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21 January 2020
Member of Large Drug Trafficking Operation Sentenced to Federal Prison for Drug TraffickingRead the Press Release
United States Attorney Brandon J. Fremin announced today the sentencing of Byron A. Lawson, age 40, of Baton Rouge, Louisiana, as part of Operation Hidden Fee, an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network based and operating in Baton Rouge.
Chief Judge Shelly D. Dick sentenced Lawson to 125 months in federal prison following his convictions of conspiracy to distribute and to possess with the intent to distribute heroin, methamphetamine, and cocaine base; distribution of methamphetamine and crack cocaine; and unlawful use of a communications facility. Lawson must also serve five years of supervised release following his term of imprisonment.
According to admissions Lawson made as part of his guilty plea, in 2017, the Drug Enforcement Administration and East Baton Rouge Parish Sheriff’s Office were investigating the drug trafficking activities of James C. Hull. During this investigation, they learned that Lawson was one of Hull’s suppliers of methamphetamine. Investigators gathered information that, on the average, Lawson supplied Hull, four to six ounces of methamphetamine on a weekly basis. Law enforcement agents also identified Michael Nelson, another customer, who received ounce amounts of methamphetamine from Lawson. During this investigation, agents identified Travis James as a source of cocaine and crack cocaine for Lawson. In one instance, James supplied Lawson over 500 grams of cocaine, which Lawson distributed later to two customers from Mississippi.
Nelson has pending methamphetamine and cocaine trafficking charges in the Middle District of Louisiana. Trial has not yet been set. A grand jury indicted Travis James for various cocaine and heroin related violations and his trial is set in April 2020.
U.S. Attorney Fremin stated, “Stopping organized drug dealers who spread their poison throughout our community is among the highest priorities of this office and the United States Department of Justice. Convictions and jail sentences such as this are made possible through the dedicated teamwork of our federal, state, and local partners. I want to thank them all for their efforts in this case.”
"With this conviction and sentencing, DEA and its federal, state, and local law enforcement partners have taken down a member of a drug trafficking organization responsible for distributing large quantities of methamphetamine, heroin, and cocaine in the Middle District of Louisiana. These illegal dangerous drugs are destructive poisons that threaten the health and safety of our communities. We will continue to work together to target criminal organizations to ensure that drug traffickers are held responsible for the harm they cause," said DEA Assistant Special Agent in Charge Michael R. Sader.
“The East Baton Rouge Sheriff’s Office is grateful for the U.S. Attorney’s commitment to prosecuting these cases on the federal level,” Sheriff Sid Gautreaux said. “We will continue to dedicate our personnel and resources to initiatives that ensure the safety of our community.”
The investigation is yet another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This investigation was led by the Drug Enforcement Administration with invaluable assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the East Baton Rouge Parish Sheriff’s Office, the Baton Rouge City Police Department, and the Louisiana State Police. Other agencies also assisted in apprehending the defendants, including the U.S. Marshal’s Service, and the Sheriffs’ Offices in Ascension, Iberville, and West Baton Rouge Parishes.
These cases were being prosecuted by Assistant U.S. Attorneys Robert Piedrahita and Lyman E. Thornton III, and former Assistant U.S. Attorney Cal Leipold.
Medical Doctor Settles Civil Fraud Allegations in Adult Homes InvestigationRead the Press Release
Dr. Rajendra Bhayani, an otolaryngologist, has agreed to pay the United States $1,109,000 to resolve civil allegations that he and his practice – New York Otolaryngology & Aesthetic Surgery, P.C. in Brooklyn and Queens – paid kickbacks and submitted false claims to federal healthcare programs for services provided to residents in adult homes in violation of the False Claims Act.
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 settlement.
“The disabled and elderly residents of adult homes are among the most vulnerable members of our society, and doctors who treat these residents as commodities by paying kickbacks so they can administer medically unnecessary services at taxpayer expense will be held accountable by this Office,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for their assistance with the case.
“Elderly citizens without the means to care for themselves should be given the best treatment possible by everyone involved in their care. Exposing them to unnecessary medical testing and services because they’re deemed an easy target is disgraceful behavior,” stated FBI Assistant Director-in-Charge Sweeney. “Putting one’s self interests above the welfare of others isn’t the way to do business, and in this case it came with a hefty penalty.”
Adult homes are privately owned residential facilities licensed by the State of New York to provide long-term care and supervision to adults with disabilities or mental illnesses. An investigation by the FBI revealed that from 2012 through 2016, Bhayani allegedly paid cash tips, excessive rent and other improper remuneration to medical management companies in adult homes in the Eastern District of New York to obtain exclusive access to bill for allergy testing and other medical services to residents in violation of the Anti-Kickback Statute. Bhayani then obtained payment for these services from Medicare and the Federal Employees’ Health Benefits Program, although the services were actually performed by his nurse practitioner, and some of the services performed were medically unnecessary.
HHS-OIG has concurrently entered into an Integrity Agreement with Bhayani and New York Otolaryngology & Aesthetic Surgery, P.C. Among other things, the Integrity Agreement requires compliance training that specifically addresses the Anti-Kickback Statute and a quarterly claims review to be conducted by an Independent Review Organization.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The government’s case is being handled by Assistant United States Attorney Lisa Kutlin of the Office’s Civil Division.
Maryland man admits to firearms and drug violationsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Steven Somers, of Clinton, Maryland, has admitted to drug and firearms charges, U.S. Attorney Bill Powell announced.
Somers, age 25, pled guilty to one count of “Unlawful Possession of a Firearm as Drug User” and one count of “Possession with Intent to Distribute Marijuana.” Somers admitted having marijuana in July 2019 in Monongalia County, and admitted to illegally having a 5.7x28mm caliber pistol in June 2018 in Lewis County.
Somers faces up to 10 years incarceration and a fine of up to $250,000 for the firearms count and faces up to 10 years incarceration and a fine of up to $500,000 for the drug count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Martin County Man Sentenced to 30 Years in Prison for Producing Videos of Child Sexual ExploitationRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Sheriff William D. Snyder of the Martin County Sheriff’s Office announced that Torrie Chermaine Austin, 35, of Stuart, Florida, was sentenced today to 360 months in prison and a lifetime of supervised release by U.S. District Judge Robin L. Rosenberg in Ft Pierce, Florida after previously pleading guilty to producing visual depictions of the sexual exploitation of a minor.
According the court documents, between April and Nov. 2018, Austin produced video recordings of his sexual exploitation and abuse of an 11 year old child.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and Martin County Sheriff’s Office in this matter. The case was prosecuted by Assistant U.S. Attorney Carmen M. Lineberger.
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.
Marshall County man sentenced to more than 12 years for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joshua R. Sipe, of Moundsville, West Virginia, was sentenced today to 147 months incarceration for distributing cocaine, U.S. Attorney Bill Powell announced.
Sipe, age 31, pled guilty to one count of “Possession with Intent to Distribute Cocaine” in October 2019. Sipe admitted to having cocaine in March 2019 in Marshall County.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Man Sentenced for Threatening to Kill Employees and Residents of a Veterans NonprofitRead the Press Release
ALBANY, NEW YORK – Fred Hood, a/k/a “Taylor Taylor,” age 57, was sentenced today to time served (about 10.5 months in jail) for threatening to kill employees and residents of a Massachusetts veterans services program.
The announcement was made by United States Attorney Grant C. Jaquith and Chief Thomas Gibbons of the U.S. Department of Veterans Affairs Police in Albany.
As part of his guilty plea on September 20, 2019, Hood admitted that he sent multiple electronic messages from a VA facility in Albany to individuals at a nonprofit veterans services organization, threatening to commit a shooting attack at the organization’s residence on the campus of the Northampton VA Medical Center in Leeds, Massachusetts.
United States District Judge Mae A. D’Agostino sentenced Hood – who has been in custody since March 2, 2019 – to time-served and to a 3-year term of post-imprisonment supervised release.
This case was investigated by the VA Police with assistance from the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
Las Vegas Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – Martha L. Williams, 42, of Las Vegas, pleaded guilty today to two counts of aiding and assisting in the preparation and filing of a false tax return, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents, Williams owns and operates MJW and Associated (formerly known as Across the Board Management), a tax preparation business in Las Vegas. Between 2009 and 2014, Williams prepared thousands of tax returns on behalf of clients of MJW and Associates. For more than 75% of her clients, Williams prepared a false tax return that inflated the taxpayer’s refund by including fictitious deductions related to businesses that did not actually exist. To make these businesses appear legitimate, Williams used the IRS’s website to apply for and receive Employer Identification Numbers for fictitious businesses. As a result of these fictitious tax returns, Williams caused at least $529,782 in tax loss by filing false returns on behalf of her clients.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Jared Grimmer is prosecuting the case.
Williams is scheduled to be sentenced by U.S. District Judge Larry R. Hicks on May 13, 2020. Williams faces a maximum statutory penalty of three years in prison on each count, and a $250,000 fine, or twice the gross gain or gross loss resulting from the offenses, whichever is greatest. 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.
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Justice Department, EPA and State of Colorado Announce Settlement with K.P. Kauffman Co. to Reduce Emissions from Oil and Gas Operations by More Than 500 Tons per YearRead the Press Release
The Justice Department, the U.S. Environmental Protection Agency (EPA) and the state of Colorado today announced a settlement with Denver-based K.P. Kauffman Company Inc. (KPK) resolving alleged violations of the federal Clean Air Act and Colorado air quality regulations. The settlement, set forth in a consent decree lodged with the U.S. District Court for the District of Colorado, requires KPK to implement pollution control measures at 67 well production facilities – for a total estimated expenditure of $2.5 million. The company will also pay a $1 million civil penalty.
Today’s settlement resolves allegations made in an Oct. 5, 2018, complaint that KPK violated requirements to minimize volatile organic compound (VOC) emissions from its oil and natural gas production operations in the Denver-Julesburg Basin. VOCs are a key component in the formation of ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
The well production facilities covered by this settlement are in an area that does not meet National Ambient Air Quality Standards established under the Clean Air Act for ground-level ozone: the Denver Metro/Northern Front Range ozone nonattainment area. Today’s action will contribute to the improvement of air quality in communities across the Front Range by reducing the emissions of VOCs that lead to the formation of ground-level ozone.
“Oil and gas production fuels our economy, but it must be done responsibly,” said Jeffrey Bossert Clark, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “We will continue to take action where operators fail to comply with our nation’s clean air laws.”
“This is the fourth joint settlement EPA has completed with the State of Colorado to secure compliance and reduce emissions from storage tanks at oil and gas operations,” said EPA Regional Administrator Gregory Sopkin. “The EPA continues to enforce the Clean Air Act, and our partnership with the State continues to deliver cleaner, healthier air for Colorado’s communities.”
This settlement covers 67 KPK oil and gas production facilities in Colorado’s Denver-Julesburg Basin. As part of the agreement, KPK will implement measures to improve operation and maintenance practices and ensure the vapor control systems on its storage tanks are adequately designed and sized. These improvements, including monthly or quarterly inspections using infrared cameras and the installation of pressure monitors to detect and respond to excess emissions, are expected to reduce VOC emissions from KPK’s operations by approximately 424 tons per year.
KPK will also implement three environmental mitigation projects to further reduce VOC emissions. First, KPK will install rod lifts at 12 oil and gas wells to reduce or eliminate the need to unload the well – a procedure used to increase well production during which emissions are vented to the atmosphere. Second, KPK will use a Boreal Laser to scan for methane emissions at all well production facilities covered by the consent decree, and if necessary, will follow up with corrective actions to address the emissions. Third, KPK will implement operation and maintenance requirements, including increased inspections, at four production facilities not covered by air pollution regulations due to their small size. KPK estimates that these mitigation projects will reduce VOC emissions by an additional 131 tons per year.
The settlement also requires KPK to pay the United States and the state of Colorado a $1 million civil penalty, split evenly between the governments.
Today’s action is based on inspections of KPK operations conducted from 2013 to 2018 by EPA and the Colorado Department of Public Health and Environment, which found VOC emissions from many of KPK’s storage tanks. Through these inspections and information requests, EPA and the state of Colorado identified alleged violations of Colorado’s Regulation Number 7, including undersized vapor control systems and inadequate operation and maintenance practices. These alleged violations include federally enforceable requirements of Colorado’s State Implementation Plan to improve air quality in the Denver Metro/Northern Front Range non-attainment area.
This settlement represents the latest in a series of EPA and state actions to secure compliance and reduce emissions from oil and gas sources in the nonattainment area, including recent settlements with Noble Energy Inc. (2015), PDC Energy Inc. (2017), and HighPoint Operating Co. (2019). With today’s action, a total of 3,141 well production facilities in the area are now subject to compliance requirements mandated by joint federal/state consent decrees. In addition, when combined with state-issued compliance orders, 93 percent of production facilities with condensate storage tanks in the Denver ozone nonattainment area are currently subject to enhanced design or maintenance requirements, or both.
The consent decree, lodged in the U.S. District Court for the District of Colorado, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at: https://www.justice.gov/enrd/consent-decrees.
For more information about the settlement, visit https://www.epa.gov/enforcement/kp-kauffman-company-settlement.
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.
Jackson County Man Sentenced to 130 Months for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
LONDON, Ky.- A Gray Hawk, Kentucky, man, Mitchell Peters, 36, who previously admitted to possessing methamphetamine with the intent to distribute and possession of a firearm in furtherance of drug trafficking, was sentenced to 130 months on Tuesday by U.S. District Court Judge Robert E. Wier.
According to his plea agreement, Peters admitted that on April 6, 2018, he was stopped by Kentucky State Police personnel in Jackson County, and found in possession of approximately 100 grams of a methamphetamine mixture, scales, baggies, and a loaded .380 caliber pistol. Peters is a convicted felon and was prohibited from possessing a firearm.
Peters pleaded guilty in September 2019.
Under federal law, Peters must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
“Methamphetamine trafficking and firearms are a recipe for violence,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Prosecuting armed methamphetamine dealers, like the defendant, helps protect the public and is a focused priority for our Office.”
United States Attorney Duncan; Commissioner Rodney Brewer, Kentucky State Police; and Tommy Estevan, Acting Special Agent in Charge for ATF, jointly announced the sentence.
The investigation was conducted by ATF and Kentucky State Police. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jason Parman.
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 Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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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Irwin Man Pleads Guilty to Cocaine Conspiracy ChargeRead the Press Release
PITTSBURGH, PA- A resident of Irwin, Pennsylvania pleaded guilty in federal court to a charge of drug trafficking, United States Attorney Scott W. Brady announced today.
Bernard Wilkins, 57, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute cocaine before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh, PA. In January of 2019, investigators obtained authorization to conduct a federal wiretap investigation, which continued through May of 2019. Intercepted communications confirmed that Wilkins obtained distributor quantities of cocaine from another member of the conspiracy. In addition to intercepted communications, the Court was further informed that Wilkins was observed at a stash house located on Seddon Avenue in Braddock, PA, which was used by members of the conspiracy to facilitate their drug-trafficking activity, by law enforcement conducting surveillance. In conjunction with his guilty plea, Wilkins accepted responsibility for the distribution of at least 50 but less than 100 grams of cocaine.
Judge Schwab scheduled sentencing for July 28, 2020 at 9:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Wilkins remains on bond pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Indiana Man Sentenced to 51 Months in Prison for Defrauding Former Owners of Duluth-Based Trucking CompanyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DOUGLAS RAY THOMAS, 49, to 51 months in prison for perpetrating a fraud scheme against a Duluth-based trucking company. THOMAS, who pleaded guilty to one count of wire fraud and one count of failing to account for and pay over employment taxes on May 17, 2019, was sentenced on January 17, 2020, before Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from September 2013 through June 2014, THOMAS devised and executed a fraud scheme to gain control over the assets and revenue of Northwoods Trucking, Inc., a transportation company located in Duluth, Minnesota. On October 18, 2013, THOMAS and the former owners of Northwoods Trucking entered into a stock purchase agreement in which THOMAS agreed to purchase all outstanding shares of the company for $730,000. As part of the agreement, THOMAS agreed to make an initial payment within five days of closing. Despite failing to make the initial payment, as well as subsequent payments pursuant to the purchase agreement, THOMAS assumed control of the company in December of 2013 and, shortly thereafter, began transferring Northwoods Trucking’s business revenue into a bank account that THOMAS alone controlled.
According to the defendant’s guilty plea and documents filed in court, while he owned and operated the company, THOMAS repeatedly failed to pay many of the company’s liabilities, including fuel and insurance for the company’s trucks, payroll to employees and employment taxes due to the Internal Revenue Service (IRS). Instead, THOMAS used a significant portion of Northwoods Trucking’s business revenue to pay personal expenses and debts, including housing, furniture and a family vacation. The total loss caused by THOMAS’s fraud scheme is approximately $730,000, in addition to $57,792.13 in employment taxes that he failed to pay to the IRS.
This case was the result of an investigation conducted by the FBI and the Internal Revenue Service-Criminal Investigation Division.
Assistant U.S. Attorney Michelle E. Jones and former Assistant U.S. Attorney John Kokkinen prosecuted the case.
Defendant Information:
DOUGLAS RAY THOMAS, 49
Bloomington, Ind.
Convicted:
- Wire fraud, 1 count
- Failure to account for and pay over employment taxes, 1 count
Sentenced:
- 51 months in prison
- Two years of supervised release
- $692,457.13 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Huntington Man Sentenced to Prison for Role in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to prison for his role in a federal drug conspiracy, announced United States Attorney Mike Stuart. Tremayne Swanson, 28, was sentenced to 21 months in prison for conspiracy to distribute heroin and fentanyl.
“Another peddler of deadly heroin and fentanyl is headed to federal prison,” said United States Attorney Mike Stuart. “It was the fine work of law enforcement that put Swanson and his co-conspirators out of business. Our partnerships among federal, state and local law enforcement have never been stronger. Our intentional collaboration has resulted in tremendous success in our offensive against drug dealers and drug thugs.”
Swanson previously admitted that between December 2018 and May 2019 he sold heroin for George Lockhart in Huntington, West Virginia.
Operation Free Market was a long-term drug investigation in the Huntington area. The investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Huntington Man Sentenced for Illegally Accessing Veterans' RecordsRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to six months in prison for illegally accessing the medical records of six veterans, announced United States Attorney Mike Stuart. Jeffrey Miller, 40, a former Veterans Benefits Administration employee, was also sentenced to one year of supervised release.
“We must protect our veterans. Miller used his position with the Veterans Benefits Administration to illegally access the medical records of veterans,” said United States Attorney Mike Stuart. “Medical records are protected information and veterans have an expectation and right of privacy. We will prosecute anyone who violates our veterans.”
Miller previously admitted that he illegally accessed the medical records of six veterans between January and May of 2018. Miller further admitted that he took a picture of the medical records of former West Virginia State Senator Richard Ojeda, and then sent the picture to an acquaintance.
The Department of Veterans Affairs – Officer of the Inspector General and the Federal Bureau of Investigation (FBI) conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stefan Hasselblad handled the prosecution.
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Honolulu man charged with robberies, use of firearm during robbery, and carjackingRead the Press Release
HONOLULU, Hawaii – Kenji M. Price, U.S. Attorney for the District of Hawaii, announced that Moahengi Pakileata, 19, of Honolulu, Hawaii, made his initial appearance in federal court today after a criminal complaint filed on Friday, January 17, 2020, charged him with two robberies that interfered with commerce, the use a firearm during of one of the robberies, and a carjacking. A federal magistrate judge ordered him detained pending a detention hearing on January 24.
According to the criminal complaint, Pakileata and a second unidentified male robbed a 7-Eleven convenience store at gunpoint on August 11, 2019, and Pakileata robbed a second 7-Eleven convenience store on January 12, 2020. The criminal complaint further alleges that in the evening after the second robbery, on January 13, 2020, Pakileata committed a carjacking. As alleged, Pakileata, while wearing a security guard uniform, brandished a knife to take the vehicle of a student at the University of Hawaii at Manoa.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. The robbery and carjacking charges carry maximum terms of 20 and 15 years imprisonment, respectively, and maximum fines of $250,000 each. The firearm charge carries a seven-year mandatory minimum term of imprisonment, which must run consecutively to any other sentence imposed.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Honolulu Police Department (HPD). Assistant U.S. Attorney Sean Van Demark is handling the prosecution.
This prosecution is part of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the ATF, the HPD, and the City and County of Honolulu Department of the Prosecuting Attorney. For more information about Project Guardian, please see https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan
Gwynn Oak Man Sentenced to over Seven Years in Federal Prison for Stealing Firearms from a Halethorpe Federal Firearms LicenseeRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Byron Keith Goines, age 25, of Gwynn Oak, Maryland, to 90 months in federal prison, followed by three years of supervised release, for the federal charge of theft of firearms from a federal firearms licensee’s inventory, in connection with the burglary of a Halethorpe, Maryland gun dealer on January 21, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, on January 21, 2019, at 1:08 a.m., Baltimore County police officers were dispatched to a licensed gun dealer, located on Hollins Ferry Road in Halethorpe, in response to a break-in. When the officers arrived, they found a hole in the roof leading into the vault where the guns were stored. Surveillance footage indicated that the suspect, later identified as Byron Keith Goines, had used a saw to cut a hole in the roof before dropping into the vault. The suspect then filled a white trash bag with firearms. After several failed attempts to remove the trash bag of guns from the vault, the suspect exited through the roof carrying several guns on his person. When police arrived, a total of six guns had been removed from the vault, littered on the ground behind the store.
Immediately after the theft, responding officers saw Goines fleeing in the direction of and then hiding inside a nearby warehouse; Goines’ flight was also captured on surveillance video footage. K9 officers similarly traced a human smell from the direction of the firearms dealer to the warehouse. Officers eventually entered the warehouse and found Goines inside. The next day, warehouse employees found two soiled sweatshirts, a soiled pair of pants, and a crowbar in the area where Goines had been hiding.
Although Goines had successfully disabled one of the firearms dealer’s rear cameras, the neighboring business’s cameras and the cameras inside the vault were still operable. The footage shows that the shoes worn by the suspect were distinctive high-top Air Jordans. Those sneakers match the sneakers worn by Goines when he was caught several hours later. Surveillance video footage captured an individual bearing a tattoo on his wrist attempting to cut the surveillance camera’s wires. That tattoo also matched a tattoo on Goines’ wrist. Officers also recovered trash bags that matched those used by Goines in the robbery in the back of the vehicle used to transport Goines to the police station, as well as in the U-Haul that he used that was parked near the firearms dealer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael A. Goldsticker, who prosecuted the case.
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Fourth Foundation Resolves Allegations that it Conspired with Pharmaceutical Companies to Pay Kickbacks to Medicare PatientsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that Patient Services, Inc. (“PSI”), a foundation based in Midlothian, Va., has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by enabling certain pharmaceutical companies to pay kickbacks to Medicare patients taking the companies’ drugs.
The government alleged that PSI worked with various pharmaceutical companies to design and operate certain funds that funneled money from the companies to patients taking the specific drugs the companies sold. These schemes enabled the pharmaceutical companies to ensure that Medicare patients did not consider the high costs that the companies charged for their drugs. The schemes also minimized the possibility that the companies’ money would go to patients who were not taking the companies’ drugs.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, “co-pays”). Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs. The law further prohibits third parties, such as co-pay foundations, from conspiring with pharmaceutical companies to violate the Anti-Kickback Statute.
“Pharmaceutical companies cannot use foundations to funnel drug co-payments disguised as routine charitable donations, all to prop up excessive drug prices. PSI allegedly operated as a vehicle for specific pharmaceutical companies essentially to pay kickbacks at the ultimate expense of the American taxpayers who support the Medicare program,” said United States Attorney Andrew E. Lelling. “We will continue to pursue this kind of enforcement until the practice disappears.”
“The Department is committed to ensuring that foundations are not used as mere conduits to funnel kickbacks from pharmaceutical companies to Medicare patients and to increase company profits while avoiding an important cost-control aspect of the Medicare program,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to combat unlawful kickback arrangements and their pernicious influence on our health care system.”
“Few things undermine public confidence quite like finding out the pharmaceutical companies and non-profits they entrust with their health and financial peace of mind have been playing fast and loose with the law. Schemes like these, and the individuals and organizations who perpetrate them, are an affliction on our health care systems,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This settlement demonstrates the FBI’s resolve to ensure that patients receive care that is based solely on sound medical judgment, and not compromised by kickbacks.”
“Foundations operating patient assistance programs should operate with integrity and act independently from their donors,” said Gregory E. Demske, Chief Counsel to the Inspector General. “Our Integrity Agreement is designed to promote such independence and monitor the foundation to reduce the risk of future kickbacks.”
The United States alleged that PSI conspired with three pharmaceutical manufacturers – Insys, Aegerion, and Alexion – to enable them to pay kickbacks to Medicare patients taking their drugs. Details of the alleged conduct can be found in attached addendum.
The amount of the settlement announced today was determined based on analysis of PSI’s ability to pay after review of its financial condition.
PSI entered a three-year Integrity Agreement (IA) with HHS-OIG as part of the settlement. The IA requires, among other things, that PSI implement measures designed to ensure that it operates independently and that its arrangements and interactions with pharmaceutical manufacturer donors are compliant with the law. In addition, the IA requires compliance-related certifications from PSI's Board of Directors and detailed reviews by an independent review organization.
PSI is the fourth foundation to settle allegations of kickbacks. In total, the four foundations (PSI, The Assistance Fund, Chronic Disease Fund, and Patient Access Network Foundation) have paid $13 million. In addition, the U.S. Attorney’s Office has collected more than $840 million in total from eight pharmaceutical companies (United Therapeutics, Pfizer, Actelion, Jazz, Lundbeck, Alexion, Astellas and Amgen) to resolve allegations that they used third-party foundations as instruments for kickbacks.
U.S. Attorney Lelling, HHS-OIG Chief Counsel Demske and FBI SAC Bonavolonta made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter was handled by Assistant U.S. Attorney Gregg Shapiro, of Lelling’s Affirmative Civil Enforcement Unit, and Trial Attorneys Sarah Arni and Augustine Ripa, of the Department of Justice’s Civil Division.
ADDENDUM
PSI’s Breakthrough Cancer Pain Fund. In late 2013, PSI and Insys began discussing a potential copayment assistance fund for Subsys, a sublingual form of fentanyl, a powerful opioid painkiller. Subsys was approved for the treatment of breakthrough cancer pain in opioid-tolerant patients. PSI worked with Insys to create a budget for the “Breakthrough Cancer Pain” fund. Insys was the only donor to the fund. PSI provided Insys, through the Insys Reimbursement Center, with access to a “referral portal,” where Insys could see the status of each patient that it referred to PSI, including whether that patient had received copay assistance from PSI and the amount of the assistance. PSI did not provide access to the referral portal to other manufacturers of fentanyl products that did not donate to the fund. PSI knew that Insys was referring patients to the Breakthrough Cancer Pain fund who did not have cancer, but PSI stated that it would only prevent “off-label use…if the Donor wants us to.” PSI provided Insys with monthly “invoices” to cover the patients who had received assistance from PSI. PSI worked to avoid covering patients taking fentanyl products other than Subsys, noting that PSI “cannot allow them to deplete funds from INSYS.”
PSI’s HoFH Fund. Aegerion sold Juxtapid, which is approved to treat patients with homozygous familial hypercholesterolemia (“HoFH”). In 2013, at Aegerion’s request, PSI created a fund, supported only by Aegerion donations, for HoFH. PSI represented to Aegerion that “it makes more sense to have industry provide a very small amount of funding [in the form of donations for copayment coverage] to gain a reimbursement vehicle rather than give compassionate product.” PSI’s HoFH fund allowed Aegerion to pay for Medicare patients’ copayments to eliminate any price sensitivity to physicians prescribing and patients taking Juxtapid. Aegerion participated in establishing the patient eligibility criteria that PSI used to cover the copayment obligations of patients taking Juxtapid.
PSI’s CMD Fund. Alexion sells Soliris, an intravenously administered complement inhibitor. From Jan. 1, 2010, through June 30, 2016, Soliris was indicated for the treatment of patients with paroxysmal nocturnal hemoglobinuria (“PNH”) to reduce hemolysis and for the treatment of patients with atypical hemolytic uremic syndrome (“aHUS”) to inhibit complement-mediated thrombotic microangiopathy. Alexion approached PSI in January 2010 to request that PSI create a fund to provide Soliris patients with financial assistance, such as coverage for Medicare copays for Soliris, health insurance premiums, infusion and nursing services, and travel expenses. Over the next several months, Alexion and PSI discussed the coverage parameters that Alexion desired for the fund, including Alexion’s desire that PSI “not support a patient with any of these diagnoses for other reasons tha[n] Soliris therapy.” PSI opened an orphan disease fund entitled Complement Mediated Diseases (“CMD”) to provide assistance to patients taking Soliris. Except in rare instances, PSI provided financial assistance from the CMD fund only if a patient was taking Soliris. PSI provided Alexion with access to PSI’s referral portal software, through which PSI reported information back to Alexion confirming the specific Soliris patients who were approved for copay or other financial assistance from PSI and through which PSI detailed payments to those patients.
Fort Thompson Man Charged with Carjacking, Assault with a Dangerous Weapon, and RobberyRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Carjacking, Assault with a Dangerous Weapon, and Robbery.
AbuBarker Shabbaz-Evans, a/k/a Abu Barker Evans, age 24, was indicted on January 14, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 17, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $750,000 fine, 3 years of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 15, 2019, Shabbaz-Evans took a motor vehicle from an individual with the intent to cause death and serious bodily injury and further assaulted the victim with a metal object shaped like a pistol. The indictment further alleges that on January 1, 2020, Shabbaz-Evans attempted to take pre-paid gasoline and United States Currency from the presence of 2 individuals.
The charges are merely accusations and Shabbaz-Evans is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Shabbaz-Evans was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Vice President of Synergy Concepts Sentenced for Stealing FundsRead the Press Release
St. Louis, MO – Steven Walters, 52, of St. Peters, Missouri, was sentenced to six months in prison, 90 days of home confinement and three years of supervised release in prison for embezzling from an employee benefit plan. Walters appeared in federal court today before U.S. District Judge Rodney Sippel.
According to court documents, Walters began his employment with Synergy Concepts Inc. on or about August 2001. In 2014, Walters was the Vice-President and Secretary of Synergy Concepts Inc. Walters, on behalf of Synergy Concepts Inc., acted as the co-trustee for a company retirement plan that was funded from voluntary contributions by the employees. From May of 2015 through August 2016, Walters, as an officer of Synergy Concepts, Inc., failed to transfer withheld funds destined for the retirement plan and instead diverted the funds for other purposes, including his own personal use. Walters did knowingly embezzle, steal and unlawfully and willfully abstract and convert to his own use the money, funds, securities, premiums, properties and other assets of the employee pension plan that resulted in a total loss of $72,817.27.
“Prosecuting those who misuse funds from employee benefit plans is a vital aspect of this agency’s mission to protect the rights of America’s workers,” said Jim Purcell, Employee Benefits Security Administration (EBSA) Regional Director in Kansas City. “EBSA will continue to aggressively investigate such crimes on behalf of workers nationwide.”
“Steven Walters embezzled employee contributions and loan repayments from the Synergy Concepts Retirement Plan for his own personal use. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to protect the integrity of employee benefit plans,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the Department of Labor, Office of Inspector General. Assistant U.S. Attorney Gwendolyn Carroll handled the case for the U.S. Attorney’s Office.
Former State Senator Pleads Guilty to Making False StatementRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that today WESLEY T. BISHOP, age 52, of New Orleans pleaded guilty to making a false statement, a crime punishable by up to five years’ imprisonment. BISHOP admitted to knowingly and willfully making a false, material statement to the United States Department of Housing and Urban Development (“HUD”) in connection with rental property that he owned. Pursuant to the plea agreement, BISHOP has agreed to pay restitution to the State of Louisiana, Division of Administration, Office of Community Development, which administers the subject Small Rental Property Program on behalf of HUD. Judge Greg Guidry scheduled sentencing for April 21, 2020, at 10:00 a.m.
U.S. Attorney Strasser praised the work of the United States Department of Housing and Urban Development Office of Inspector General and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Andre J. Lagarde is in charge of the prosecution.
Former Secretary and Treasurer of Corsica Borough Pleads Guilty in $305K Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Corsica, Jefferson County, Pennsylvania, pleaded guilty in federal court to charges of wire fraud, United States Attorney Scott W. Brady announced today.
Tammy Laird, 47, pleaded guilty to 26 counts before United States Senior District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from January 2009 through August 2017, while Laird was employed as the Secretary and Treasurer of Corsica Borough, she defrauded the borough of more than $305,000 by issuing checks from the borough’s bank accounts to her father, her husband, and herself, by extracting funds from the borough’s bank accounts to pay personal expenses and credit card bills, and by making personal purchases on the borough’s business account at Staples. To hide her activity, Laird supplied the Corsica Borough Council and state auditors with altered bank statements and other falsified financial documentation.
Judge Fischer scheduled sentencing for May 28, 2020, at 11:00 a.m. The law provides for a sentence at each count of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Laird was released on an unsecured bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Laird.
Former Saratoga Race Course Worker Pleads Guilty to Methamphetamine TraffickingRead the Press Release
BINGHAMTON, NEW YORK – Francisco Alarcon Badillo, age 28 and a citizen of Mexico, pled guilty on January 17 to selling crystal methamphetamine while employed at the Saratoga Race Course.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Saratoga Springs Police Department Chief Shane Crooks.
Badillo admitted that he sold crystal methamphetamine from May 2019 to August 2019, while residing at and working on the grounds of the Saratoga Race Course in Saratoga Springs, New York. Badillo admitted to hiding the drugs in various locations within the Race Course property, including his dormitory room. He admitted to selling more than 400 grams of crystal methamphetamine.
Badillo faces at least 10 years and up to life in prison when he is sentenced on May 28, 2020 by Senior United States District Judge Thomas J. McAvoy. 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 DEA and its Capital District Drug Enforcement Task Force, and the Saratoga Springs Police Department, with assistance from the New York Racing Association. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Former Regional Sales Director for Insys Therapeutics Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former Regional Sales Director for Insys Therapeutics was sentenced today in federal court in Boston for his role in conspiring to bribe practitioners to prescribe Subsys, a fentanyl-based pain medication.
Joseph A. Rowan, 45, of Panama City, Fla., was sentenced by U.S. District Court Judge Allison D. Burroughs to 27 months in prison, three years of supervised release, restitution to be determined at a later date and ordered to pay approximately $2 million in forfeiture. The government recommended a sentence of 120 months in prison.
In May 2019, Rowan was convicted by a federal jury of racketeering conspiracy along with four other Insys executives.
Subsys, a drug owned and manufactured by Insys Therapeutics, Inc., is a fentanyl-based, rapid-onset opioid approved to treat cancer patients suffering intense breakthrough pain. From May 2012 to December 2015, Rowan and his co-defendants conspired to bribe practitioners, many of whom operated pain clinics, in order to induce them to prescribe Subsys to patients. The defendants also conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the expensive drug when it was prescribed for patients without cancer. Medicare would not approve payment for the drug except to treat breakthrough cancer pain.
Beginning in 2012, Rowan joined Insys as a sales representative working exclusively with a doctor in Alabama known to write prescriptions for fentanyl products. Rowan paid the doctor speaker honoraria in exchange for Subsys prescriptions, and was so successful that it became a model within Insys. Rowan was subsequently twice promoted, ultimately becoming a Regional Sales Manager. In this role, Rowan fueled the criminal scheme by approving the use of speaker programs to bribe doctors to write more Subsys prescriptions, and to write Subsys prescriptions at increasingly higher dosages.
In addition, Rowan stressed the importance of the success of the Insys Reimbursement Center (IRC) to sales representatives. During a national sales meeting, Rowan encouraged sales employees to assist the IRC and stated, “what I am saying is this. This is how you get paid…”
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S Department of Health and Human Services, Office of the Inspector General; Judy McMeekin, Pharm.D. Acting Associate Commissioner for Regulatory Affairs of the U.S. Food and Drug; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; Jeffrey K. Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General; and Thomas W. South, Deputy Assistant Inspector General for Investigations of the Office of Personnel Management made the announcement.
Assistant U.S. Attorneys K. Nathaniel Yeager, Fred M. Wyshak, and David G. Lazarus prosecuted the case for Lelling’s Health Care Fraud Unit.
Former National Sales Director of Insys Therapeutics Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former National Sales Director for Insys Therapeutics was sentenced today in federal court in Boston for his role in conspiring to bribe practitioners to prescribe Subsys, a fentanyl-based pain medication, often when medically unnecessary.
Richard Simon, 48, of Seal Beach, Calif., was sentenced by U.S. District Court Judge Allison D. Burroughs to 33 months in prison, three years of supervised release, restitution to be determined at a later date and ordered to pay approximately $2.3 million in forfeiture. The government recommended a sentence of 132 months in prison.
In May 2019, Simon was convicted by a federal jury of racketeering conspiracy along with four other Insys executives.
Subsys, a drug owned and manufactured by Insys Therapeutics, Inc., is a fentanyl-based, rapid-onset opioid approved to treat cancer patients suffering intense breakthrough pain. From May 2012 to December 2015, Simon and his co-defendants conspired to bribe practitioners, many of whom operated pain clinics, in order to induce them to prescribe Subsys to patients, often when medically unnecessary. The defendants also conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the expensive drug when it was prescribed for patients without cancer.
In September 2012, Simon joined Insys as a District Sales Manager and began actively recruiting high prescribing doctors and engaging in quid pro quo agreements with doctors. When Simon was promoted to National Sales Director, he directed sales managers and sales reps to bribe prescribers and to reach specific and enforceable agreements with doctors to prescribe Subsys.
Ensuring that prescriptions were paid for by insurers was equally important to Simon. So he ordered the creation of the “Charts in Progress” (CIP) Report. The CIP reports, which tracked the progress that the Insys Reimbursement Center made in obtaining payment from insurers and provided it to sales managers, was one of the tools used at Insys to track the success of the criminal scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S Department of Health and Human Services, Office of the Inspector General; Judy McMeekin, Pharm.D. Acting Associate Commissioner for Regulatory Affairs of the U.S. Food and Drug; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; Jeffrey K. Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General; and Thomas W. South, Deputy Assistant Inspector General for Investigations of the Office of Personnel Management made the announcement.
Assistant U.S. Attorneys K. Nathaniel Yeager, Fred M. Wyshak, and David G. Lazarus prosecuted the case for Lelling’s Health Care Fraud Unit.
Former District of Columbia Government Employee Sentenced to 30 Months in Prison for Accepting Bribes from ConsultantRead the Press Release
WASHINGTON – Latasha Moore, 39, of Washington, D.C., was sentenced today to 30 months in prison for accepting more than $140,000 in bribes from John Woods, who was a consultant and independent contractor who did business with the D.C. government.
The announcement was made today by U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, and Daniel W. Lucas, District of Columbia Inspector General.
On October 11, 2018, Moore pled guilty in the U.S. District Court for the District of Columbia to one count of bribery. She was sentenced by the Honorable Dabney L. Friedrich. Following her prison term, Moore will be placed on two years of supervised release. As part of her sentence, Moore was ordered to forfeit the more than $140,000 in bribes that she received from Woods.
According to the statement of offense, Moore started working in 2002 for the D.C. Department of Human Resources (“DCHR”); in 2012, she was promoted to the position of resource allocation analyst. In that role, among other duties, she was the main point of contact for “Company A,” which was a Maryland-based company that had agreements with DCHR to provide organizational skills training courses and human resources consulting to various D.C. government agencies.
As noted in the statement of offense, Moore and Woods, who was a consultant employed by Company A, engaged in a scheme in which Moore agreed to protect the government contracts held by Company A and ensure that no complaints about its performance reached others in the District of Columbia government. The scheme began in approximately July 2014 and ran through August 2017. In return for her actions, according to the statement of offense, Moore accepted 50 checks and one PayPal money transfer from Woods totaling more than $140,000.
According to the statement of offense, Moore had suspicions about more than $1 million in invoices that Woods submitted in March 2015 through June 2017 for work that Company A purportedly performed under its contracts with DCHR. Nonetheless, in return for the money that Woods paid her, Moore advised other D.C. government officials to approve the invoices for payment. As the scheme continued, according to the statement of offense, Company A discovered that Woods was acting on his own and retaining the profits for himself. Although Moore knew of Company A’s concerns, she did not relay them to her supervisors and continued to advise other government officials to approve Woods’s invoices.
Woods, 57, of Washington, D.C., was sentenced on December 20, 2019, by Judge Friedrich to 41 months in prison on charges of bribery and wire fraud arising from this scheme. As part of his sentence Woods was ordered to pay $564,910.23 in restitution to Company A.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Dunham, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the Office of the Inspector General of the District of Columbia. They also expressed appreciation for the work of Assistant U.S. Attorney Michael J. Marando of the U.S. Attorney’s Office for the District of Columbia, who investigated and prosecuted the matter.
Florida man pleads guilty to wire fraud for scheme to defraud investors with claims of successful commodities tradingRead the Press Release
Seattle – A Cocoa Beach, Florida, man pleaded guilty today in U.S. District Court in Seattle to wire fraud in connection with his million-dollar scheme to pose as a successful commodities trader, announced U.S. Attorney Brian T. Moran. MATTHEW WHITE, 27, accepted $1.29 million in investments from family and friends promising big gains. In truth, little was invested, and the profits were non-existent. WHITE used more than $281,000 of the invested money for his personal expenses. U.S. District Judge Robert S. Lasnik scheduled sentencing for April 10, 2020.
According to the plea agreement, between 2011 and 2018, WHITE solicited funds from investors in Florida and Washington State. WHITE represented that he would use the money to successfully trade in futures contracts first under his own name, and later under the name of his company, M.W. Global Futures LLC, of which he was the sole member. WHITE claimed to have expertise as a commodities trader, with special training. He also claimed to be a member of the Chicago Board of Trade. All of these claims were false.
WHITE provided promotional materials that claimed his trading would provide a high return on investment. In October 2017, he sent one elderly investor a brochure claiming a return on investment in excess of 16% annually. Once he got their funds, WHITE sent investors statements purporting to show substantial trading activity and profits. The statements also showed WHITE’s commissions, which were allegedly tied to the level of profits. WHITE sent some of these fictitious statements via email, constituting wire fraud. Very little of the money was actually traded in investment accounts, and the investments that were traded resulted in losses.
Of the $1.29 million, WHITE repaid approximately $425,000 as redemptions and purported profits during the scheme. In November 2018, WHITE was contacted by investigators from the Commodity Futures Trading Commission. He then repaid an additional $602,000 to two victims. Under the terms of the plea agreement, WHITE owes the remaining $281,970 in restitution to his victims.
Wire fraud is punishable by up to 20 years in prison. The ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI and the Division of Enforcement of the Commodity Futures Trading Commission.
The case is being prosecuted by Special Assistant United States Attorney Benjamin Diggs.
Felon Sentenced to Federal Prison for Illegally Possessing FirearmsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Iosia Nelson Fiso, 25, of Anchorage, was sentenced on Friday, Jan. 17, 2020, by Chief U.S. District Judge Timothy M. Burgess, to serve four years in federal prison, followed by three years of supervised release, after pleading guilty to illegally possessing a firearm as a convicted felon.
According to court documents, while investigating a shooting that occurred on Jan. 9, 2019, in midtown Anchorage, APD officers uncovered a scope on an American Spirit ASA 15 rifle bearing Fiso’s fingerprint. The day after the shooting, APD contacted Fiso who was found to be in possession of three additional firearms that were in his girlfriend’s vehicle.
Fiso has two previous felony convictions with the State of Alaska for crimes involving misconduct involving weapons and hindering prosecution, and was therefore prohibited from possessing firearms. Fiso is also currently facing unrelated murder and kidnapping charges with the State of Alaska.
The Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Alaska Department of Public Safety conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Allison O’Leary.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal and Local Agencies Team up to Combat Human Trafficking in the District of ColumbiaRead the Press Release
WASHINGTON – U.S. Attorney for the District of Columbia Jessie K. Liu and D.C. Attorney General Karl Racine announced today that the D.C. Human Trafficking Task Force now will be jointly chaired by representatives of the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia. The move recognizes the important work of both agencies toward eradicating human trafficking in the District and the complementary skills of the federal and local agencies. “The U.S. Attorney’s Office aggressively investigates and prosecutes human traffickers. As the Chair of the D.C. Human Trafficking Task Force for the last 15 years, our Office has worked tirelessly to improve the public health and safety of some of the most vulnerable members of our community: sex trafficking survivors. Our prosecutors and advocates have shown unparalleled dedication to this important issue, which deserves our continued and expanded efforts. The joint leadership of the Task Force will enable us to tackle the challenges ahead with even greater vigor. We are pleased to have yet another opportunity for partnership with the Office of the Attorney General for the District of Columbia,” said U.S. Attorney Liu.
Since its formation in 2004, the D.C. Human Trafficking Task Force has been chaired by the U.S. Attorney’s Office for the District of Columbia with the goal of increasing the prosecution of traffickers while identifying and serving the victims-survivors of this horrific crime. The four main goals of the Task Force are:
- To facilitate a more coordinated anti-trafficking effort in the D.C. area through protocol development, extensive community outreach, proactive investigations, law enforcement training, intelligence sharing, and more formalized partnerships between law enforcement organizations and non-governmental organizations (NGOs).
- To identify citizen, resident, and transnational victims of both sex and labor trafficking.
- To provide comprehensive services to trafficking victims.
- To increase the prosecution of traffickers.
Since its creation, the Task Force has served as a forum for disparate organizations—local and federal government agencies, NGOs, and local and federal law enforcement—to come together around one table for information sharing, internal and external training, and relationship building. The Task Force consists of a large number of law enforcement, NGOs, and government agencies, as well as component subcommittees. The current subcommittees are: Direct Services, Labor, Training and Outreach, Law Enforcement, and a Policy Working Group.
Through the information-sharing work of the Task Force and the efforts of a reconfigured Child Exploitation and Human Trafficking Taskforce (CEHTTF) at the U.S. Attorney’s Office, the Office has seen a significant increase in prosecutions of juvenile sex trafficking cases, as well as an increase in the number of child exploitation cases brought in federal court.
In recent years, the Office of the Attorney General for the District of Columbia has also expanded its anti-human trafficking efforts, recognizing that children that are at risk for trafficking and those who are victims-survivors of trafficking present unique challenges that require trauma-informed staff and court personnel. One such initiative was its successful launch, along with the D.C. Superior Court, of Hope Court, a diversion program for youth that appear at risk of trafficking or who represent confirmed cases of trafficking.
For more information, please contact External Affairs Specialist Melanie Howard at 202-252-6930.
Federal Jury Finds Colombian National Guilty of Conspiracy and Transporting 593 Kilograms of Marijuana on Board a Go-Fast BoatRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Cristian Valencia Mendoza was convicted of Conspiracy to Possess With Intent to Distribute a Controlled Substance and Possession of a Controlled Substance with Intent to Distribute While on Board a Vessel Subject to the Jurisdiction of the United States, following a jury trial in St. Thomas U.S. District Court.
According to court documents and evidence presented at trial, on October 18, 2019, the defendant was located on board a go-fast style vessel that was intercepted by a United States Coast Guard (USCG) cutter on routine patrol in the Eastern Pacific. USCG crewmembers first sighted the go-fast vessel in international waters, approximately 45 nautical miles north of Malpelo Island, Colombia. The vessel did not display any indicia of nationality and the co-conspirator, the captain of the vessel, told members of the USCG Boarding Team that the vessel was without nationality.
Twenty one (21) bales of marijuana, consisting of 593 kilograms, were located on board the vessel and seized by USCG crewmembers. The defendant waived his rights and gave a statement to DEA Agents detailing his involvement in the drug smuggling operation. He confessed that that he was hired to transport the marijuana from Colombia to Costa Rica. He stated that his role in the crime was to change fuel lines during the trip and to look out for law enforcement aircraft. He acknowledged that he was to be paid a total of 40 million pesos, approximately twenty three thousand ($23,000) dollars for his work onboard the vessel.
The defendant will remain in custody, and the court scheduled the defendant’s sentencing for April 28, 2020.
This case was investigated by the United States Coast Guard and the Virgin Islands Drug Enforcement Agency. It is being prosecuted by Assistant United States Attorneys Donna Rainwater and Adam Sleeper.
Federal Inmates Indicted for AssaultingWest Tennessee Detention Facility Correctional OfficersRead the Press Release
Memphis, TN – Davonte Gary, 21, and Johnathan Johnson, 26, have been indicted for assaulting correctional officers. D. Michael Dunavant, U.S. Attorney announced the indictments today.
According to the indictments, on October 16, 2019, Gary, an inmate at West Tennessee Detention Facility, assaulted a correctional officer by placing him in a headlock. The correctional officer was engaged in official duties when attacked. Gary was in custody pending trial for a Hobbs Acts Robbery.
On September 9, 2019, Johnson, also an inmate at West Tennessee Detention Facility, struck two correctional officers in the head and face with a closed fist. Two months prior to this incident, Johnson had been sentenced in Federal District Court to 84 months imprisonment on federal drug charges.
U.S. Attorney D. Michael Dunavant said: "No other group of Americans has a more difficult or less publicly visible job than the dedicated men and women who work in our correctional facilities. Assaulting any federal correctional officer who is engaged in the performance of their official duties is a serious violation of federal law, and will not be tolerated. This office takes very seriously our duty to protect the safety of correctional employees and the security of federal detention facilities, and these indictments demonstrate that commitment to promote institutional safety and control by strict enforcement of the rule of law."
Pete Bludworth, Warden, West Tennessee Detention Facility, said: "Our top priority is the safety of our staff and those entrusted to our care. We appreciate all the efforts of the U.S. Marshals Service and the U.S. Attorney's Office for the Western District of Tennessee in this case, and share their commitment to keeping our communities safe."
"The U.S. Marshals Service is committed to ensuring the safety of the employees of our correctional detention partners. Persons being held in detention by the Marshals Service must understand there will be consequences for their actions," said Jeffrey Holt, U.S. Marshal.
If convicted, each defendant faces up to eight years imprisonment followed by three years of supervised release.
The West Tennessee Detention Facility investigated these cases.
Assistant U.S. Attorney Scott Smith is prosecuting these cases on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Fayetteville Man Sentenced to 97 Months for Cocaine DistributionRead the Press Release
RALEIGH – United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge James C. Dever III sentenced WILMER LUIS MEJIAS, 44, of Fayetteville, NC, today. MEJIAS was sentenced to 97 months imprisonment followed by 3 years of supervised release.
MEJIAS was named in a 12-count Indictment filed on December 12, 2017. On February 5, 2018, he pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine from 2015 to December 12, 2017.
In 2015, the Fayetteville Police Department, the Sampson County Sheriff’s Office, and the Federal Bureau of Investigation identified members of a Puerto Rican drug trafficking organization (DTO) operating in Cumberland and Sampson counties. Surveillance, wire intercepts and confidential sources of information (CSIs) were used to identify multiple drug traffickers working in connection with the DTO. Specifically, the investigation identified MEJIAS as one of the members of the DTO who helped traffic cocaine into the Eastern District of North Carolina.
Agents began receiving information about the DTO from CSI #1. Specifically, CSI #1 stated that MEJIAS and others, including co-conspirator Luis Joel Robles Latorres, sentenced on June 18, 2019 to 162 months of imprisonment, would arrange large cocaine shipments from Puerto Rico. MEJIAS was also responsible for collecting drug proceeds and sending them back to the DTO in Puerto Rico.
On November 3, 2017, agents intercepted multiple calls in which Lattores arranged the purchase of 1.5 kilograms of cocaine. Surveillance units followed the source to Latorres’s residence in Fayetteville and then to a restaurant parking lot. Agents subsequently stopped the vehicle driven by an individual affiliated with the drug trafficking organization and seized a black bag containing $45,000 in U.S. currency.
The investigation established that between November 2014 and November 2017, MEJIAS was personally involved in the distribution of more than 30 kilograms of cocaine.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF) named Operation La Vida Loca. 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.
That effort has been implemented through the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Federal Bureau of Investigation, Fayetteville Police Department, Sampson County Sheriffs’ Office and the Wilmington Police Department investigated this case. Assistant United States Attorney Scott A. Lemmon prosecuted this case for the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Eagle Butte Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Calvin Edwards, Jr., age 41, was indicted on January 14, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 21, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in prison and/or a $1,000,000 fine, at least 3 years, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that on or about July 1, 2019, Edwards knowingly and intentionally possessed with the intent to distribute methamphetamine, a schedule II controlled substance
The charge is merely an accusation and Edwards is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Edwards was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that am Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Silas Condon, age 24, was indicted on January 14, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 16, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that December 6, 2019, Condon forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federal officer while the officer was in the performance of his official duties and said contact did involve physical contact with the officer.
The charge is merely an accusation and Condon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Condon was released on bond pending trial. A trial date has not been set.
Dominican National Charged with Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national was charged today in federal court in Boston with aggravated identify theft.
Moices Santilit, 63, of Lawrence, was charged on one count of aggravated identity theft. Santilit is currently in state custody and will appear in federal court in Boston at a later date.
According to the charging document, Santilit used the Social Security number of a U.S. citizen in order to fraudulently obtain a valid Massachusetts Asbestos Worker Identification card under the victim’s name.
The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Files Brief in Support of the Constitutionality of Ohio Law Prohibiting Abortion Providers from Performing an Abortion They Know Is Sought Because of Down SyndromeRead the Press Release
The Department of Justice today filed a friend-of-the-court brief with the full United States Court of Appeals for the Sixth Circuit, in support of the constitutionality of an Ohio law prohibiting abortion providers from performing an abortion they know is sought because of Down syndrome.
“Ohio’s Antidiscrimination Law affirms that people with Down syndrome have lives worth living and protecting. The Law also protects the medical profession from harm to its integrity and protects women from abortion providers who may seek to pressure them into obtaining an abortion because of Down syndrome,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The federal government has an interest in the equal dignity of those who live with disabilities. Nothing in the Constitution requires Ohio to authorize abortion providers to participate in abortions the providers know are based on Down syndrome.”
“This Ohio law prevents discrimination against individuals with Down syndrome,” said Justin E. Herdman, U.S. Attorney for the Northern District of Ohio. “Accordingly, the state of Ohio’s interests in this matter are fully aligned with those of the United States and we are not only entitled, but compelled, to weigh in as a friend of the Court.”
In 2017, Ohio’s General Assembly passed, and Ohio Governor John Kasich signed, legislation (the Antidiscrimination Law) directing that an abortion provider cannot “purposely perform or induce or attempt to perform or induce an abortion on a pregnant woman if” the provider “has knowledge that the pregnant woman is seeking the abortion” because of Down syndrome. The law expressly shields women who seek such abortions from any and all liability.
Plaintiffs challenged the Antidiscrimination Law in court before the law took effect. The district court enjoined enforcement of the Antidiscrimination Law and on appeal, that decision was upheld in a split decision by a three-judge panel of the Sixth Circuit. The dissenting judge would have upheld the Antidiscrimination Law as constitutional because there was “no evidence” that the law created a substantial obstacle to obtaining an abortion. The Sixth Circuit then voted to rehear the case before the full or “en banc” court.
The government’s friend-of-the-court brief to the full Sixth Circuit explains that the district court and divided panel were wrong to hold Ohio’s Antidiscrimination Law unconstitutional under the Supreme Court’s abortion decisions. The brief outlines that the Antidiscrimination Law serves several important purposes. It protects individuals with disabilities from prejudice and indifference and the medical profession from harm to its integrity and reputation. The law also wards against the slippery slope to medical involvement in race- or sex-based abortions. And it protects women themselves by separating them from potentially coercive abortion providers who may seek to pressure them into obtaining an abortion because of Down syndrome.
Given Congress’s abortion legislation, the United States has an interest in the application of the law in that area, and has often participated in cases involving state abortion laws. The federal government enforces civil rights laws that outlaw various forms of disability discrimination, including the Rehabilitation Act, the Americans with Disabilities Act, and the Individuals with Disabilities Education Act. It also enforces the Genetic Information Nondiscrimination Act, which protects against discrimination as to health insurance and employment on the basis of genetic information, including “of any fetus carried by [a] pregnant woman.”
Delaware County Doctor Pleads Guilty to Unlawfully Distributing Oxycodone to Patients in “Pill Mill” CaseRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced that Timothy Shawl, M.D., 60, of Garnet Valley, PA entered a plea of guilty before United States District Court Judge R. Barclay Surrick on five counts of unlawful distribution of controlled substances.
The defendant was charged by Indictment in September 2019 as part of a coordinated healthcare fraud enforcement action across seven federal districts, involving more than $800 million in loss and more than 3.25 million opioid pills distributed in “pill mill” clinics. During his guilty plea today, Shawl admitted that he wrote oxycodone prescriptions that were not for a legitimate medical purpose, and which were in fact issued without Shawl treating, examining, or even seeing the patients who received the prescriptions. Shawl further admitted that, with regard to one patient, he had not conducted a physical examination on the patient for at least five years, despite regularly prescribing controlled substances to the patient. This patient died on Jan. 7, 2019, just three days after Shawl last prescribed oxycodone for her, and the cause of death was drug intoxication.
“Today’s guilty plea from Dr. Shawl is the tangible result of the Healthcare Fraud Strike Force delivering on its mission to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution,” said First Assistant U.S. Attorney Williams. “Our Strike Force acts as a force multiplier, bringing together health care fraud prosecutors, civil enforcement attorneys, data analysts, and law enforcement agencies to do this important work. Today’s guilty plea should serve as a warning to any medical professional engaged in this type of illegal behavior.”
This case was investigated by the FBI with assistance from task force officers from the Philadelphia Police Department and Pennsylvania Office of the Attorney General. Trial Attorney Debra Jaroslawicz of the Criminal Division’s Fraud Section is prosecuting the case.
Decatur Man Sentenced for Concealing Assets from Bankruptcy CourtRead the Press Release
SPRINGFIELD, Ill. -- A Decatur, Ill., man, Daniel C. Miner, Jr., 53, has been sentenced for bankruptcy fraud. On Jan.16, 2020, U.S. District Judge Sue E. Myerscough ordered Miner to serve weekends in jail for six months of a three-year term of supervised release. Miner was also ordered to pay a fine of $5,500 and to pay $5,242 in restitution.
On May 31, 2019, Miner pleaded guilty to concealing from the bankruptcy court his transfer of real estate in the 400 block of East Douglas, Bloomington, Ill. The property belonged to the bankruptcy estate at the time and was under the control of the bankruptcy trustee.
Miner’s restitution order includes $900.00 to the U.S. Bankruptcy Court representing lost rental payments to the bankruptcy estate, and $4,342 to the Bankruptcy Trustee to pay the fees and expenses incurred by the trustee as a result of the concealment and transfer of the property.
The charge resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the Federal Bureau of Investigation in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
David Clay Fowlkes to Serve as Acting United States Attorney for the Western District of ArkansasRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes will serve as Acting United States Attorney for the Western District of Arkansas.
Mr. Fowlkes previously served the Office in the position of the First Assistant United States Attorney, and supervised the Criminal and Civil Divisions. He has been an Assistant United States Attorney (AUSA) since December of 2007.
During his time in the United States Attorney’s Office, Mr. Fowlkes also previously served as the Coordinator for the Organized Crime and Drug Enforcement Task Force (OCDETF) Unit of the USAO, and has prosecuted a variety of criminal cases. He has also held the positions of Criminal Chief and Senior Litigation Counsel. Mr. Fowlkes received the Executive Office of the United States Attorney Director’s Award for Outstanding Litigation Team in 2011 (Recognized for his work on the U.S. v. Bernie Hoffman, aka Tony Alamo jury trial) and the Executive Office of the United States Attorney Director’s Award for Outstanding Performance by an Assistant United States Attorney in the Criminal Division in 2014 (Recognized for his work on the “Operation Great Scott” and “Operation Pantera Negra” OCDETF cases).
Prior to coming to the USAO, Mr. Fowlkes was a Deputy Prosecuting Attorney for Benton County, Arkansas, from September 2003 to December 2007.
Born in Harrison, Arkansas, Mr. Fowlkes is a graduate of Arkansas State University and University of Arkansas School of Law.
Mr. Fowlkes succeeds DAK Kees, who served as U.S. Attorney until resigning, January 17, 2020.
Department of Justice Files Brief in Support of the Constitutionality of Ohio Law Prohibiting Abortion Providers from Performing an Abortion They Know Is Sought Because of Down SyndromeRead the Press Release
WASHINGTON – The Department of Justice today filed a friend-of-the-court brief with the full United States Court of Appeals for the Sixth Circuit, in support of the constitutionality of an Ohio law prohibiting abortion providers from performing an abortion they know is sought because of Down syndrome.
“Ohio’s Antidiscrimination Law affirms that people with Down syndrome have lives worth living and protecting. The Law also protects the medical profession from harm to its integrity and protects women from abortion providers who may seek to pressure them into obtaining an abortion because of Down syndrome,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The federal government has an interest in the equal dignity of those who live with disabilities. Nothing in the Constitution requires Ohio to authorize abortion providers to participate in abortions the providers know are based on Down syndrome.”
“This Ohio law prevents discrimination against individuals with Down syndrome,” said Justin E. Herdman, U.S. Attorney for the Northern District of Ohio. “Accordingly, the state of Ohio’s interests in this matter are fully aligned with those of the United States and we are not only entitled, but compelled, to weigh in as a friend of the Court.”
In 2017, Ohio’s General Assembly passed, and Ohio Governor John Kasich signed, legislation (the Antidiscrimination Law) directing that an abortion provider cannot “purposely perform or induce or attempt to perform or induce an abortion on a pregnant woman if” the provider “has knowledge that the pregnant woman is seeking the abortion” because of Down syndrome. The law expressly shields women who seek such abortions from any and all liability.
Plaintiffs challenged the Antidiscrimination Law in court before the law took effect. The district court enjoined enforcement of the Antidiscrimination Law and on appeal, that decision was upheld in a split decision by a three-judge panel of the Sixth Circuit. The dissenting judge would have upheld the Antidiscrimination Law as constitutional because there was “no evidence” that the law created a substantial obstacle to obtaining an abortion. The Sixth Circuit then voted to rehear the case before the full or “en banc” court.
The government’s friend-of-the-court brief to the full Sixth Circuit explains that the district court and divided panel were wrong to hold Ohio’s Antidiscrimination Law unconstitutional under the Supreme Court’s abortion decisions. The brief outlines that the Antidiscrimination Law serves several important purposes. It protects individuals with disabilities from prejudice and indifference and the medical profession from harm to its integrity and reputation. The law also wards against the slippery slope to medical involvement in race- or sex-based abortions. And it protects women themselves by separating them from potentially coercive abortion providers who may seek to pressure them into obtaining an abortion because of Down syndrome.
Given Congress’s abortion legislation, the United States has an interest in the application of the law in that area, and has often participated in cases involving state abortion laws. The federal government enforces civil rights laws that outlaw various forms of disability discrimination, including the Rehabilitation Act, the Americans with Disabilities Act, and the Individuals with Disabilities Education Act. It also enforces the Genetic Information Nondiscrimination Act, which protects against discrimination as to health insurance and employment on the basis of genetic information, including “of any fetus carried by [a] pregnant woman.”
Couple who smuggled cocaine with kids in the car ordered to prisonRead the Press Release
LAREDO, Texas – A husband and wife from Monterrey, Mexico, have been ordered to federal prison following their convictions of conspiracy and importing nearly $1 million in cocaine into the country, announced U.S. Attorney Ryan K. Patrick.
Mario Ramirez-Gomez, 49, and his wife, Maria Gonzalez-Esparza, 42, pleaded guilty Oct. 1, 2019.
Today, U.S. District Judge Diana Saldaña, who presided over the sentencing, ordered Ramirez-Gomez and Gonzalez-Esparza to serve 63 and 24 months in prison, respectively. Not U.S. citizens, they are both expected to face removal proceedings following their incarceration. At the hearing, the court heard that they had agreed to smuggle the drugs because they had both lost their jobs and were in debt.
On Aug. 3, 2019, the couple attempted to enter the United States at the Juarez–Lincoln International Bridge in Laredo. After an X-ray of their vehicle revealed anomalies, law enforcement officers searched the car and found 30 cocaine bundles hidden in secret compartments within the vehicle’s seats.
The cocaine weighed a total of 30 kilograms and had a street value of approximately $960,000.
The couple’s two minor children were riding in the car with them during the smuggling attempt.
Ramirez-Gomez and Gonzalez-Esparza both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney David Fawcett prosecuted the case.
Costa Rican National Pleads Guilty to Transporting 593 Kilograms of Marijuana on Board a Go-Fast Boat Near Malpelo Island, ColombiaRead the Press Release
St. Thomas, USVI – Hansel Andres Centeno Arriola pled guilty on Friday to Possession of a Controlled Substance with Intent to Distribute on Board a Vessel Subject to the Jurisdiction of the United States, United States Attorney Gretchen C.F. Shappert announced.
According to information provided in court and in court documents, on October 18, 2019, the defendant was on board a go-fast style vessel that was intercepted by a United States Coast Guard (USCG) cutter while on routine patrol. USCG crew members first sighted the go-fast vessel in international waters at approximately 45 nautical miles north of Malpelo Island, Colombia. The vessel did not have any display indicating its nationality and the defendant, the captain of the vessel, told members of the USCG Boarding Team that the vessel was without nationality. Twenty one (21) bales of marijuana, consisting of approximately 593 kilograms, were located on board the vessel and seized. The defendant confessed to his involvement and told agents that he was hired as a boat captain to transport the marijuana from Colombia to Costa Rica. He stated that he was to be paid a total of sixty thousand ($60,000) dollars for his work.
The defendant will be sentenced at a later date.
This case is being investigated by the United States Coast Guard and the Virgin Islands Drug Enforcement Agency. It is being prosecuted by Assistant United States Attorneys Adam Sleeper and Donna Rainwater.
Connecticut U.S. Attorney’s Office Collects More Than $22 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2019Read the Press Release
New Haven – U.S. Attorney John H. Durham today announced that the U.S. Attorney’s Office for the District of Connecticut collected $22,755,127.63 in criminal and civil actions in Fiscal Year 2019. $6,357,454.91 was collected in criminal actions and $16,397,672.72 was collected in civil actions.
Overall, the Justice Department collected a total of just over $9.3 billion in civil and criminal actions in the fiscal year ending September 30, 2019.
“This past fiscal year, the talented men and women of our Connecticut office helped to recover more than $22 million for victims of crime and to help us fund important federal, state and local law enforcement efforts,” said U.S. Attorney Durham. “We are committed to seeking justice for victims, taking back ill-gotten gains from lawbreakers, and protecting the integrity of important government programs.”
The largest civil collections in the District of Connecticut were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts owed to several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education, were collected by the U.S. Attorney’s Office from debtors located in Connecticut.
All of the U.S. Attorney’s Office’s criminal recoveries in fiscal year 2019 were the result of successful enforcement against criminal defendants who committed various types of crime, with the largest recoveries in cases involving wire and securities fraud.
Nationally, the U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and victims of federal crimes. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are also collected by the U.S. Attorneys’ Offices and paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the District of Connecticut, working with partner agencies and divisions, collected $3,776,349 in asset forfeiture actions in FY 2019. Of this amount $1,606,053 was collected in civil cases and $1,841,763 was collected criminal cases. $328,533 was collected administratively. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and approximately 54 staff members at offices in New Haven, Hartford and Bridgeport.
Cherry Creek Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Chery Creek, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Kate Doreen Condon, age 44, was indicted on January 14, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 16, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in prison and/or a $1,000,000 fine, at least 3 years, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that on or about July 1, 2019, Condon knowingly and intentionally possessed with the intent to distribute methamphetamine, a schedule II controlled substance
The charge is merely an accusation and Condon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Condon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Charlotte Man Is Sentenced to More Than 19 Years for Armed Robbery of Two Fast Food RestaurantsRead the Press Release
CHARLOTTE, N.C. – Elijah Stevarus Hallman, 30, of Charlotte, was sentenced today to 231 months in prison in connection with the armed robberies of two fast food restaurants, announced U.S. Attorney Andrew Murray. Hallman was also ordered to serve three years under supervised release after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, trial evidence, and statements made in court, Elijah Hallman recruited his cousin and co-defendant, Cameron Hallman, to commit the robberies. Trial evidence established that, over the course of the armed robberies, Cameron Hallman operated as the getaway driver, and Elijah Hallman acted as the gunman.
According to court records, around 2:00 a.m. on April 11, 2018, the two men drove to a Wendy’s restaurant located at 7900 Arrowridge Blvd in Charlotte, where Cameron Hallman placed a drive-through order while Elijah Hallman concealed himself nearby. When Cameron Hallman pulled up to the window, Elijah Hallman walked up and stuck a pistol through the drive-through window, pointed it at the cashier, and demanded money. Cameron Hallman then pulled off as though he was not associated with Elijah Hallman, and a short while later the pair met up across the street.
Trial evidence established that the Wendy’s robbery was largely unsuccessful, as the cashier threw five dollars at Elijah Hallman and ran away to another part of the restaurant. As a result, the co-conspirators decided to commit a second armed robbery. About 30 minutes after the Wendy’s robbery, Elijah and Cameron Hallman stopped at a McDonald’s restaurant located at 4440 S. Tryon Street in Charlotte. They executed the same plan in the same manner, however, in this robbery, Elijah Hallman ripped out the entire cash drawer and carried it off. The robbery netted the pair approximately $360. According to trial evidence, while leaving the McDonald’s parking lot to meet up with Cameron Hallman, Elijah Hallman dropped some loose change from the cash drawer and a cell phone. At trial, evidence established that the recovered cell phone belonged to Elijah Hallman, who had used it to communicate with Cameron Hallman, and that the cell phone was in the vicinity of the restaurants during both robberies.
In April 2019, a federal jury convicted Elijah Hallman of Hobbs Act robbery, which is the robbery of a business engaged in interstate commerce; conspiracy to commit robbery; and possession of a firearm in furtherance of the robbery. Cameron Hallman previously pleaded guilty for his role in the robberies and was sentenced to 180 months in prison and three years of supervised release.
Elijah Hallman is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI and CMPD handled the investigation. Assistant U.S. Attorneys David Kelly and Cortney Randall, of the U.S. Attorney’s Office in Charlotte, prosecuted Elijah Hallman’s case. Assistant U.S. Attorney Steven Kaufman handled Cameron Hallman’s prosecution.
Cedar Rapids Man Pleads Guilty to Drug Trafficking and Possessing Machineguns and a Pipe BombRead the Press Release
A man who sold cocaine and possessed twenty firearms, including machineguns and a pipe bomb, in downtown Cedar Rapids, pled guilty January 17, 2020, in federal court in Cedar Rapids.
Raven Damien Meader Burkhow, age 25, from Cedar Rapids, Iowa, pled guilty to conspiracy to distribute a controlled substance, two counts of use and possession of a firearm during and in furtherance of a drug trafficking crime, possession of a sawed-off shotgun in furtherance of a drug trafficking crime, possession of machineguns, and possession of an unregistered pipe bomb.
Evidence at a previous hearing in this case showed that Burkhow sold cocaine on five occasions. Burkhow also sold a gun without a serial number, known as a “ghost gun,” with a silencer and a machinegun. Burkhow sold the cocaine and guns from the doorway of his apartment building in downtown Cedar Rapids. Law enforcement later searched his apartment. Officers seized twenty firearms, including machineguns, a sawed-off shotgun, and a pipe bomb; cocaine; silencers; and thousands of rounds of ammunition in late April and early May 2019. As part of his plea, Burkhow also agreed to forfeit items named in the indictment, including $177,720 in cash, six gold bars valued at approximately $5,522.50, firearms, and ammunition, which were seized in connection with the case.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Burkhow remains in custody of the United States Marshal pending sentencing. Burkhow faces a mandatory minimum sentence of 25 years’ imprisonment and a possible maximum sentence of life imprisonment, a $6,010,000 fine, and up to a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Kyndra Lundquist and Richard Murphy and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Iowa Division of Narcotics Enforcement.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-59.
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California Man Pleads Guilty to Misbranding and Smuggling Conspiracy Involving Online Sale and Distribution of Unapproved Drugs Obtained from OverseasRead the Press Release
PITTSBURGH, Pa. – A resident of Murrieta, California, pleaded guilty in federal court to one count of conspiracy to smuggle misbranded drugs into the United States and introduce them into interstate commerce, United States Attorney Scott W. Brady announced today.
Justin Ash, 36, pleaded guilty before United States District Judge Arthur J. Schwab on January 16, 2020.
During his plea hearing, Ash admitted that between January 2016 and May 8, 2018, he engaged in a conspiracy to obtain unapproved drugs in bulk quantities from overseas suppliers, including suppliers in China, for the purpose of pressing the drugs into pills and distributing them to customers throughout the United States via his internet-based business Domestic RCS. Ash’s website, www.domesticrcs.com, advertised multiple unapproved or "misbranded" drugs—clonazolam, diclazepam, flubromazolam, and etizolam—each of which was a non-prescription benzodiazepine or substance with a similar chemical composition. As Ash further acknowledged, these substances carried risks of dependency, toxicity, and even fatal overdose, particularly when combined with other central nervous system depressants. Although his website and the packaging contained in his shipments indicated that the substances were for "research purposes only," Ash admitted that he was aware that the vast majority of his customers purchased the drugs for individual consumption. Indeed, Ash or others acting at his direction communicated directly with individual customers about, among other things, the effects of the drugs when used for personal consumption. In an effort to evade detection by United States federal authorities, including the United States Food and Drug Administration, United States Postal Inspection Service, and United States Customs and Border Protection, Ash also admitted that he caused his overseas suppliers to ship drugs to multiple addresses under his control and in smaller quantities that would draw less government scrutiny.
As part of a written plea agreement, Ash acknowledged causing a loss of more than $550,000 but not more than $1,500,000. He further agreed to forfeit approximately $230,000 in currency seized from his home and a bank account under his control. Ash also agreed to the entry of an additional forfeiture money judgment in the amount of $550,000.
The defendant faces a maximum sentence of five years in prison, a fine of not more than the greater of (i) $250,000 or (ii) an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The United States Food and Drug Administration – Office of Criminal Investigations and Homeland Security Investigations conducted the investigation leading to the charge in this case.
Bronx, New York, Man Admits Role in Conspiracy to Distribute Heroin and Fentanyl from A Drug Mill in the BronxRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.
Jose Antonio Vasquez Pena, a/k/a “Tono,” 47, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, and Francisco Mercedes Gil, 31, also of the Bronx, New York, pleaded guilty before Judge Salas to the same charges in September 2019.
Three other individuals – Jhan Carlos Capellan Maldonado, 31, Daury Contreras Ulerio, 34, and Reimon Genao Rosario, 23 – were indicted on the same charge as Pena in August 2019. Their cases are pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time—including Rodriguez, Ulerio, Rosario, Gil, and Genao—to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for April 27, 2020.
U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Boston Man Admits to Conspiracy to Defraud Seniors in Phony Bail Money SchemeRead the Press Release
PROVIDENCE – A Boston man today admitted to participating in a scheme to defraud senior citizens across the country by persuading them to send significant cash payments to various addresses in Rhode Island to secure the release of a relative from jail, purportedly arrested after being involved in a motor vehicle accident.
Julio Feliciano, 32, admitted that between April and October 2019, members of the conspiracy contacted senior citizens in at least four states, North Carolina, Delaware, Illinois, and Tennessee, and told them that cash payments ranging from $7,000 to $9,500 were required to secure the release of a relative, typically a grandson or nephew, from jail. The claims were not true.
In each instance, a member of the conspiracy, using various fictitious names, instructed a senior citizen to mail packages containing cash to locations in Rhode Island, including private residences, UPS stores, and a pharmacy. Feliciano admitted to the Court that he traveled to the various locations to retrieve the packages.
Feliciano was arrested on November 22, 2019, on a federal criminal complaint as the result of a still on-going investigation by Rhode Island State Police and Homeland Security Investigations.
Appearing today before U.S. District Court Judge Mary S. McElroy, Julio Feliciano pleaded guilty to conspiracy to commit mail fraud, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
Feliciano is scheduled to be sentenced on April 20, 2020.
Conspiracy to commit mail fraud is punishable by statutory penalties of up to 20 years imprisonment, a fine of up to $250,000 or twice the pecuniary value of the gain or loss resulting from the offense, and a term of supervised release of 5 years.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
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Baton Rouge Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced West Clark, age 40, of Baton Rouge, Louisiana, to 54 months in federal prison following his conviction for possession of a firearm by a convicted felon. The Court further sentenced Clark to three years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions Clark made as part of his guilty plea, on July 2, 2014, DEA Task Force Officers executed a state search warrant for an apartment where Clark resided in Baton Rouge, Louisiana. During a search of the apartment, officers found a Taurus Model PT111 Millennium Pro, 9mm semi-automatic pistol, which was loaded with 10 cartridges, as well as 59.1 grams of heroin belonging to Clark.
Prior to possessing the firearm, Clark was convicted in East Baton Rouge Parish in 2004 for possession of cocaine, and in 2006 for attempted possession of a firearm by a convicted felon. Clark also had two prior federal convictions in the Middle District of Louisiana for possession of a firearm by a convicted felon in 2006, and illegal conversion of government property in 2007.
U.S. Attorney Fremin stated, “Sending repeat offenders to prison is another example of our commitment to fight violence and how the collaborative efforts of the federal, state, and local law enforcement can make our streets safer. I want to thank our prosecutor, ATF, DEA, and the East Baton Rouge Parish Sheriff’s Office for their efforts.”
“In our commitment to disrupt violent gun crime in our community, ATF in this joint effort, will continue to focus on convicted felons, like West Clark, who possess a firearm in conjunction with narcotics violations,” said ATF Baton Rouge Field Office Resident Agent in Charge Mary Downie. “Reducing firearm related crimes and keeping our community safe is the top priority for ATF.”
DEA Assistant Special Agent in Charge Michael R. Sader said, “The collaborative effort of federal and local law enforcement in Baton Rouge, including the U.S. Attorney’s Office, has led to the sentencing of this career criminal and ultimately safer streets within our community. DEA will continue to work tirelessly to protect our communities and hold accountable those who threaten our safety.”
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the East Baton Rouge Parish Sheriff’s Office. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana; Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, with substantial assistance from the East Baton Rouge Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Paul Pugliese.
Baltimore Felon Sentenced to 10 Years in Federal Prison for Illegal Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Irvin Hudson, age 31, of Baltimore, Maryland, to 10 years in federal prison, followed by five years of supervised release, for being a felon in possession of a stolen firearm. The sentence was imposed on January 17, 2020.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Jennifer C. Boone; and Commissioner Michael Harrison of the Baltimore Police Department.
United States Attorney Robert K. Hur stated, “We are committed to working with our law enforcement partners to get guns out of the hands of convicted felons and off of our streets, in order to reduce violent crime in our neighborhoods. Irvin Hudson was a convicted felon who chose to possess a stolen firearm and was arrested after running from a vehicle that had been carjacked. This combination of facts often proves deadly on our streets. Hudson now faces 10 years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea, on the afternoon of November 30, 2018, Baltimore Police Department (BPD) officers responded to an armed carjacking of a white Honda Accord. According to the victims of the carjacking, a man approached the driver, who was standing outside the vehicle at a gas station, and pointed a black handgun at him. The carjacker then told the female in the passenger seat to exit the vehicle, took the driver’s keys, and fled in the vehicle.
That evening, BPD received GPS information about the location of the carjacked vehicle. Once officers located the vehicle, it sped away. Officers in the BPD helicopter, known as “Foxtrot,” tracked and relayed the vehicle’s location to officers on the ground. The vehicle stopped, and the driver and a front passenger exited the vehicle and fled in different directions.
Officers in Foxtrot tracked the fleeing passenger, later identified as Hudson, relaying his location to ground officers. The officers in Foxtrot saw Hudson attempt to hide under a truck in an alley and saw him throw a firearm. Officers immediately went to the location and recovered the firearm—a semi-automatic pistol with a 9 mm cartridge in the chamber. The firearm’s magazine was missing, but was subsequently located next to the passenger side door of the vehicle where Hudson had exited the vehicle. The magazine was loaded with four 9mm cartridges. Hudson admitted that he knew that the firearm was stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the FBI, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Goldsticker and Matthew DellaBetta, who prosecuted the case.
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Asheville Man Pleads Guilty to Securities Fraud and Money Laundering for $22 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – Hal H. Brown Jr., 70, of Asheville, N.C., pleaded guilty to securities fraud and transactional money laundering in federal court today before U.S. Magistrate Judge David C. Keesler, for orchestrating a $22 million Ponzi scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to admission made in plea documents and today’s plea hearing, from at least 2006 through September 2019, Brown fraudulently obtained more than $22 million from dozens of victims, some of whom were at, or near, retirement age, by engaging in an investment scheme through his company Oodles Inc. and its various affiliates (collectively, “OODLES”). Individual victims invested anywhere from a few thousand to a few million dollars in OODLES. To induce victims to invest their money, Brown falsely represented that OODLES owned hundreds of millions of dollars in intellectual property, namely family entertainment shows and movies. As part of the scheme, Brown repeatedly lied to victims about the imminent sale of those intellectual properties to various well-known media companies. To perpetuate the fraud, Brown developed marketing material seeking investments or loans for OODLES that claimed large returns on funds invested or lent to the company.
As Brown admitted in court today, to convince victims the scheme was legitimate and to appease investors who sought an explanation about delays in payouts, Brown provided victims with a number of fraudulent and misleading statements and fictitious information, including fake bank statements and falsified company agreements, among others.
Brown used a substantial part of victim money on personal expenses unrelated to purported OODLES transactions. He also used funds contributed by new investors to make payments to existing investors, commonly referred to as “Ponzi” payments.
A sentencing date for Brown has not been set. The securities fraud charge carries a maximum prison sentence of 20 years and a $5 million fine. The transactional money laundering charge carries a maximum prison term of 10 years and a fine of not more than twice the amount of criminally derived property in the transaction or $250,000.
The FBI’s Charlotte Field Office handled the investigation.
Assistant U.S. Attorneys Daniel Ryan and Mark Odulio of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative.