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15 January 2020
Wichita Woman Had Guns, 20 Pounds of MethamphetamineRead the Press Release
WICHITA, KAN. – A Wichita woman pleaded guilty today to federal firearms and drug charges, U.S. Attorney Stephen McAllister said.
Wendy L. Scearce, 36, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking.
In her plea, Scearce admitted she was in her residence in the 300 block of North Seneca when Wichita police served a search warrant. Police found a .380-caliber Beretta handgun in the house. In the garage, police found 20 pounds of methamphetamine and 11 firearms. Scearace admitted she kept the gun to protect herself while she was engaged in drug trafficking.
Sentencing is set for April 6. She could face a sentence of not less than 10 years in federal prison and a fine up to $10 million on the drug charge and not less than five years and a fine up to $250,000 on the firearm charge.
McAllister commended the FBI Safe Streets Task Force, the Wichita Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
Westmoreland County Heroin Addict Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA- A resident of West Newton PA, pleaded guilty in federal court to federal drug and firearms violations, United States Attorney Scott W. Brady announced today.
William Kalna, 51, pleaded guilty to one count of conspiracy to distribute heroin and one count of possession of firearms and ammunition by a person addicted to a controlled substance before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that 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 Kalna was obtaining distributor quantities of heroin from another member of the conspiracy, which Kalna both used and distributed in Westmoreland County to support his addiction. In connection with the guilty plea, Kalna took responsibility for conspiring to possess with intent to distribute 254 grams of heroin. The court was further informed that during the execution of a federal search warrant at Kalna’s residence on June 12, 2019, law enforcement officials seized 28 firearms, a large quantity of ammunition, $2,669.00 in United States currency, and four digital scales. Kalna, who was at the time addicted to heroin, was prohibited from possessing these firearms and ammunition.
Judge Schwab scheduled sentencing for May 12, 2020 at 9 a.m. date and time of sentencing The law provides for a total sentence of not less than 5 and not more than 40 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. Kalna 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.
Washington Man Sentenced to 24 Months in Federal Prison for Assaulting His Girlfriend on the Colville Indian ReservationRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Louis Mark Clark, age 28, of Nespelem, Washington, and an enrolled member of the Confederated Tribes of the Colville Reservation, was sentenced after having pleaded guilty on September 30, 2019, to Crime on Indian Reservation - Assault Resulting in Serious Bodily Injury. United States District Judge Rosanna Malouf Peterson sentenced Clark to a 24-month term of imprisonment, to be followed by a three-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Clark traveled with his then girlfriend, an enrolled member of the Confederated Tribes of the Colville Reservation, to their shared home on the Colville Indian Reservation. There, Clark became upset with his girlfriend and began hitting her in the face with his fists and his knee several times. During the assault, which occurred in the presence of their minor children, Clark knocked out two of the victim’s front teeth. Clark’s girlfriend was able to get away and lock herself in a bathroom, where she called 911, reporting the assault to the authorities. Clark has prior convictions for assault.
United States Attorney Hyslop said, “The sentence imposed by the Court reflects the serious nature of domestic assault. The United States Attorney’s Office for the Eastern District of Washington works closely with federal, state, local and tribal law enforcement agencies to ensure that Native American Women and families are protected from violence such as this.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation and the Tribal Law Enforcement Department of the Confederated Tribes of the Colville Reservation Police. This case was prosecuted by Richard R. Barker, Assistant United States Attorney for the Eastern District of Washington.
Virginia Man Sentenced to 60 Months in Prison on Federal Fraud Conspiracy Charge for Stealing over $1.3 MillionRead the Press Release
WASHINGTON – Issam Abu-Ghosh, 61, of Leesburg, Virginia, was sentenced today to 60 months in prison for his role in a fraud conspiracy targeting companies and individuals from across the United States and around the world.
The announcement was made by U.S. Attorney Jessie K. Liu; Special Agent in Charge Kelly R. Jackson of the Washington Field Office of the Internal Revenue Service-Criminal Division, and Timothy M. Dunham, Special Agent in Charge of the Criminal Division of the FBI’s Washington Field Office.
Issam Abu-Ghosh pled guilty in September 2018 to one count of conspiracy to commit wire fraud and money laundering in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Richard J. Leon. In addition to his prison term, Abu-Ghosh must pay restitution in the amount of $1,358,980, as well as a forfeiture money judgement in the amount of $952,000. Following his prison term, he will be placed on three years of supervised release.
Beginning in or about 2009, and continuing through at least 2012, Ghosh and his co-conspirator conducted a scheme to defraud individuals, companies, and other types of entities, to obtain money. The scheme was conducted in a similar manner for many of the victims. In nearly each instance, Ghosh represented to the victim that Ghosh, through his solely owned company, could obtain a loan for the victim through various connections that he maintained. The loans needed by the victims were often for millions of dollars and to fund large projects. Prior to soliciting potential lenders, Ghosh required that each victim provide a good faith deposit to be held in escrow to show the victim’s good intentions toward obtaining the loan. The good faith deposits ranged from $15,000 to $250,000. Ghosh’s co-conspirator, an attorney, acted as the escrow agent for the good faith deposits. Once an agreement was reached between the victim and Ghosh, the terms and conditions were memorialized in a Loan Commitment contract. The Loan Commitment included an Escrow Agreement, which identified Ghosh’s co-conspirator as the escrow agent and provided conditions under which the Escrow Agreement would operate, including the transfer of the good faith deposit to a bank account held by the co-conspirator. In most cases, the Escrow Agreement required that the co-conspirator hold the money with the understanding that the funds would be returned to the victim if Ghosh failed to identify and provide a lender. Once the victim wired the good faith deposit to the escrow account, most of that money was transferred to Ghosh within days. Ghosh and his co-conspirator obtained over $1,358,980 in good faith deposits. No loans were ever obtained by Ghosh and the good faith deposits were used by Ghosh and his co-conspirator for their personal benefit or to further the scheme.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Dunham, and Special Agent in Charge Jackson commended the work performed by those who investigated the case from the IRS-Criminal Investigation Division and the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Michelle A. Zamarin, Assistant U.S. Attorney Diane Lucas, and Assistant U.S. Attorney Michael Marando, who prosecuted the case.
Ulster County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BINGHAMTON, NEW YORK – Corey Baker, age 24, of Clintondale, New York, pled guilty today to distributing and receiving child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Baker admitted that between June 2017 and August 2018, he traded child pornography with others using a phone and laptop computer equipped with various Internet-based instant messaging and file-sharing applications. He also admitted to using a peer-to-peer file-sharing application on the laptop to search for and download child pornography. Baker’s phone and laptop computer contained approximately 671 video files and 115 image files depicting child pornography.
Sentencing is scheduled for May 27, 2020 before Senior United States Judge Thomas J. McAvoy.
Baker faces a minimum term of imprisonment of 5 years, and a maximum term of imprisonment of 20 years. The Court is also required to impose a term of supervised release of between 5 years and life, and Baker will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
This case was investigated by the FBI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
U.S. Attorney, DEA, Montrose County Sheriff and Montrose Police Chief Announce Major Drug Enforcement ActionRead the Press Release
DENVER – Following a year-long investigation, thirteen Montrose residents were indicted by a federal grand jury in Denver and charged with the drug distribution crimes. State officers, county sheriff deputies and the DEA then arrested eleven of the indicted individuals. The announcement was made by United States Attorney Jason R. Dunn, Drug Enforcement Administration (DEA) Special Agent in Charge Deanne Reuter, Montrose County Sheriff Gene Lillard and Montrose Police Chief Blaine Hall. The arrested defendants were transported to Grand Junction, where they are making their initial appearances before a U.S. Magistrate Judge. At that appearance they will be advised of their rights and the charges pending against them.
According to the indictment, from January 1, 2019 through December 18, 2019, the thirteen defendants, named below, conspired with each other and others known and unknown to the grand jury to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine, 500 grams or more of a mixture of a substance containing a detectable amount of methamphetamine, and less than 100 grams of heroin. If convicted, each defendant faces a minimum of 10 years, and up to life in federal prison.
Those indicted include:
- Omar Briceno-Quijano, age 29 FUGITIVE
- Ofelia Lopez, age 49
- Luis Alberto Ibarra-Tadeo, age 26
- Romeo Lujan, age 28 FUGITIVE
- Angelina Maestas, age 32
- Joseph Davis, age 26
- Naomi Vaughn, age 35
- Jonte LeFlore, age 34
- Dustin Debarris, age 31
- Steven Keith Jones, age 33
- Frank Arroyo, age 44
- Amanda Lee Sumpter, age 49
- Nicole Wickman, age 36
In addition to the conspiracy charges, the defendants face individual counts for the distribution of methamphetamine and heroin. Multiple defendants also face charges of using a communication device, a phone, to facilitate their drug trafficking.
“Montrose law enforcement, working with the DEA, has done an outstanding job identifying those who are trafficking methamphetamine and heroin to members of their community,” said U.S. Attorney Jason Dunn. “It is a high priority of this office to support our rural communities facing large scale drug problems.”
“The DEA recognized the increased availability of methamphetamine in the Montrose area two years ago. We worked closely with the Montrose Police Department, the Montrose Sheriff’s Office and the Seventh Judicial Drug Task Force to target alleged distributors that were identified in the area,” said DEA Special Agent in Charge of the Denver Division Deanne Reuter. “The success of this operation is the result of the strong partnership formed between law enforcement agencies, where all involved are deeply committed to working together to protecting the citizens of Montrose and the surrounding area from scourge of methamphetamine.”
“On behalf of the Montrose County Sheriff’s Office, I would like to commend the DEA for its leadership and assistance with this operation,” said Montrose County Sheriff Gene Lillard. “The amount of drug trafficking that we are experiencing in the County of Montrose has been on the increase over the last decade. The Montrose County Sheriff’s Office has been working and will continue to work proactively to combat the drug issues that are affecting the city and county of Montrose. We are working side by side and will continue to work with the DEA, Montrose Police Department, 7th Judicial Drug Task Force, U.S. Marshal’s Office, ATF, Colorado State Patrol and other state and local agencies. The drug problem in the County of Montrose is directly related to our crime rate of burglaries, thefts, scams and even domestic violence that we deal with on a daily basis. This operation has been a long time coming and we hope to see a ripple effect in the future to stop those who want to be drug dealers in Montrose County.”
“These arrests should communicate that our community suffers from a major drug trafficking issue, and these arrests are critical in keeping our community safe,” said Montrose Police Chief Blaine Hall. “The disruption, apprehension, and prosecution of these offenders is a high priority for the Montrose Police Department, and we value the partnership we have with the Montrose County Sheriff’s Office and the Drug Enforcement Administration. The addition of the DEA gives the City of Montrose new tools to investigate suspected offenders committing drug crimes in our community. I’d like to commend and thank the current 7th Judicial Drug Task Force members, DEA, and the multiple other federal, state, and local agencies for their steadfast work in this multifaceted investigation. Their efforts will have long-term payoffs for our community in the realm of public safety and crime reduction.”
This investigation was conducted by the Denver Division of the DEA, the Montrose County Sheriff’s Office, and the Montrose Police Department, as well as representatives from the 7th Judicial District Attorney’s Office.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty in a court of law.
Two Peruvians Plead Guilty to Overseeing Call Centers that Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
Two Peruvian men pleaded guilty today to conspiracy to commit mail fraud and wire fraud for operating a large fraud and extortion scheme, the Department of Justice announced.
Johnny Enso Hidalgo Marchan, 40, and Rodolfo Hermoza, 44, oversaw call centers in Peru that used government impersonation, lies, and threats to steal money from thousands of U.S. Spanish-speaking victims. Both men were extradited from Peru in December 2019.
As part of their guilty pleas, Hidalgo and Hermoza admitted that they falsely posed as attorneys affiliated with U.S. courts and government agencies in threatening victims with detention, confiscation of property, credit ramifications, deportation, and community-service requirements to obtain payments from the victims. U.S. consumers lost over $1 million to the defendants’ fraud scheme.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division. “Disrupting transnational telemarketing fraud schemes — especially those that target vulnerable populations — is a priority for the Department of Justice. Criminals responsible for those schemes will not escape justice by placing their calls from abroad.”
Hidalgo and Hermoza managed and operated Peruvian call centers based in Lima and Cajamarca, Peru, that worked in partnership with another entity in Miami, Florida. Hidalgo, Hermoza, and their employees in Peru used Internet-based telephone calls to lie to and threaten Spanish-speaking victims in the United States. The callers often falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that court proceedings would be brought against them. In reality, the victims — many of whom were elderly — had never ordered or received the products.
The defendants and other call center employees claimed that the consumers could resolve the supposed debts and avoid threatened consequences if they immediately paid a “settlement fee.” Consumers who contested the settlement fees were told that failure to pay could lead to harmed credit, arrest, deportation, or seizure of property.
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Fajardo Orshan of the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from schemes, such as this one, is a top priority of this Office and the Department of Justice.”
“The U.S. Postal Inspection Service will not allow overseas criminal enterprises to illegally enrich themselves by using the mail to defraud consumers in the United States,” said Miami Division Postal Inspector in Charge Antonio J. Gomez. “With the continued cooperation of foreign governments these criminals will be aggressively pursued and brought to justice.”
A 37-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida in June 2015 and was unsealed upon the defendants’ Dec. 18, 2019 extradition to the United States. A third defendant was also charged with conspiracy, mail fraud, wire fraud, and attempted extortion charges and is currently pending trial.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two individuals previously were brought to justice in connection with this scheme. In 2014, charges were brought against Angeluz and Maria Luzula of Miami and Juan Alejandro Rodriguez Cuya of Lima, Peru. Luzula pleaded guilty to all counts against her midway through trial and was sentenced to serve 165 months in prison. Rodriguez Cuya was convicted following a two-week trial. U.S. District Court Judge Patricia A. Seitz sentenced Rodriguez Cuya to serve 210 months in prison.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. The U.S. Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Department of State Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
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.
Two Men Sentenced to Prison for Robbing A North Minneapolis Convenience StoreRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MARIO MARTELL SPENCER, 34, and AHMED OSMAN FARAH, 32, for the armed robbery of a Minneapolis convenience store. SPENCER and FARAH were convicted by a federal jury on June 17, 2019, and were sentenced to 156 months in prison and 120 months in prison, respectively. The sentences were handed down by Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
United States Attorney Erica MacDonald said, “Armed robbery of a small business, high-speed flight from police through residential areas, significant property damage – this is unwelcome criminal activity in our communities. My office and our law enforcement partners are laser focused on making our streets safer and we will not hesitate to go after those who oppose that mission.”
As proven at trial, on March 23, 2018, around 8:30 p.m., SPENCER and FARAH entered Penn-Wood Market, located on Glenwood Avenue in Minneapolis, wearing masks and gloves. SPENCER held two employees at gunpoint while FARAH took money from the cash registers and stole one employee’s cell phone. The two defendants fled the scene in a vehicle. A witness called 911 as the robbery was in progress and, shortly after, responding officers were able to locate the defendants’ unoccupied vehicle, which had crashed into a garage. Law enforcement set up a perimeter around the area of the crash site and, following a foot chase, were able to apprehend and arrest FARAH. With the assistance of a K9, law enforcement officers initiated a systematic search inside the perimeter and eventually found SPENCER hiding on top of the roof of a garage.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat 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.
Assistant U.S. Attorneys Nathan H. Nelson and Justin A. Wesley prosecuted the case.
Defendant Information:
MARIO MARTELL SPENCER, 35
St. Paul, Minn.
Convicted:
- Interference with commerce by robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
Sentenced:
- 156 months in prison
- Four years of supervised release
- $2,800 in restitution
AHMED OSMAN FARAH, 33
Maplewood, Minn.
Convicted:
- Interference with commerce by robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
Sentenced:
- 120 months in prison
- Four years of supervised release
- $2,800 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Members of the Paul Girard Criminal Enterprise Plead Guilty to RICO ChargesRead the Press Release
St. Thomas, USVI – Robert Brown, age 30, and Etherneal Simon, age 49, both of St. Croix, pleaded guilty to racketeering charges for their respective roles as members of the Paul Girard Criminal Enterprise (“the Enterprise”), United States Attorney Gretchen C.F. Shappert announced. Brown, who entered his guilty plea on December 20, 2019, pleaded guilty to two counts of murder in aid of racketeering activity; Simon, who entered her guilty plea today, pled guilty to RICO conspiracy and money laundering conspiracy. The Honorable Curtis V. Gomez, Chief Judge, District Court of the Virgin Islands, accepted both guilty pleas.
In his plea agreement, Brown admitted to serving as a chief enforcer for the Enterprise. As a chief enforcer, Brown admitted that he committed acts of violence on behalf of the Enterprise in order to: 1) enrich, preserve, expand, and protect the power, territory, and prestige of the Enterprise; 2) keep potential victims and rival gang members in fear of the Enterprise and its associates; 3) confront and retaliate against rival drug dealers and gangs; 4) protect the Enterprise and its members from detection, apprehension, and prosecution; and 5) financially support the Enterprise through robbery and other acts.
Brown specifically admitted that, in addition to other acts of violence, on September 4, 2015, he murdered an individual identified in the Fourth Superseding Indictment as J.W., a member of a rival criminal enterprise. Brown and his Enterprise associates planned and carried out the murder of J.W. at his child’s St. Croix daycare, as the daycare closed for the day. Brown acted as the driver, and positioned his vehicle next to the passenger side of an SUV, where he knew J.W. was seated, waiting for his child. Brown sprayed gunfire from his AK-47 into the passenger side of the SUV, killing J.W. During the entry of his guilty plea in federal court. Brown further admitted that he committed the murder in order to maintain his position in the Enterprise.
Brown further admitted that, on February 2, 2016, he ambushed members of a rival gang outside of the H&R Supermarket, ultimately shooting and killing an individual identified as J.E. in the Fourth Superseding Indictment, who Brown believed was attempting to return gunfire.
Brown faces up to life imprisonment, a five-year term of supervised release, and a fine of up to $250,000, for each count. Judge Gomez scheduled defendant Brown’s sentencing for April 23, 2020, at 9:00 a.m.
Simon likewise admitted to having acted as the financial and logistics facilitator for the Paul Girard Enterprise. Specifically, Simon acknowledged that, as part of her role in the RICO conspiracy, she rented the cars that Enterprise associates used to commit five different attempted murders on two separate occasions. Simon further admitted that she laundered drug proceeds of the Enterprise.
Simon faces up to twenty years’ imprisonment, a five-year term of supervised release, and a fine of up to $250,000 for the RICO conspiracy count, and the same for the money laundering count, with the exception that the maximum fine for that offense is $500,000. Simon’s sentencing is scheduled for May 21, 2020, at 9 a.m.
This case was investigated by the Federal Bureau of Investigation and the Virgin Islands Police Department, and is being prosecuted by Assistant United States Attorney Meredith J. Edwards.
Two Individuals Sentenced in Connection with Work on Behalf of IranRead the Press Release
Ahmadreza Mohammadi-Doostdar, 39, a dual U.S.-Iranian citizen, and Majid Ghorbani, 60, an Iranian citizen and resident of California, have been sentenced to prison terms of 38 months and 30 months, respectively, for their criminal convictions relating to their conduct conducting surveillance of and collecting identifying information about American citizens and U.S. nationals who are members of the group Mujahedin-e Khalq (MEK).
On Jan. 15, 2020, the Honorable Paul L. Friedman sentenced Doostdar to a prison term of 38 months, 36 months of supervised release, and a fine of $14,153. Ghorbani was sentenced to a prison term of 30 months and 36 months of supervised release.
On Oct. 8, 2019, Doostdar entered guilty pleas to one count of acting as an agent of the government of Iran without notifying the Attorney General, in violation of 18 U.S.C. § 951, and one count of conspiring to violate that statute, in violation of 18 U.S.C. § 371. On Nov. 4, 2019, Ghorbani entered a guilty plea to one count of willfully violating the International Emergency Economic Powers Act (IEEPA), 50 U.S.C. § 1705, and the Iranian Transactions and Sanctions Regulations 31 C.F.R. Parts 560.204 and 560.206.
“This case illustrates Iran’s targeting of Americans in the United States in order to silence those who oppose the Iranian regime or otherwise further its goals,” said Assistant Attorney General for National Security John C. Demers. “The defendants, working for Iran, gathered information on Americans that could then be used by the Iranian intelligence services to intimidate or harm them or their families. These prosecutions should serve as a reminder to anyone here working covertly for Iran that the American law enforcement will pursue you to protect this country, its citizens and the First Amendment principles upon which it was founded.”
“The sentences in this case illustrate the high cost to those who act as agents of the Iranian government in the United States or provide services that benefit the government of Iran, especially when those activities target the free speech and peaceful assembly rights of people in the United States,” said Jessie K. Liu, United States Attorney for the District of Columbia. “We will continue to thwart efforts by foreign governments to endanger our national security and to stifle the freedoms that all Americans cherish.”
"The FBI will not tolerate surveillance being conducted here in the United States at the behest of foreign nations like Iran," said Jay Tabb, Executive Assistant Director of the FBI's National Security Branch. "Such activity is intimidating, particularly to individuals who exercise their constitutional rights to free speech and criticize the Iranian government. The FBI will continue to pursue such activity on U.S. soil and disrupt efforts by any individuals who take such actions on behalf of Iran."
As part of his plea, Doostdar admitted under oath that he traveled to the United States from Iran on three occasions in order to meet with Ghorbani and to convey directions for Ghorbani’s activities on behalf of the government of Iran. Prior to Doostdar’s first trip to the United States, his handler with the government of Iran identified Ghorbani by name, showed Doostdar a photograph of Ghorbani, and told him where Ghorbani worked.
During Doostdar’s first trip to the United States in July 2017, Doostdar met Ghorbani at Ghorbani’s workplace. Doostdar admitted that, during a subsequent conversation, Ghorbani told Doostdar that he was willing to work for the government of Iran in the United States.
On Sept. 20, 2017, Ghorbani attended a rally in New York City organized by the Mujahadeen-e-Khalq (MEK). The rally consisted of constitutionally-protected activity, including U.S. citizens denouncing the Iranian regime. At the rally, Ghorbani photographed rally attendees, including MEK leaders.
In December 2017, during Doostdar’s second trip to the United States as part of the conspiracy, Doostdar met with Ghorbani and collected the rally photographs from Ghorbani. The photographs depicted MEK leaders and included hand-written notes identifying the individuals and listing their positions in the group. Under oath, Ghorbani admitted to attending the September 2017 MEK rally and to photographing and gathering information on rally attendees to provide to Doostdar and ultimately to individuals in Iran. Doostdar paid Ghorbani $2,000 for his work, which Doostdar admitted had been provided by Doostdar’s government of Iran handler.
During this December 2017 trip, Ghorbani and Doostdar also discussed Ghorbani’s planned travel to Iran in March 2018, and Ghorbani offered to provide an in-person briefing on rally attendees during this trip. Later in December 2017, Doostdar departed the United States for Iran with the photographs and handwritten notes provided by Ghorbani.
In May 2018, Ghorbani traveled to another MEK rally, this time in Washington, D.C., where he again collected information on participants critical of the Iranian regime. Following that rally, Doostdar admitted that he and Ghorbani spoke by telephone and discussed the methods that Ghorbani could use to provide the information collected at that rally to Doostdar in Iran.
Doostdar further admitted that, during his travel to the United States to task Ghorbani with collecting information on U.S. persons on behalf of the Iranian regime, he communicated with his government of Iran handler through another co-conspirator. Doostdar’s handler relayed instructions and encouragement and answered Doostdar’s questions that came up during his mission in the United States.
The investigation into this matter was conducted by the FBI’s Washington Field Office and Los Angeles Field Office. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia and the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice.
Two Individuals Sentenced in Connection with Providing Services to IranRead the Press Release
WASHINGTON – Ahmadreza Mohammadi-Doostdar, 39, a dual U.S.-Iranian citizen, and Majid Ghorbani, 60, an Iranian citizen and resident of California, have been sentenced to prison terms of 38 months and 30 months, respectively, for their criminal convictions relating to their conduct on behalf of Iran. As the government demonstrated at sentencing, both defendants collected the information of conducting surveillance of and collecting identifying information about American citizens and U.S. nationals who are members of the group Mujahedin-e Khalq (MEK) for the purpose of providing that information to Iran..
On Jan. 15, 2020, the Honorable Paul L. Friedman sentenced Doostdar to a fine of $14,153 and 36 months of supervised release and Ghorbani to 30 months in prison along with 36 months of supervised release.
On Oct. 8, 2019, Doostdar entered guilty pleas to one count of acting as an agent of the government of Iran without notifying the Attorney General, in violation of 18 U.S.C. § 951, and one count of conspiring to violate that statute, in violation of 18 U.S.C. § 371. On Nov. 4, 2019, Ghorbani entered a guilty plea to one count of willfully violating the International Emergency Economic Powers Act (IEEPA), 50 U.S.C. § 1705, and the Iranian Transactions and Sanctions Regulations 31 C.F.R. Parts 560.204 and 560.206.
The sentencings were announced by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Executive Assistant Director Jay Tabb of the FBI’s National Security Branch.
“This case illustrates Iran’s targeting of Americans in the United States in order to silence those who oppose the Iranian regime or otherwise further its goals,” said AAG Demers. “The defendants, working for Iran, gathered information on Americans that could then be used by the Iranian intelligence services to intimidate or harm them or their families. These prosecutions should serve as a reminder to anyone here working covertly for Iran that the American law enforcement will pursue you to protect this country, its citizens and the First Amendment principles upon which it was founded.”
“The sentences in this case illustrate the high cost to those who act as agents of the Iranian government in the United States or provide services that benefit the government of Iran” said Jessie K. Liu, United States Attorney for the District of Columbia. “We will continue to thwart efforts by foreign governments to endanger our national security.”
"The FBI will not tolerate surveillance being conducted here in the United States at the behest of foreign nations like Iran," said Jay Tabb, Executive Assistant Director of the FBI's National Security Branch. "Such activity is intimidating, particularly to individuals who exercise their constitutional rights to free speech and criticize the Iranian government. The FBI will continue to pursue such activity on U.S. soil and disrupt efforts by any individuals who take such actions on behalf of Iran."
As part of his plea, Doostdar admitted under oath that he traveled to the United States from Iran on three occasions in order to meet with Ghorbani and to convey directions for Ghorbani’s activities on behalf of the government of Iran. Prior to Doostdar’s first trip to the United States, his handler with the government of Iran identified Ghorbani by name, showed Doostdar a photograph of Ghorbani, and told him where Ghorbani worked.
During Doostdar’s first trip to the United States in July 2017, Doostdar met Ghorbani at Ghorbani’s workplace. Doostdar admitted that, during a subsequent conversation, Ghorbani told Doostdar that he was willing to work for the government of Iran in the United States.
On Sept. 20, 2017, Ghorbani attended a rally in New York City organized by the Mujahadeen-e-Khalq (MEK). The rally consisted of constitutionally-protected activity, including U.S. citizens denouncing the Iranian regime. At the rally, Ghorbani photographed rally attendees, including MEK leaders.
In December 2017, during Doostdar’s second trip to the United States as part of the conspiracy, Doostdar met with Ghorbani and collected the rally photographs from Ghorbani. The photographs depicted MEK leaders and included hand-written notes identifying the individuals and listing their positions in the group. Under oath, Ghorbani admitted to attending the September 2017 MEK rally and to photographing and gathering information on rally attendees to provide to Doostdar and ultimately to individuals in Iran. Doostdar paid Ghorbani $2,000 for his work, which Doostdar admitted had been provided by Doostdar’s government of Iran handler.
During this December 2017 trip, Ghorbani and Doostdar also discussed Ghorbani’s planned travel to Iran in March 2018, and Ghorbani offered to provide an in-person briefing on rally attendees during this trip. Later in December 2017, Doostdar departed the United States for Iran with the photographs and handwritten notes provided by Ghorbani.
In May 2018, Ghorbani traveled to another MEK rally, this time in Washington, D.C., where he again collected information on participants critical of the Iranian regime. Following that rally, Doostdar admitted that he and Ghorbani spoke by telephone and discussed the methods that Ghorbani could use to provide the information collected at that rally to Doostdar in Iran.
Doostdar further admitted that, during his travel to the United States to task Ghorbani with collecting information on U.S. persons on behalf of the Iranian regime, he communicated with his government of Iran handler through another co-conspirator. Doostdar’s handler relayed instructions and encouragement and answered Doostdar’s questions that came up during his mission in the United States.
The investigation into this matter was conducted by the FBI’s Washington Field Office and Los Angeles Field Office. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia and the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice.
Tucson Woman Sentenced to Prison for Impersonating Immigration Attorney and Ice Agent to Defraud VictimsRead the Press Release
TUCSON, Ariz. – On January 14, 2020, Elvira Contreras, 38, of Tucson, Ariz., was sentenced by U.S. District Judge Jennifer G. Zipps to 18 months’ imprisonment, followed by three years of supervised release. Contreras had previously pleaded guilty to wire fraud.
Contreras falsely represented to undocumented alien victims that she worked for Immigration and Customs Enforcement (ICE) or that she was an immigration attorney who could obtain U.S. immigration documents for them for a fee. As part of her scheme, Defendant falsely impersonated local immigration attorney Doralina Luna. Defendant was also ordered to pay $89,935.00 in restitution.
The investigation in this case was conducted by Immigration and Customs Enforcement (ICE), and the ICE Office of Professional Responsibility. The prosecution was handled by Tiffany J. Underwood and Jane L. Westby, Assistant U.S. Attorneys, District of Arizona, Tucson.
Three Jackson Residents Plead Guilty to Human TraffickingRead the Press Release
Jackson, Miss. – Edward Deshawn Williams, 29, and Christopher Griffin, 30, both of Jackson, pled guilty Friday, and Charmaine Turner, 27, also of Jackson, pled guilty yesterday before Chief U.S. District Judge Daniel P. Jordan III for their roles in a human trafficking operation, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation (FBI) in Mississippi.
“Criminals who do such evil things to children for money will be pursued, caught and punished with all the resources that this office and the U.S. Department of Justice and our partners can bring to bear. We are redoubling our efforts in this area and intend to do whatever it takes to eliminate this heinous crime from our communities. I am extremely thankful to our prosecutors, the FBI, and our state and local law enforcement and nonprofit partners who work with us to rescue these victims and put away these criminals,” said U.S. Attorney Hurst.
“People, especially children, are not a commodity to be bought and sold, and those who traffic humans for any purpose will be pursued by the FBI and our partners,” said SAC Sutphin. “Law Enforcement Task Forces and partnerships between agencies continue to be successful in removing these types of offenders from our communities.”
Williams pled guilty to one count of sex trafficking a minor, and one count of advertisement and promoting prostitution via the Internet. Griffin pled guilty to one count of advertisement and promoting prostitution via the Internet. Turner pled guilty to two counts of advertisement and promoting prostitution.
The defendants will be sentenced by Chief Judge Jordan on April 10, 2020. Williams faces a maximum penalty of life in prison and a $250,000 fine. Griffin faces a maximum penalty of 5 years in prison and a $250,000 fine. Turner faces a maximum penalty of 5 years in prison and a $250,000 fine on each count.
In April 2019, FBI Special Agents, Hinds County Sheriff’s Office deputies, and investigators with the Mississippi Attorney General Office began investigating advertisements and posting of advertisements on the Internet promoting commercial sex acts with younger-looking females in and around Jackson. The investigation led to the arrest of Williams, Turner and Griffin for promoting prostitution of a 15- year-old runaway female engaging in the commercial sex acts with men for money. Williams knew the 15-year-old would be engaged in commercial sex acts with men for money from the ads posted via the Internet. Williams rented rooms at local hotels for the minor in Jackson for days at a time. Williams kept most, if not all, of the money earned by the minor from the sex acts. Griffin introduced the minor victim to Williams, who in turn took the 15 year old to Turner for work in the commercial sex trafficking trade.
This case was investigated by the FBI, the Mississippi Attorney General’s Office, and the Hinds County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Glenda R. Haynes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Texas doctor convicted in $325 million health care fraud schemeRead the Press Release
McALLEN, Texas – A federal jury found a Texas rheumatologist guilty today for his role in a $325 million health care fraud scheme in which he falsely diagnosed patients with life-long diseases and treated them with toxic medications on the basis of that false diagnosis.
Following a 25-day trial, Jorge Zamora-Quezada M.D., 63, of Mission, was convicted of one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of conspiracy to obstruct justice.
“The conduct in this case was heinous. Dr. Zamora-Quezada falsely diagnosed vulnerable patients, including the young, elderly and disabled, with life-long diseases requiring invasive treatments that those patients did not in fact need,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s guilty verdict shows that the Department of Justice will work tirelessly to protect the public from unscrupulous medical professionals who greedily line their own pockets at the expense of their patients’ health and safety.”
“As evidenced by the length of trial, this was a massive investigation into one of the worst medical fraudsters,” said U.S. Attorney Ryan K. Patrick. “Unnecessary medical tests to create millions of dollars of false billing is as bad as it gets. Patients were put through unneeded anxiety and pain so the doctor could make millions. He won’t need it where he’s headed.”
“The guilty verdict against Dr. Zamora-Quezada ensures he will pay a steep price for his unthinkably callous and cruel criminal conduct, committed for the sheer sake of greed,” said Special Agent in Charge CJ Porter of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG). “The abhorrent conduct in this case, which resulted in harm to unsuspecting patients, only serves to deepen the dedication of HHS-OIG agents and our law enforcement partners to pursue, prosecute and exclude bad actors in the Medicare and Medicaid programs.”
“Rarely do we see such an egregious case of health care fraud, where so many patients received years of unnecessary and debilitating treatments, which were rendered out of sheer greed,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “The FBI is committed to seeking justice for each and every victim who suffered immeasurable harm at the hands of these defendants. The public deserves to be able to seek medical care without fear of being falsely diagnosed and given toxic medications they don’t need. We will relentlessly pursue those who would enrich themselves at the expense of those most vulnerable in our community.”
According to the evidence presented at trial, Zamora-Quezada falsely diagnosed a large number of patients with rheumatoid arthritis - a lifelong, incurable disease - and treated them with toxic, medically unnecessary medications like chemotherapy drugs on the basis of that false diagnosis. Many patients, including patients as young as 13, suffered physical and emotional harm as a result of the false diagnoses, chemotherapy injections, hours’ long intravenous infusions and other excessive, repetitive and profit-driven medical procedures. The evidence further showed that to obstruct and mislead a federal grand jury investigation, Zamora-Quezada falsified medical records. Zamora-Quezada operated medical practices throughout South Texas and San Antonio. He traveled to his various offices on his private jet and in his Maserati.
U.S. District Judge Ricardo Hinojosa presided over the trial and set sentencing for March 27.
The Rio Grande Valley Health Care Fraud Task Force, which includes the FBI, HHS-OIG, Texas HHS-OIG and Texas Medicaid Fraud Control Unit, conducted the investigation with assistance from the Defense Criminal Investigative Service. Assistant Chiefs Adrienne Frazior and Jacob Foster and Trial Attorneys Rebecca Yuan and Emily Gurskis of the Criminal Division’s Fraud Section are prosecuting the case along with Assistant U.S. Attorney Cynthia Villanueva of the Southern District of Texas. Trial Attorney Kevin Lowell of the Fraud Section initially handled the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Texas Doctor Found Guilty for Role in $325 Million Health Care Fraud Scheme Involving False Diagnoses of Life-Long DiseasesRead the Press Release
A federal jury found a Texas rheumatologist guilty today for his role in a $325 million health care fraud scheme in which he falsely diagnosed patients with life-long diseases and treated them with toxic medications on the basis of that false diagnosis.
Following a 25-day trial, Jorge Zamora-Quezada, M.D., 63, of Mission, Texas, was convicted of one count of conspiracy to commit health care fraud, seven counts of health care fraud, and one count of conspiracy to obstruct justice. Zamora-Quezada is expected to be sentenced on March 27, 2020, by U.S. District Judge Ricardo Hinojosa of the Southern District of Texas, who presided over the trial.
“The conduct in this case was heinous. Dr. Zamora-Quezada falsely diagnosed vulnerable patients, including the young, elderly, and disabled, with life-long diseases requiring invasive treatments that those patients did not in fact need,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s guilty verdict shows that the Department of Justice will work tirelessly to protect the public from unscrupulous medical professionals who greedily line their own pockets at the expense of their patients’ health and safety.”
“As evidenced by the length of trial, this was a massive investigation into one of the worst medical fraudsters,” said. U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Unnecessary medical tests to create millions of dollars of false billing is as bad as it gets. Patients were put through unneeded anxiety and pain so the doctor could make millions. He won’t need it where he’s headed.”
“The guilty verdict against Dr. Zamora-Quezada ensures he will pay a steep price for his unthinkably callous and cruel criminal conduct, committed for the sheer sake of greed,” said Special Agent in Charge CJ Porter of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG). “The abhorrent conduct in this case, which resulted in harm to unsuspecting patients, only serves to deepen the dedication of HHS-OIG agents and our law enforcement partners to pursue, prosecute, and exclude bad actors in the Medicare and Medicaid programs.”
“Rarely do we see such an egregious case of health care fraud, where so many patients received years of unnecessary and debilitating treatments, which were rendered out of sheer greed,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “The FBI is committed to seeking justice for each and every victim who suffered immeasurable harm at the hands of these defendants. The public deserves to be able to seek medical care without fear of being falsely diagnosed and given toxic medications they don’t need. We will relentlessly pursue those who would enrich themselves at the expense of those most vulnerable in our community.”
According to the evidence presented at trial, Zamora-Quezada falsely diagnosed a large number of patients with rheumatoid arthritis, a life-long, incurable disease – and treated them with toxic, medically unnecessary medications like chemotherapy drugs on the basis of that false diagnosis. Many patients, including patients as young as 13, suffered physical and emotional harm as a result of the false diagnoses, chemotherapy injections, hours’ long intravenous infusions, and other excessive, repetitive and profit-driven medical procedures. The evidence further showed that to obstruct and mislead a federal grand jury investigation, Zamora-Quezada falsified medical records. Zamora-Quezada operated medical practices throughout South Texas and San Antonio. He traveled to his various offices on his private jet and in his Maserati.
The Rio Grande Valley Health Care Fraud Task Force, which includes the FBI, HHS-OIG, Texas HHS-OIG and Texas Medicaid Fraud Control Unit, investigated the case with assistance from the Defense Criminal Investigative Service. Assistant Chiefs Adrienne Frazior and Jacob Foster and Trial Attorneys Rebecca Yuan and Emily Gurskis of the Criminal Division’s Fraud Section are prosecuting the case along with Assistant U.S. Attorney Cynthia Villanueva of the Southern District of Texas. Trial Attorney Kevin Lowell of the Fraud Section initially handled the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Tax Day 2020 Wednesday, April 15Read the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, issued a statement reminding all Wisconsin residents to file accurate tax returns as the deadline for filing federal income tax returns is Wednesday, April 15. Although the filing season is just beginning, the U.S. Attorney’s Office and the Internal Revenue Service’s Criminal Investigation Division work year round to protect the integrity of our nation’s tax system by investigating and prosecuting individuals who violate the tax laws.
“Each year, millions of honest Wisconsin residents dutifully pay a portion of their hard-earned income in taxes,” said United States Attorney Krueger. “They deserve to know that people who cheat on their taxes face serious consequences, including time in federal prison.”
“As we approach tax filing season, IRS Criminal Investigation wants to remind people to file accurate tax returns and to choose their tax preparers carefully,” said Kathy A. Enstrom, Special Agent in Charge of the Chicago Field Office. “IRS Criminal Investigation operates year round to protect the integrity of our system of taxation and investigates those who create elaborate schemes, such as identity fraud schemes to obtain fraudulent tax refunds or tax schemes that fail to report all forms of income on their tax returns. Taxpayers are encouraged to visit the IRS.gov website for tips on filing a tax return accurately and searching for a reputable return preparer.”
The following prosecutions over the second half of 2019 in the Eastern District of Wisconsin serve as a warning against filing a false or fraudulent tax return, and as a reminder to be wary of any schemes that would falsify income or deductions.
Richard J. Clark was sentenced on May 21, 2019 in federal court in Milwaukee to 14 months in prison, to be followed by three years of supervised release, and ordered to pay $213,000 in restitution to the IRS. Clark, who resided in Mukwonago, previously operated Foremost Realty, LLC, a real estate business that listed, maintained, and sold foreclosed property in southeastern Wisconsin. During the years 2008 – 2013, Clark, through his business, received approximately $1.6 million in commissions. Despite receiving these commissions, Clark filed tax returns that either listed $0 on all lines of the returns, reporting no income or tax obligations, or reported very minimal income and taxes. As a result, during the years 2008-2013, Clark evaded more than $400,000 in federal income taxes.
June 18, 2019 John Miller Ragland, who previously resided in Menomonee Falls, Wisconsin, appeared in federal court and pleaded guilty to attempting to evade his federal income taxes, in violation of 26 U.S.C. § 7201. Ragland operated a number of business ventures through which he acted as an independent sales representative in the United States and elsewhere, including Hong Kong, China. John Miller Ragland was sentenced in federal court to six months in prison, to be followed by one year of supervised released, and ordered Ragland to pay $1.4 million in restitution to the IRS.
Also in June Steven M. Rader of Muskego, Wisconsin, was sentenced to five months in federal prison for stealing more than $89,000 from the federal government via a tax evasion scheme that began in 2012. Rader was also ordered to pay more than $195,000 in restitution. Rader’s tax evasion scheme related to an entertainment business he owned and operated starting in 2012. Despite the fact that the business generated significant income, Rader failed to report any of that income on his federal tax returns for the years 2012 to 2014. In total, Rader understated his income by over $500,000 and underpaid his taxes by over $89,000. Radar also made significant efforts to conceal his tax evasion by filing false amended tax returns and lying to federal investigators about his sources of income.
On October 18, 2019 Lisa A. Radtke, of Appleton, Wisconsin, appeared in federal court in Green Bay and pleaded guilty to one count of wire fraud (18 U.S.C. §1343) and one count of tax evasion (26 U.S.C. § 7201). Based on her guilty pleas, Radtke faces up to 25 years in prison and fines of up to $500,000, or both. Radtke also agreed to make restitution to her former employer, which was the victim of her fraud, in the amount of $1.3 million, as well as to the Internal Revenue Service for the taxes she failed to pay, plus penalties and interest on these taxes, in the amount of $634,000. Radtke’s sentencing is scheduled for January 27, 2020, also in Green Bay.
Philip Kuehnl of Pleasant Prairie, WI, pleaded guilty in December 2019 to filing a false tax return and mail fraud. In 2015, Kuehnl was charged with 20 counts of Title 18, 1001 and 1341, and Title 26, 7206(1) filing a false tax return. He operated a medical device scheme from 2005 to April 2011 in which he fraudulent obtained more than $700,000 from customers who purchased medical devices falsely believing the devices were from legitimate medical supplier. He also substantially underreported and underpaid his federal income taxes for tax years 2007 through 2009. Kuehnl failed to report over $978,00 of income over a 3 year period and $290,000 in federal income taxes. Kuehnl was a fugitive. His sentencing is scheduled for January 26, 2020.
Ana Delia Dominguez Alvarez and Alberto Fernando Ramirez were indicted in 2017 on 23 charges of conspiracy, theft of government funds, and aggravated identity theft and both pleaded guilty in December 2019. They operated a tax fraud scheme from November 2010 to May 2017 in which they obtained ITIN numbers from individuals in Mexico and filed false federal tax returns using the ITIN numbers. They falsely claimed the additional tax child credit on tax returns. Ana Dominguez worked for a tax preparation business in which many of the fraudulent refund checks were sent to the business address. Alvarez and Ramirez received over $1,773 million worth of fraudulently obtained refund checks. Both are scheduled for sentencing May 1, 2020
Marcus Alvarez pleaded guilty in June 2019 to Title 18, USC 641- Public Money, property or records. Alvarez owned a check cashing establishment, El Punto, and aided and abetted others in cashing over $54 million of fraudulent tax refund checks. Alvarez admitted that he knew that the people bringing the tax refund checks into the check cashing business were running a fraudulent tax refund scheme in which they obtained documents from Mexico, fraudulent applied for ITIN numbers in the names of Mexican citizens, and then filed fraudulent tax returns using those ITIN numbers. His sentencing is scheduled for May 6, 2020.
Marina Andino is currently awaiting sentencing after pleading guilty to Title 18, USC 641. Public Money, property or records in December 2018. Andino started a tax preparation business in which she primarily prepared tax returns for non-resident aliens who claim dependents who do not live in the United States. Andino admitted that she stole $255,716 from the federal government by knowingly preparing fraudulent tax returns for others and cashing the fraudulent tax refunds for her own use. Sentencing is scheduled for May 19, 2020.
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Public Information Officer Kenneth Gales 414-297-1700
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TMJ & Orofacial Pain Treatment Centers of Wisconsin Agree to Pay $1 Million to Resolve False Claims Act AllegationsRead the Press Release
United States Attorney Matthew D. Krueger announced today that L.M.G., Inc., which does business as TMJ & Orofacial Pain Treatment Centers of Wisconsin, agreed to pay $1,000,000 to the United States to resolve allegations that TMJ & Orofacial Pain Treatment Centers of Wisconsin submitted false claims to Medicare and TRICARE for oral appliances used to treat temporomandibular joint disorder.
TMJ & Orofacial Pain Treatment Centers of Wisconsin operates four clinics in the Milwaukee area and specializes in the treatment of temporomandibular joint disorder. In their treatment of temporomandibular joint disorder, TMJ & Orofacial Pain Treatment Centers of Wisconsin and its dentists often prescribe oral appliances to stabilize or reposition the patient’s jaw. The United States alleges that TMJ & Orofacial Pain Treatment Centers of Wisconsin and its dentists did not fabricate the appliances, but rather purchased them from an outside laboratory that fabricated the appliances. The United States further alleges that TMJ & Orofacial Pain Treatment Centers of Wisconsin falsely billed Medicare and TRICARE for oral appliances under billing codes applicable to expensive prosthetic devices fabricated by surgeons, rather than other lower paying billing codes applicable to appliances fabricated by an outside laboratory.
“Medical providers cannot misrepresent the services they provide in order to increase their billings to government insurance programs,” stated United States Attorney Krueger. “This settlement makes the Medicare and TRICARE programs whole and sends a message to medical providers that false billings will not be tolerated.”
“When TMJ & Orofacial Pain Treatment Centers of Wisconsin submitted claims to Medicare, it promised that it actually provided the services it billed for. This settlement holds TMJ & Orofacial Pain Treatment Centers of Wisconsin to account for its promises,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our federal, state and local partners to protect vital taxpayer dollars.”
The government’s investigation resulted from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. Accordingly, the whistleblower will receive a share of the settlement amount. As part of the settlement, the government and the whistleblower will ask the district court to dismiss the whistleblower’s qui tam complaint.
Assistant United States Attorney Michael Carter represented the government in this matter, and the OIG and the Defense Criminal Investigative Service assisted in the investigation. The settlement agreement states allegations only; the defendants do not admit liability for the allegations.
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Public Information Officer Kenneth Gales 414-297-1700
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Suwannee County Woman Arrested for Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Deannajo White (39, Suwannee County) with disaster assistance fraud related to Hurricane Irma. If convicted, White faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States.
According to the indictment, in September 2017, White falsified records concerning her primary residence when submitting an application for assistance to the Federal Emergency Management Agency’s (FEMA) Individuals and Households Program for Hurricane Irma.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General with assistance from Homeland Security Investigations, the Suwannee County Sheriff’s Office, and the Gilchrist County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] . You may also visit www.justice.gov/usao-mdfl.
St. Louis Man Sentenced for His Involvement in a CarjackingRead the Press Release
St. Louis, MO – Antonio Ball, 21, St. Louis, MO, was sentenced to 102 months in prison for carjacking and brandishing a firearm in furtherance of a crime. Ball appeared today before U.S. District Judge Ronnie L. White.
According to court documents, on May 19, 2018, the victim stopped at the Elite Market on North Broadway in a rental vehicle. Ball approached the victim with a handgun and demanded the car keys. When the victim complied, Ball and two other males jumped into the vehicle and drove off. Ball was later arrested by the St. Louis Metropolitan Police Department.
The Saint Louis Metropolitan Police Department. Assistant United States Attorney Tom Mehan is handling the case.
St. Louis City Woman Indicted for Using Her Deceased Grandmother's Social Security ChecksRead the Press Release
St. Louis, MO –Corrina Wester, 48, of St. Louis City, was indicted by a federal grand jury on one count of theft of government funds.
According to the Indictment, Wester grandmother, Dorothy Carlock, passed away on February 22, 2017. Carlock’s death was not reported to the Social Security Administration, and her Social Security benefits continued to be direct deposited into her bank account, which was held jointly with Wester. Carlock’s Social Security record showed that her direct deposit information was changed to this account only 15 days prior to her death.
As of May 1, 2019, the bank account was closed and the Social Security benefits had all been withdrawn. The total amount of Social Security funds deposited following Carlocks’ death was $39,961.00.
The charge of Theft of Government funds carries a maximum penalty of 10 years and a fine of $250,000. Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Social Security Administration is investigating the case. Special Assistant United States Attorney Diane Klocke is handling the case.
South Bay Veteran Pleads Guilty to Impersonating A Federal OfficerRead the Press Release
SAN JOSE – Alexander Taylor pleaded guilty today to impersonating a federal officer, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux. The Honorable Lucy H. Koh, U.S. District Judge, accepted the guilty plea.
According to the plea agreement, Taylor, 49, of San Jose, Calif., conducted a vehicle stop using his personal vehicle (identified as a Volkswagen Jetta in other filings by the government) that Taylor had equipped with emergency lights and a siren, similar to a law enforcement equipment. After pulling the vehicle over, Taylor falsely identified himself to the driver as a DEA Special Agent and displayed a fake DEA badge that he had purchased on the internet. According to the plea agreement, Taylor told the driver that he was going to write her a traffic citation; but when the driver responded that she did not believe that DEA Special Agents could issue traffic citations, Taylor left the scene.
A federal grand jury indicted Taylor on July 11, 2019, with one count of false impersonation of a federal officer, in violation of 18 U.S.C. § 912, and one count of possession of a counterfeit seal of an agency of the United States, in violation of 18 U.S.C. § 506(a)(3). Under the plea agreement, Taylor pleaded guilty to false impersonation of a federal officer; if Taylor complies with the plea agreement, the remaining count will be dismissed at sentencing.
Judge Koh scheduled Taylor’s sentencing hearing for May 27, 2020. The maximum statutory penalty for impersonating a federal officer is three (3) years in prison and a fine of $250,000. Additional periods of supervised release, fines, and restitution also may be imposed if appropriate; however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jeffrey Backhus is prosecuting the case with assistance from Elise Etter. This prosecution is the result of an investigation by the DEA.
Shonto Man Sentenced to More than 19 Years in Prison for MurderRead the Press Release
PHOENIX, Ariz. – This week, Emanuel D. Haudley, Sr., of Shonto, Ariz., was sentenced by U.S. District Judge Michael T. Liburdi to 235 months of imprisonment, to be followed by five years of supervised release. Haudley had previously pleaded guilty to second-degree murder.
On the night of July 17, 2019, Haudley killed the victim near Shonto, Ariz., on the Navajo Nation Reservation. Haudley is an enrolled member of the Navajo Nation, as was the victim.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Alexander Samuels and Hunter Bridges, District of Arizona, Phoenix.
San Jose Man Sentenced to 72 Months in Prison for Illegally Possessing Firearm as A Convicted FelonRead the Press Release
SAN JOSE – Michael Anthony Lamb was sentenced today to 72 months in prison for being a felon in possession of a firearm, announced U.S. Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
Lamb, 28, of San Jose, pleaded guilty to the charge on July 18, 2019. According to the plea agreement, Lamb was drinking a can of beer while sitting on a planter box on a light rail platform in San Jose, when he noticed two law enforcement officers approaching him. One of the officers waived at Lamb and asked him to approach. Instead, Lamb picked up his backpack and ran. According to the plea agreement, Lamb ran because he knew he would get in trouble if he were arrested. Lamb was a convicted felon and knew he was not entitled to possess a firearm, but he still was carrying a loaded 9mm Kel-Tec PF-9 pistol with seven full-metal jacket 9mm rounds in the magazine. Lamb was also carrying approximately four grams of cocaine and a jar containing approximately 53 grams of marijuana. While running away, Lamb heard the officers order him to stop. Instead of stopping, Lamb continued to run, threw the loaded gun into some nearby bushes, and threw his backpack aside. Lamb was quickly arrested and the gun and backpack were recovered.
On June 27, 2019, Lamb was charged by information with one count of being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Lamb pleaded guilty to the charge. Lamb has been in custody since March 11, 2019.
In addition to the prison term, Judge Koh ordered Lamb to serve a three-year period of supervised release and to pay a $100 special assessment.
Assistant United States Attorney Jeff Nedrow is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation conducted by the ATF and the Santa Clara County Sheriff’s Office.
San Jose Gang Member Sentenced to Two Years in Prison for Illegally Possessing Firearm as A Convicted FelonRead the Press Release
SAN JOSE – Marcos Barajas was sentenced today to 24 months in prison for being a felon in possession of a firearm, announced U.S. Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John Bennett. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
Barajas, 34, of San Jose, pleaded guilty to the charge on October 10, 2019. According to the plea agreement, Barajas posted a picture on Facebook of him holding the gun. At a later point, he wrapped the gun in a bandana and stored it in an air conditioning vent above a bedroom in his residence in San Jose, where it was subsequently discovered by law enforcement. Following his arrest, Barajas admitted to knowingly possessing the gun.
According to a complaint filed in the case, Barajas was a self-identified and documented Sureño street gang member and member of the “East Side Clanton” or “ESC” branch of the gang in San Jose.
On October 4, 2019, Barajas was charged by information with one count of being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Barajas pleaded guilty to the charge. Barajas has been in custody since May 23, 2019.
In addition to the prison term, Judge Koh ordered Barajas to serve a three-year period of supervised release and to pay a $100 special assessment.
Assistant United States Attorney Jeff Nedrow is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation conducted by the FBI and the San Jose Police Department.
Richland County Boy Scout official sentenced to 30 years of prison for sexually exploiting children as well as receiving and distributing child pornographyRead the Press Release
Thomas Close, 39, of Shelby, was sentenced today in federal court to 30 years in prison followed by lifetime supervised release, which included lifetime sex offender registration obligations. He was also ordered to pay $949 in restitution and a $300 special assessment.
Close was known to many in the Boy Scouts of America as “Aqua Joe” because he was a swim instructor as well as a troop leader. And yet, from 2011 through 2018, Close abused these positions to surreptitiously record young boys while they changed for swimming or showers. He then transferred those recorded images from a simple spy watch to his home computers in carefully labeled folders and file structures. Close also victimized children in his care at the YMCA, the Willard Conservation League, the Firelands Scout Reservation, the Ashland County-West Holmes Career Center, the Mohican Wilderness camp, the STEM camp, and even his own home in Shelby, Ohio.
“It is difficult to imagine a more heinous crime, particularly when the ages and youthful experiences of children were so calculatingly exploited,” said U.S. Attorney Justin Herdman. “If we have not made it clear before, let this sentence send a message to all who seek to prey on our children: there is no place we cannot find you and we will bring you to justice.”
“This individual used his position and regular access to children to exploit the young people who he was entrusted to take care of and protect,” said Vance Callender, HSI special agent in charge for Michigan and Ohio. “While no amount of prison time is sufficient for the depraved abuse of trust by Mr. Close on his innocent victims, hopefully, today’s sentencing can begin the healing process for all of those impacted.”
Additional details of these crimes were described in court filings and during today’s sentencing hearing:
In May of 2018, the Department of Homeland Security (HSI) Cleveland received information from the Cyber Crimes Center (C3), Child Exploitation Investigations Unit (CEIU) regarding a child exploitation lead in Sandusky, OH. C3 provided several videos that were taken of minor boys changing before or after swimming, with a series of lockers visible in some of the pictures. The National Center for Missing and Exploited Children (NCMEC) confirmed that these videos were seen in previous child pornography investigations but the children depicted in the images had not yet been identified. However, the NCMEC Victim Identification Lab was able to identify the manufacturer of the lockers as the Bradley Corp. Since only a few YMCAs purchased lockers from Bradley Corp, C3 was able to confirm that the images were likely taken at the YMCA facility located in Sandusky, OH.
With little to go on, agents set out to identify the boys. They focused on landmarks and the Boy Scout logo captured in images, which let them to speak with representatives of the Boy Scouts and local YMCAs. Both the Boy Scouts and local YMCAs assisted agents with their investigation. In speaking with the Boy Scouts, agents were directed to an incident report in which one den leader noted Close’ frequent and unnecessary contact with scouts during swim time.
Later, and based on this tip, agents interviewed Close. Close admitted to the following: accessing child pornography from the TOR network; using a Russian photo sharing site to access child pornography; receiving and distributing images of child pornography online; being sexually interested in boys as young as five and up to 18; and possessing approximately 5 terabytes of child pornography. He also acknowledged leaving a watch with video capability in the designated changing areas in order to record the boys as they undressed.
Agents conducted a forensic analysis of Close’s devices and confirmed that he had more than 110,000 image and video files that depicted minors engaged in sexually explicit conduct. Approximately 60,000 of those files were unique images. Close also created 1,900 images of child pornography. To date, 143 victims have been identified, with the youngest being seven years old.
One of the identified victims, who is referred to in court filings as Minor #21, provided a recorded victim impact statement which was played during the sentencing hearing. He stated in pertinent part:
Never have I been so sad. This whole thing lingers in my mind all the time. I wish I could make it go away. . . . I have a question for you, Aqua Joe: Why? Why would you do this to me? Why would you do this to any kid? How dare you do this to a kid that can’t defend himself. I don’t understand. I’m supposed to be able to trust the people that I’m told I can trust. You took advantage of me and you spied on me. Now I don’t trust anyone. You ruined part of my life! And I hate you. . . . I especially hate you for hurting my mother. You broke her heart – and mine. . . . I hope someday I can forget about you.
This case was investigated by Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force (ICAC) and the Shelby Police Department. It was prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
Resmed Corp. to Pay the United States $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related DisordersRead the Press Release
ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers, the Department of Justice announced today.
“Paying any type of illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “When a patient receives a prescription for a device to treat a health care condition, the patient deserves to know that the device was selected based on quality of care considerations and not on unlawful payments from equipment manufacturers.”
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement resolves allegations that ResMed (a) provided DME companies with free telephone call center services and other free patient outreach services that enabled these companies to order resupplies for their patients with sleep apnea, (b) provided sleep labs with free and below-cost positive airway pressure masks and diagnostic machines, as well as free installation of these machines, (c) arranged for, and fully guaranteed the payments due on, interest-free loans that DME supplies acquired from third-party financial institutions for the purchase of ResMed equipment, and (d) provided non-sleep specialist physicians free home sleep testing devices referred to as “ApneaLink.”
“This settlement represents another example of our district’s commitment to prosecuting violations of the False Claims Act and the Anti-Kickback Statute,” said Lance Crick, Acting U. S. Attorney for the District of South Carolina. “Medical decisions should be based on what is in the best interest of the patient and not based on financial incentives and related schemes.”
“Medical decisions should always be made without outside influence caused by cash payments, free goods, or other types of illegal remuneration, and we will continue to take action to prevent attempts to induce medical decisions through illegal kickbacks,” said Katherine L. Parker, Civil Chief, U.S. Attorney’s Office for the Southern District of California. “We applaud the whistleblower for coming forward and notifying the United States.”
“Illegal kickbacks in the federal healthcare system create an unfair marketplace and the potential that medical decisions are not based on what is best for patients,” said U.S. Attorney Peter E. Deegan Jr. for the Northern District of Iowa. “This settlement is another sign of our office’s dedication to fair and full enforcement of the False Claims Act.”
“When companies give free equipment to doctors for the sole purpose of generating business and increasing their bottom lines, federal health insurance programs should not foot the bills. This case rights that alleged wrong by ResMed,” said U.S. Attorney Richard P. Donoghue for the Eastern District of New York. “We will continue to work with our law enforcement partners to hold accountable companies that put profits before patients.”
Contemporaneous with the civil settlement, ResMed entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that ResMed implement additional controls around its product pricing and sales and that ResMed conduct internal and external monitoring of its arrangements with referral sources.
The agreement resolves five lawsuits originally brought by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery. The whistleblowers will collectively receive a roughly $6.2 million share of the settlement.
“The government contended ResMed provided free goods and services to companies in order to sell more medical equipment bought by taxpayers,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG’s integrity agreement with ResMed is designed to ensure such alleged behavior will not be repeated.”
“I applaud the Department of Justice and the U.S. Attorneys' for their continued efforts to hold health care providers accountable to the American taxpayer," said Army Lt. Gen. Ron Place, Director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
This settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Offices for the District of South Carolina, the Southern District of California, the Northern District of Iowa, and the Eastern District of New York; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Federal Bureau of Investigation; and the National Association of Medicaid Fraud Control Units.
The lawsuits resolved by this settlement are captioned United States, et al., ex rel. Ameer v. ResMed, Inc., et al., Case No. 2:15-CV-04842-MBS (D.S.C.); United States, et al., ex rel. Baker v. ResMed, Inc., et al., Case No. 3:16-CV-00987-MBS (D.S.C.); United States, et al., ex rel. Ross v. ResMed, Inc., Case No. 16-CV-1988-W (JLB) (S.D. Cal.); United States ex rel. Meyer v. ResMed, Inc., et al., Case No. 17-CV-12-MWB (N.D. Iowa); and United States, et al., ex rel. Ottavio, et al. v. ResMed, Inc., Case No. CV 17-5734 (E.D.N.Y.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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.
ResMed Corp. to Pay the United States $37.5 Million for Allegedly Causing the Filing of False Claims Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related DisordersRead the Press Release
WASHINGTON – The Department of Justice announced today that ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers.
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement resolves allegations that ResMed: (a) provided DME companies with free telephone call center services and other free patient outreach services that enabled these companies to order resupplies for their patients with sleep apnea; (b) provided sleep labs with free and below-cost positive airway pressure masks and diagnostic machines, as well as free installation of these machines; (c) arranged for, and fully guaranteed the payments due on, interest-free loans that DME suppliers acquired from third-party financial institutions for the purchase of ResMed equipment; and (d) provided non-sleep specialist physicians free home sleep testing devices referred to as “ApneaLink.”
“When companies give free equipment to doctors for the sole purpose of generating business and increasing their bottom lines, federal health insurance programs should not foot the bills. This case rights that alleged wrong by ResMed,” stated United States Attorney for the Eastern District of New York Richard P. Donoghue. “We will continue to work with our law enforcement partners to hold accountable companies that put profits before patients.”
“Paying any type of illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “When a patient receives a prescription for a device to treat a health care condition, the patient deserves to know that the device was selected based on quality of care considerations and not on illegal payments from equipment manufacturers.”
The agreement resolves five lawsuits originally brought by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery. The whistleblowers will collectively receive a roughly $6.2 million share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Offices for the Eastern District of New York, the District of South Carolina, the Southern District of California and the Northern District of Iowa; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Federal Bureau of Investigation; and the National Association of Medicaid Fraud Control Units.
The lawsuits resolved by this settlement are captioned United States, et al., ex rel. Ameer v. ResMed, Inc., et al., Case No. 2:15-CV-04842-MBS (D.S.C.); United States, et al., ex rel. Baker v. ResMed, Inc., et al., Case No. 3:16-CV-00987-MBS (D.S.C.); United States, et al., ex rel. Ross v. ResMed, Inc., Case No. 16-CV-1988-W (JLB) (S.D. Cal.); United States ex rel. Meyer v. ResMed, Inc., et al., Case No. 17-CV-12-MWB (N.D. Iowa); and United States, et al., ex rel. Ottavio, et al. v. ResMed, Inc., Case No. CV 17-5734 (E.D.N.Y.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
ResMed Corp. to Pay the United States $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related DisordersRead the Press Release
CEDAR RAPIDS, IA – ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers, the Department of Justice announced today.
“Paying any type of illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “When a patient receives a prescription for a device to treat a health care condition, the patient deserves to know that the device was selected based on quality of care considerations and not on unlawful payments from equipment manufacturers.”
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement resolves allegations that ResMed (a) provided DME companies with free telephone call center services and other free patient outreach services that enabled these companies to order resupplies for their patients with sleep apnea, (b) provided sleep labs with free and below-cost positive airway pressure masks and diagnostic machines, as well as free installation of these machines, (c) arranged for, and fully guaranteed the payments due on, interest-free loans that DME supplies acquired from third-party financial institutions for the purchase of ResMed equipment, and (d) provided non-sleep specialist physicians free home sleep testing devices referred to as “ApneaLink.”
“Illegal kickbacks in the federal healthcare system create an unfair marketplace and the potential that medical decisions are not based on what is best for patients,” said U.S. Attorney Peter E. Deegan, Jr., for the Northern District of Iowa. “This settlement is another sign of our office’s dedication to fair and full enforcement of the False Claims Act.”
“This settlement represents another example of our district’s commitment to prosecuting violations of the False Claims Act and the Anti-Kickback Statute,” said Lance Crick, Acting U. S. Attorney for the District of South Carolina. “Medical decisions should be based on what is in the best interest of the patient and not based on financial incentives and related schemes.”
“Medical decisions should always be made without outside influence caused by cash payments, free goods, or other types of illegal remuneration, and we will continue to take action to prevent attempts to induce medical decisions through illegal kickbacks,” declared Katherine L. Parker, Civil Chief, United States Attorney’s Office for the Southern District of California. “We applaud the whistleblower for coming forward and notifying the United States.”
“When companies give free equipment to doctors for the sole purpose of generating business and increasing their bottom lines, federal health insurance programs should not foot the bills. This case rights that alleged wrong by ResMed,” stated United States Attorney for the Eastern District of New York Richard P. Donoghue. “We will continue to work with our law enforcement partners to hold accountable companies that put profits before patients.”
Contemporaneous with the civil settlement, ResMed entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that ResMed implement additional controls around its product pricing and sales and that ResMed conduct internal and external monitoring of its arrangements with referral sources.
The agreement resolves five lawsuits originally brought by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery. The whistleblowers will collectively receive a roughly $6.2 million share of the settlement.
“The government contended ResMed provided free goods and services to companies in order to sell more medical equipment bought by taxpayers,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG’s integrity agreement with ResMed is designed to ensure such alleged behavior will not be repeated.”
“I applaud the Department of Justice and the U.S. Attorneys' for their continued efforts to hold health care providers accountable to the American taxpayer," said Army Lt. Gen. Ron Place, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
This settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Offices for the District of South Carolina, the Southern District of California, the Northern District of Iowa, and the Eastern District of New York; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Federal Bureau of Investigation; and the National Association of Medicaid Fraud Control Units.
The lawsuits resolved by this settlement are captioned United States, et al., ex rel. Ameer v. ResMed, Inc., et al., Case No. 2:15-CV-04842-MBS (D.S.C.); United States, et al., ex rel. Baker v. ResMed, Inc., et al., Case No. 3:16-CV-00987-MBS (D.S.C.); United States, et al., ex rel. Ross v. ResMed, Inc., Case No. 16-CV-1988-W (JLB) (S.D. Cal.); United States ex rel. Meyer v. ResMed, Inc., et al., Case No. 17-CV-12-MWB (N.D. Iowa); and United States, et al., ex rel. Ottavio, et al. v. ResMed, Inc., Case No. CV 17-5734 (E.D.N.Y.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
ResMed Corp. to Pay $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and other DisordersRead the Press Release
Assistant U. S. Attorneys Joseph Price (619) 546-7642 and Dylan Aste (619) 546-7621
NEWS RELEASE SUMMARY – January 15, 2020
SAN DIEGO – ResMed Corp., a manufacturer of durable medical equipment (DME) based in San Diego, California, has agreed to pay more than $37.5 million to resolve alleged False Claims Act violations for paying kickbacks to DME suppliers, sleep labs and other health care providers, the Department of Justice announced today.
“Paying any type of illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “When a patient receives a prescription for a device to treat a health care condition, the patient deserves to know that the device was selected based on quality of care considerations and not on unlawful payments from equipment manufacturers.”
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement resolves allegations that ResMed (a) provided DME companies with free telephone call center services and other free patient outreach services that enabled these companies to order resupplies for their patients with sleep apnea, (b) provided sleep labs with free and below-cost positive airway pressure masks and diagnostic machines, as well as free installation of these machines, (c) arranged for, and fully guaranteed the payments due on, interest-free loans that DME supplies acquired from third-party financial institutions for the purchase of ResMed equipment, and (d) provided non-sleep specialist physicians free home sleep testing devices referred to as “ApneaLink.”
“Medical decisions should always be made without outside influence caused by cash payments, free goods, or other types of illegal remuneration, and we will continue to take action to prevent attempts to induce medical decisions through illegal kickbacks,” declared Katherine L. Parker, Civil Chief, United States Attorney’s Office for the Southern District of California. “We applaud the whistleblower for coming forward and notifying the United States.”
“This settlement represents another example of our district’s commitment to prosecuting violations of the False Claims Act and the Anti-Kickback Statute,” said Lance Crick, Acting U. S. Attorney for the District of South Carolina. “Medical decisions should be based on what is in the best interest of the patient and not based on financial incentives and related schemes.”
“Illegal kickbacks in the federal healthcare system create an unfair marketplace and the potential that medical decisions are not based on what is best for patients,” said U.S. Attorney Peter E. Deegan, Jr., for the Northern District of Iowa. “This settlement is another sign of our office’s dedication to fair and full enforcement of the False Claims Act.”
“When companies give free equipment to doctors for the sole purpose of generating business and increasing their bottom lines, federal health insurance programs should not foot the bills. This case rights that alleged wrong by ResMed,” stated United States Attorney for the Eastern District of New York Richard P. Donoghue. “We will continue to work with our law enforcement partners to hold accountable companies that put profits before patients.”
Contemporaneous with the civil settlement, ResMed entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that ResMed implement additional controls around its product pricing and sales and that ResMed conduct internal and external monitoring of its arrangements with referral sources.
The agreement resolves five lawsuits originally brought by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery. The whistleblowers will collectively receive a roughly $6.2 million share of the settlement.
“The government contended ResMed provided free goods and services to companies in order to sell more medical equipment bought by taxpayers,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG’s integrity agreement with ResMed is designed to ensure such alleged behavior will not be repeated.”
“I applaud the Department of Justice and the U.S. Attorneys' for their continued efforts to hold health care providers accountable to the American taxpayer," said Army Lt. Gen. Ron Place, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
This settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Offices for the District of South Carolina, the Southern District of California, the Northern District of Iowa, and the Eastern District of New York; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Federal Bureau of Investigation; and the National Association of Medicaid Fraud Control Units.
The lawsuits resolved by this settlement are captioned United States, et al., ex rel. Ameer v. ResMed, Inc., et al., Case No. 2:15-CV-04842-MBS (D.S.C.); United States, et al., ex rel. Baker v. ResMed, Inc., et al., Case No. 3:16-CV-00987-MBS (D.S.C.); United States, et al., ex rel. Ross v. ResMed, Inc., Case No. 16-CV-1988-W (JLB) (S.D. Cal.); United States ex rel. Meyer v. ResMed, Inc., et al., Case No. 17-CV-12-MWB (N.D. Iowa); and United States, et al., ex rel. Ottavio, et al. v. ResMed, Inc., Case No. CV 17-5734 (E.D.N.Y.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Receipt of Child Pornography and Possession of Child Pornography.
Nikolas John Larson, age 39, was charged on December 17, 2019. Larson appeared before U.S. Magistrate Judge Daneta Wollmann on January 8, 2020, and pleaded not guilty to the charges. The maximum penalty upon conviction is a mandatory minimum of 5 up to 20 years in federal prison and/or a $250,000 fine, up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Larson receiving and possessing child pornography between January 2009 and October 2019 at Rapid City. The charges are merely an accusation and Larson is presumed innocent until and unless proven guilty.
The investigation is a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Larson was released pending trial. A trial date has not been set.
Rapid City Man Indicted for Kidnapping of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Kidnapping of a Minor by a Registered Sex Offender and Transportation of a Minor with Intent to Engage in Criminal Sexual Activity by a Registered Sex Offender.
Christopher Bald Eagle, age 65, was charged on January 7, 2020. Bald Eagle appeared before U.S. Magistrate Judge N. Reid Neureiter in Denver, Colorado, on December 31, 2019, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 25 years up to life in federal prison and/or a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bald Eagle unlawfully transporting a minor female from Pine Ridge, South Dakota, to Colorado in December 2019, with the intent to engage in illegal sexual activity. The charges are merely an accusation and Bald Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Denver Police Department. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Bald Eagle was detained and will be transported to South Dakota at a future date. A trial date has not been set.
Prolific Hartford Drug Trafficker Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JULIO OLIVERAS, also known as “Cuzzo Jay,” 34, of Hartford and New Britain, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 186 months of imprisonment, followed by five years of supervised release, for narcotics trafficking and firearm possession offenses.
According to court documents and statements made in court, in August 2017, the Drug Enforcement Administration’s Hartford Task Force launched an investigation into a drug trafficking organization that was selling large amounts of heroin, fentanyl, cocaine and crack cocaine in Hartford. Oliveras was identified as the leader of the organization. The investigation, which included approximately six months of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that Oliveras and his associates supplied distribution quantities of narcotics to several Hartford-area drug dealers, and used multiple locations in Hartford to process, store and distribute narcotics.
Oliveras and other members of the organization were arrested on July 19, 2018. On that date, investigators executed 10 search warrants and seized approximately 2.7 kilograms of fentanyl, one kilogram of heroin, approximately 500 grams of crack cocaine, 100 grams of cocaine, eight firearms, more than 1,000 rounds of ammunition, cash, and other evidence of narcotics trafficking activity. The drugs and firearms were found at a stash house Oliveras maintained, a storage unit he rented, and the residences of his associates.
On August 2, 2018, a grand jury in Hartford returned an indictment charging Oliveras and 15 co-defendants with various offenses.
Oliveras has been detained since his arrest. On October 22, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl and a quantity of cocaine, and one count of possession of a firearm by a convicted felon.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut Department of Correction, and the East Hartford, New Britain, Newington and West Hartford Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Project Safe Childhood: Two Defendants Sentenced to Federal Prison for Traveling to Have Sex with MinorsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that two different defendants were sentenced to federal prison this week for traveling in interstate commerce for the purpose of having sex with a minor.
“Our law enforcement partnerships are strong - VERY STRONG,” said United States Attorney Mike Stuart. “The excellent work of our partners enables us to bring to justice those who prey on children. We will always place the highest priority on protecting our children.”
On January 14, 2020, Ryan Scott Kibble, 33, of Parkersburg, West Virginia, was sentenced to serve 57 months in federal prison for traveling in interstate commerce in order to engage in illicit sexual activity with a minor. Upon release from prison, Kibble will be required to serve a term of 15 years of supervised release and register as sex offender. Kibble previously admitted that on March 1, 2019, he began communicating via a social messaging application and text messages with a minor he believed to be a 14-year-old girl located in Parkersburg, West Virginia. Despite knowing her age, Kibble discussed meeting the minor to engage in sexual intercourse. On the evening of March 1, 2019, Kibble also spoke with the purported minor on the phone, further discussing plans to meet the next day in Parkersburg in order to engage in oral sex and sexual intercourse with the minor in his vehicle. On March 2, 2019, Kibble traveled from his work in Belpre, Ohio to an arranged meeting location in Parkersburg in order to engage in sexual intercourse with the purported 14-year-old girl. Senior United States District Judge David A. Faber presided over the sentencing hearing.
On January 15, 2020, Thomas Wilson Parks, Jr., 33, of Coolville, Ohio, was sentenced to serve 30 months in federal prison for traveling in interstate commerce in order to engage in illicit sexual activity with a minor. Upon release from prison, Kibble will be required to serve a term of 10 years of supervised release and register as sex offender. Parks previously admitted that on March 2, 2019, he began communicating via a social messaging application with a minor he believed to be a 14-year-old girl located in Parkersburg, West Virginia. Despite knowing her age, Parks traveled from Ohio to Parkersburg shortly after beginning to chat with the purported minor in order to engage in sexual intercourse with her. While on the way to the meeting location, Parks stopped to buy condoms. Senior United States District Judge John T. Copenhaver, Jr., presided over the sentencing hearing.
The investigations were both conducted by the FBI West Virginia Child Exploitation and Human Trafficking Task Force in conjunction with the West Virginia States Police Internet Crimes Against Children Task Force and the Parkersburg Police Department. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecutions.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Probationers Caught Breaking into Cars in Macon Plead Guilty to Federal Firearm ChargesRead the Press Release
MACON, Ga. – Two armed probationers caught breaking into multiple vehicles in a Macon residential area admitted to their crimes and will be sentenced on April 1, 2020, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Quenshon Travez Robinson, 23, and Deshae Amondai Floyd, 23, both of Macon, pleaded guilty to one count conspiracy to receive and possess stolen firearms before U.S. District Judge Marc Treadwell. Robinson entered his guilty plea on Tuesday, January 7, 2020 and Floyd entered his guilty plea on Friday, January 10, 2020. Each defendant is facing a maximum five years in prison, a $250,000 fine and three years of supervised release. There is no parole in the federal system.
Robinson and Floyd admitted that they broke into multiple cars in residential areas during the morning hours of Saturday, February 16, 2019. Bibb County Sheriff’s deputies responded to a citizen’s call reporting a break-in, and the deputies arrested the defendants as they attempted to flee from the scene. The men were caught with two stolen pistols and ammunition. At the time, Robinson was serving five years’ probation for Criminal Damage to Property in the Second Degree under the First Offender Act and Floyd was serving ten years’ probation for Cruelty to Children in the Second Degree under the First Offender Act. As probationers under First Offender status, it is unlawful for them to possess firearms.
“Removing firearms from the hands of criminals who disrupt the peace and safety of our communities is a high priority for our office and our law enforcement partners, and we will prosecute offenders to the fullest extent of the law,” said U.S. Attorney Charlie Peeler. “I want to commend the Bibb County Sheriff’s Office for quickly arresting these defendants and then partnering with ATF to stop them from potentially doing more harm with the guns they stole.”
“This case illustrates the commitment of our federal prosecutor’s work to assure that offenders are held responsible for their criminal deeds. We can be grateful for the quick work of the Bibb deputies and the thorough follow up investigation by the sheriff’s office and ATF which ended with these hardened criminals entering a guilty plea for their actions,” said Bibb County Sheriff David Davis.
This case was prosecuted 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Paul McCommon is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Phoenix Man Sentenced toRead the Press Release
TUCSON, Ariz. – On January 14, 2020, Andrew Lamar Blake, 45, of Phoenix, Ariz., was sentenced by U.S. District Judge Rosemary Márquez to 80 months in prison, followed by five years of supervised release. Blake previously pleaded guilty to Conspiracy to Transport Illegal Aliens for Profit Wherein the Aliens’ Lives Were Placed in Jeopardy and During Which Death Resulted.
During an attempted traffic stop by the United States Border Patrol and Pinal County Sheriff’s Office on April 6, 2018, Blake sped away at a high rate of speed on the I-10 freeway. Blake was driving a truck containing eleven illegal aliens and two co-conspirators. Blake crashed during his flight from law enforcement, rolling the truck. One victim was killed in the crash, and many others were injured.
The investigation was conducted by Homeland Security Investigations and the United States Border Patrol. The prosecution was handled by Christine A. Melton and Arturo A. Aguilar, Assistant U.S. Attorneys, District of Arizona, Tucson.
Pharmacist Admits Role in Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a conspiracy to commit health care fraud, U.S. Attorney Craig Carpenito announced.
Estela Blaustein, 55, of Mahwah, New Jersey, pleaded guilty today before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with one count of conspiracy to commit health care fraud with four individuals who have been previously charged by complaint in the District of New Jersey: Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Vangelas, a/k/a “Joseph Miller,” 33, of Fort Lee, New Jersey; Marlene Vangelas, 58, of River Vale, New Jersey; and Zachary Ohebshalom, 33, of Edgewater, New Jersey. The charges against those four defendants remain pending.
According to documents filed in this case and statements made in court:
Beginning in November 2016, Blaustein participated in a scheme to obtain millions of dollars in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.
Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The information alleges that Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, where Blaustein was the pharmacist-in-charge. The Fairlawn Pharmacy was owned and operated by Joseph Vangelas and Marlene Vangelas, who, along with Ohebshalom, directed Blaustein and others to research reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. Joseph Vangelas, Marlene Vangelas, and Ohebshalom directed Blaustein and others to print prescription labels for Filippone to use with his patients. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. To induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they desired, Joseph Vangelas and Marlene Vangelas purchased Filippone’s medical office and then permitted Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, the Vangelases, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to send prescriptions to the pharmacy, so long as Miller and the Vangelases permitted him to remain rent-free in the property.
The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. As part of her plea agreement, Blaustein agreed that the charged healthcare fraud conspiracy caused losses of $1.5 million to $3.5 million. Sentencing is scheduled for April 22, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the charges and today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Healthcare Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the information pertaining to Filippone, Joseph Vangelas, Marlene Vangelas, and Ohebshalom are merely accusations, and those four defendants are presumed innocent unless and until proven guilty.
Defense counsel: Jerome A. Ballarotto Esq., Trenton, New Jersey
Owner and Manager of Anwar Fresh Meat Market in Erie Charged with Food Stamp FraudRead the Press Release
ERIE, Pa. - Two people have been indicted by a federal grand jury in Erie on charges of conspiracy to defraud the United States and food stamp fraud, United States Attorney Scott W. Brady announced today.
The five-count Indictment named Laith Kadhem, 35, of Pittsburgh, Pennsylvania and Haydar Al-Kofi, 41, of Lakeside, California, as defendants.
According to the Indictment presented to the court, from in and around March 2016 to in and around September 2017, Kadhem, who was the owner and operator of Anwar Fresh Meat Market in Erie and Al-Kofi, who was the manager and partner working at Anwar Fresh Meat Market, conspired to defraud the United States by filing an application containing false information for a license to accept SNAP (Supplemental Nutrition Assistance Program) benefits and accepting food stamps for cash, and ineligible items.
The law provides for a maximum total sentence of 25 years in prison, a fine of $1,250,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
This case was investigated as part of the Pittsburgh Document and Benefit Fraud Task Force (DBFTF), a multi-agency partnership established to focus on high-impact criminal investigations involving the use of fraudulent documents in furtherance of immigrations benefit applications and petitions, financial fraud, criminal work-site enforcement, and public benefits fraud. The Pittsburgh DBFTF consists of the following agencies: Homeland Security Investigations, US Citizenship and Immigration Services, the Social Security Administration-Office of the Inspector General, the Internal Revenue Service-Criminal Investigations, US Department of State-Diplomatic Security Service, US Department of Agriculture- Office of the Inspector General, US Department of Labor- Office of the Inspector General, and the Pennsylvania Office of the Attorney General.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oakland Resident Sentenced to More Than Eight Years in Prison for 19 Bank Robberies Across Northern CaliforniaRead the Press Release
SAN FRANCISCO – Duane Kurt Makela was sentenced to 97 months in prison in connection with ten armed bank robberies, seven unarmed bank robberies, and two attempted bank robberies across Northern California, announced Northern District of California Acting U.S. Attorney Adam A. Reeves, U.S. Attorney McGregor W. Scott of the Eastern District of California, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Charles R. Breyer, Senior U.S. District Judge.
Makela, 50, of Oakland, pleaded guilty to the charges on October 3, 2019. Makela admitted in open court that between March 2018 and February 2019, he committed or attempted to commit 19 robberies of banks and credit unions largely located in the San Francisco Bay Area but also in towns in or near the Sierra Nevada Mountains. As part of his plea, Makela agreed that he entered the banks and credit unions and demanded that employees hand over money. Makela further acknowledged that during each armed robbery, he brandished what appeared to be a handgun and directed employees of the banks and credit unions to hand over money. In total, Makela stole $69,002.
Makela robbed or attempted to rob the following banks and credit unions on the following dates:
CHARGE
DATE
BANK OR CREDIT UNION
LOCATION
1. Armed Bank Robbery
March 21, 2018
Pacific Service Credit Union
Pleasant Hill, CA
2. Bank Robbery
March 24, 2018
Wells Fargo Bank
South Lake Tahoe, CA
3. Bank Robbery
March 30, 2018
U.S. Bank
Oakland, CA
4. Armed Bank Robbery
April 11, 2018
Pacific Service Credit Union
San Ramon, CA
5. Armed Bank Robbery
April 13, 2018
Comerica Bank
Palo Alto, CA
6. Bank Robbery
April 17, 2018
Bank of the West
Orinda, CA
7. Attempted Bank Robbery
May 11, 2018
U.S Bank
San Ramon, CA
8. Armed Bank Robbery
May 12, 2018
Chase Bank
Oakland, CA
9. Bank Robbery
May 24, 2018
Sierra Central Credit Union
South Lake Tahoe, CA
10. Bank Robbery
June 6, 2018
U.S. Bank
Roseville, CA
11. Armed Bank Robbery
June 12, 2018
U.S. Bank
Pollock Pines, CA
12. Armed Bank Robbery
August 25, 2018
Wells Fargo Bank
Mill Valley, CA
13. Attempted Bank Robbery
October 18, 2018
First Republic Bank
Burlingame, CA
14. Armed Bank Robbery
October 19, 2018
Meriwest Credit Union
Mountain View, CA
15. Armed Bank Robbery
October 22, 2018
Chase Bank
South San Francisco, CA
16. Bank Robbery
November 3, 2018
Wells Fargo Bank
Orinda, CA
17. Armed Bank Robbery
November 5, 2018
U.S. Bank
Alameda, CA
18. Armed Bank Robbery
December 23, 2018
U.S. Bank
Castro Valley, CA
19. Bank Robbery
February 4, 2019
Wells Fargo Bank
Palo Alto, CA
On May 7, 2019, a federal grand jury indicted Makela, charging him with four counts of armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d), and one count of unarmed bank robbery, in violation of 18 U.S.C. § 2113(a). On September 25, 2019, Makela waived his right to indictment and to venue for those charges arising out of the Eastern District of California, and he was arraigned on a superseding information alleging the above-listed crimes. On October 3, 2019, Makela pleaded guilty to all 19 counts in the superseding information.
In addition to the prison term, Judge Breyer ordered Makela to serve a three-year period of supervised release and ordered full restitution to the victim banks and credit unions.
Northern District of California Assistant U.S. Attorney Nicholas Walsh is prosecuting the case with the assistance of Rosario Calderon and Margoth Turcios. Eastern District of California Assistant U.S. Attorney Michelle Rodriguez assisted.
The prosecution is the result of investigations by the FBI with assistance from the police departments of Pleasant Hill, Orinda, Daly City, South Lake Tahoe, Oakland, San Ramon, Palo Alto, Roseville, Burlingame, Mountain View, South San Francisco, and Alameda, as well as the Contra Costa County, El Dorado County, Marin County, and Alameda County Sheriff’s Offices.
Nursing Home Operator Pleads Guilty to Embezzlement and Tax OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHAIM STERN, 71, of Flushing, New York, waived his right to be indicted and pleaded guilty today in Bridgeport federal court to embezzlement and tax offenses related to his operation of nursing homes in Bridgeport and Waterbury.
According to court documents and statements made in court, Stern was the principal operator of the Bridgeport Health Care Center (“BHCC”), Bridgeport Manor, and the Rosegarden Health and Rehabilitation Center LLC (“Rosegarden”) in Waterbury, which were privately owned nursing and rehabilitation facilities. Between approximately 2011 and 2018, Stern stole approximately $4.1 million from the BHCC Pension Plan, over which he was the trustee, principally by diverting the money to a purported charity, called Em Kol Chai, which Stern controlled, as well as to himself and other entities. Also, in approximately February 2015, Stern misapplied $305,608.06 from BHCC Health Plan by diverting the money from a stop-loss insurance plan that was intended to pay for an employee health claim, and instead used it for other purposes, including Em Kol Chai, the operation of the BHCC, and for Stern’s personal use.
In addition, from at least January 2017 through March 2018, Stern failed to, and caused BHCC and Rosegarden to fail to, pay over employment taxes it collected from BHCC and Rosegarden employees. And, from January 2017 through June 2018, Stern failed to, and caused BHCC and Rosegarden to fail to, pay BHCC and Rosegarden’s share of employment taxes. The total tax loss resulting from Stern’s conduct is $4,356,409.85.
Stern pleaded guilty to one count of theft or embezzlement from an employee benefit plan, one count of theft or embezzlement in connection with healthcare, and one count of willful failure to pay tax. Stern is scheduled to be sentenced by U.S. District Judge Janet C. Hall in New Haven on April 8, 2020, at which time he faces a maximum term of imprisonment of 20 years.
As part of his plea agreement, Stern has agreed to make restitution to Pension Plan participants in the amount of approximately $4.1 million; to participants in the Health Plan with unpaid claims; and to the IRS in the total amount of approximately $2.4 million.
Stern is released on a $500,000 bond pending sentencing.
This matter is being investigated by the U.S. Department of Labor – Office of Inspector General, U.S. Department of Labor – Employee Benefits Security Administration, Boston Regional Office, and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.
New Orleans Man Sentenced to 37 Months Imprisonment for Illegal Possession of a FirearmRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that ELTON JOHNSON, (“JOHNSON”), age 35, of New Orleans, was sentenced on January 14, 2020 to 37 months imprisonment by the Honorable Jay C. Zainey for being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). Also, JOHNSON was ordered by the Court to serve three (3) years of supervised release and pay a $100.00 special assessment fee.
According to court documents, on June 27, 2018, Louisiana State Troopers conducted a traffic stop near the intersection of Downman and Dwyer Rds. One Trooper observed that the vehicle, a 2008 gray Saturn sedan, had a tinted rectangular cover over the temporary license plate and could not see the temporary license plate’s information. The Troopers stopped the sedan at a local gas station. JOHNSON exited the gray sedan from the front passenger side. A Trooper instructed JOHNSON to approach them but he walked away from the sedan. After a second command, JOHNSON complied.
As JOHNSON walked closer to the Troopers, they smelled marijuana and JOHNSON was observed with a hand rolled cigar in his right hand. The Troopers suspected that the cigar contained marijuana and was the source of the marijuana odor.
The sedan was searched incidental to JOHNSON’s arrest and law enforcement located a loaded Taurus Model PT-709 SLIM, serial no. FTS32722 on the front passenger side of the center console. JOHNSON later confessed at the scene that he possessed the firearm for protection. Due to his status as a federally convicted felon, the law prohibits JOHNSON from possessing firearms.
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.
This matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Louisiana State Police. Assistant United States Attorney Duane A. Evans prosecuted the case.
New Indictment: KU Researcher Concealed Being Recruited for Chinese ‘talent’ programRead the Press Release
KANSAS CITY, KAN. – Feng “Franklin” Tao, 47, of Lawrence, Kan., was charged today in a superseding indictment with two counts of wire fraud and one count of program fraud. The indictment alleges Tao concealed from University of Kansas officials work he was doing for China while employed full time as an associate professor at KU’s Center for Environmentally Beneficial Catalysis. Some of Tao’s research at KU was funded by the U.S. Department of Energy.
The superseding indictment elaborates on an indictment a grand jury returned in August 2019. It describes how China offered competitive salaries, state-of-the-art research facilities and honorific titles to researchers who joined talent programs and urged them to recruit others.
If convicted, the defendant could face up to 20 years in federal prison and a fine up to $250,000 on each of the wire fraud counts and up to 10 years and a fine up to $250,000 on the program fraud count.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the assigned judge.
The University of Kansas cooperated and assisted in the FBI’s investigation of the case. Assistant U.S. Attorney Tony Mattivi and Nathan Charles, trial attorney for the Counterespionage and Export Control Section (CTS) of the Justice Department’s National Security Division, are prosecuting.
OTHER INDICTMENTS
Lance Ashley is charged with four counts of failing to pay over employment taxes. The crimes are alleged to have occurred during 2014 through 2017.
Ashley owned Ashley Home Care Services, LLC, which was a Kansas corporation with a registered office in Overland Park. It is alleged he withheld employment taxes from employees’ paychecks without fully paying those taxes to the Internal Revenue Service. The indictment alleges he failed to pay more than $13,386 for tax year 2013, $48,847 for 2014, $63,933 for 2015 and $78,055 for 2016.
If convicted, he could face up to five years in federal prison and a fine up to $250,000 on each count. The Internal Revenue Service investigated. Assistant U.S. Attorney Leon Patton is prosecuting.
Roberto Gallegos-Garcia, 43, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Dec. 19, 2019, in Sedgwick County, Kan.
If convicted, he could face up to two years in federal prison and a fine up to $250,000. The Department of Homeland Security, Enforcement and Removal Operations, investigated the case. Assistant U.S. Attorney Alan Metzger is prosecuting.
Leo Carlos Pacheco-Santos, 20, Passaic, N.J., is charged with failing to appear for a court hearing on charges including wire fraud and aggravated identity theft. He failed to appear in federal court in Kansas City, Kan., on Oct. 7, 2019.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
New Castle Man Pleads Guilty to Federal Drug ChargesRead the Press Release
PITTSBURGH, Pa.-A former resident of New Castle, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Zaamar Stevenson, age 43, pleaded guilty to three counts before United States District Court Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on November 9, 2015, officers utilized a confidential informant to purchase heroin and crack from the defendant. While on surveillance, officers observed a female get into the back seat of the defendant’s rental vehicle. Officers stopped the vehicle and secured the occupants. The defendant was the driver of the vehicle. The female admitted that she arranged to buy crack from the defendant. A blue grocery bag was found under the front passenger seat. The bag contained baggies of crack cocaine and stamp bags of heroin. The defendant had $1,506 in his possession, $150 of which were prerecorded official funds and the front passenger had $185 in her purse, $20 of which were prerecorded official funds.
Judge Fischer scheduled sentencing for May 27, 2020. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, 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.
Pending sentencing, the court ordered that Stevenson remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Butler County District Attorney's Drug Task Force and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Stevenson.
New Britain Man Sentenced to 97 Months in Prison for Trafficking Cocaine from Puerto Rico to ConnecticutRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERICK SUAREZ, 31, of New Britain, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 97 months of imprisonment, followed by four years of supervised release, for trafficking cocaine from Puerto Rico to Connecticut through the U.S. Mail.
According to court documents and statements made in court, in 2017, the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service began investigating a drug trafficking organization that was sending Priority Mail parcels containing kilogram-quantities of cocaine through the U.S. Mail from Puerto Rico to Connecticut and elsewhere. The investigation revealed that Suarez coordinated shipments of cocaine from individuals in Puerto Rico to addresses in New Britain, Hartford, Newington, East Hartford and Bridgeport, as well as Springfield, Massachusetts. Investigators identified more than 50 suspect parcels that were mailed from Puerto Rico, and intercepted five of the suspect parcels, each of which contained approximately one kilogram of cocaine.
On April 10, 2018, investigators arrested several members of the cocaine trafficking ring, including Jerry Rodriguez, also known as “Bebo,” of Hartford. On that date, a search of Rodriguez’s residence revealed approximately 400 grams of cocaine, approximately 160 grams of heroin, items used to process and package narcotics for street sale, and a loaded .45 caliber handgun. Also on that date, investigators searched Suarez’s residence, as well as two storage units used by Suarez and one storage unit used by Rodriguez in West Hartford. The search of Suarez’s storage units revealed more than $50,000 in cash and a search of Rodriguez’s storage unit revealed additional items used to process and package narcotics.
Suarez was arrested on April 12, 2018. On April 18, 2018, a grand jury returned an indictment charging Suarez, Rodriguez and five other individual with conspiracy to distribute cocaine. Suarez pleaded guilty on September 10, 2019.
Suarez has been detained since his arrest.
Rodriguez has pleaded guilty and is detained while awaiting sentencing.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The DEA Puerto Rico Caribbean Corridor Strike Force and U.S. Postal Inspection Service, Newark Division, San Juan (P.R.) Office, have assisted the investigation. This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Miami-Dade County Resident Charged with Mail and Wire Fraud Targeting the United States Postal ServiceRead the Press Release
A Miami-Dade County resident was arrested on federal charges in connection with a $1.5 million mail and wire fraud scheme that targeted the United States Postal Service.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Christopher Cave, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS OIG), Southern Area Field Office, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division made the announcement.
Edwin Jim Garcia-Albarracin, 45, of Miami, Florida, was charged in a thirty-two count indictment, that was unsealed today, with ten counts of mail fraud, ten counts of wire fraud, and twelve counts of money laundering (Case No. 20-cr-20012-WILLIAMS). He is scheduled for a detention hearing on January 21, 2020.
According to the indictment, Garcia-Albarracin through his company, Rambos Market, sold a variety of products online and used the United States Postal Service to mail the purchased products to consumers throughout South Florida and the United States. The indictment charges that from at least as early as July 2016 and continuing through November 2019, Garcia-Albarracin submitted false and fraudulent claims through the United States Postal Service Customer Inquiry and Claims Response System certifying that contents of certain packages that he had mailed were damaged, when in truth they were not. As a result of Garcia-Albarracin’s false and fraudulent claims, the United States Postal Service made payments to Garcia-Albarracin of over $1.5 million.
If convicted, Garcia-Albarracin faces a maximum statutory sentence of twenty years in prison for each mail fraud count; twenty years in prison for each wire fraud count; twenty years in prison for each money laundering count, in violation of Title 18, United States Code, Section 1956; ten years in prison for each money laundering count, in violation of Title 18, United States Code, Section 1957; a fine of up to $250,000 for the mail and wire fraud counts; and a fine not more than $500,000 or not more than twice the value of the loss as to each money laundering count of conviction.
An indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of USPS OIG and USPIS in this matter. This case is being prosecuted by Assistant U.S. Attorney Christine Hernandez. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Mexican national heads to prison for child porn convictionRead the Press Release
BROWNSVILLE, Texas – A 24 year-old Mexican national who illegally resided in San Juan has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Ernesto Vitela pleaded guilty May 23, 2019.
Today, U.S. District Judge Rolando Olvera Jr. ordered Vitela to serve 78 months in federal prison and ordered he pay $27,000 in restitution for the victims. He will also serve 20 years on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.
On or about May 9, 2018, law enforcement initiated an investigation of an IP address that was identified as sharing child pornography. That investigation led them to Vitela’s address in San Juan. On Nov. 29, 2018, agents executed a search warrant at that location and seized a cell phone and other digital devices belonging to Vitela. A forensic analysis later yielded approximately 7,844 images and 582 videos of child pornography.
Immigration and Customs Enforcement’s Homeland Security Investigations-Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Mexican National Sentenced for Conspiring to Assist Flight of Man Charged with Murdering Police OfficerRead the Press Release
FRESNO, Calif. — Erik Quiroz Razo (Quiroz), 28, an illegal alien from Michoacán, Mexico residing in Merced, was sentenced today to 21 months in prison for conspiring with others to assist Paulo Virgen Mendoza’s flight from California to Mexico after he allegedly committed a felony: the murder of Newman Police Corporal Ronil Singh during a traffic stop, U.S. Attorney McGregor W. Scott announced.
“The murder of a police officer in the line of duty is an assault on the entire community. This defendant, a convicted felon and previously deported alien, played a critical role in helping a man accused of killing a police officer to elude apprehension,” said U.S. Attorney Scott. “He disposed of the murder weapon, and he urged those close to him to not tell anyone about his activities. The successful prosecution of this defendant sends a message to the community that this behavior will not be tolerated.”
Last September, a jury found Quiroz guilty, along with Virgen Mendoza’s brother, Conrado Virgen Mendoza, 34, an illegal alien from Colima, Mexico, residing in Chowchilla. The evidence at trial established that Quiroz helped Paulo Virgen Mendoza conceal the truck that he was driving at the time of Corporal Singh’s murder, disposed of the firearm used to kill the officer, and lied to Stanislaus County Sheriff officers about Paulo’s whereabouts.
A court hearing for Conrado Virgen Mendoza has been scheduled for Jan. 21 where a sentencing date will be set for his involvement in the conspiracy to help his brother flee. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for conspiring to aid in his brother’s flight from authorities. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by Homeland Security Investigations and the Stanislaus County Sheriff’s Office with assistance from the Immigration and Customs Enforcement, Enforcement and Removal Operations; Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; Southern Tri-County HIDTA; Bureau of Alcohol, Tobacco, Firearms, and Explosives; California Highway Patrol; California Department of Justice, the Sheriffs’ Offices for Kern, Merced, and Santa Cruz Counties; and the Police Departments for Merced, Turlock, Modesto, and Santa Cruz. Assistant U.S. Attorneys Karen A. Escobar, Laura D. Withers, and Michael G. Tierney are prosecuting the case.
Mexican Man Sentenced to 13 Months in Federal Prison for Being an Illegal Alien in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ANTONIO OSORIO DIAZ, (“DIAZ”), age 41, a native of Mexico, was sentenced on January 8, 2020 to 13 months in federal prison after pleading guilty to a one-count indictment charging him with being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A).
In papers filed in open court, DIAZ admitted he was an illegal alien in possession of a firearm. The indictment alleged he illegally possessed a Ruger 45 caliber semi-automatic pistol. On February 3, 2019, the Gretna Police received a complaint of a man with a gun in a parking lot and responded. Illegal aliens are prohibited from possessing firearms under federal law.
DIAZ faced a maximum term of imprisonment of 10 years, a fine of $250,000, and three years of supervised release. After he completes his prison term, he will face deportation.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency and the Gretna Police Department in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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McKees Rocks Woman Pleads Guilty to Drug Charges in West End Wiretap InvestigationRead the Press Release
PITTSBURGH - A resident of McKees Rocks, PA, pleaded guilty in federal court to charges of conspiracy to distribute crack cocaine, cocaine and heroin, United States Attorney Scott W. Brady announced today.
Tamra Moore, age 35, pleaded guilty to three counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The investigation revealed that from in and around November 2017 through in and around June 2018, Tamra Moore and her co-conspirators distributed cocaine, crack cocaine and heroin in and around the area of the Greenway Projects.
Judge Schwab scheduled sentencing for May 13, 2020 at 10:00 a.m. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne Saadi are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Tamra Moore.
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.
Massachusetts Man Pleads Guilty to Conspiracy to Distribute CocaineRead the Press Release
Portland, Maine: A Lawrence, Massachusetts man pleaded guilty today in federal court in Portland to conspiring to distribute 500 grams or more of cocaine, U.S. Attorney Halsey B. Frank announced.
According to court records, between September 2017 and January 2018, Pedro Perez, 29, supplied another conspirator with multi-ounce quantities of cocaine for further distribution in the Portland area. On January 19, 2018, Perez supplied approximately 280 grams of cocaine to a member of the conspiracy. Law enforcement officers seized the cocaine in Scarborough during a traffic stop.
Perez faces between five and 40 years in prison, a $5,000,000 fine and between four years and life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The FBI, the U.S. Drug Enforcement Administration and the South Portland Police Department investigated the case.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Man who mailed deadly fentanyl to Seattle area woman arrested in PennsylvaniaRead the Press Release
Seattle – A 35-year-old Pennsylvania man was arrested January 14, 2020, in Philadelphia, charged with distributing fentanyl and acetyl fentanyl to the Western District of Washington, announced U.S. Attorney Brian T. Moran. The criminal complaint alleges that JESSE S. DITTMAR sent multiple envelopes containing the drug to his former girlfriend who had moved to her brother’s home in Seattle. The former girlfriend was found dead on January 29, 2019, less than 24 hours after she texted DITTMAR that she had done some of the drugs that arrived in the mail on January 28, 2019.
DITTMAR appeared today on the charges in U.S. District Court in the Eastern District of Pennsylvania and ultimately will appear in the Western District of Washington.
According to the criminal complaint, the 32-year-old victim broke up with DITTMAR and moved to her brother’s home in Seattle in the fall of 2018. Despite DITTMAR’s repeated attempts to text the victim, the victim cut off contact with DITTMAR until December 2018. During December 2018 and January 2019, DITTMAR and the victim were in contact and the texts make clear he was sending her drugs enclosed in greeting cards. Following the victim’s death, multiple greeting cards and packaging materials for drugs were found in the victim’s bedroom. The King County Medical Examiner determined the victim died from acute drug intoxication including fentanyl.
Distribution of fentanyl is punishable by up to twenty years in prison.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Postal Inspection Service (USPIS) with assistance from the Seattle Police Department and Seattle Fire Department.
The case is being prosecuted by Assistant United States Attorney Lyndsie Schmalz.
dittmar_complaint.pdf