50 percent decrease in fentanyl-related substances encountered across the United States. However, DEA’s emergency authority expires at midnight on February 6, 2020, unless Congress acts to extend it.
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U.S. Attorney DeVillers: Permanently ban Fentanyl analogues or build more morguesRead the Press Release
As I typed this out, I received an email from the Franklin County Coroner, Dr. Anahi Ortiz. She let me know that there were seven overdose deaths in Franklin County this weekend. Unfortunately, this is not the worst email I have received from Dr. Ortiz. In September, there were ten overdose deaths in one day.
Statistically, it is highly likely that this weekend’s deaths were the result of one drug: Fentanyl.
Fentanyl is an extremely powerful synthetic opioid. It was originally manufactured to manage the most severe pain. Licit Fentanyl is made by pharmaceutical companies and is legally used in hospitals and hospice care. According to the DEA, pharmaceutical Fentanyl is well guarded and rarely makes it into the black market to be abused.
However, illicit Fentanyl and its analogues are made in labs in China and Mexico and smuggled into the United States. This illicit Fentanyl and its analogues are driving today’s illegal drug trade and they, along with other opioids, are by far the most deadly illicit drugs in American history. In 2017, almost 50,000 Americans died from opioid overdoses.
Fentanyl is 50 times more powerful than pure heroin. A few grains the size of salt can kill the average person. People have died by simply touching it. Traditionally, it is mixed or “cut” with heroin, and most heroin addicts know, and even desire, this. A drug dealer can take 100 grams of heroin, 18 grams of fentanyl, and 882 grams of caffeine and create a kilogram (1000 grams) of what amounts to be pure heroin. This increases the drug dealer’s profit by nearly 900%. If this seems exacting – it is! If a drug dealer does a poor job and adds even a few additional grams of Fentanyl, even long-time heroin addicts can – and do – die.
I would like to say the opioid crisis is getting better. However, in Franklin County and in much of Ohio, it is getting worse – and more deadly, due to Fentanyl-related drugs. In the first nine months of 2019, there were 421 overdose deaths in Franklin County. This is 15% higher than in the previous year. Fentanyl-related drugs were responsible for 83.6% of these deaths.
The most disturbing trend is that over a third of these overdose deaths were due to cocaine laced with Fentanyl-related drugs. This was almost unheard of a few years ago. Cocaine is a stimulant, while heroin and Fentanyl are depressants. However, they all create a sense of euphoria. Unlike heroin consumers, it is likely that most people consuming cocaine laced with Fentanyl don’t know it is laced with Fentanyl. Worse still, those people have not built up a tolerance for Fentanyl and are more likely to overdose. Like heroin, drug dealers make far more of a profit by cutting cocaine with Fentanyl. When they cut it poorly, people die.
Fentanyl analogues are created by drug cartels to circumvent U.S. drug laws. Labs in China and Mexico simply change a single molecule in the chemical structure of Fentanyl, creating an analogue that is just as powerful and sometimes more powerful than Fentanyl. But it is legally not Fentanyl. Many of the opioids found in the Southern District of Ohio are in fact Fentanyl analogues.
For a time, while Fentanyl was illegal without prescription, its analogues were not. The class of Fentanyl analogues were not made illegal in the United States until 2018 when they were designated a Schedule I controlled substance. That designation, however, expires on February 6. The Senate has recently passed legislation approving a 15-month extension on the designation. The House has not yet approved the legislation and if they do not, all Fentanyl analogues will become legal on February 6.
CALL TO ACTION: The House should act quickly to pass this extension and both Houses of Congress should work together to make all Fentanyl-related drugs a permanently designated Schedule I controlled substance. Or, and I’m sorry to put it so bluntly, we may need to build more morgues.
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U.S. Attorney D. Michael Dunavant Statement on Pending Expiration of Emergency Prohibition of Fentanyl Analogues and Its Impact on Public Safety in West TennesseeRead the Press Release
MEMPHIS - "The DEA emergency prohibition of fentanyl analogues expires on February 6 without congressional action. Fentanyl and its analogues are responsible for multiple overdose deaths in West Tennessee. Without action by Congress, my law enforcement partners and I will not have the tools we need to protect families and communities from the onslaught of these extraordinarily dangerous substances."
"We have seen a transition in the source of fentanyl finding its way into West Tennessee communities. Initially, law enforcement officers found fentanyl from China in relatively small amounts in West Tennessee. In a dangerous turn of events, law enforcement officials are now intercepting increasing amounts of Mexican cartel-produced fentanyl. The cartels are using their established and prolific distribution networks to deliver fentanyl – a substance that is exponentially more dangerous than both methamphetamine and heroin.We continue to be very aggressive in prosecuting these cases, as shown by these recent examples:"
11/4/19 - Jackson Man Sentenced to 15 Years for Possession with Intent to Distribute Heroin and Fentanyl https://www.justice.gov/usao-wdtn/pr/jackson-man-sentenced-15-years-possession-intent-distribute-heroin-and-fentanyl
10/17/19 - Five Members of a Large-Scale Heroin and Fentanyl Distribution Network Indicted https://www.justice.gov/usao-wdtn/pr/five-members-large-scale-heroin-and-fentanyl-distribution-network-indicted
7/23/19 - Convicted Felon Sentenced to 130 Months in Federal Prison for Distributing Fentanyl while Possessing a Firearm https://www.justice.gov/usao-wdtn/pr/convicted-felon-sentenced-130-months-federal-prison-distributing-fentanyl-while
6/3/19 - Lobelville, Tennessee Man Sentenced to 240 Months for Conspiracy to Distribute Methamphetamine and Fentanyl https://www.justice.gov/usao-wdtn/pr/lobelville-tennesseeman-sentenced-240-months-conspiracy-distribute-methamphetamine-and
5/31/19 - Jackson Man Sentenced to Federal Prison for Distributing Heroin and Fentanyl Causing Overdoses in Gibson and Madison Counties https://www.justice.gov/usao-wdtn/pr/jackson-man-sentenced-federal-prison-distributing-heroin-and-fentanyl-causing-overdoses
3/7/19 - 32-Year-Old Memphis Man Sentenced to 20 Years for Distributing a Lethal Dose of Fentanyl https://www.justice.gov/usao-wdtn/pr/32-year-old-memphis-man-sentenced-20-years-distributing-lethal-dose-fentanyl
5/1/18 -Memphis Man Sentenced to 10 Years Imprisonment for Distribution of Fentanyl https://www.justice.gov/usao-wdtn/pr/memphis-man-sentenced-10-years-imprisonment-distribution-fentanyl
"Our nation, state, and district are suffering from the imminent threat of deadly fentanyl, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing families and communities apart. I am urging Congress to give us the tools we need to continue our efforts against the distribution of fentanyl and its analogues here in West Tennessee. This fight is far from over. We need every tool we have to target this dangerous drug, hold dealers accountable, deter others from selling poison to our citizens, and save lives. Congress must take action immediately to extend the scheduling of these dangerous substances."
Background: In an effort to combat this deadly drug epidemic, DEA issued a temporary emergency two-year order in February 2018 that made all fentanyl-related substances illegal. Our country has seen a marked supply impact from DEA’s temporary scheduling of fentanyl-related substances during the past two years, with a 50 percent decrease in fentanyl-related substances encountered across the United States. However, DEA’s emergency authority expires at midnight on February 6, 2020, unless Congress acts to extend it.
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Tuscaloosa Man Sentenced to Prison for 15 Years for Two Armed Robberies in TuscaloosaRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Tuscaloosa man for two armed robberies in Tuscaloosa, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
U.S. District Judge L. Scott Coogler sentenced Ladarius Maurice Watson, 23, Tuscaloosa, to 180 months in prison and for Hobbs Act Robbery and carrying and brandishing a firearm during and in relation to a violent crime. Watson pled guilty in July 2019.
“The safety of many innocent people were threatened during this string of armed robberies in Tuscaloosa,” Town said. “These crimes are far too prevalent in the Northern District and thus our local, state and federal law enforcement agencies will remain the phalanx to not only police violent crime, but defeat it.”
“ATF’s Crime Gun Intelligence partnerships with the Tuscaloosa Police Department as part of Project Guardian, continue to focus on reducing violent crime by those individuals who commit armed robberies,” Watson said.
“This case involved several violent individuals armed with firearms,” said Captain Brad Mason, Tuscaloosa Police Department. Through the great partnership we have with the ATF and the US Attorney’s Office, we are able to get them off of the street for the maximum amount of time. By doing this, we are best serving the citizens of our community and state. We are fortunate and glad to have a great relationship with these agencies, and we appreciate the hard work that was put in by all. We hope to continue this relationship, continue to convict these violent criminals who perpetuate gun crimes, and make our streets safer.”
According to evidence at the trial of Jamarkus Thompson, Watson and Rodgers robbed the two stores at gun point using an assault style rifle, while Thompson remained in the vehicle. Watson, Rodgers and Thompson were stopped by Tuscaloosa police minutes after the robberies, where evidence of both crimes were found in their possession, including money, receipts, and the firearms.
Quartaius Deandrew Rodgers, 24, pled guilty in July 2019. In November 2019, U.S. District Court L. Scott Coogler sentenced Rodgers to 95 months in prison for Hobbs Act Robbery and carrying and brandishing a firearm during and in relation to a violent crime.
Jemarkus Vonsha Thompson was convicted in October 2019. His sentencing is scheduled for February 27, 2020.
ATF investigated the case along with the Tuscaloosa Police Department, which Assistant U.S Attorney Brad Felton and Allison Garnett prosecuted.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Turtle Creek Man Indicted in Scheme that Used Stolen IDs and Credit Cards to Make Fraudulent Retail PurchasesRead the Press Release
PITTSBURGH - A former resident of Turtle Creek, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, use of unauthorized access devices and aggravated identity theft, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Iklas Davis, age 38, formerly of Turtle Creek, Pennsylvania, as the sole defendant.
According to the Indictment, in 2017, Davis participated in an identity theft ring, through which Davis and other members of the conspiracy used stolen means of identification and access devices to make and attempt to make fraudulent purchases at various retail establishments, such as Best Buy. Many of the access devices were stolen from vehicles as they were parked at various entertainment complexes in Allegheny County.
The law provides for a maximum total sentence of not more than 17 and not less than two years in prison, a fine of not more than $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the United States Secret Service, Allegheny County Police, Ross Township Police, and Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tribe Member Indicted for First Degree Murder on Tribal LandRead the Press Release
RENO, Nev. – A tribe member today was arraigned in federal court before U.S. District Magistrate Judge Carla Baldwin for the murder of an individual on tribal land, announced Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
Steven Bryan, 51, of Reno, was indicted with one count of murder in the first degree. According to the indictment, on or about December 13, 2019, on the Carson Indian Colony, Bryan allegedly shot and killed an individual in the head with a rifle.
Bryan was arrested this morning and remains in custody pending an April 7, 2020, trial date. If convicted, Bryan faces a maximum sentence of life imprisonment.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was the product of an investigation by the FBI. Assistant U.S. Attorneys Penelope Brady and Richard Casper are prosecuting the case.
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Three Men Admit Roles in Passaic County Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – Three New Jersey men today admitted their roles in a Passaic County cocaine distribution conspiracy, U.S. Attorney Craig Carpenito announced.
Narcisco Ramirez, 46, of Passaic, Kiuny Perez, 42, of Rockaway Township, and Victor Pimentel, 44, of Parsippany, each pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to separate criminal informations charging them with conspiracy to distribute cocaine.
According to documents filed in the case and statements made in court:
The defendants were part of a conspiracy to distribute large quantities of cocaine in and around Passaic County. In November 2017, law enforcement officers observed Ramirez and Perez meet at a location in Passaic and exchange a package containing cocaine. Later that day, officers stopped Ramirez’s car and found one kilogram of cocaine on the front seat and two additional kilograms on his right leg and waist band. A search of Ramirez’s residence revealed another two kilograms of cocaine and $89,000 in cash. Law enforcement officers also stopped Perez’s vehicle and found cocaine in a hidden compartment underneath the dashboard. Law enforcement officers also discovered $297,350 in cash in Perez’s residence. A search of Pimentel’s residence revealed over 20 kilograms of cocaine, drug paraphernalia, and $322,000 in cash.
The drug conspiracy charge to which the defendants pleaded guilty carries a minimum of 10 years in prison and a maximum potential penalty of life in prison. Sentencing for Ramirez is scheduled for June 17, 2020; for Pimentel, July 22, 2020; and for Perez, June 16, 2020.
U.S. Attorney Carpenito credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Passaic County Prosecutor’s Office under the direction of Passaic County Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty pleas. He also thanked the Clifton Police Department for their assistance with the investigation.The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Perez: Anthony J. Iacullo Esq., Nutley, New Jersey
Pimentel: Lee Ginsberg Esq., New York
Ramirez: Lorraine Gauli-Rufo Esq., Verona, New JerseyThird Ward man, girlfriend and grandmother head to prison for cocaine traffickingRead the Press Release
HOUSTON – A 31-year-old Houston resident has been sentenced for obtaining kilogram quantities of cocaine from Mexican suppliers and distributing them to various customers in the Houston area, announced U.S. Attorney Ryan K. Patrick.
Chardrell Murphy pleaded guilty July 1, 2019, to possession with intent to deliver a controlled substance.
Today, U.S. District Judge David Hittner sentenced Murphy to 262 months in federal prison to be immediately followed by five years of supervised release.
Also sentenced today was Murphy’s girlfriend - Alexis Moten, 25, and her grandmother - Loretha Moten, 60, both of Houston. Both had previously pleaded guilty to aiding and abetting the possession with intent to distribute a controlled substance. Alexis Moten received a 27-month-term of imprisonment, while her grandmother, who stored the cocaine for Murphy, was ordered to serve 36 months.
At the hearings, the court heard additional testimony that detailed Murphy’s violent nature and long-term drug dealing.
Co-defendants Mark Anthony Johnson, 54, and Herberth Mauricio Torres, 24, both also of Houston, will be sentenced March 6 and 31, respectively.
On Sept. 15, 2018, authorities learned Murphy received four kilograms of cocaine from a Mexican supplier. Torres then delivered it to Loretha Moten’s house. Later, Murphy put a package into Johnson’s car.
Law enforcement conducted a traffic stop, at which time they found two kilograms of cocaine from the package Murphy had placed in the car.
Murphy has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department and FBI conducted the investigation. Assistant U.S. Attorney Jennie Basile and John M. Lewis prosecuted the case.
The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.