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24 January 2020
Former Long Island Broker Pleads Guilty to Participating in a $147 Million Stock Manipulation SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Stephanie Lee, a former broker who worked in conjunction with Plainview-based Elite Stock Research and Melville-based My Street Research and related companies (“My Street Research”), pleaded guilty to conspiracy to commit securities fraud, securities fraud, money laundering and money laundering conspiracy, wire fraud conspiracy and obstruction of an official proceeding in connection with the sale of the stock of two publicly traded companies, CES Synergies, Inc. (CESX), and National Waste Management Holdings, Inc. (NWMH). The top count to which Lee pleaded guilty carries a maximum sentence of 20 years’ imprisonment. The plea proceeding took place before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea. Mr. Donoghue expressed his appreciation to the United States Securities and Exchange Commission for its significant cooperation and assistance in the investigation.
As alleged in court papers, between August 2013 and July 2017, Lee and her co-defendants engaged in a scheme to defraud investors, many of them elderly, through the use of high-pressure call centers located at Elite and My Street Research. Lee and her co-defendants artificially controlled the trading price and volume of publicly traded companies by, among other things, retaining Elite and My Street Research to use pressure tactics, material misrepresentations and omissions to induce victims from around the country to purchase stock. Although the victims believed they were buying stock on the open market, Lee and her co-defendants secretly coordinated the trading so that the victims purchased shares at inflated prices that were owned and controlled by Lee and certain co-defendants. Following her arrest, Lee gave false information to the FBI agents who interviewed her in connection with the alleged fraud.
Lee is among 16 defendants who were charged in July 2017 in connection with the $147 million illegal stock manipulation scheme, and she is the thirteenth defendant to plead guilty. A fourteenth defendant, Michael Watts, was convicted after trial in October 2019. Four defendants have been sentenced for their roles in the scheme: Ronald Hardy was sentenced to 10 years’ imprisonment; Dennis Verderosa was sentenced to six years’ imprisonment; McArthur Jean was sentenced to four years’ imprisonment; and Emin Cohen was sentenced to two years’ imprisonment.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution. Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Forfeiture Section is handling the forfeiture matters.
The Defendant:
STEPHANIE LEE
Age: 48
St. Petersburg, FloridaE.D.N.Y. Docket No. 17-CR-372 (S-3)(JS)
The Defendants Who Were Previously Convicted:
RONALD HARDY
Age: 44
Port Jefferson, New YorkMCARTHUR JEAN, also known as “John McArthur”
Age: 37
Dix Hills, New YorkERIK MATZ
Age: 46
Mt. Sinai, New YorkBRIAN HEEPKE, also known as “Brian Targis”
Age: 39
Farmingdale, New YorkDENNIS VERDEROSA
Age: 79
Coram, New YorkEMIN L. COHEN, also known as “Ian Grant”
Age: 36
Coram, New YorkPAUL EWER
Age: 39
Massapequa, New YorkASHLEY ANTOS
Age: 28
Central Islip, New YorkSERGIO RAMIREZ
Age: 46
East Meadow, New YorkROBERT GILBERT
Age: 53
Cold Spring Harbor, New YorkANTHONY VASSALLO
Age: 56
Farmingdale, New YorkMICHAEL WATTS
Age: 63
Sugarland, TexasE.D.N.Y. Docket No. 17-CR-372 (JS)
Former Housing Authority Director Pleads Guilty to Stealing Federal FundsRead the Press Release
Hazlehurst, Miss. – Barbara Thedford Skipper, 51, of Hazlehurst, pled guilty yesterday before U.S. District Judge Carlton W. Reeves to theft of federal funds, announced U.S. Attorney Mike Hurst and Assistant Special Agent-in-Charge Jerome Winkle with the United States Department of Housing and Urban Development (“HUD”) Office of Inspector General (“OIG”).
From 2015 through 2017, while serving as Executive Director for the Hazlehurst Housing Authority, Skipper knowingly converted and misapplied funds from the Housing Authority’s operating account to her own use. Operating account funds are designed to assist the Housing Authority with the upkeep of public housing residential living conditions. Such public housing is established to provide decent and safe rental housing for eligible low-income families, the elderly and persons with disabilities.
In the course of the investigation, it was discovered that Skipper utilized Hazlehurst Housing Authority’s operating account to purchase personal items, including, but not limited to, clothing, perfume, countertop ice makers, electronic tablets, cookware, a fitness wristband, portable boom box, champagne flutes, Fire TV stick and several gift cards. It was also discovered that Skipper made unauthorized purchases from an online retailer and made payments to her personal Bank of America credit card from the Housing Authority operating account. The total amount of loss was $57,202.
Skipper will be sentenced by Judge Reeves on April 22, 2020 at 9:00 a.m. She faces a maximum penalty of 10 years in prison and a $250,000 fine, as well as restitution.
The case is the result of an investigation by the United States Department of Housing and Urban Development Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Keesha Middleton.
Former Del Rio Sector U.S. Border Patrol Agent Sentenced to Federal Prison for Production and Possession of Child PornographyRead the Press Release
In San Antonio this morning, a federal judge sentenced a former Del Rio Sector U.S. Border Patrol agent assigned to the Uvalde Station to 50 years in federal prison for producing and possessing child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Chief U.S. District Judge Orlando Garcia ordered that 37-year-old Vernon Lee Millican of Leakey, TX, pay a $10,000 special assessment under the Joint Victims of Trafficking Act (JVTA) and be placed on supervised release for a period of 20 years after completing his prison term.
On October 17, 2019, Millican pleaded guilty to one count of production of child pornography and one count of possession of child pornography. By pleading guilty, Millican admitted that between April 2015 and June 2018, he used multiple devices to produce and possess images and videos of himself sexually assaulting a prepubescent minor; and, depicting the minor engaging in sexually explicit conduct. According to the victim, Millican began to sexually abuse her when she was six years old.
“Today we put behind bars a brutal sexual predator who is a disgrace to the Border Patrol and the United States. His punishment is richly deserved,” stated U.S. Attorney Bash.
Millican was arrested on January 31, 2019, after a federal search warrant was executed at his home. He has since remained in federal custody.
“A heartbreaking reality of the world we’re living in is the hidden abuse of children,” said FBI Special Agent in Charge Combs. “They’re suffering in silence every day, both in our community and around the world, as we go about our daily lives. The FBI will relentlessly pursue every lead to rescue children who are being victimized, and bring their perpetrators to justice. We strongly urge members of the public to help us in our fight to protect children, as they are some of the most vulnerable in our community.”
FBI agents, together with the Department of Homeland Security Office of the Inspector General and the Clackamas County Sheriff’s Office in Oregon, investigated this case with assistance from the Real County Sheriff’s Office. Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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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.Former Attorney Sentenced for $1.6 Million Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A former attorney was sentenced today to 88 months in prison for conspiring to defraud Virginia State Senator Richard Saslaw’s campaign account, a Canadian business, and an organization intended to support college students with autism and other intellectual disabilities out of more than $1.6 million.
According to court documents, David H. Miller, 71, of Fairfax, conspired with his wife, Linda Diane Wallis, to defraud three categories of victims from 2011 to 2014. First, Miller conspired with Wallis to create two fake law firms, Federal Legal Associates and The Straile Group. Miller and Wallis used the fake law firms to fraudulently bill Miller’s employer, SkyLink Air and Logistic Support, Inc. (SkyLink), a Canadian based aviation company that maintained an office in Dulles, for legal work that was never actually performed. Miller and Wallis caused over $360,000 in losses to SkyLink.
Second, Miller and Wallis embezzled more than $650,000 from the campaign account of Senator Saslaw. From June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued over 70 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled at approximately $653,000. All of the checks were issued without the knowledge or permission of Senator Saslaw or his campaign staff, and were ultimately deposited into accounts that were controlled by Miller or Wallis.
Third, Miller and Wallis misappropriated funds for an autism organization, which Miller co-founded and for which Wallis served as the Executive Director. The organization, known as The Community College Consortium on Autism and Intellectual Disabilities (CCCAID), claimed to provide assistance to community colleges to develop programs for individuals with autism and other intellectual disabilities. Between April 2010 and April 2013, community colleges located around the country and an individual donated around $780,000 to CCCAID. The funds contributed to CCCAID were supposed to be used to further the mission of the organization and not to enrich Miller or Wallis. Despite these restrictions, from 2011 to 2014, Miller and Wallis embezzled over $600,000 from CCCAID’s bank account and used the money to pay their own personal expenses.
Miller and Wallis laundered the proceeds of their crimes through multiple bank accounts and ultimately spent the funds on lavish personal expenses, such as mortgage payments on a million-dollar home in Fairfax, renovations to an oceanfront property in Bethany Beach, Delaware, fee payments to a country club, and travel on private aircraft from Manassas to Jamaica for a family vacation at a luxury oceanfront resort.
Miller’s co-conspirator and wife, Linda Diane Wallis, previously pleaded guilty and was sentenced to more than four years in prison on March 18, 2016.
In addition to the prison sentence, Miller was ordered to pay $1,640,655 in restitution, and ordered to forfeit the same amount.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Timothy M. Dunham, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Uzo Asonye, Samantha P. Bateman, Karen L. Taylor, and Special Assistant U.S. Attorney Annie Zanobini prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-213.
Former Attorney Charged with Fraud for Falsely Representing to Client that Assistant United States Attorney had Agreed to Accept a Bribe in Exchange for Securing a Reduced Sentence for ClientRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced on January 23, 2020, that former attorney Mark A. Ruppelt (age: 50) was charged in a three-count information with devising and executing a scheme to defraud his client, in violation of the federal wire fraud statute.
The information alleges that Ruppelt’s scheme was to obtain money from his client by falsely claiming he had arranged to pay a bribe to an Assistant United States Attorney (“AUSA”) and other officials, in exchange for their assistance in obtaining a sentence reduction for the client. In fact, none of those officials were aware of Ruppelt’s representations to his client, and none had been offered or agreed to accept a bribe.
According to the information, Ruppelt asked for, and received, a total of $30,000 from his client. In a series of phone conversations, Ruppelt, among other things:
- falsely told his client that a specific AUSA was willing to accept a bribe;
- falsely told his client that the $30,000 would “100% secure” the AUSA’s assistance in obtaining a sentence reduction;
- falsely told his client that Ruppelt had already “taken care of” bribing a probation officer and only had to finish paying the AUSA;
- put the client off by falsely telling the client that the AUSA, while still on board with accepting the bribe, wanted to wait several weeks so that the political climate was more conducive to getting away with the bribe arrangement; and
- attempted to conceal his scheme by directing his client to avoid “putting anything in writing,” explaining that “there can’t be any trace of this.”
If convicted, Ruppelt faces a maximum term of imprisonment of 20 years, a maximum term of three years of supervised release, and a maximum fine of $250,000.
An information is a formal method of charging an individual with a criminal offense. The charges contained in the information are merely allegations and are not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gregory J. Haanstad.
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Former Assistant Director of Real Estate for City of Boston Sentenced for Accepting $50,000 in BribesRead the Press Release
BOSTON – The former Assistant Director of Real Estate working for the Boston Planning and Development Agency (BPDA) was sentenced today in federal court in Boston in connection with accepting $50,000 in bribes.
John M. Lynch, 67, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 40 months in prison, one year of supervised release, and ordered to pay restitution of $14,400 and to forfeit $50,000. The government recommended a sentence of 48 months in prison.
In September 2019, Lynch pleaded guilty to one count of bribery involving an organization receiving federal funds and one count of filing a false federal tax return.
“Mr. Lynch’s conduct illustrates the kind of pay-to-play scheme that, if left unchecked, destroys government institutions and the public’s faith in those institutions,” said United States Attorney Andrew E. Lelling. “This office will aggressively prosecute any public official, regardless of party or position, whose greed leads them to breach the public trust and break federal law.”
“It may be difficult for anyone who went to John Lynch’s office seeking nothing more than a fair shake to understand why a public servant one day points his moral compass toward personal ruin knowing how much he will lose in order to gain so little. But public corruption cases aren’t built around employees who appreciate what they have,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Palm-greasing at any level undermines a community’s faith in their government. The FBI encourages anyone who encounters or suspects municipal malfeasance to report it, and to help us to hold those who violate taxpayers’ trust accountable.”
“While John Lynch should have been exercising his authority for the benefit of the City of Boston and its residents, he instead lined his own pockets with ill-gotten proceeds and further sought to defraud the Internal Revenue Service” said Kristina O’Connell, Special Agent In Charge of IRS Criminal Investigation’s Boston Field Office. “Today’s sentencing should serve as a reminder to those who seek to violate the public’s trust that you will be held accountable for your actions.”
In 2017, a Boston real estate developer sought to sell a parcel of residential real estate in Boston, but needed Boston Zoning Board of Appeals (ZBA) approval to extend a permit that would allow the property to be sold as a multi-unit development. In order to secure the permit extension, the developer agreed to pay $50,000 in bribes to Lynch, in return for Lynch using his influence at the BPDA to secure a vote from a ZBA member. In May 2017, the ZBA member voted to grant the permit extension, enabling the developer to sell the property at an additional half a million dollar profit that the developer otherwise would not have received. Per their agreement, the developer then paid Lynch $25,000 in cash and gave Lynch a $25,000 check, which Lynch used to pay a personal bill. Lynch then failed to report those and another $10,000 payment he had received from the real estate developer on this 2018 tax returns.
U.S. Attorney Lelling, FBI Boston SAC Bonavolonta and IRS-CI SAC O’Connell made the announcement today. Assistant U.S. Attorney Dustin Chao of Lelling’s Public Corruption Unit prosecuted the case.
Florida man pleads guilty to role in moving company racketeering conspiracyRead the Press Release
CINCINNATI – A Florida man is the first of 12 charged in Cincinnati in a moving company racketeering conspiracy to plead guilty in U.S. District Court. Members of the racketeering conspiracy defrauded, extorted, and stole from customers who hired companies controlled by the moving enterprise to move customers’ household goods.
Vladimir Pestereanu, 30, of Sunny Isles Beach, Fla., pleaded guilty this afternoon to participating in the racketeering conspiracy.
As part of his plea, Pestereanu, who is also known as “Vova,” admitted that beginning in May 2015, he participated in the racketeering activity as a foreman in a West Chester, Ohio warehouse kept on behalf of the criminal enterprise.
Pestereanu knew that it was the practice of the enterprise to charge customers for moving more cubic footage of household goods than were actually loaded by members of the enterprise. Pestereanu also knew members of the enterprise were refusing delivery of some customers’ household goods based on fraudulent charges that were added after customers’ goods were loaded by the enterprise.
The defendant participated directly in mail fraud and extortion. He demanded from customers additional payment based on fraudulently inflated cubic footage.
In total, the conspiracy is valued at between $1.5 million and $3.5 million.
Participating in a racketeering conspiracy, as defined in this case, is punishable by up to 20 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Andrea Kropf, Regional Special Agent-in-Charge, Midwestern Regional Investigations Office, Office of Inspector General, U.S. Department of Transportation (USDOT); and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Timothy S. Black. Assistant United States Attorneys Megan Gaffney Painter and Matthew Singer are representing the United States in this case.
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Florida Man Sentenced for Conspiracy to Re-Sell Diverted PharmaceuticalRead the Press Release
NEW ORLEANS, La. – U.S. Attorney Peter G. Strasser announced that ELISEO MARTINEZ (MARTINEZ), age 48, a resident of Miami, Florida, was sentenced on January 23, 2020 after pleading guilty to conspiracy to commit theft of medical products, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
MARTINEZ was sentenced to 135 months imprisonment with credit for time served, supervised release for a term of 3 years, and a $300.00 assessment. MARTINEZ was also ordered to pay restitution in the amount of $203,000.
According to court documents, beginning sometime prior to December 2012, MARTINEZ and others conspired to use Marea Distributors and Logistics, LLC, in Louisiana and Marea Distributors, LLC, in Florida to fraudulently re-sell diverted pharmaceuticals. Working together, the defendants would collect dispensed drugs of known and unknown origin, counterfeit drugs, expired drugs, and drugs not authorized for resale and then fraudulently reintroduce them into the pre-retail, wholesale market for eventual sale under false pretenses to pharmacies and end users. According to court documents
Among other things, the defendants would create and scan fraudulent invoices and send them from Marea Distributors in Florida to Marea Distributors & Logistics in Louisiana by email. In Louisiana, Marea Distributors & Logistics would then send the fraudulent invoices by email from Louisiana to wherever the diverted pharmaceuticals were shipped. When necessary, Marea Distributors & Logistics in Louisiana would create invoices for the products and email them to customers who were making purchases.
During the course of the conspiracy the defendants opened or caused to be opened bank accounts in the names of various entities, including Marea Distributors & Logistics and Marea Distributors. The defendants used those accounts to deposit the proceeds obtained from the sale of diverted pharmaceuticals and then to further distribute those proceeds to bank accounts controlled by them.
U.S. Attorney Strasser praised the work of the United States Drug Enforcement Administration, Internal Revenue Service, Food and Drug Administration, and the Miami Dade Police Department, in investigating this matter. The case was prosecuted by Assistant United States Attorneys Theodore R. Carter, III, and David Haller.
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Federal Jury in Waco Convicts California Drug Courier for Attempting to Transport Approximately 21 Pounds of Methamphetamine to WacoRead the Press Release
In Waco this afternoon, a federal jury convicted 27–year-old Francisco Resendez Martinez of Gonzales, CA, for attempting to deliver approximately 21 pounds of methamphetamine from California to Waco, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Steven S. Whipple, Houston Field Division.
Jurors convicted Martinez of one count of conspiracy to possess with intent to distribute methamphetamine. Evidence presented during trial revealed that for more than a year and a half, DEA agents were investigating a drug trafficking operation led by 38-year-old Waco resident Johnny Casillas. On February 26, 2018, California Highway Patrol deputies stopped a vehicle on I-40 in San Bernardino, CA, being driven by the defendant. Upon searching the vehicle, authorities discovered the methamphetamine contained in 23 packages inside a suitcase.
Following the verdict, Judge Albright remanded Martinez to the custody of the U.S. Marshals Service. Martinez faces between ten years and life in federal prison. Sentencing is scheduled for May in front of U.S. District Judge Alan D. Albright in Waco.
Jurors today acquitted Martinez’s co-defendant, 55-year-old Los Angeles area resident Patricia Ferrer, of the drug conspiracy charge. Casillas and another co-defendant, 42-year-old Veronica Real of Hesperia, CA, are awaiting sentencing after pleading guilty to the drug conspiracy charge—Casillas, on May 8, 2018, and Real, on December 18, 2018. Sentencing for Casillas and Real is scheduled for 9:30am on February 25, 2020, before Judge Albright. Like Martinez, Casillas and Real face between ten years and life in federal prison.
The DEA, together with the McLennan County Sheriff’s Office, Texas Department of Public Safety, Riverside County (CA) Sheriff’s Office, California Highway Patrol, and U.S. Border Patrol investigated this case. Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting this case on behalf of 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/Celebrating150YearsFederal Jury in Del Rio Convicts Honduran National of Illegal Re-Entry and Assaulting U.S. Border Patrol AgentsRead the Press Release
In Del Rio last night, a federal jury convicted 49–year-old Honduran National Leivin Pineda for illegal re-entry into the U.S. and assaulting a U.S. Border Patrol agent near Eagle Pass, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Evidence presented during trial revealed that on September 2, 2018, U.S. Border Patrol agents observed the defendant, who they believed to be an illegal alien, walking along FM 1907 in Maverick County. The agents attempted to approach Pineda, but he fled on foot into the brush. At several points during the foot chase, Pineda threw softball-sized rocks at a high velocity towards the agents’ heads. During the pursuit, the agents repeatedly gave verbal commands to stop, but Pineda refused. Due to Pineda’s actions and that the rocks thrown at the agents could cause serious physical injury or death, a pursuing agent drew his firearm and shot Pineda in the upper chest/left upper arm area in order to neutralize the threat.
Testimony also revealed that Pineda had illegally entered the U.S. on three previous occasions. He was last removed from the U.S. on July 13, 2018, in Alexandria, LA.
Following the incident, Pineda received medical treatment and was released from the hospital. Pineda has since remained in federal custody.
Pineda faces up to 20 years in federal prison on the assault charge and up to two years in federal prison for illegal re-entry. Sentencing is scheduled for later this year in front of U.S. District Judge Alia Moses in Del Rio.
The FBI, Department of Homeland Security Office of Inspector General (DHS OIG) and U.S. Customs and Border Protection Office of Professional Responsibility (CBP OPR) investigated this case. Assistant U.S. Attorney John Kennedy and Joshua Banister are prosecuting this case on behalf of 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/Celebrating150YearsFederal Jury Convicts Former Portland Resident of Accessing Child PornographyRead the Press Release
Portland, Maine: A former Portland resident was convicted yesterday of accessing with intent to view child pornography following a three-day jury trial, U.S. Attorney Halsey B. Frank announced.
According to evidence presented at trial, in July 2015, agents with U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (HSI) executed a search warrant at the Portland home of George Royle V, 45. Agents seized a laptop computer under the warrant. A forensic analysis of the laptop showed that Royle had been accessing internet websites containing child pornography images with the intent to view them. He also had been using peer-to-peer file-sharing software to seek out child pornography.
Royle faces up to 10 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
HSI and the Maine State Police Computer Crimes Unit investigated the case.
Family Physician Pays $285,000 to Settle False Claims Act Allegations of Billing Services at Inflated RateRead the Press Release
Knoxville, Tenn. – Family physician Dr. Chang-Wen Chen and his practice Chang-Wen Chen, M.D., P.C. paid $285,000 to resolve allegations that they violated the False Claims Act by improperly charging government health care programs the physician’s rate for services that were provided by nurse practitioners. The allegations challenged billings submitted to Medicare, Medicaid (“TennCare”) and TRICARE from 2013 through 2019.
Medicare and TennCare reimburse at the higher physician rate for services provided by nurse practitioners or other non-physician providers when the services are rendered “incident-to” a physician’s services, but only if the physician provides direct supervision. TRICARE always pays the reduced rate for services rendered by non-physician providers regardless of whether a physician supervises. The government alleged that Dr. Chen’s practice unlawfully billed government payors at the physician rate even when services were rendered by unsupervised nurse practitioners.
Under the False Claims Act, any person who presents false claims for payment to the United States is liable for three times the damages the government incurs as a result of the false claims and penalties ranging from $5,000 to $22,363 per violation, depending on when the violations occurred.
“False billing practices contribute to the rising cost of health care in our country, and cheat taxpayers out of billions of dollars each year,” said U.S. Attorney J. Douglas Overbey. “This settlement demonstrates the continued commitment of the United States Attorney’s Office to protecting the integrity of our federal health care programs.”
“Medicare and other government health payment rules on non-physician providers are clear. While nurse practitioners may provide excellent care, billing their services at an inflated rate cheats taxpayers who are paying for these vital services,” said Derrick Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners, we will continue investigating threats to federally funded health care programs.”
“I applaud the Department of Justice and the U.S. Attorney for the Eastern District of Tennessee for their continued efforts to hold health care providers accountable to the American taxpayer," said Army Lt. Gen. Ronald Place, director of the Defense Health Agency. "The efforts of the Department of Justice to safeguard the health care benefit for our service members, veterans and their families is commendable. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
This investigation was a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Tennessee; the Tennessee Attorney General’s Office; the U.S. Department of Health and Human Services, Office of Inspector General; and the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit. The investigation was prompted by a lawsuit filed in 2015 by a former nurse practitioner at the practice, under the qui tam or “whistleblower” provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The relators share of the recovery in this case is $51,300.
The case is captioned United States and State of Tennessee ex rel. Forester v. Chang-Wen Chen, M.D. and Chang-Wen Chen, M.D., P.C., Case No. 3:18-cv-51 (E.D. Tenn.).
Assistant United States Attorneys L. Margaret Harker, Jeremy S. Dykes, and Jessica Sievert represented the United States.
The claims settled by this agreement are allegations only; there has been no determination of liability.
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False Tax Return Filer Sentenced to 34 Months in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Ramon Christopher Blanchett to 34 months in federal prison for theft of government funds. The court also ordered Blanchett to forfeit $980,000, which is traceable to proceeds of the offense.
Blanchett had pleaded guilty on October 1, 2019.
According to court documents, on February 21, 2017, Blanchett electronically filed his 2016 Form 1040, U.S. Individual Income Tax Return, claiming (1) $18,497 in wage income, (2) a state and local income tax deduction of $47,357, and (3) an income tax withholding credit of $1 million. These figures were not accurate. Blanchett attached two Forms W-2 to his return, and one of them contained false and fraudulent information, including an inflated wage amount and inflated amount of tax withheld. Based upon this return, Blanchett falsely claimed that he was due a tax refund of $1 million, and requested that $20,000 of that amount be applied to his 2017 estimated tax.
In April 2017, the IRS mailed a U.S. Treasury check for $980,000 to Blanchett at his residential address in Tampa. Blanchett deposited the check into an account at SunTrust Bank. SunTrust reported the transaction to the IRS, closed Blanchett’s accounts, and held the funds for the IRS.
Ultimately, in 2018, Blanchett received a new official check for $980,000 and deposited it into an account that he opened with Grow Financial Credit Union (GFCU) in Tampa, Florida. Blanchett told GFCU that the funds represented the proceeds of an inheritance he had received from his father’s estate. In fact, Blanchett had not received proceeds from an inheritance. Blanchett used some of the funds to purchase a 2016 Lexus RC350 for $51,617 at a Tampa dealership.
In August 2018, a federal magistrate judge authorized seizure warrants for Blanchett’s Lexus and the money in his GFCU account at the time. Both the vehicle and $919,421.87 were seized.
In April 2018, Blanchett electronically filed another false and fraudulent tax return – this time for tax year 2017 – claiming he was due a refund of $26,477.
In September 2018, Blanchett voluntarily appeared at the IRS office in Tampa, for an appointment that he had made with the Taxpayer Assistance Center. The center alerted IRS-Criminal Investigation agents, who told Blanchett that he was under criminal investigation regarding the $980,000 refund, which he had received. Notwithstanding communications from agents, Blanchett filed a third false and fraudulent income tax return in February 2019 for the 2018 tax year, claiming a refund of $465,734.
With the exception of one Form W-2, Blanchett did not earn wages in the amounts claimed on the Forms W-2 attached to his tax returns. Moreover, he did not make enough wages to have any income tax withheld, and the amounts of tax withheld reported on his tax returns were false. In short, Blanchett knew he was not entitled to a tax refund for tax years 2016, 2017, or 2018.
This case was investigated by the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
East Bay Real Estate Developer Sentenced to 15 Months for Making Conduit Contributions in Two U.S. Congressional CampaignsRead the Press Release
SAN FRANCISCO – Oakland-area real estate developer James Tong was sentenced to 15 months in prison today for funneling tens of thousands of dollars of his own money through straw donors into two consecutive congressional campaigns for a member of the U.S. House of Representatives.
United States Attorney David L. Anderson for the Northern District of California, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office made the announcement.
Tong, 74, of Fremont, Calif., was sentenced by U.S. District Judge Jon S. Tigar of the Northern District of California.
A federal jury convicted Tong on October 8, 2019, of two counts of making contributions to a federal campaign in the names of other individuals. According to the evidence presented at trial, in 2012 and 2013 Tong made $38,000 in conduit contributions to the initial and reelection campaigns of a candidate who was running for the U.S. House of Representatives. Tong provided envelopes of cash to his bank manager and another business associate and directed them to give the cash to individuals in the community, who then used Tong’s cash to write checks in their own names to the campaign for the U.S. congressional candidate Tong was supporting. Tong leveraged financial obligations and the implied loss of business opportunities to induce his bank manager and business associate to distribute cash in the community to be donated. The network of straw donors included dozens of conduits, including at least one foreign national who was not eligible to make donations to federal elections. Tong also directed his middlemen to conceal the scheme by instructing the straw donors not to deposit the cash; and he later directed one of the middlemen to withhold information from the FBI after he was interviewed.On August 31, 2017, a federal grand jury indicted Tong charging him with two counts of making and causing campaign contributions in the name of another, in violation of 52 U.S.C. §§ 30122 and 30109(d)(1)(D). The jury found Tong guilty of both counts.
As part of the sentence, Judge Tigar found that Tong obstructed justice when he told his middlemen not to deposit cash given to them. Judge Tigar also sentenced the defendant to a one-year period of supervised release and a $380,000 fine.
The FBI conducted the investigation. Trial Attorneys Amanda R. Vaughn and Rebecca G. Ross of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney S. Waqar Hasib of the Northern District of California prosecuted the case.
District Man Sentenced to 21 Years in Prison for Second-Degree Murder While Armed in Northeast WashingtonRead the Press Release
WASHINGTON – Donnell Mills, 30, of Washington, D.C., was sentenced today to a total of 21 years for second-degree murder while armed from a killing that took place in 2018 in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The defendant pled guilty in the Superior Court of the District of Columbia on October 22, 2019. He was sentenced by the Honorable Milton Lee. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on the morning of November 8, 2018, at approximately 9:29am, the decedent Jelani Mohammed was walking along the 1500 block of Benning Road NE, Washington, DC. The defendant and his co-defendant ran up behind the decedent and assaulted him while the defendant stabbed him one time with a knife belt puncturing the decedent’s right lung. Despite life-saving efforts, the decedent was pronounced dead at 9:59am. The defendant has been held without bond since his arrest on November 21, 2018.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant United States Attorney Katherine Earnest, Paralegal Specialists Stephanie Siegerist, Tameka Garcia, and Alesha Matthews; Victim/Witness Advocate Jennifer Clark.
Finally, they commended the work of Assistant U.S. Attorney Monica Trigoso, who investigated and prosecuted the case.
Desmet Man Pleads Guilty to Witness TamperingRead the Press Release
COEUR D’ALENE – Jay Christopher Matt, 38, of Desmet, Idaho, pleaded guilty to witness tampering, U.S. Attorney Bart M. Davis announced today. Sentencing for Matt is set for April 9, 2020, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
According to court records, Matt was initially charged in federal court with multiple counts related to a domestic violence incident that occurred in Desmet in August 2019. While pending trial, law enforcement officers discovered that Matt was contacting potential witnesses in the case, including the victim, and made efforts to persuade witnesses to not cooperate with the ongoing investigation, not show up to trial, or change their story in order to help Matt evade prosecution. Based on this conduct, Matt was charged with witness tampering and ultimately plead guilty.
Witness tampering is punishable by up to 20 years in federal prison, a fine of up to $250,000, and a term of supervised release of up to three years.
This case was investigated by Federal Bureau of Investigation, Coeur d’Alene Tribal Police Department, Benewah County Sheriff’s Office, and Bonner County Sheriff’s Office.
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Defendant Pleads Guilty in Brooklyn Federal Court to Attempted Obstruction of Justice MurderRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Luis Taveras pleaded guilty to attempt to commit obstruction of justice murder. The plea proceeding took place before United States District Judge Roslynn R. Mauskopf. When sentenced, Taveras faces up to 30 years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York Field Office, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Keith M. Corlett, Superintendent, New York State Police (NYSP), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“The defendant’s crime was not only an attack on an individual victim, it was also an attack on our system of justice,” stated United States Attorney Donoghue. “The message of this prosecution is clear – anyone who carries out such a crime, wherever committed, is not beyond the reach of U.S. law enforcement.”
“In his attempt to stop a man from providing information to the U.S. by leading a hitman right to him, Taveras now stands to serve time for his role in this conspiracy,” stated HSI Special Agent-in-Charge Fitzhugh “HSI’s partnerships domestically and internationally directly enhances our ability to arrest and prosecute those who seek to obstruct justice to hide from the truth.”
“In our investigations, it has become apparently clear that violence doesn’t travel far from drug trafficking,” stated DEA Special Agent-in-Charge Donovan. “I commend the men and women responsible for investigating and prosecuting Luis Alfredo Taveras who allegedly would stop at nothing to protect his drug distribution network.”
“This plea is proof that we will aggressively seek to hold criminals accountable for their actions. I commend the members of the task force for their efforts in this case, and their ongoing partnership to cut off the flow of illegal narcotics into our communities,” stated NYSP Superintendent Corlett.
“Our reach in this case stretched overseas, to bring to justice a criminal who put innocent people in danger in the name of illegal drug trafficking. It highlights the success our combined federal and local efforts have in continuing to eradicate violence and keep narcotics out of New York City neighborhoods,” stated NYPD Commissioner Shea.
As detailed in the superseding indictment, other court filings and the defendant’s statements at his guilty plea proceeding, Taveras participated in the attempted murder of an individual he knew from prior narcotics transactions and believed to be cooperating with U.S. law enforcement. On June 21, 2016, Tavares entered a restaurant in Cali, Colombia, and sat down at a table with the victim. Shortly thereafter, Taveras stood up, walked to the back of the restaurant, and watched as a co-conspirator entered the restaurant and fired eight shots – wounding the victim in the shoulder and arm, and also wounding two family members of the victim, including a five-year-old child. Taveras and his co-conspirator then fled. The three victims survived their wounds. The harrowing attack was captured on videotape in the restaurant.
At today’s guilty plea proceeding, Tavares admitted that he identified the intended target to his co-conspirator, and that he wanted to prevent that individual from providing information to U.S. law enforcement
On February 21, 2019, Taveras was arrested by federal law enforcement agents in Miami.
Taveras’s arrest and guilty plea are the results of an ongoing investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF), led by the United States Attorney’s Office for the Eastern District of New York and the DEA. 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’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Soumya Dayananda and Erin Reid are in charge of the prosecution.
The Defendant:
LUIS TAVERAS
Age: 30
Miami, FloridaE.D.N.Y. Docket No. 19-CR-180 (S-2) (RMM)
Convicted Buffalo Bank Robber Charged AgainRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Licata, 52, of Buffalo, NY, was charged by criminal complaint with bank robbery. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the complaint, on January 21, 2020, the defendant entered the M&T Bank branch on Grant Street in Buffalo, and passed a demand note to the victim-teller. The note threatened the teller if the teller did not give him cash. The victim-teller complied and gave Licata U.S. currency. Later that same day, law enforcement officers arrested the defendant and found him in possession of currency taken during the robbery.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained. In 2011, Licata also committed bank robbery in Buffalo, and was sentenced to serve 120 months in prison.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Columbus Pain Clinic and Owner Agree to Pay $650,000 to Resolve Allegations of Unnecessary ProceduresRead the Press Release
Comprehensive Pain Management Institute and its owner, Leon Margolin, M.D., have agreed to pay the United States $650,000 to resolve False Claims Act allegations that they knowingly billed Medicare for nerve conduction studies and alcohol/substance abuse assessments and interventions (SBIRT) that were medically unnecessary or not provided as billed, the Justice Department announced today. Margolin is a pain management physician in Columbus, Ohio.
“Billing Medicare for unnecessary services undermines the integrity of this important federal healthcare program and squanders taxpayer funds,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will continue to work with its law enforcement partners to protect Medicare and its beneficiaries.”
Nerve conduction studies are used to measure how fast an electrical impulse moves through a person’s nerve. Electromyography is the study and recording of electrical activity in a person’s muscles. This testing is invasive in that it requires needle electrode insertion and adjustment at multiple sites. Performed together, the tests identify the presence and location of diseases that damage nerves and muscles. When a nerve conduction study is performed alone, the results can often be misleading, and it is considered medically unnecessary, except in limited circumstances not present here. SBIRT is an early intervention targeting those with substance abuse to provide effective strategies prior to the need for more extensive treatment. The government alleged that Margolin and his clinic billed Medicare for nerve conduction studies for patients who did not need them and without performing electromyography and for alcohol and/or substance assessments that were not necessary because the patients had no history of drug or alcohol abuse or where the services were not provided as billed.
“Attempting to make a profit by knowingly submitting false claims to Medicare will cost you in the end,” said U.S. Attorney David M. DeVillers of the Southern Disitrict of Ohio. “The U.S. Attorney’s Office remains committed to pursuing improper billing practices by doctors and other medical providers, and will hold them to their obligation to treat Medicare beneficiaries in an ethical manner, and request reimbursement from Medicare in accordance with all applicable rules and regulations.”
The allegations resolved by today’s settlement were identified by a government investigation that arose out of a critical analysis of Medicare claims data. The government’s settlement in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Ohio, and the Department of Health and Human Services Office of Inspector General.
The claims asserted against this defendant are allegations only, and there has been no determination of liability.
Colerain Township man charged with sexually exploiting a minor while on probation for different sex crimeRead the Press Release
CINCINNATI – A local registered sex offender has been charged federally with sexually exploiting a minor and possessing child pornography.
Nicholas J. Veerkamp, 28, of Colerain Township, was arrested yesterday and appeared in federal court today for allegedly taking explicit photographs of a child while she slept.
According to the criminal complaint and supporting affidavit, Colerain Township police received information in November 2019 alleging Veerkamp possessed sexually explicit photos of a known female minor on his laptop.
Further investigation of his computer revealed photographs depicting Veerkamp exposing and photographing a 9-year-old child from Indiana while she slept. A forensic examination of the photographs completed by the Hamilton County Sheriff’s Office – Regional Electronic Crimes Investigation unit indicates the images were created in October 2017.
At the time, Veerkamp was on local probation. He was charged in 2015 with unlawful sexual conduct with a child. He pleaded guilty in that local case to sexual imposition and was required to register as a sex offender.According to the complaint, Veerkamp did not register the address at which he was residing in Colerain Township.
This case was investigated by the FBI’s Child Exploitation Task Force.
Sexually exploiting a minor is a federal crime punishable by 25 to 50 years in prison when a defendant has prior sexual crime convictions. Possessing child pornography carries a potential sentence of 10 to 20 years when a defendant has prior sexual crime convictions. Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Colerain Township Police Chief Mark C. Denney; and Hamilton County Sheriff Jim Neil announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Coeur d’Alene Man Pleads Guilty to Bank RobberyRead the Press Release
COEUR D’ALENE - Seth Patrick Getty, 24, of Coeur d’Alene, Idaho, pleaded guilty to bank robbery, U.S. Attorney Bart M. Davis announced today. Sentencing for Getty is set for May 5, 2020, before Chief U.S. District Court Judge David C. Nye.
According to court records, on March 12, 2018, Getty entered the Spokane Teachers Credit Union in Coeur d’Alene, intending to commit a robbery. Getty approached the teller and handed her a note, which read, “I have a gun. Hand over all 20’s 50’s 100’s or else. No Tricks.” The teller complied with the demand and after receiving some money, Getty ran from the bank. Officers quickly responded to the robbery. Based upon security footage from the bank and a local business, a tip from the community, and DMV vehicle records, investigators identified Getty as the perpetrator.
The charge of bank robbery is punishable by up to 20 years in federal prison, a maximum fine of $250,000, and a term of supervised release of at least five years.
This case was investigated by Federal Bureau of Investigation and Coeur d’Alene Police Department.
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Clarence Man Pleads Guilty to Gun Possession While Subject to A Domestic Violence OrderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael T. Blajszczak, 53, of Clarence, NY, pleaded guilty to possession of a firearm by a person subject to a domestic violence order of protection before U.S. Magistrate Judge Michael J. Roemer. The charge carry a maximum penalty of 10 years in prison and a 250,000 fine.
Assistant U.S. Attorney Emmanuel O. Ulubiyo who is handling the case, stated that a domestic violence order of protection was issued in Cheektowaga, NY, Town Court against the defendant on April 27, 2019, with an expiration date of October 27, 2019. As a result of the order, Blajszczak was prohibited from possessing any firearm during that time period. On May 2, 2019, the defendant knowingly possessed a .22 caliber rifle and 11 rounds of ammunition.
“Recently, Attorney General Barr announced the Project Guardian initiative, which is intended to strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners better to target offenders who use guns in crimes and those who try to buy or possess guns illegally,” stated U.S. Attorney Kennedy. “This prosecution is brought in furtherance of that initiative and provides an example of how the federal government will work side-by-side with local law enforcement to ensure that individuals who should not have guns will face federal prosecution if they seek to do so.”
The plea is the result of an investigation by Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Amherst Police Department, under the direction of Chief John Askey; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing will be scheduled at a later date.
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Chicago Area Drug Trafficker Convicted of Drug and Firearms Offenses in East Central IllinoisRead the Press Release
URBANA, Ill. – A federal jury deliberated less than two hours before returning guilty verdicts late yesterday evening, Jan. 23, 2020, against Deon Evans, 35, of Markham, Ill., for trafficking methamphetamine, carrying or possessing a firearm during a drug trafficking crime, and unlawful possession of a firearm by a felon. Evans had previously pleaded guilty to distributing heroin in the same case. Sentencing for Evans has been scheduled on May 22, 2020, at the U.S. Courthouse in Urbana.
The government presented evidence over three days of trial to establish that Evans traveled from his residence in Markham to Iroquois County on July 29, 2016, where he met a DEA confidential source at the Pilot Gas Station at the Gilman exit off Interstate 57, and distributed 48.4 grams of heroin to the source in exchange for $4,500. During the video and audio-recorded meeting, Evans also offered to sell ecstasy to the confidential source. On Aug. 24, 2016, Evans brought an associate and two loaded firearms to the same location to meet the same source. During this meeting, Evans sold the confidential source 124.3 grams of heroin for $11,250.
After selling the heroin on Aug. 24, Evans’ BMW was stopped by troopers with the Illinois State Police as it was heading north on Interstate 57. During the search of Evan’s car, troopers found the $11,250 in proceeds used to purchase the heroin hidden under the back seat of the BMW, along with the two fully loaded firearms, an extra magazine, and 173 ecstasy pills that contained methamphetamine. Trial evidence established that Evans obtained one of those firearms – a Glock, Model 30, .45 caliber, semi-automatic pistol – by trading a heroin user two grams of heroin and $100 in exchange for the gun, which had been stolen from Indiana. Evans’ DNA was later found on the bottom of the magazine of this gun. Additional trial evidence showed that Evans used two women – known as “straw purchasers” – to purchase guns for him in Birmingham, Alabama.
Evans remains in the custody of the U.S. Marshals Service. At sentencing, Evans faces statutory penalties of a minimum of five years and up to 40 years in prison for distribution of more than 100 grams of heroin (one count); and, for carrying or possessing a firearm during a drug trafficking crime (two counts), the penalty is a minimum of 25 years in prison, to be served consecutive to any other sentence imposed for the underlying drug trafficking crime. The maximum penalty for trafficking methamphetamine is up to 30 years in prison and for possession of firearm by a felon, up to 10 years in prison.
The case investigation was conducted by the Drug Enforcement Administration, Chicago Division, Springfield Resident Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Springfield, Ill., and Birmingham Field Offices; and, the Illinois State Police. Assistant U.S. Attorneys Eugene L. Miller and Rachel E. Ritzer represented the government at trial.
California Real Estate Developer Sentenced to 15 Months for Making Conduit Contributions in Two U.S. Congressional CampaignsRead the Press Release
Oakland-area real estate developer James Tong was sentenced to 15 months today for funneling tens of thousands of dollars of his own money through straw donors into two consecutive congressional campaigns for a member of the U.S. House of Representatives.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, United States Attorney David L. Anderson for the Northern District of California, and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office made the announcement.
Tong, 74, of Fremont, California, was sentenced by U.S. District Judge Jon S. Tigar of the Northern District of California.
A federal jury convicted Tong on Oct. 8, 2019, of two counts of making contributions to a federal campaign in the names of other individuals. According to the evidence presented at trial, in 2012 and 2013 Tong made $38,000 in conduit contributions to the initial and reelection campaigns of a candidate who was running for the U.S. House of Representatives. Tong provided envelopes of cash to his bank manager and another business associate and directed them to give the cash to individuals in the community, who then used Tong’s cash to write checks in their own names to the campaign for the U.S. congressional candidate Tong was supporting. Tong leveraged financial obligations and the implied loss of business opportunities to induce his bank manager and business associate to distribute cash in the community to be donated. The network of straw donors included dozens of conduits, including at least one foreign national who was not eligible to make donations to federal elections. Tong also directed his middlemen to conceal the scheme by instructing the straw donors not to deposit the cash; and he later directed one of the middlemen to withhold information from the FBI after he was interviewed.
On Aug. 31, 2017, a federal grand jury indicted Tong charging him with two counts of making and causing campaign contributions in the name of another, in violation of 52 U.S.C. §§ 30122 and 30109(d)(1)(D). The jury found Tong guilty of both counts.
As part of the sentence, Judge Tigar found that Tong obstructed justice when he told his middlemen to not deposit cash given to them. Judge Tigar also sentenced the defendant to a one-year period of supervised release and a $380,000 fine.
The FBI conducted the investigation. Trial Attorneys Amanda R. Vaughn and Rebecca G. Ross of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney S. Waqar Hasib of the Northern District of California prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Baltimore Heroin and Fentanyl Dealer Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Maximo Gondres-Medrano, age 35, of Baltimore, Maryland, to 10 years and one month (121 months) in federal prison, followed by 5 years of supervised release, on the federal charge of possession with intent to distribute more than 400 grams of fentanyl and heroin. Gondres-Medrano was convicted on October 9, 2019, after a three-day jury trial.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Commissioner Michael Harrison of the Baltimore Police Department.
“State and federal law enforcement and prosecutors in Baltimore City are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “I am grateful to Baltimore City State’s Attorney Marilyn Mosby, who shares my resolve and has cross-designated an Assistant State’s Attorney from her office, so that we are effectively using our resources to coordinate our efforts. We are committed to reducing overdose deaths from fentanyl and from all opioids.”
“The fentanyl this individual was dealing had potential to kill thousands of people. He chose to pursue profit over the lives and livelihoods of the people of Baltimore,” said John Eisert Homeland Security Investigations (HSI) special agent in charge of the Baltimore field office. “HSI is committed to ending the opioid scourge through continued collaboration with our state, local, and federal law enforcement partners.”
According to evidence presented at his three-day trial, on September 8, 2017, federal law enforcement prepared an operation to arrest and search Gondres-Medrano based on information that he would be transporting a large quantity of narcotics. The agents observed Gondres-Medrano leave his residence in the 800 block of Whitelock Avenue, in Northwest Baltimore, carrying a shoebox believed to contain narcotics, and then enter the passenger seat of a vehicle. The vehicle was stopped and law enforcement recovered the box, which contained a wrapped package of almost 793 grams of a mixture of heroin and fentanyl—a quantity sufficient to kill hundreds of thousands of people. During the investigation, federal law enforcement learned that on August 24, 2017, Gondres-Medrano received a shipment of suspected narcotics in a commercial mail shipping envelope from Mexico. Gondres-Medrano used his phone to record a series of instructional videos of himself opening the envelope while he demonstrated how the narcotics were successfully concealed within the envelope so that it would not be detected. In the videos, Gondres-Medrano filmed himself opening the envelope, peeling back a black film that masked the drugs that came from Mexico, and showing the suspected heroin/fentanyl to viewers.
In a recorded interview with law enforcement after his arrest, Gondres-Medrano admitted that the August 24, 2017 shipping envelope contained heroin, and provided information about his drug trafficking activity. Gondres-Medrano admitted that he had multiple sources of supply of heroin and ordered kilogram-sized quantities from them. Gondres-Medrano testified at trial and denied that he carried the shoebox of narcotics to the car on September 8, 2017, and asserted that he never looked inside the nearly 793 gram package to see that it contained narcotics. However, on cross examination, he admitted that he had taken delivery of the narcotics, which he knew to contain heroin, from one of his sources of supply in order to deliver it to another individual.
United States Attorney Robert K. Hur commended the FBI, HSI, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Jeffrey M. Hann, an Assistant State’s Attorney from the Office of the State’s Attorney for Baltimore City who is cross-designated to handle fentanyl and other drug cases in federal court, and Assistant U.S. Attorney Derek E. Hines, who prosecuted the case.
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Ashland Man Sentenced to Prison for Representative Payee FraudRead the Press Release
LEXINGTON, Ky. - An Ashland, Kentucky man, Michael Allen Artrip, 68, was sentenced in federal court on Friday, to 13 months in federal prison, by U.S. District Judge David Bunning, for unlawfully utilizing representative payee funds, which were received on behalf of individuals living in the Artrip Personal Care Home in Ashland.
Artrip admitted in his plea agreement that, in his role as part owner of Artrip Personal Care home, he received representative payee benefits from the Social Security Administration, on behalf of certain individuals living in his personal care home. According to the plea agreement, between November 2013 and November 2017, Artrip received representative payee funds for more than twenty individuals, totaling $241,142. Artrip admitted he spent a total of $97,806 of those representative payee funds on expenses unrelated to the use and benefit of the beneficiaries, including on his two rental properties and personal farm.
Artrip pled guilty in August 2019. As part of his plea agreement, Artrip agreed pay $97,806 in restitution to the victims. Pursuant to the plea agreement, Artrip also agreed to sell the personal care home and withdraw as the representative payee for any current Social Security beneficiaries.
Under federal law, Artrip must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Wayne R. Warren, Acting Special Agent in Charge, Atlanta Field Division of the Social Security Administration, Office of Inspector General, jointly made the announcement.
The investigation is part of the Department of Justice’s Elder Justice Initiative and was assisted by the Kentucky Elder Justice Task Force, which is comprised of federal, state, and local law enforcement and government agencies working together to protect the Commonwealth’s elderly population from fraud and abuse.
The investigation was directed by the SSA-OIG. The United States was represented by Assistant U.S. Attorney Kate K. Smith.
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.
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Ashland Man Pleads Guilty to Bank RobberyRead the Press Release
ASHLAND, Ky. - An Ashland man, Danny P. Chaffin Jr., 38, admitted to bank robbery in federal court Friday, before U.S. District Judge David L. Bunning.
According to Chaffin’s plea agreement, he admitted that on April 5, 2019, by intimidation, he took money from the Bluegrass Community Federal Credit Union in Ashland. Chaffin admitted to wearing a black mask and running into the Credit Union and demanding the teller to “Give me all the money now!” The teller complied, and Chaffin was able to take $12,506. Chaffin was arrested the following day in possession of $10,256 of the bank’s money.
Chaffin was indicted in October 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Chief Todd Kelley, Ashland Police Department; jointly announced the guilty plea.
The investigation was conducted by the FBI and Ashland Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Will Moynahan.
The investigation was conducted by the Ashland Police Department and the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Will Moynahan.
Chaffin is scheduled to be sentenced on April 13, 2020. He faces up to 20 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Armed Cocaine Dealer Sentenced to 15 YearsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Martell Norris, 37, Chicago, Illinois was sentenced yesterday by U.S. District Judge James D. Peterson to two concurrent 15-year prison terms for possessing cocaine base (crack cocaine) with intent to distribute and possessing a loaded firearm as a felon.
Norris pled guilty to these offenses on October 31, 2019. On May 16, 2019, he arranged to sell cocaine to one of his customers. Law enforcement learned of the planned sale, which was to occur on East Washington Avenue in Madison, and moved in to arrest Norris. Norris fled in a vehicle, triggering a high-speed chase, during which he nearly hit a police officer and caused a nearby bicyclist to crash. Shortly thereafter, Norris ran into an apartment building on South Blount Street where he was arrested.
At the South Blount Street location, Norris discarded a backpack he had been wearing down a trash chute that emptied in a ground level dumpster. In the dumpster, officers found Norris’s backpack which contained 125 grams of powder cocaine, 75 grams of crack cocaine, a digital scale, and a loaded, semiautomatic pistol.
While Norris was subject to a 15-year minimum mandatory based on his firearm possession after having been convicted of three violent felonies, Judge Peterson indicated that he would have provided Norris the same sentence even if no minimum mandatory applied. The facts at sentencing showed that Norris was a kilogram-level cocaine dealer and possessed additional high powered firearms. Judge Peterson explained that a lengthy prison term was necessary to protect the public from Norris because he used firearms in his drug dealing business and because, in selling large quantities of cocaine, he exploited addicts and drove them into poverty.
The charges against Norris were the result of an investigation conducted by the Drug Enforcement Administration, Wisconsin Department of Justice Division of Criminal Investigation, Dane County Narcotics Task Force, and Mauston Police Department. Assistant U.S. Attorney Timothy M. O’Shea handled this case.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative, the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Anchorage Man Sentenced for Drug Distribution and Money Laundering SchemeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man has been sentenced to federal prison for distributing methamphetamine, and for laundering drug proceeds through an auto loan for his Mercedes Benz.
Abel Cruz-Perez, 24, of Anchorage, was sentenced on Wednesday, Jan. 22, 2020, by Sr. U.S. District Judge Ralph R. Beistline to serve 33 months in prison, followed by five years of supervised release. In September 2018, Cruz-Perez pleaded guilty to one count of money laundering and one count of distribution of methamphetamine.
According to court documents, on Oct. 24, 2016, Cruz-Perez knowingly distributed 50 grams or more of methamphetamine to another individual, and previously, on Dec. 8, 2014, Cruz-Perez also attempted to possess cocaine with the intent to distribute it to another individual.
On March 25, 2017, Cruz-Perez purchased a 2013 Mercedes Benz C-Class from an automobile dealership in Anchorage. Cruz-Perez obtained financing from a federally insured credit union to purchase the vehicle, and on his application, he provided his employment at J&S Commercial Services as the source of his monthly income. Between April 7 and Aug. 8, 2017, Cruz-Perez paid off a portion of the vehicle loan, sometimes transferring money from his credit union account to pay off the loan. The source of the funds transferred from his account to his loan included cash, as well as postal money order deposits, into his credit union account.
The investigation revealed that the source of the funds used to pay off his vehicle loan in whole or in part came from the distribution of controlled substances. Specifically, Cruz-Perez provided false information on his loan application and used his personal credit union account to conceal the true source and nature of the funds used to pay the vehicle loan.
The Internal Revenue Service, Criminal Investigation (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service (USPIS) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Stephan Collins for the U.S. Attorney’s Office, District of Alaska.
Allahjuan Calhoun Imprisoned for Gun PossessionRead the Press Release
The United States Attorney for the District of Vermont announced that Allahjuan Calhoun, 29, of Yonkers, NY, was sentenced yesterday in United States District Court in Burlington to 26 months of imprisonment following his guilty plea to a charge of being a felon in possession of a firearm. U.S. District Judge Christina Reiss also ordered that Calhoun serve a two-year term of supervised release following completion of his prison term.
On January 31, 2019, law enforcement authorities arrested Calhoun on state charges of aggravated domestic assault and possessing a firearm as a prohibited person. The arrest took place after state and federal officers executed a search warrant at a residence in Barre where Calhoun had been staying. During the search, officers seized a .38 caliber revolver that had Calhoun’s DNA on it. The state dismissed its charges last May after a federal grand jury indicted Calhoun for being a felon in possession of the gun. Calhoun pled guilty to the federal charge in October. Calhoun is prohibited from possessing firearms because of a 2017 Vermont felony conviction for possessing heroin.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Barre Police Department.
Calhoun is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
4 Members of an Aiken County Drug Conspiracy Sentenced in Federal CourtRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Scott Dylan Green, Joseph Price Langford, Ricardo Dunbar, and James Clinton Gunter, Jr., all of Aiken County, were sentenced in federal court for their involvement in a methamphetamine and heroin conspiracy.
United States District Judge J. Michelle Childs of Columbia sentenced Green to 210 months in federal prison, followed by 5 years of court-ordered supervision. Langford was sentenced to 180 months in federal prison followed by 5 years of court-ordered supervision. Dunbar was sentenced to 120 months in federal prison followed by 8 years of court-ordered supervision. Gunter was sentenced to 84 months in federal prison followed by 4 years of court-ordered supervision. There is no parole in the federal system.
Evidence presented to the court when the defendants pleaded guilty established that the Drug Enforcement Administration initiated an investigation into the narcotics distribution activities of co-defendants Kenneth Evans and Eddie Brockington. Evans is an inmate in the South Carolina Department of Corrections and Brockington is an inmate in the Georgia Department of Corrections. Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and/or heroin for Evans and Brockington. Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state. Brockington and Evans have pleaded guilty to the conspiracy charge against them and are awaiting sentencing.
The case was investigated by agents of the Drug Enforcement Administration and the Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
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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.
23 January 2020
Waterbury Man Sentenced to 5 Years in Federal Prison for Supplying Heroin and Crack to Street GangRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CYRUS BRADFORD, 43, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by four years of supervised release, for trafficking heroin and crack cocaine
According to court documents and statements made in court, in the fall of 2017, the FBI, ATF and Waterbury Police Department began an investigation into drug trafficking by suspected members of “Addicted to Money,” also known as “ATM,” a violent street gang operating in Waterbury. The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of heroin and crack, revealed that Bradford supplied distribution quantities of narcotics to members and associates of ATM.
The investigation resulted in federal charges against Bradford and 10 other individuals.
Bradford has been detained since his arrest on July 17, 2018. On July 23, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and 28 grams or more of cocaine base (“crack”).
This matter is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Waterbury Police Department’s Gang Task Force. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Natasha M. Freismuth.
Washington Parish Man Sentenced to Eleven Years for Gun and Heroin OffensesRead the Press Release
NEW ORLEANS, La. – U.S. Attorney Peter G. Strasser announced that ALEX MILLER, age 37, from Washington Parish, Louisiana, was sentenced to 130 months in prison in connection with his convictions for heroin and gun charges.
On July 23, 2019, MILLER pled guilty to conspiring to distribute 100 grams or more of heroin, two counts of possessing a firearm despite being a felon, and one count of possessing a firearm in furtherance of drug trafficking.
For the heroin conspiracy charge and the two felon-in-possession charges, Judge Wendy B. Vitter sentenced MILLER to (5) five years (60 months) in prison. For the charge of possessing a firearm in furtherance of drug trafficking, Judge Vitter sentenced MILLER to 70 months in prison, consecutive to his sentences for the other counts. This resulted in a total sentence of 130 months in prison. MILLER’s term of imprisonment will be followed by (4) four years of supervised release.
MILLER’s codefendant, LARRY DAVIS, pled guilty on August 6, 2019 to the same heroin conspiracy charge and a single count of possessing a firearm as a felon. Judge Wendy B. Vitter set sentencing for DAVIS for March 10, 2020.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Washington Parish Sheriff’s Office Drug Task Force, and the Bogalusa Police Department. Assistant United States Attorneys Nicholas D. Moses and André Jones are in charge of the prosecution.
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.
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Wallingford Man Sentenced to 2 Years in Federal Prison for Bankruptcy FraudRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOEL C. RILEY, 48, of Wallingford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by three years of supervised release, for bankruptcy fraud.
According to court documents and statements made in court, between approximately April 2015 and July 2016, Riley fraudulently applied for and obtained loans and lines of credit in the name of another individual (“the victim”), without the victim’s knowledge or permission, using her name and personal information. By December 2016, the outstanding debt on those loans was approximately $211,142, and Riley did not have the intent or the ability to repay the debt.
On December 15, 2016, Riley visited an attorney claiming that he had power of attorney for the victim. Riley informed the attorney that the victim was ill and that Riley wanted to file a bankruptcy petition on her behalf. The attorney told Riley that the attorney needed to meet with the victim to confirm her identity.
After several delays, on June 6, 2017, Riley and a woman claiming to be the victim (“the imposter”) met with the attorney at his office. Riley had recruited the imposter to impersonate the victim and provided the imposter with the victim’s Connecticut driver’s license, which Riley had taken from the victim without her knowledge or permission. During the meeting with the attorney, the imposter presented the driver’s license as identification. The parties subsequently reviewed and signed a Chapter 7 bankruptcy petition, which the attorney filed with the U.S. Bankruptcy Court for the District of Connecticut. The petition listed unsecured debts of approximately $277,000.
Later in June 2017, the victim tried to use a department store credit card and learned that a bankruptcy petition had been filed in her name, without her knowledge and authorization. On June 28, 2017, the victim met with the attorney and stated that she did not file for bankruptcy. That same day, Riley sent an email to the attorney stating “I clearly owe you more than an apology and clearly have not been in the right frame of mind. I need to make this right. And I know that exposes myself. You have done so much for me and I betrayed that. Please let me know what I can do to resolve this.” The attorney then notified the bankruptcy court.
The victim testified in bankruptcy court that her identification had been missing from her wallet when the petition was filed. She further testified that, other than a student loan, all of the other unsecured debt listed in the bankruptcy petition was not her debt and that Riley had impersonated her in the past in order to obtain credit. On July 21, 2017, the bankruptcy court dismissed the false bankruptcy petition in the victim’s name.
At the time he fraudulently obtained the loans, Riley was employed by the Connecticut Judicial Branch as a human resources manager.
Riley was arrested on a federal criminal complaint on May 7, 2018.
Judge Thompson ordered Riley to pay restitution of $211,142 to the victim financial institutions.
In addition to this criminal conduct, the investigation revealed that in at least 19 separate instances over more than a decade, Riley obtained or attempted to obtain loans from financial institutions using the identities of family members without their knowledge or permission.
Riley, who is released on a $100,000 bond, is required to report to prison on March 25.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
U.S. Postal Service Contractor Arrested for TheftRead the Press Release
SAN FRANCISCO – Christopher Ernest Rocha was charged in a criminal complaint with theft of public money, announced United States Attorney David L. Anderson and Postal Inspector in Charge Rafael E. Nuñez, United States Postal Inspection Service. The criminal complaint was signed following Rocha’s arrest on January 21, 2020, and his appearance the next day before the Honorable Sallie Kim, U.S. Magistrate Judge.
According to an affidavit filed by a postal inspector of the U.S. Postal Inspection Service, Rocha, 50, of Fresno, Calif., was employed as a driver by an independent trucking company that supplies transportation services to the U.S. Postal Service (“USPS”). Rocha transported U.S. mail, as well as money and other USPS property, from post offices in Sonoma County to a USPS processing and distribution center in San Francisco.
As stated in the affidavit, on January 21, 2020, Rocha took custody of and signed for a mail bag from the Healdsburg Post Office. Surveillance showed Rocha carry what appeared to be the same bag to the cab of his truck before leaving Healdsburg. Rocha then drove to the Santa Rosa Main Post Office, where surveillance indicated that he disposed of a torn USPS remittance pouch used to store cash for transport. From Santa Rosa, Rocha drove to San Francisco, where he was arrested. A search of the cab of Rocha’s truck revealed a stack of over $5,000 in cash. Serial numbers on the bills matched those placed in the mail bag at the Healdsburg Post Office.
The affidavit suggests that Rocha has stolen the cash inside of mail bags on a number of occasions and that he used the money to pay bills, buy drugs, and buy a Corvette.
Rocha is charged with one count of theft of public money, in violation of 18 U.S.C. § 641.
Rocha made his initial appearance this morning in federal court before Magistrate Judge Sallie Kim. Magistrate Judge Kim released Rocha on a $50,000 bond and scheduled his next court appearance for February 11, 2020, for preliminary hearing or arraignment.
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted on the charge in the criminal complaint, the defendant would face a maximum sentence of 10 years’ imprisonment, three (3) years’ supervised release, and a fine of $25,000, plus restitution if appropriate. However, any sentence following conviction would only be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Kevin Rubino is prosecuting the case. The prosecution is the result of an investigation by the U.S. Postal Inspection Service.
U.S. Attorney, COPS Program Honor Rhode Island Law EnforcementRead the Press Release
PROVIDENCE – More than forty local, state, and federal law enforcement officers and agents were honored today by United States Attorney Aaron L. Weisman and prosecutors from the United States Attorney’s Office for their investigative work on several large-scale, highly impactful criminal and civil cases charged and prosecuted in federal court in Providence.
Agents from six federal and thirteen local and state law enforcement agencies were honored for their extraordinary efforts, resulting in successful prosecutions and convictions in virtually every area of federal enforcement, from gang and gun violence, drug trafficking, and those who prey on minors, to white collar financial offenses and health care fraud schemes involving fraudulent billing and accepting kickbacks in exchange for prescribing highly addictive opioid drugs.
In recognizing forty-five law enforcement officers and agents at today’s ceremony, United States Attorney Aaron L. Weisman told the honorees, “Our office cannot do its job without the dedication, commitment, energy, and grit that each and every member of law enforcement brings to their profession day in and day out. And for that, we owe each and every member of law enforcement our gratitude and our thanks.”
Additionally, at today’s United States Attorney’s Law Enforcement Awards Ceremony, the Department of Justice’s Community Oriented Policing Services (COPS) program presented Rhode Island a certificate signifying the law enforcement community’s commitment to protecting the safety and lives of all law enforcement across the state, by establishing a Blue Alert Plan.
The certificate, presented to Rhode Island State Police Colonel and Rhode Island Public Safety Commissioner James Manni, acknowledges Rhode Island’s participation in the National Blue Alert Network, along with 34 other states.
Blue alerts provide for rapid dissemination of information to law enforcement, the media, and the public about violent offenders who have killed, seriously injured, or pose an imminent threat to law enforcement. Blue Alerts can also be used to help locate a member of law enforcement missing in connection with official duties.
“There could scarcely be a more worthwhile endeavor than protecting Rhode Island law enforcement from violent criminals who have done or would do serious harm to them. In joining 34 other states in providing for the rapid dissemination of information to law-enforcement agencies, media, and the public about violent offenders who have killed, seriously injured, or pose an imminent and credible threat to law enforcement, Rhode Island continues to demonstrate its commitment to the vital mission served by our law enforcers,” said US Attorney Aaron L. Weisman.
"As a law enforcement executive with over 50 years of experience in this noble profession, it’s an honor and a privilege to administer the National Blue Alert Network,” said COPS Office Director Phil Keith. “Violent attacks on law enforcement officers constitute an assault on the American way of life and erode the actual and perceived safety of affected communities and our nation as a whole. The COPS Office and the entire Department of Justice applaud the state of Rhode Island for their commitment to law enforcement by affording this vital tool to its law enforcement officers and communities they serve.”
There are currently 35 states with Blue Alert plans. The COPS Office provides resources and technical assistance to states, territories, law enforcement agencies, and tribes seeking to establish or enhance Blue Alert plans; including, voluntary activation guidelines, examples of legislation, policies, and forms gathered from around the nation in a central Blue Alert data repository.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov
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U.S. Attorney's Office personnel recognized for outstanding performanceRead the Press Release
DAYTON – David M. DeVillers, U.S. Attorney for the Southern District of Ohio, honored the work of 11 district employees by presenting them with the 2019 U.S. Attorney’s Awards for Outstanding Performance.
“These individuals continually demonstrate the willingness to go above and beyond the call of duty in order to bring justice on behalf of the people of southern Ohio,” said U.S. Attorney DeVillers.
Those receiving recognition are:
- Brent G. Tabacchi for Outstanding Performance by an Assistant U.S. Attorney.
Mr. Tabacchi carried the largest caseload in the Dayton office in 2019, spanning almost every substantive area of federal criminal law. In 2019, he was responsible for federal charges against 60 defendants in 34 cases, including Dayton City Commissioner Joey Williams, who pleaded guilty to public corruption, and against 19 defendants in a large drug trafficking investigation. Tabacchi also helped bring federal charges that could carry the death penalty against three defendants in connection with the murder of DEA Task Force Officer Jorge Del Rio. Tabacchi’s 2019 contributions to the community in the enforcement of drug laws led to the seizure of more than 50 kilograms of fentanyl, heroin or mixtures thereof. In addition, he presented arguments before the U.S. Sixth Circuit Court of Appeals, and won a jury conviction of a defendant on weapons charges who claimed that the DEA authorized him to commit non-violent offenses.
- Appellate Chief Mary Beth Young, Assistant U.S. Attorney Kimberly Robinson, and Paralegal Laura Griffin for Outstanding Performance by a Litigative Team.
This appellate team is recognized for its extraordinary handling of the complex appeals stemming from the Short North Posse criminal trials. The team briefed and argued two separate appeals, ultimately resulting in the affirmance of the vast majority of the convictions and life sentences in the case. The appeals were lengthy and contentious. The five defendants tried jointly filed a 200-page consolidated opening brief. Ms. Young led the District’s response, with Ms. Robinson serving as co-counsel and Ms. Griffin providing paralegal assistance, which included pouring over extensive trial evidence and listening to voluminous recording. Ms. Robinson handled the lead defendant’s separate appeal, stemming from his separate trial. The court held oral arguments in both appeals, including a lengthy oral argument on the consolidated appeal involving five separate defense counsel arguing against Ms. Young, before ruling in the government’s favor.
- AUSAs Ken Affeldt, Maritsa Flaherty, and Tim Oakley, and Paralegal Kelly Terry for Outstanding Contribution to the Mission of the U.S. Attorney’s Office.
The four individuals are recognized for their extraordinary work in 2019 in combatting the opioid epidemic in Ohio. During this past year, members of this group brought to indictment the Miami-Luken case, a large and complex prosecution of a significant opioid pill distributor, the company’s executives and certain pharmacists. Ms. Flaherty and Mr. Affeldt successfully tried the Bernard Oppong case and handled sentencing in the related Bryant and Kusi cases, all the while ably assisted by Ms. Terry. They accomplished this, while simultaneously leading the health care fraud task force and handling health care fraud, other pill mill and related cases.
- Megan Black for Outstanding Performance in Administration.
As part of a District evaluation, the District underwent a full Human Resources Audit. Ms. Black led the District’s preparation for the audit, responding to the data and other requests of the auditors, and otherwise addressing the needs of audit. The auditors found no “red flags,” which is significant and reflective of her extraordinary work in the HR field, and the processes she and the Administration team have in place to ensure compliance with the numerous HR-related requirements. At the same time, she “on-boarded” an extraordinary number of new employees.
- Krista Zeller for Outstanding Performance in Legal Support.
In addition to fulfilling her victim-witness functions with skill and expertise, Ms. Zeller absorbed additional duties, including criminal paralegal functions and administrative tasks. Her willingness to go above and beyond to assist the Cincinnati office during a staffing shortage in 2019 did not go unnoticed and should be commended.
- Michelle Gable for Outstanding Performance by a Contract Employee.
The Southern District of Ohio typically has at least two asset forfeiture contract employees in the Columbus office. For much of 2019, Ms. Gable was the only asset forfeiture contractor there. She has become a “go-to” resource for the attorneys and other personnel in Columbus on forfeiture matters, assisting with meeting the asset forfeiture needs of the Columbus office with skill and enthusiasm.
The U.S. Attorney’s Office serves the approximately 5.5 million residents of 48 counties in Ohio and maintains offices in Columbus, Cincinnati and Dayton. The award ceremony occurred in Dayton.
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Two Men Indicted for Conspiracy to Traffic Methamphetamine and Fentanyl in Tulare CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Saul Giovanni Solis Ontiveros, 24, of Pixley, and Eduardo Garcia, 20, of McFarland, charging them with conspiring to distribute over 160 pounds of methamphetamine and approximately 300 fentanyl pills, U.S. Attorney McGregor W. Scott announced.
According to court documents, the defendants were stopped in a routine traffic stop in Pixley. Through the rear windows of the car, officers saw two buckets with a white crystalline substance on the rim of the lids. Eventually, further searches of the car and two residences located over 160 pounds of methamphetamine, over 200 pounds of liquid methamphetamine, and approximately 300 pills containing fentanyl. Inside both residences law enforcement officers found active methamphetamine conversion laboratories.
This case is the product of an investigation by the Drug Enforcement Administration and the Tulare County Sheriff’s Office with assistance from the California Department of Justice. Assistant U.S. Attorney Katherine Schuh is prosecuting the case.
If convicted, Ontiveros and Garcia face a mandatory minimum sentence of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Twenty-Two Time Convicted Felon Charged with Being A Felon in Possession of A FirearmRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Michler Gabriel (38, Tampa) with being a convicted felon in possession of a firearm. If convicted, Gabriel faces a mandatory minimum sentence of 15 years, and up to life, in federal prison. The indictment also notifies Gabriel that the United States intends to forfeit the firearm and ammunition used in the offense.
According to the indictment, on September 26, 2019, Gabriel was found to be in possession of a firearm and several rounds of ammunition. Gabriel was previously convicted of 22 felonies, including drug and firearm offenses, child abuse, and forgery. As a previous convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge 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 was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Callan Albritton.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Troy Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Kurtis Walter, age 26, of Troy, New York, pled guilty yesterday to distributing and receiving child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Walter admitted that, in November 2017, he used a laptop computer equipped with an Internet-based instant messaging and file-sharing application to distribute child pornography. He also admitted to using the same laptop to search for and download child pornography, which he accessed through sites located on the Internet’s “dark web.” Walter’s laptop and external devices contained approximately 98 video files and 2,349 image files depicting child pornography.
Sentencing is scheduled for May 26, 2020 before United States Judge Mae A. D’Agostino.
Walter faces a minimum term of imprisonment of 5 years, and a maximum term of imprisonment of 20 years. The Court is also required to impose a term of supervised release of between 5 years and life, and Baker will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
This case was investigated by the FBI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three Men Indicted for Murder-For-Hire Conspiracy Resulting in Martin Luther King, Jr. Observance Day MurdersRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of a superseding indictment charging Kermon Williams, a/k/a “The General” (42, St. Petersburg), James Higgs, Jr., a/k/a “Hammer” (40, St. Petersburg), and Jhaphre Higgs, a/k/a “Pre,” (35, St. Petersburg) in relation to the murders of Roger Lee Ford Jr. (42), and Tywan Jeremiah Armstrong (39), which occurred in St. Petersburg on January 21, 2019, on Martin Luther King, Jr. Observance Day. The superseding indictment also notifies the defendants that the United States intends to forfeit firearms and ammunition, which are alleged to be involved in certain charged offenses. Attached is a chart summarizing the charges and potential penalties relating to each defendant.
According to the superseding indictment, Williams asked Jhaphre and James Higgs, Jr. to kill Armstrong, who Williams saw as a threat to his drug business. Williams offered to pay them with drugs and money. The indictment alleges that the Higgses shot and attempted to kill Armstrong in September 2018, but Armstrong survived. Then on January 21, 2019, on Martin Luther King, Jr. Observance Day, the Higgses shot and killed Tywan Armstrong and Roger Ford, and injured a third victim. The indictment further alleges that both James and Jhaphre Higgs were convicted felons, who unlawfully possessed the firearms and ammunition used in the murders and that Jhpahre Higgs possessed additional firearms and ammunition on other dates.
An indictment is merely a formal charge 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 was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. Both agencies have offered a $10,000 reward for information leading to the conviction of the persons responsible for the homicides. This case will be prosecuted by Assistant United States Attorney Natalie Hirt Adams.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Tampa Man Sentenced for Selling CocaineRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that U.S. District Judge William F. Jung today sentenced Manuel Alfonso Munoz (48, Tampa) to 9 years and 3 months in federal prison for selling cocaine.
Munoz had pleaded guilty on February 27, 2019.
According to court documents, Munoz sold cocaine to a confidential informant on six occasions. The total amount of cocaine sold by Munoz was over 400 grams.
This case was investigated by the Drug Enforcement Administration and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
Tampa Man Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Marqui M. Newton (28, Tampa) to 3 years and 10 months in federal prison for being a felon in possession of a firearm. The court also ordered Newton to forfeit the firearm and ammunition used in the offense.
Newton had pleaded guilty on October 18, 2019.
According to court documents, Newton was a passenger in a vehicle that fled from officers during a traffic stop. After the car eventually came to a stop, Newton got out of the car and fled on foot behind a building. Officers in a police helicopter observed Newton drop something, and when officers on the ground went to investigate, they discovered a loaded gun with Newton’s fingerprints on it.
As a previously convicted felon, Newton is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Smith County Landscaper Guilty of Failing to Pay Payroll TaxesRead the Press Release
TYLER, Texas – A 46-year-old Whitehouse, Texas business owner has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Miles Brosang pleaded guilty to one criminal count of willful failure to collect or pay over tax before U.S. Magistrate Judge K. Nicole Mitchell on Jan. 22, 2020.
According to information presented in court, Brosang was the only director, sole shareholder, and general manager of Brosang’s Landscaping, Inc. As such, he exercised control over every aspect of the business affairs of Brosang’s Landscaping, Inc., including approving all payments by the company and controlling all of the bank accounts of Brosang’s Landscaping, Inc.
During the third quarter of 2015, between approximately July 1, 2015, and September 30, 2015, Brosang’s Landscaping, Inc. withheld payroll taxes from its employees’ paychecks, including federal income taxes, and Medicare and social security taxes (often referred to as Federal Insurance Contribution Act or “FICA” taxes.) Brosang knew that Brosang’s Landscaping, Inc. was required to make deposits of the payroll taxes to the Internal Revenue Service on a periodic basis.
In his capacity with Brosang’s Landscaping, Inc., Brosang was a “responsible person,” that is, he had the corporate responsibility to collect, truthfully account for, and pay over the payroll taxes for Brosang’s Landscaping, Inc. During the third quarter of 2015, Brosang’s Landscaping, Inc. failed to make required payments to the Internal Revenue Service. As a responsible person, Brosang knew that Brosang’s Landscaping, Inc. had a duty to pay, and the ability to make, the required payments, and he intentionally and willfully failed to make and pay over, or have Brosang’s Landscaping, Inc. make and pay over, the payments. The amount of taxes that should have been, and was not, paid over for the third quarter of 2015 is $49,704.47. The total of payroll taxes that should have been, and was not, paid over is $229,552.
“Business owners need to understand the importance of their obligations in the withholding of payroll taxes,” said United States Attorney Joseph D. Brown. “They hold those taxes in trust for the employee and the government and there are criminal penalties for those who divert those funds for other uses.”
Under federal statutes, Brosang faces up to five years 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 IRS – Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.
San Mateo Man Charged with Making False Statements in Application for PassportRead the Press Release
SAN FRANCISCO – A San Francisco grand jury returned an indictment charging Mustapha Traore, aka Olivier Adella, with making false statements in an application for a passport, announced United States Attorney David L. Anderson; U.S. State Department, Diplomatic Security Service (DSS), San Francisco Field Office Special Agent in Charge Matthew Perlman; and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King.
Today’s indictment follows Traore’s arrest by federal authorities on a criminal complaint on February 10, 2020. According to the complaint, Traore, of Burlingame, Calif., made false statements about his true name and birthplace in his December 2011 application for a U.S. passport. The complaint alleges that in February 2002, Traore used a fake French passport with the name Olivier Adella to enter the United States.
Further, the criminal complaint alleges that after Traore used the fake passport to enter the United States, he then used it to obtain immigration status and eventually a naturalization certificate. Then, after obtaining a California driver’s license under the name Olivier Adella, Traore applied for and obtained a U.S. passport. In May 2016, Troare signed an application to renew his passport and again provided false information. In sum, the complaint and indictment charge Traore with knowingly making false statements in an application for a passport with the intent to induce and secure the issuance of a passport, in violation of 18 U.S.C. § 1542.
Traore made his initial federal court appearance on January 13, 2020. After a detention hearing on January 15, 2020, U.S. Magistrate Judge Sallie Kim ordered that he be detained as a serious risk of flight. Magistrate Judge Kim has scheduled Traore’s next appearance for tomorrow morning at 10:30 for arraignment on the indictment.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the charge, Traore faces a maximum statutory sentence of 10 years in prison and a $250,000 fine. However, any sentence following conviction would 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 United States Attorney Daniel Pastor is prosecuting the case with assistance from Marina Ponomarchuk. The prosecution is the result of an investigation by the DSS and HSI.
San Diego’s Arch Health Pays $2.9 Million to Resolve False Claims Act AllegationsRead the Press Release
NEWS RELEASE SUMMARY – January 23, 2020
SAN DIEGO – Arch Health Partners, Inc. (“Arch Health”) has agreed to pay the United States $2,910,370 to resolve allegations that it violated the False Claims Act by submitting false claims to Medicare. Arch Health is a San Diego-based medical organization that contracts with physician groups to provide care through the Palomar Health system.
The United States alleged that Arch Health violated the False Claims Act by submitting claims for federal reimbursement for medical evaluation and management services absent sufficient documentation regarding the nature and complexity of the services provided. Those particular allegations were originally self-disclosed by Arch Health and were also brought in a lawsuit filed by a former employee of Arch Health, Catherine Jones, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of fraud against the government to bring suit on behalf of the government and to share in any recovery. Ms. Jones will receive $183,830 of the settlement proceeds. The United States also alleged, based on certain self-disclosures by Arch Health, that it paid compensation to referring physicians and physician groups that was above fair market value in violation of the Anti-Kickback Act, the Stark Statute, and, by extension, the False Claims Act.
“Improper billing practices and unlawful financial arrangements with referring health care providers present serious program integrity concerns,” said United States Attorney Robert S. Brewer, Jr. “This civil settlement confirms our commitment to civil health care fraud enforcement as a key component of the mission of our office. We also commend the whistleblower for coming forward and working with our investigators.”
“When companies falsely claim payment for services, taxpayers and government health programs are both victimized,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to hold accountable those who would harm these programs.”
“This $2.9 million dollar settlement demonstrates how these violations have a significant and direct economic impact on the health care industry,” said FBI Special Agent-in-Charge Scott Brunner. “Our priority is to protect consumers and hold accountable those in the healthcare system who misuse government health programs.”
The investigation was conducted by the United States Attorney’s Office for the Southern District of California, the U.S. Department of Health and Human Services’ Office of Inspector General, and the Federal Bureau of Investigation. U.S. Attorney Brewer commended the excellent work by AUSA Glen Dorgan of the office’s Civil Division, whose diligence was a major factor in resolving this matter.
This case is captioned United States ex rel. Jones v. Arch Health Partners, Inc., et al., Case No. 3:17-cv-0090-MMA-BLM, and the matter was handled by Assistant U.S. Attorney Glen F. Dorgan of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office.
Russian National Pleads Guilty to Running Online Criminal MarketplaceRead the Press Release
A Russian national pleaded guilty today to charges related to his operation of two websites devoted to the facilitation of payment card fraud, computer hacking and other crimes.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Special Agent in Charge Matthew S. Miller of the U.S. Secret Service’s Washington Field Office made the announcement.
Aleksei Burkov, 29, pleaded guilty before Senior U.S. District Judge T.S. Ellis III to access device fraud and conspiracy to commit computer intrusion, identity theft, wire and access device fraud and money laundering. Sentencing is scheduled for May 8, 2020.
According to court documents, Burkov ran a website called “Cardplanet” that sold payment card numbers (e.g., debit and credit cards) that had been stolen primarily through computer intrusions. Many of the cards offered for sale belonged to U.S. citizens. The stolen credit card data sold on Burkov’s site has resulted in over $20 million in fraudulent purchases made on U.S. credit cards.
Additionally, Burkov ran another website that served as an invite-only club where elite cybercriminals could advertise stolen goods, such as personal identifying information and malicious software, and criminal services, such as money laundering and hacking services. To obtain membership in Burkov’s cybercrime forum, prospective members needed three existing members to “vouch” for their good reputation among cybercriminals and to provide a sum of money, normally $5,000, as insurance. These measures were designed to keep law enforcement from accessing Burkov’s cybercrime forum and to ensure that members of the forum honored any deals made while conducting business on the forum.
Burkov was arrested at Ben-Gurion airport near Tel Aviv in December 2015. An Israeli district court approved his extradition in 2017. He was extradited to the United States from Israel on Nov. 11, 2019, after appeals to the Israeli Supreme Court and the Israeli High Court of Justice were denied.
Trial Attorney Laura Fong of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kellen S. Dwyer and Alexander P. Berrang of the Eastern District of Virginia are prosecuting the case.
The Office of International Affairs of the Justice Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Israel.
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.
Russian National Pleads Guilty to Running Online Criminal MarketplaceRead the Press Release
ALEXANDRIA, Va. – A Russian national pleaded guilty today to charges related to his operation of two websites devoted to the facilitation of payment card fraud, computer hacking, and other crimes.
According to court documents, Aleksei Burkov, 29, ran a website called “Cardplanet” that sold payment card numbers (e.g., debit and credit cards) that had been stolen primarily through computer intrusions. Many of the cards offered for sale belonged to United States citizens. The stolen credit card data sold on Burkov’s site has resulted in over $20 million in fraudulent purchases made on United States credit cards.
Additionally, Burkov ran another website that served as an invite-only club where elite cybercriminals could advertise stolen goods, such as personal identifying information and malicious software, and criminal services, such as money laundering and hacking services. To obtain membership in Burkov’s cybercrime forum, prospective members needed three existing members to “vouch” for their good reputation among cybercriminals and to provide a sum of money, normally $5,000, as insurance. These measures were designed to keep law enforcement from accessing Burkov’s cybercrime forum and to ensure that members of the forum honored any deals made while conducting business on the forum.
Burkov was arrested at Ben-Gurion airport near Tel Aviv in December 2015. An Israeli district court approved his extradition in 2017. He was extradited to the United States from Israel on Nov. 11, 2019, after appeals to the Israeli Supreme Court and the Israeli High Court of Justice were denied.
Burkov pleaded guilty to access device fraud and conspiracy to commit computer intrusion, identity theft, wire and access device fraud, and money laundering, and faces a maximum sentence of fifteen years in prison when sentenced on May 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; and Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Kellen S. Dwyer and Alexander P. Berrang are prosecuting the case, along with Trial Attorney Laura Fong of the Criminal Division’s Computer Crime and Intellectual Property Section.
The Office of International Affairs of the Justice Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Israel.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-245.
Russian Brothers Sentenced to 12 Years in Prison for Running Massive Identity Theft and Credit Card Fraud Factory from their Fort Lauderdale ResidenceRead the Press Release
Igor Grushko, 33, and Denis Grushko, 29, Russian nationals who were residing in Fort Lauderdale, Florida were sentenced yesterday to 145 months in prison, after having been previously convicted by a South Florida federal jury of aggravated identity theft, conspiracy to possess and use stolen credit cards, production of fraudulent credit cards, and production of counterfeit identification documents.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Brian Swain, Special Agent in Charge of the U.S. Secret Service’s (USSS) Miami Field Office, made the announcement.
According to the trial record, brothers Igor and Denis Grushko were running a sophisticated credit card fraud factory out of their Fort Lauderdale residence. When USSS agents executed a search warrant at their home, law enforcement discovered rubber molds and plastic resin which the Grushkos used to manufacture their own credit card skimming devices; dozens of skimming devices, ATM overlays, pinhole cameras, and similar devices used to steal credit and debit card information; a credit card embosser, encoder, and magnetic stripe reader used to create counterfeit cards; sheets of Maryland state identification holograms and an identification card printer which was used to create fake identification cards (ID’s); hundreds of fraudulent credit cards and fake ID’s; and thousands of unauthorized credit and debit card numbers on the Grushkos’ computers.
Law enforcement also discovered several tutorials appearing to instruct the Grushko brothers how to commit identity theft and credit card fraud. For example, one document in their possession read, “What is carding? Well, carding is the art of credit card fraud. The motive is usually tied to money. Handling a $9,000 plasma TV knowing that you didn’t pay one cent for it is definitely a rush. But real carders seem to card for something more. The rush that the federalles could bust down your door at any minute? The defiance of knowing that every day that you are walking among the public is another day that you have gotten away with a federal crime?”
Evidence at trial further established that the Grushko brothers conspired with Vadym Vozniuk to use the personal identifying information of hundreds of unsuspecting victims across South Florida, including victims’ credit card numbers, names, addresses, and phone numbers, to fraudulently obtain over $100,000 in high-end electronics from local Target retail stores.
Vozniuk, 24, a Ukrainian national who was also residing in Fort Lauderdale, was sentenced to 27 months in prison, after having been convicted at trial of conspiracy to possess and use stolen credit cards. The three defendants were sentenced by U.S. District Judge Rodney Smith in Fort Lauderdale (Case No. 18cr20859).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS’s Miami Field Office in this matter. She also thanked Target’s Special Investigations team for their assistance. This case was prosecuted by Assistant U.S. Attorneys Michael B. Homer, Kiran Bhat, and Jonathan Stratton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Rochester Man Going to Prison for over 7 Years on Gun Trafficking and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Carlos Cruz-Garcia, 37, of Rochester, NY, who was convicted of conspiring to distribute, and possessing with intent to distribute, cocaine, and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to serve 87 months in prison U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Katelyn Hartford, who is handling the case, stated that between 2015 and September 27, 2018, the defendant conspired with others to distribute cocaine, shipped in the mail from Puerto Rico, in the Rochester area.
On September 27, 2018, Cruz-Garcia received a package containing approximately 500 grams of cocaine at his place of employment, “The Landing of Brighton,” on Westfall Road in Rochester. The defendant took the package to his residence, where law enforcement officers arrested Cruz-Garcia and seized the package. The cocaine was secreted inside of an electronic device.
The defendant also helped launder tens of thousands of dollars for the drug conspiracy in an attempt to conceal the conspiracy’s money. At the time of Cruz-Garcia’s arrest, law enforcement officers found a loaded Glock .40 caliber pistol, which the defendant possessed in connection with the drug conspiracy.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Greece Police Department , under the direction of Chief Patrick D. Phelan; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; Ontario County Sheriff’s Office, under the direction of Sheriff Kevin M. Henderson; and the New York State Police, under the direction of Major Eric Laughton.
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