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Tuesday 26 November 2019
Albanian National Admits use of Fraudulent United States PassportRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he used a fraudulently made United States passport to travel abroad, U.S. Attorney Craig Carpenito announced.
Jetmir Memija, a/k/a “Shefki Hoti,” 42, an Albanian national residing in Edgewater, New Jersey, pleaded guilty before U.S. District Court Judge Susan D. Wigenton to an information charging him with one count of using a fraudulently made passport.
According to documents filed in this case and statements made in court:
On July 11, 2011, Memija, who had illegally entered the United States in 1996, applied for a United States passport. He submitted false information regarding his date of birth and Social Security number. Memija submitted the personal identifying information of a family member along with his photograph. A United States passport book was issued to Memija based on this false information, which he used to gain entry into the Republic of Albania.
The passport fraud charge carries a maximum potential sentence of 10 years in prison. Sentencing is scheduled for March 2, 2020.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, Newark, with the investigation leading to today’s guilty plea. He also thanked the U.S. Citizenship and Immigration Services, Fraud Detection and National Security Directorate, Newark; and Immigration and Customs Enforcement-Enforcement and Removal Operations for their assistance.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S Attorney’s Office National Security Unit in Newark.
APRN Who Received Kickbacks from Insys Therapeutics for Prescribing Fentanyl Spray is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HEATHER ALFONSO, 46, of South Carolina, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to three years of probation for engaging in a kickback scheme related to fentanyl spray prescriptions.
According to court documents and statements made in court, Alfonso formerly resided in Connecticut and was employed as an Advanced Practice Registered Nurse (APRN) at Comprehensive Pain and Headache Treatment Center (CPHTC) located in Derby. As part of her practice, Alfonso prescribed various controlled substances, including Subsys, a fentanyl-based sublingual spray that was approved by the Food and Drug Administration solely for the management of breakthrough pain in cancer patients. Subsys was manufactured and sold by Insys Therapeutics, an Arizona-based pharmaceutical company.
A review of Medicare Part D prescription drug events for prescribers of Subsys showed that Alfonso was responsible for approximately $2.5 million in claims and was the highest prescriber of the drug in Connecticut. Interviews with several of Alfonso’s patients, who were Medicare Part D beneficiaries and were prescribed Subsys, revealed that most of them did not have cancer, but had taken the drug to treat their chronic pain. Medicare and most private insurers did not pay for Subsys unless the patient had an active cancer diagnosis and an explanation that the drug was needed to manage the patient’s cancer pain.
An investigation revealed that Insys Therapeutics representatives were inducing medical practitioners around the country to prescribe Subsys over other similar medications by paying the medical practitioners to participate in hundreds of sham “Speaker Programs.” The Speaker Programs, which were typically held at high-end restaurants, were ostensibly designed to gather licensed healthcare professionals who had the capacity to prescribe Subsys and educate them about the drug. In truth, the events were usually just a gathering of friends and co-workers, most of whom did not have the ability to prescribe Subsys, and no educational component took place. “Speakers” were paid a fee that ranged from $1,000 to several thousand dollars for attending these dinners. At times, the sign-in sheets for the Speaker Programs were forged to make it appear that the programs had an appropriate audience of healthcare professionals.
Between approximately January 2013 and March 2015, Insys Therapeutics paid Alfonso approximately $83,000 to act as a “speaker” for more than 70 dinner programs. In many instances, the dinner programs were only attended by Alfonso and an Insys Therapeutics sales representative. In other instances, the programs were attended by CPHTC staff and Alfonso’s friends, none of whom had licenses to prescribe controlled substances.
Alfonso’s conduct resulted in a loss to Medicare of $2,564.501.64. Judge Arterton ordered Alfonso to pay full restitution, jointly and severally with other defendants convicted in this scheme.
On June 25, 2015, Alfonso pleaded guilty to one count of receiving kickbacks in relation to a federal healthcare program.
Several other individuals affiliated with Insys Therapeutics, and medical practitioners involved in this kickback scheme, have been charged and convicted in the District of Connecticut and in other Districts across the U.S. On May 2, 2019, a federal jury in Boston found John N. Kapoor, the founder and former Executive Chairman of Insys Therapeutics, and four other former Insys executives guilty of racketeering conspiracy.
In sentencing Alfonso, Judge Arterton credited Alfonso’s prompt acceptance of responsibility, her assistance to the government’s prosecution of other defendants, and the extensive testimony she provided during the trial in the District of Massachusetts.
In June 2019, Insys Therapeutics agreed to pay a total of $225 million to resolve criminal and civil investigations of the company.
The investigation in the District of Connecticut has been conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation, with the assistance of the Drug Enforcement Administration’s Tactical Diversion Squad. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito, Sarah P. Karwan and Richard M. Molot.
U.S. Attorney Durham encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
Monday 25 November 2019
Wilmington Source of Methamphetamine Receives 21 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, United States District Judge James C. Dever III sentenced Aaron ROBICHAUX, 36, of New Hanover County North Carolina, to 252 months imprisonment, followed by 5 years of supervised release.
On April 15, 2019, ROBICHAUX pled guilty to conspiracy to distribute and possess with the intent to distribute five-hundred (500) grams or more of methamphetamine, possession with intent to distribute a quantity of methamphetamine and cocaine and aiding and abetting another, and possession of a firearm by a convicted felon.
On April 11, 2018, the Federal Bureau of Investigations made a controlled purchase of a quantity of crystal methamphetamine from Anthony Capps, Jr. who had been supplied the methamphetamine by ROBICHAUX in Wilmington, North Carolina.
On April 19, 2018, the FBI again made a controlled purchase from Capps of approximately 2 ounces of crystal methamphetamine that had been supplied by ROBICHAUX.
On June 21, 2018, the New Hanover County Sheriff’s Narcotics Section served a search warrant at ROBICHAUX’S residence in Wilmington. Law enforcement found an ounce of cocaine, approximately an ounce of methamphetamine, a loaded 9mm handgun, a loaded .380 caliber handgun and more than $27,000 in United States Currency.
Law enforcement found an additional ounce of methamphetamine and more than $1,000 on ROBICHAUX after he was placed under arrest. Meghan Kunz, who also resided at the residence, was arrested at a later time.
According to law enforcement and information obtained from the investigation, between the summer of 2017 and April 2018, ROBICHAUX distributed approximately a pound and a half of methamphetamine in Eastern North Carolina. On at least one occasion, ROBICHAUX had Kunz transport methamphetamine concealed on her person.
Kunz and Capps have previously been sentenced in Federal Court. Kunz received a 60 month prison sentence and four years supervised release and Capps received a 72 month prison sentence and 5 years supervised release.
This case is part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This case is part of a Drug Enforcement Administration (DEA) lead OCDETF operation “Fall of the House of Usher” and required extensive investigation. An Organized Crime Drug Enforcement Task Force (OCDETF) investigation such as this focuses on National and International distribution of methamphetamine and firearms associated with this organization into southeastern North Carolina.
The Drug Enforcement Administration, Federal Bureau of Investigations, Bureau of Alcohol Tobacco and Firearms, the Duplin County Sheriff’s Office, the New Hanover County Sheriff’s Office, the Sampson County Sheriff’s Office, the North Carolina State Bureau of Investigation and the Wilmington Police Department conducted this investigation. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Willimantic Heroin Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that XAVIER DIAZ, also known as “Coco,” 30, of Willimantic, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in May 2018, the DEA’s Hartford Task Force and Willimantic Police Department, while investigating a heroin/fentanyl overdose death that occurred in August 2017, received information that Diaz was operating a heroin distribution ring in Willimantic. The investigation revealed that drug purchasers called a phone shared by members of the conspiracy to place an order for heroin. Thereafter, a “runner” would meet the purchaser to complete the transaction.
The investigation connected the August 2017 overdose death, and several non-fatal overdoses, to drugs distributed by the Diaz organization.
Diaz and other members of his organization were arrested on October 15, 2018. On that date, a search of Diaz’s residence revealed more than 100 grams of heroin, a stolen firearm, and ammunition. In addition, a search of a storage unit connected to the organization revealed more than $20,000 in cash.
On October 29, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
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.
This case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
West Side Crip Member Jarvis Thomas, aka “Big Mice,” Sentenced to over 26 Years in Prison for Narcotics TraffickingRead the Press Release
FRESNO, Calif. — Jarvis Thomas, 34, of Bakersfield, was sentenced by United States District Judge Dale A. Drozd today to 320 months in prison and five years of supervised release for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, between Sept. 27, 2017, and Sept. 11, 2018, Thomas conspired with others to possess and distribute methamphetamine in Bakersfield and North Dakota.
According to court documents, on Dec. 14, 2017, after a 10-month investigation, more than 35 members and associates of West Side Crips (WSC), a local criminal street gang, were arrested on federal and state charges including burglary, illegal gun possession, drug sales, and murder. Since that time, all the defendants in federal custody except for Thomas have pleaded guilty to charged offenses. On Jan. 11, 2018, a superseding indictment charged Thomas, a West Side Crip member also known as “Big Mice.” On April 4, 2019, a second superseding indictment charged Thomas and a co-conspirator.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice, the Bakersfield Police Department and the Drug Enforcement Administration. Assistant U.S. Attorneys Angela Scott and Thomas Newman are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
United States Attorneys Announce $72.4 Million in Grants Received from the Department of JusticeRead the Press Release
LEXINGTON, Ky. – To close the 2019 Fiscal Year, the United States Department of Justice awarded 51 grants, amounting to more than $72.4 million to support public safety and crime fighting initiatives throughout the Commonwealth of Kentucky, announced Western District United States Attorney Russell Coleman and Eastern District United States Attorney Robert M. Duncan Jr.
“These are significant federal resources coming to Kentucky for one purpose, to keep families safer in all 120 counties of our Commonwealth,” said U.S. Attorney for the Western District of Kentucky Russell Coleman.
“We appreciate the Department’s support in funding these important public safety and criminal justice initiatives,” said U.S. Attorney for the Eastern District of Kentucky Robert Duncan Jr. “These grants help make the entire Commonwealth a safer place.”
The 51 grants cover cities in both the Eastern and Western Districts of Kentucky, six cities (Bowling Green, Frankfort, Lexington, Louisville, Paducah, Radcliff) alongside five counties (Christian County, Daviess County, Madison County, Kenton County, Warren County) are receiving funding through the Office of Justice Programs’ Bureau of Justice Assistance (BJA) and the Edward Byrne Memorial Justice Assistance Grant (JAG) program. Under the JAG program, the cities will receive a total amount of $968,160 to support a broad range of activities to prevent and control crime based for their own state and local needs and conditions. The Kentucky Justice and Public Safety Cabinet also received $2.1 million in funding under the JAG program. JAG funds will be used to support all components of the criminal justice system, from multi-jurisdictional drug and gang task forces, to crime prevention and domestic violence programs, courts, corrections, treatment, justice information enforcement, and programs aimed at reducing crime and/or enhancing public/officer safety.
The Kentucky Justice and Public Safety Cabinet will also receive $30,568,043 from the Office for Victims of Crime VOCA (Victims of Crime Act Formula Program) Victim Assistance Formula. The Justice and Public Safety Cabinet was also awarded grants through the Office of Justice Programs’ Bureau of Justice Assistance (BJA) through the United States Attorney’s offices Project Safe Neighborhoods, the Residential Substance Abuse Treatment (RSAT) for state Prisoners Program, State Justice Statistics Program for Statistical Analysis Centers, and Paul Coverdell Forensic Science Improvement Grants Program Formula.
The Kentucky Department for Corrections (KYDOC) was awarded $923,138 through the Bureau of Justice Assistance Innovations in Supervision Initiative (ISI): Building Capacity to Create Safer Communities. ISI funds will be used to develop place-based supervision strategies to reduce distances between clients, supervision offices and treatment centers.
The Kentucky Cabinet for Health and Family Services will receive $990,249 through the Bureau of Justice Assistance Comprehensive Opioid Abuse Site Based Program: Harold Rogers Prescription Drug Monitoring Program (PDMP) aimed at enhancing KASPER. The Cabinet will use the grant funds to engage one full time grant law enforcement liaison, and one full time grant criminal epidemiologist who will support law enforcement requests for PDMP data and assistance. The grant liaison will work with five pharmacist consultants already employed by KASPER to provide knowledge of criminal investigations and prosecutions of offenders violating state and federal control substances laws.
The Catholic Charities of Louisville Inc. has been awarded $919,476 under the Sustaining Capacity to Provide Comprehensive Services through the Office of Victims of Crime. Catholic Charities will implement the Central Kentucky Comprehensive Services Project to sustain capacity to provide services to survivors of human trafficking through implementation of a comprehensive services model. The initiative will include in-house services, and collaborations with community partners for housing, mental health services, medical services, and education services.
A full list of OJP Award Data is available at this link: https://ojp.gov/funding/Explore/OJPAwardData.htm
###United States Attorneys Announce $72.4 Million in Grants Received from the Department of JusticeRead the Press Release
LOUISVILLE, Ky. – To close the 2019 Fiscal Year, the United States Department of Justice awarded 51 grants, amounting to more than $72.4 million to support public safety and crime fighting initiatives throughout the Commonwealth of Kentucky, announced Western District United States Attorney Russell Coleman and Eastern District United States Attorney Robert M. Duncan Jr.
“These are significant federal resources coming to Kentucky for one purpose, to keep families safer in all 120 counties of our Commonwealth,” said U.S. Attorney for the Western District of Kentucky Russell Coleman.
“We appreciate the Department’s support in funding these important public safety and criminal justice initiatives,” said U.S. Attorney for the Eastern District of Kentucky Robert Duncan Jr. “These grants help make the entire Commonwealth a safer place.”
The 51 grants cover cities in both the Eastern and Western Districts of Kentucky, six cities (Bowling Green, Frankfort, Lexington, Louisville, Paducah, Radcliff) alongside five counties (Christian County, Daviess County, Madison County, Kenton County, Warren County) are receiving funding through the Office of Justice Programs’ Bureau of Justice Assistance (BJA) and the Edward Byrne Memorial Justice Assistance Grant (JAG) program. Under the JAG program, the cities will receive a total amount of $968,160 to support a broad range of activities to prevent and control crime based for their own state and local needs and conditions. The Kentucky Justice and Public Safety Cabinet also received $2.1 million in funding under the JAG program. JAG funds will be used to support all components of the criminal justice system, from multi-jurisdictional drug and gang task forces, to crime prevention and domestic violence programs, courts, corrections, treatment, justice information enforcement, and programs aimed at reducing crime and/or enhancing public/officer safety.
The Kentucky Justice and Public Safety Cabinet will also receive $30,568,043 from the Office for Victims of Crime VOCA (Victims of Crime Act Formula Program) Victim Assistance Formula. The Justice and Public Safety Cabinet was also awarded grants through the Office of Justice Programs’ Bureau of Justice Assistance (BJA) through the United States Attorney’s offices Project Safe Neighborhoods, the Residential Substance Abuse Treatment (RSAT) for state Prisoners Program, State Justice Statistics Program for Statistical Analysis Centers, and Paul Coverdell Forensic Science Improvement Grants Program Formula.
The Kentucky Department for Corrections (KYDOC) was awarded $923,138 through the Bureau of Justice Assistance Innovations in Supervision Initiative (ISI): Building Capacity to Create Safer Communities. ISI funds will be used to develop place-based supervision strategies to reduce distances between clients, supervision offices and treatment centers.
The Kentucky Cabinet for Health and Family Services will receive $990,249 through the Bureau of Justice Assistance Comprehensive Opioid Abuse Site Based Program: Harold Rogers Prescription Drug Monitoring Program (PDMP) aimed at enhancing KASPER. The Cabinet will use the grant funds to engage one full time grant law enforcement liaison, and one full time grant criminal epidemiologist who will support law enforcement requests for PDMP data and assistance. The grant liaison will work with five pharmacist consultants already employed by KASPER to provide knowledge of criminal investigations and prosecutions of offenders violating state and federal control substances laws.
The Catholic Charities of Louisville Inc. has been awarded $919,476 under the Sustaining Capacity to Provide Comprehensive Services through the Office of Victims of Crime. Catholic Charities will implement the Central Kentucky Comprehensive Services Project to sustain capacity to provide services to survivors of human trafficking through implementation of a comprehensive services model. The initiative will include in-house services, and collaborations with community partners for housing, mental health services, medical services, and education services.
A full list of OJP Award Data is available at this link: https://ojp.gov/funding/Explore/OJPAwardData.htm
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Two Men Sentenced to Federal Prison for Buying and Selling over 50 Kilograms of Cocaine on the DarknetRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Timothy Howell, age 46, was sentenced by U.S. District Court Judge William J. Martinez on November 22, 2019, to 66 months imprisonment and 4 years of supervised release for conspiracy to distribute cocaine, money laundering, and aggravated identity theft. Howell’s co-defendant, Cavin Mower, age 44, was sentenced by Judge Martinez on September 5, 2019, to 50 months imprisonment and 3 years of supervised release for conspiracy to distribute cocaine and money laundering.
According to the stipulated facts contained in the plea agreements, for over a year, Howell and Mower received kilogram-quantities of cocaine from a darknet cocaine supplier and then re-sold that cocaine to their own customers in Colorado and across the country via their own darknet vendor account. Together, Howell and Mower shipped nearly 50 kilograms of cocaine to their customers through the U.S. Mail, for which they were paid in bitcoin. In addition, during this criminal activity, Howell stole the identity of another person and used it to, among other things, gain access to a TSA-controlled area of an international airport to board a flight to Denver.
Howell and Mower laundered the bitcoin proceeds in primarily two ways. First, they used a website that allowed them to purchase gift cards that could be used to buy goods and services. Second, they exchanged bitcoin for cash using the services of an international money transfer company.
Howell and Mower were both arrested on July 19, 2018 and have been in custody.
“This case demonstrates that drug dealers can’t hide from the law, including on the darknet,” said U.S. Attorney Jason Dunn. “If you are, we will find you, prosecute you, and send you to federal prison.”
“Drug dealers believe advances in technology can hide their illicit dealings in the dark web and by using cryptocurrency to further their criminal activity,” said Steven Cagen, Special Agent in Charge, HSI Denver. “Today’s sentencing sends a warning to criminals that no matter how sophisticated they believe they are, we will find them and bring them to justice, and they can’t hide from us online.”
“Narcotics trafficking and money laundering through the dark web are an ever increasing method for criminal organizations,” said IRS Special Agent in Charge Andy Tsui. “Special Agents with IRS-Criminal Investigation are highly adept at disrupting the illegal financial activities individuals try to conceal through the dark web and will continue to work diligently to stop these criminals in their cyber tracks.”
“Postal Inspectors, especially here in Colorado, have been at the forefront of dark web investigations for years, bringing to justice those who use the U.S. mail to distribute illegal narcotics behind the dark net’s false veil of anonymity,” said Bill Hedrick, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “This sentence is a result of the hard work from our Postal Inspectors to bring these drug dealers to justice,” said Hedrick.
This case was investigated by the Denver Digital Currency and Darknet Working Group, comprised of agents from the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the IRS-Criminal Investigations (IRS-CI). Other agencies assisting the working group included IRS-CI in Phoenix Arizona and USPIS and HSI in Nashville, Tennessee.
The defendants were prosecuted by Assistant U.S. Attorney Andrea Surratt.
Two Men Plead Guilty to Fentanyl and Heroin Conspiracy and Distribution OffensesRead the Press Release
BOSTON – A Worcester man and a Dominican national pleaded guilty today in federal court in Worcester for distributing fentanyl and heroin.
Albeiro Gomez, 55, of Worcester, and Erotides Mendez, 50, a Dominican national previously residing in New York City, each pleaded guilty to one count of conspiring to distribute heroin and more than 40 grams of fentanyl. Gomez also pleaded guilty to one count of distributing heroin and fentanyl, one count of distributing heroin and more than 40 grams of fentanyl, and one count of possessing cocaine with intent to distribute. Mendez also pleaded guilty to one count of distributing heroin and more than 40 grams of fentanyl and one count of possessing heroin and more than 40 grams of fentanyl with intent to distribute. U.S. District Court Judge Timothy J. Hillman scheduled Gomez’s sentencing for March 5, and Mendez’s sentencing for March 2, 2020. Gomez and Mendez were each arrested in December 2018.
According to court documents, investigators intercepted communications to and from the defendants’ phones which evidenced their drug trafficking activities. Mendez was involved in the acquisition of heroin and fentanyl in New York and the transportation of these drugs for sale in and around Worcester. Gomez was a livery driver in Worcester who used his livery vehicle to procure and distribute drugs, meet with customers and to collect cash derived from drug sales.
In November 2018, law enforcement stopped a passenger van headed from New York City to Worcester, and observed Mendez – a passenger in the van – throw a bag containing approximately 150 grams of heroin from the van. In December 2018, agents stopped a car in which Mendez was a passenger and located approximately 150 grams of heroin and 138 grams of a mixture of fentanyl and heroin.
In connection with this investigation, Freiber Betancourth, of Worcester, previously pleaded guilty to drug trafficking charges and is scheduled to be sentenced on Jan. 27, 2020. Betancourth distributed heroin and fentanyl from the parking lot of his employer. In addition, Jonathan Francisco Bobadilla Rosa, a Dominican national previously residing in Worcester, pleaded guilty to possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl, false representation of a Social Security number and aggravated identity theft. He is scheduled to be sentenced on Jan. 30, 2020.
Gomez and Mendez each face a sentence of between five and 40 years in prison, a minimum of four years and up to life of supervised release and a fine of $5 million on the drug charges alleging more than 40 grams of fentanyl. Gomez and Mendez each face a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine of up to $1 million on the remaining drug charges. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistance with the investigation was provided by the Massachusetts State Police and the U.S. Department of State, Diplomatic Security Service, Boston Field Office. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division are prosecuting the case.
Tomah Man Sentenced to 8 Years on Methamphetamine ChargeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Bobby Ostrum, 37, Tomah, Wisconsin, was sentenced Friday, November 22, by U.S. District Judge James D. Peterson to eight years in prison for possessing methamphetamine with intent to distribute. Ostrum pleaded guilty to this charge on August 22, 2019.
On November 16, 2018, law enforcement officers conducted a traffic stop of Ostrum’s vehicle and recovered approximately 120 grams of methamphetamine. During the course of the investigation, officers determined that Ostrum was selling methamphetamine to lower level dealers for further distribution. At that time of his arrest, Ostrum was on supervision in both La Crosse and Monroe Counties for criminal conduct.
During sentencing, Judge Peterson described Ostrum as being part of a large system that exploits addiction in the community and pointed out that Ostrum has a history of committing crimes while on supervision. His lengthy criminal record includes convictions for substantial battery, possessing a firearm as a felon, possessing controlled substances, armed robbery, and delivering methamphetamine.
The charge against Ostrum was the result of an investigation conducted by the Sparta Police Department, Tomah Police Department, and the Monroe County Joint Investigative Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Three Former Employees of Anheuser-Busch In-Bev Plead Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Former employees of Anheuser-Busch In Bev, James Williams, 68, of St. Louis County; Gary Belcher, 64, of St. Louis County; and, Gregory Vieth, 63, of Columbia, IL; pleaded guilty to conspiring with a licensed Missouri chiropractor to fraudulently obtain disability insurance payments from the Social Security Administration and Prudential Insurance Companies of America. Each appeared this morning in front of United States District Judge Ronnie L. White who accepted the guilty pleas and set sentencing for March 5, 2020.
According to court documents, the chiropractor and the defendants exaggerated the defendants’ medical conditions and ability to care for themselves in order to qualify for the disability benefits. The chiropractor also required defendants to undergo excessive medical treatments and diagnostic evaluations beyond what was medically necessary to pad their medical records. Beginning as early as 2011, the defendants sought the chiropractor’s assistance because it permitted them to fraudulently obtain Social Security disability insurance benefit payments; a long-term disability insurance payment of $100,000.00 from Prudential Insurance Companies; and short-term disability benefits through other private insurance companies. In exchange, defendants paid the chiropractor as much as $3,000.00 for each of the types of disability payments they were seeking, among other forms of compensation to the chiropractor
As a result of the false and fraudulent statements to the Social Security Administration and Prudential by the chiropractor, James Williams, Gary Belcher and Gregory Vieth each received in excess of $150,000.00 from the Social Security Administration and Prudential.
Conspiracy to defraud carries a maximum penalty of 5 years imprisonment for each count and a fine of $250,000 or both. Restitution to the victims is also mandatory.
The case was investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation. Tracy Berry and Dorothy McMurtry are handling the case for the U.S. Attorney’s Office.
Because the Social Security Administration provides benefits through the Disability Insurance Benefit Program to more than 8.4 million individuals a year at a monthly rate of more than $10.4 million, the Social Security Administration accepts reports of those suspected of committing fraud against the program through the Social Security Administration (SSA) Office of Inspector General Hotline at: 1-800-269-0271 or https://oig.ssa.gov/report/.
Tennessee Emergency Medical Doctor Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
A Tennessee emergency medical doctor pleaded guilty today for his role in unlawfully distributing controlled substances.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Special Agent in Charge Daniel D. Dodds of the Drug Enforcement Administration’s (DEA) Louisville Division made the announcement.
Lawrence J. Valdez, M.D., 50, of Hendersonville, Tennessee, pleaded guilty to one count of unlawful distribution of controlled substances before U.S. District Judge Eli J. Richardson of the Middle District of Tennessee. Sentencing has been scheduled for April 3, 2020, before Judge Richardson.
Pursuant to his guilty plea, Valdez admitted that in February 2017 he knowingly distributed oxymorphone, a Schedule II controlled substance, to a patient without a legitimate medical purpose and outside the usual course of professional practice. He further admitted to distributing Schedule II opioids to four different patients without a legitimate medical purpose and outside the course of professional practice on 16 other occasions between June 2016 and February 2017, and in exchange for sexual intercourse and other sexual acts with those patients.
The DEA, Tennessee’s 18th Judicial Drug Task Force and the District Attorney General’s Office for Tennessee’s 18th Judicial District investigated the case. Assistant Chief Kilby Macfadden and Trial Attorneys Anthony J. Burba and William M. Grady of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
South L.A. Man Sentenced to More Than 8 Years in Federal Prison for Role in Two Armed Robberies of U.S. Postal Service TrucksRead the Press Release
LOS ANGELES – A South Los Angeles man was sentenced today to 97 months in federal prison for planning, overseeing and executing two violent daytime armed robberies of United States Postal Service trucks carrying tens of thousands of dollars in cash.
Myron Crosby, 28, of Athens, was sentenced by United States District Judge S. James Otero, who also ordered Crosby to pay $110,221 in restitution. Crosby pleaded guilty on August 19 to one count of robbery of United States property.
On February 1, 2018, Crosby and his co-conspirators organized the armed robbery of a Postal Service truck departing the Wagner Post Office located in Los Angeles, near the city boundary with Inglewood. During the robbery, in which Crosby acted as a lookout, a white minivan blocked the USPS truck just outside the Wagner Post Office, the robber threatened the truck driver at gunpoint, and the robber stole $37,658 in cash.
On March 1, 2018, Crosby conspired to rob the Dockweiler Post Office in the Exposition Park neighborhood of South Los Angeles. On the day of the robbery, Crosby rented a Mercedes-Benz SUV and used that vehicle to box in the USPS truck as it exited the southbound 110 Freeway at Slauson Avenue. At that time, another co-conspirator exited another vehicle, brandished a gun to control the USPS driver, and stole $72,563 in cash. In total, between the two robberies, Crosby admitted in his plea agreement that he and his co-conspirators robbed the USPS of $110,221.
“[Crosby’s] role in these crimes was critical to their planning and execution,” prosecutors wrote in the government’s sentencing memorandum. “(He) helped organize the robberies, and then oversaw and assisted in their completion, including driving the car that was used to trap the victim driver’s truck in the March 1, 2018 robbery.”
The victim of the March 2018 robbery suffered significant trauma because of the event and ultimately took his own life later that year.
William Crosby IV, 33, of Inglewood, Myron Crosby’s half-brother and a former Postal Service employee, is serving an 11-year prison sentence for participating in the robberies.
The United States Postal Inspection Service and the United States Secret Service investigated this matter. The investigation remains ongoing with respect to additional co-conspirators and additional robberies.
The case was prosecuted by Assistant United States Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section, and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
South Florida Resident Arrested for Soliciting Another to Commit a Violent Crime Against College DeansRead the Press Release
Salman Rashid, 23, of North Miami Beach, Florida, was arrested in South Florida based on a criminal complaint charging him with soliciting another person to commit a crime of violence.
John C. Demers, Assistant Attorney General for National Security; Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to court documents, the FBI initiated an investigation of Rashid in approximately April 2018 after reviewing his public Facebook posts, which advocated for the violent overthrow of democracy and the establishment of Islamic law. In May 2019, and without provocation, Rashid solicited a confidential human source to contact members of ISIS and instruct those ISIS members to conduct a terrorist attack on Rashid’s behalf. Throughout the summer and fall of 2019, Rashid continued to instruct the confidential source regarding Rashid’s requested attack, indicating an attack on a religious building or nightclub would be suitable. Based on Rashid’s request, the FBI introduced an additional confidential human source, who held him/herself out to be a member of ISIS willing to conduct an attack.
Ultimately, on or about November 8-9, 2019, Rashid chose two individuals to target - a dean at Miami-Dade College and a dean at Broward College, two colleges from which Rashid had been suspended or expelled – and asked that explosive devices placed by the confidential human source to carry out the attack against the two individuals be as big as possible. Rashid provided information about the locations to place the devices and his assessment of security that might be present at the colleges.
Rashid had his initial appearance today before U.S. Magistrate Judge Chris M. McAliley (Case No. 19-mj-3916-Becerra). If convicted, Rashid faces a statutory maximum sentence of 20 years in prison. Rashid’s pretrial detention hearing is scheduled for Wednesday, Nov. 27, 2019 at 10 a.m. and his arraignment is scheduled for Dec. 9, 2019.
A criminal complaint is a charging document containing allegations. The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur and Senior Litigation Counsel Randy Hummel of the Southern District of Florida with assistance from Trial Attorney Danielle Rosborough of the National Security Division’s Counterterrorism Section.
South Florida Resident Arrested for Soliciting Another to Commit a Violent Crime against College DeansRead the Press Release
MIAMI - Salman Rashid, 23, of North Miami Beach, Florida, was arrested in South Florida based on a criminal complaint charging him with soliciting another person to commit a crime of violence.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; John C. Demers, Assistant Attorney General for National Security; and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to court documents, the FBI initiated an investigation of Rashid in approximately April 2018 after reviewing his public Facebook posts, which advocated for the violent overthrow of democracy and the establishment of Islamic law. In May 2019, and without provocation, Rashid solicited a confidential human source to contact members of ISIS and instruct those ISIS members to conduct a terrorist attack on Rashid’s behalf. Throughout the summer and fall of 2019, Rashid continued to instruct the confidential source regarding Rashid’s requested attack, indicating an attack on a religious building or nightclub would be suitable. Based on Rashid’s request, the FBI introduced an additional confidential human source, who held him/herself out to be a member of ISIS willing to conduct an attack.
Ultimately, on or about November 8-9, 2019, Rashid chose two individuals to target - a dean at Miami-Dade College and a dean at Broward College, two colleges from which Rashid had been suspended or expelled – and asked that explosive devices placed by the confidential human source to carry out the attack against the two individuals be as big as possible. Rashid provided information about the locations to place the devices and his assessment of security that might be present at the colleges.
Rashid had his initial appearance today before U.S. Magistrate Judge Chris M. McAliley (Case No. 19-mj-3916-Becerra). If convicted, Rashid faces a statutory maximum sentence of 20 years in prison. Rashid’s pretrial detention hearing is scheduled for Wednesday, November 27, 2019 at 10 a.m. and his arraignment is scheduled for December 9, 2019.
A criminal complaint is a charging document containing allegations. The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan and Assistant Attorney General Demers commended the investigative efforts of the FBI in this matter.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur and Senior Litigation Counsel Randy Hummel of the Southern District of Florida with assistance from Trial Attorney Danielle Rosborough of the National Security Division’s Counterterrorism Section.
South Bend, Indiana Man SentencedRead the Press Release
SOUTH BEND - Damon Hairston, age 45, of South Bend, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for possession with intent to distribute more than 500 grams of a mixture or substance containing a detectable amount of methamphetamine, announced United States Attorney Thomas L. Kirsch II.
Mr. Hairston was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in this case, in September of 2018, law enforcement agents executed a federal search warrant at Mr. Hairston’s South Bend residence. During the search, officers found approximately two (2) pounds of a substance containing methamphetamine. Mr. Hairston later admitted that he intended to sell that methamphetamine. Mr. Hairston has a long criminal history dating back to 1993 with approximately 11 convictions.
This case was investigated by the Drug Enforcement Administration with the assistance of the Elkhart County Intelligence & Covert Enforcement Unit. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Sioux City Bank Robber Sentenced to Twelve Years in Federal PrisonRead the Press Release
A Sioux City man involved in two separate robberies, after several convictions for violent state offenses, was sentenced on November 22, 2019 to twelve years in federal prison.
Phillip White, age 33, from Sioux City, Iowa, received the prison term after a June 13, 2019, guilty plea to one count of bank robbery, and one count of Interference with Commerce by Robbery (for the robbery of a Sioux City cab driver).
Evidence produced by the United States at the detention, change of plea, and sentencing hearings revealed that just two months after completing a sentence for second degree burglary, on October 12, 2018, White robbed a taxi cab driver with a bb-gun. On December 12, 2018, while on bond for the taxi robbery, he robbed a bank by implying he had a gun by putting his hand in his pocket. He and an accessory then led law enforcement on a chase that created a substantial risk of death or serious bodily injury to others.
Defendant has a history of violence. He has committed numerous assaults and related offenses. He robbed two other cab drivers before his most recent offenses. In one of the earlier taxi cab robberies, White held a knife to the throat of his victim and demanded money. On the second occasion, he held a broken beer bottle to another victim’s throat and demanded money.
White was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. White was sentenced to 144 months’ imprisonment. He was ordered to make $21,503.11 in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
White is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Federal Bureau of Investigation, the Iowa State Patrol, the Plymouth County Sheriff’s Office, and the Le Mars and Sioux City, Iowa Police Departments. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4012.
Follow us on Twitter @USAO_NDIA.
Rochester Felon Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Markiest D. Hartfield, 24, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to being a felon in possession of firearm and ammunition. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on January 4, 2019, members of the Rochester Police Department approached the defendant in the area of North Clinton Avenue and Scrantom Street in Rochester. When the officers approached Hartfield, he had a semi-automatic rifle concealed in his pants. The defendant was also found in possession of approximately 77 rounds of ammunition.
In March 2018, Hartfield was convicted of Attempted Robbery in the Second Degree, and as a result, he is legally prohibited from possessing a firearm and ammunition.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
Sentencing is scheduled for February 27, 2020, at 10:15 a.m. before Judge Siragusa.
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Richmond Man Sentenced to 156 Months for Trafficking in Cocaine and Firearms ChargesRead the Press Release
FRANKFORT, Ky.— Lamar Anthony Martin, 36, of Richmond, Kentucky, was sentenced to 156 months in federal prison on Friday, by United States Federal Judge Gregory F. VanTatenhove, for his convictions on trafficking in cocaine and being a convicted felon in possession of firearms.
According to Martin’s plea agreement, he admitted to trafficking cocaine on four separate occasions, from January to April 2018. Martin also admitted to illegally owning firearms, which he stored at both his and his mother’s residence.
Martin pleaded guilty in June 2019. Martin was previously convicted of Trafficking a Controlled Substance First Degree, by the Madison Circuit Court, in February 2003.
Under federal law, Evans must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Tommy Estevan, Acting Special Agent in Charge of the ATF Louisville Field Division, jointly made the announcement.
The investigation was conducted by ATF. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Rapid City Man Sentenced for Failing to Pay TaxesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of two counts of Failure to Pay Tax was sentenced on November 22, 2019, by U.S. District Judge Karen E. Schreier.
Gregory Sperlich, age 49, was sentenced to 3 months in federal prison, followed by 1 year of supervised release, restitution in the amount of $227,799.82, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $50.
Sperlich was indicted by a federal grand jury on January 22, 2019. He pled guilty on September 20, 2019.
The conviction stemmed from Sperlich, an attorney, willfully failing to pay the income and self-employment tax due to the Internal Revenue Service by April 15, 2013, through April 15, 2016, for the filed taxes due for the calendar years 2012 through 2015.
“Taxpayers have an obligation to pay their taxes. Willfully defrauding the government of what is owed can and will result in jail time,” said Special Agent in Charge Karl Stiften, IRS Criminal Investigation Division.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Sperlich will self-report to the custody of the U.S. Marshals Service on January 2, 2020, to serve his sentence.
Pickens County Sheriff Sentenced to 18 Months in Prison for Wire Fraud and Tax ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced the former sheriff of Pickens County to 18 months in prison for wire fraud and filing false tax returns, announced United States Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, Jr. and IRS-Criminal Investigations Atlanta Field Division Special Agent in Charge Thomas J. Holloman.
United States District Judge Liles C. Burke sentenced former Pickens County Sheriff DAVID EUGENE ABSTON, of Gordo, on count of wire fraud and one count of filing false tax returns. Abston pled guilty in June.
“Abston tarnished his office and his badge,” Town said. “He found out today he isn’t above the law. Those who believe they are will find themselves in federal prison.”
“While the vast majority of law enforcement officers are honest and work hard to uphold the law, Abston misued his position of trust for personal gain and will now reap the consequences of his actions,” Sharp said.
“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject and we hope today’s sentencing sends a message that no person, no matter how powerful, no matter their title, is above the law,” said Holloman. “We should not forget that the ultimate victims in this case are the people of West Alabama– those honest taxpayers who diligently file tax returns each year and pay their fair share of tax.”
According to the plea agreement Abston engaged in a scheme, between 2014 and 2018, to defraud the West Alabama Food Bank, as well as the Highland Baptist Church of Gordo, – where Abston was a member –in order to reduce his jail food expenses and increase the amount of food allowance money he could keep and to filing false tax returns between 2015 and 2016 tax years.
FBI and IRS Criminal Investigations investigated the case, which Assistant United States Attorneys John B. Ward prosecuted.
Philadelphia Men Convicted of Mail Fraud and Identity TheftRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nana Mensah, age 34, and Patrick Barkers-Woode, age 27, both of Philadelphia, Pennsylvania, were convicted on November 22, 2019, on fifteen counts of mail fraud, four counts of aggravated identity theft, and conspiracy to commit mail fraud and aggravated identity theft after a three-day trial before U.S. District Court Judge Yvette Kane.
According to United States Attorney David J. Freed, Mensah and Barkers-Woode, along with other co-conspirators, some located in West Africa, were involved in an international scheme in which co-conspirators would obtain the personal identification information of identity theft victims and use that information to purchase cellular phones. The conspirators would have the products delivered to homes which appeared vacant. They would then track the delivery of the packages on line, pick up the packages, and eventually resell them. The evidence showed that the conspiracy involved over 270 packages containing over 830 cell phones, valued at over $595,000. The conspiracy took advantage of well over 100 victims.
The case was investigated by Homeland Security Investigations, the Pennsylvania State Police, the Delaware State Police, and the Derry Township Police Department. Assistant U.S. Attorneys Scott R. Ford and Christian Haugsby prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
As a result of their convictions, the defendants face a total of 333 years in prison, fines of up to $5,250,000, as well as restitution. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Owner of Empire Pharmacy in Hudson County Admits Role in Multi-Million Dollar Conspiracies to Commit Health Care Fraud and Pay Illegal Bribes to DoctorRead the Press Release
TRENTON, N.J. – A Bergen County, New Jersey, man today admitted participating in conspiracies to commit health care fraud and to bribe a doctor, U.S. Attorney Craig Carpenito announced.
Eduard “Eddy” Shtindler, 36, of Paramus, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to pay illegal kickbacks to a doctor.
According to documents filed in this case and statements made in court:
From 2012 through at least 2017, Shtindler owned and operated the now-defunct Empire Pharmacy in West New York, New Jersey. Starting in 2015, Empire began filling prescriptions for expensive specialty medication that required “prior authorization” before being approved for reimbursement payment by Medical, Medicaid, and some private insurance providers. To entice doctors to use Empire to fill such medications, Shtindler planned to have Empire receive prior authorization approval more successfully than any other pharmacies. He directed Empire employees, including two pharmacists, to repeatedly falsify prior authorization forms for medications for different conditions, including psoriasis and Hepatitis C. Shtindler was captured on recorded conversations admitting to his and Empire’s practice of falsifying prior authorization forms in order to receive approval for medication that would not have otherwise been approved.
From 2012 through early 2017, Shtindler participated in a conspiracy to pay bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. Shtindler sent Empire employees to deliver some of the bribe payments to the doctor. On occasion, Shtindler secreted cash bribes, in $100 denominations, in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to use Empire pharmacy, even though the patients used other pharmacies closer to their homes for all of their other prescriptions. In one recorded conversation between Shtindler and a concerned former Empire employee who had delivered a bribe to the doctor on Shtindler’s behalf, Shtindler was captured stating, “You think [the doctor]’s going to go to the FBI and rat himself out?” In another conversation with the same former employee regarding the same topic of bribe payment Shtindler had the employee deliver to the doctor, Shtindler was captured saying, “First off, I didn’t make you do it. I didn’t put a gun to your head. We all made money together.” Shtindler concluded, “It is business.”
As part of his plea agreement, Shtindler agreed to loss amounts between $1.5 million and $3.5 million for each of the charged conspiracies to which he pleaded guilty.
The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and the count of conspiring to pay illegal kickbacks is punishable by a maximum of five years in prison. Both offenses are punishable by a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 24, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the N.J. Office of the State Comptroller, under the direction of Comptroller Philip James Degnan, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber of the Health Care & Government Fraud Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Albert Y. Dayan. Esq., Queens, New York
Ohio Man Sentenced for Possessing Sexual Images of ChildrenRead the Press Release
ERIE, Pa. - An Ohio resident has been sentenced in federal court to 40 months in jail and ordered to pay $13,000 in restitution on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on John Trisket, Jr., 48, of Millersburg, Ohio.
According to information presented to the court, Trisket possessed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Department of Homeland Security for the investigation leading to the successful prosecution of Trisket.
North Georgia man sentenced for cyberstalking and making a bomb threat to a preschoolRead the Press Release
GAINESVILLE, Ga. - Vinh Bao Chau has been sentenced for communicating a bomb threat to a church preschool, cyberstalking of a woman who refused to date him, and interstate communication of a threat.
“Those who hide behind a computer screen to terrorize, intimidate and threaten other people using social media will be brought to justice,” said U.S. Attorney Byung J. “BJay” Pak. “The fact that this defendant called in a bomb threat which resulted in the evacuation of a church preschool is particularly appalling.”
“This case is a testament to the value of federal partnerships with state and local law enforcement; all of whom are committed to bringing those to justice who seek to strike fear into communities through the use of terroristic threats. The defendant in this case made a threat to destroy a preschool with an improvised explosive device, and persistently cyberstalked and threatened a victim in multiple jurisdictions,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama.
“This prosecution is a great example of local, state and federal authorities working together to seek justice for Georgia citizens. This investigation spanned two judicial circuits in North Georgia, and we are grateful for the cooperation among investigators and prosecutors which led to this successful result,” said Georgia Attorney General Chris Carr.
According to U.S. Attorney Pak, the charges and other information presented in court: In February of 2017, Vinh Bao Chau began a campaign of terrorizing and harassing a local woman after he was rejected for a date. Chau created fake social media accounts, which he then used to send hundreds of messages to the victim threatening to kill her and harm her in gruesome ways. He also harassed her through repeated telephone calls and text messages. Chau then called in a bomb threat on March 7, 2017, to the victim's place of employment, a church preschool. The investigation revealed Chau was the perpetrator of both the harassing messages and bomb threat, and was then arrested.
Vinh Bao Chau, 23, of Jasper, Georgia, has been sentenced by Senior U.S. District Judge Richard W. Story to three years in prison to be followed by three years of supervised release. Chau has been convicted on these charges on July 8, 2019, after he pleaded guilty.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Gordon County Sheriff's Office, Pickens County Sheriff's Office, and Jasper Police Department investigated this case.
Special Assistant U.S. Attorney Laura D. Pfister prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Newport Man Pleads Guilty to Copyright Infringement for Creating Illegal Video Streaming and Downloading WebsitesRead the Press Release
EUGENE, Ore.—Talon White, 29, of Newport, Oregon, pleaded guilty today to one count each of criminal infringement of copyright and tax evasion.
According to court documents, beginning in 2013, White engaged in a scheme to reproduce and distribute for sale thousands of copyrighted movies and television shows. To accomplish this, White set up numerous websites that hosted the infringing material. Members of the public purchased subscriptions to websites created by White and were able to stream or download the video content. The content included movies that had yet to be released to the public. In total, White’s scheme netted more than $8 million.
While operating the scheme, White also underreported his income by more than $4.4 million, willfully evading the payment of more than $1.9 million in taxes owed from 2013 through 2017.
White faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release on each of the two charges. He will be sentenced on February 21, 2020 before U.S. District Court Judge Ann L. Aiken.
As part of the plea agreement, White has agreed to pay $669,557 in restitution to the Motion Picture Association of America and $3,392,708 in restitution, including penalties and interest, to the IRS. White has also agreed to forfeit more than $3.9 million seized from his bank accounts, approximately $35,000 in cash, cryptocurrency holdings worth an estimated $424,000, and a 2,248 square foot home in Newport, Oregon worth an estimated $415,000.
These forfeitures are part of two related civil forfeiture cases in the District of Oregon and represent one of the largest civil forfeitures in the district’s history. It is anticipated these forfeited assets will be applied to White’s restitution obligations.
This case was investigated by Homeland Security Investigations (HSI) and IRS Criminal Investigation (IRS-CI) and is being prosecuted by Gavin W. Bruce and Amy Potter, Assistant U.S. Attorneys for the District of Oregon.
New York Food Processing and Distribution Companies and Owners Plead Guilty to Seafood Sales FraudRead the Press Release
Two Long Island, New York, corporations and their owners pleaded guilty today in federal court for their scheme to falsely-label seafood that they later sold across the country.
In a plea agreement with the government, Roy Tuccillo Sr, 59, and his son, Roy Tuccillo Jr, 32, both of Jericho, New York, and two of their Westbury, New York, food processing and distribution companies, Anchor Frozen Foods Inc, and Advanced Frozen Foods Inc, pleaded to conspiracy to commit wire fraud. They admitted to importing giant squid from Peru, marketing it as octopus, and using e-mail and wire transactions to sell it to grocery stores in interstate commerce.
“Seafood fraud is illegal, undermines confidence in the market place, and can have serious consequences for fish, fishermen, the seafood industry and consumers,” said James Landon, Director of the National Oceanic and Atmospheric Administration’s (NOAA) Office of Law Enforcement. “NOAA’s enforcement priorities include uncovering and investigating incidents of seafood fraud, and we will seek to continue to bring to justice those who engage in this illegal activity.”
Octopus and squid are distinct species of fish with great variance in their taxonomy, habitat, and physical characteristics. The U.S. Food and Drug Administration requires food companies selling squid to market it by its name or as calamari, while octopus is the only acceptable name when selling octopus. In general, octopus has a greater retail price than squid.
From 2011 to 2014, the defendants imported, processed, marketed, sold, and distributed over 113,000 pounds of squid worth $1.1 million that they had falsely labeled as octopus. The defendants admitted to defrauding over ten grocery stores that in turn sold the product to consumers. The Lacey Act prohibits submitting false descriptions of fish that were transported and sold in interstate commerce.
The maximum sentence for Tuccillo Sr and Tuccillo Jr is five years imprisonment, three years of post-release supervision and a fine up to $250,000. The corporations may be placed on five years of probation and pay a fine up to $500,000. Any fine may be adjusted to twice the pecuniary loss or gain.
The Department of Commerce’s National Oceanic and Atmospheric Administration Office of Law Enforcement investigated this case with assistance from the U.S. Food and Drug Administration. Trial attorney Ryan Connors and senior trial attorney David Kehoe of the Justice Department’s Environmental Crimes Section are prosecuting the case.
Music Producer Sentenced to 2 Years in Federal Prison for Using Clients’ Credit Cards for Personal ExpensesRead the Press Release
LOS ANGELES – A music producer who has worked on several Grammy Award-winning projects was sentenced today to 24 months in federal prison for fraudulently using his clients’ credit card information to purchase services for his wedding, as well as airline fares and hotel reservations for himself and his family.
Anthony Wade Evans, a.k.a. “Devine Evans,” 45, of Porter Ranch, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $34,810 in restitution to American Express.
Evans pleaded guilty in December 2018 to one count of aggravated identity theft.
From June 2017 until March 2018, Evans unlawfully used the American Express credit card belonging to a client to book flights and pay for other travel arrangements for himself and his family members.
The victim’s credit card – which was still active, even though it had been reported lost or stolen one year earlier – was used to rack up 146 unauthorized charges totaling approximately $37,729, according to court documents. In May 2018, this victim’s business manager called American Express and reported suspicious transactions on the client’s credit card.
In addition, from April 2017 until August 2017, Evans unlawfully used an American Express credit card belonging to a different client. Evans, without that victim’s authorization, used the card to purchase rental services and other event-related services for his wedding. Evans illegally incurred approximately $63,063 in unauthorized charges to this card.
The total loss in this case was $100,792.
The United States Secret Service and the United States Postal Inspection Service investigated this matter.
This case was prosecuted by Assistant United States Attorney Keith D. Ellison of the International Narcotics, Money Laundering and Racketeering Section.
Morris County Man Sentenced to Two Years in Prison for Possessing Bombs and Being Felon in Possession of GunsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 24 months in prison for being a felon in possession of guns, possessing bombs, and precursor materials, U.S. Attorney Craig Carpenito announced.
Christopher Faschan, 31, of Landing, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of unlawful possession of destructive devices and one count of being a felon in possession of firearms and ammunition. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 1, 2019, Faschan detonated the bomb in the area of Lake Lackawanna in Stanhope. On Feb. 4, 2019, law enforcement agents interviewed Faschan, who said that he had ignited the bomb. He described it as two pounds in weight and explained how he used and mixed Potassium Perchlorate, Aluminum Powder, and Tannerite to make several bombs that were in his home.
Law enforcement agents executed a court-authorized search of Faschan’s home and recovered a cache of weapons, ammunition, firearms, explosive devices and precursor materials.
In addition to the prison term, Judge Martinotti sentenced Faschan to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers of the Byram Police Department, under the direction of Chief Peter J. Zabita; the Roxbury Police Department, under the direction of Chief Marc Palanchi; the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch; officers of the Morris County Sheriff’s Office, under the direction of Sheriff James M. Gannon; and officers of the Morris County Prosecutor’s Office, under the direction of Prosecutor Frederic M. Knapp, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.
Defense counsel: John Whipple Esq., Morristown, New Jersey
Montgomery County Man Indicted for Faking a Military Career and Stealing from the GovernmentRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Richard Meleski, 58, of Chalfont, PA, was arrested and charged by Indictment with healthcare fraud, mail fraud, Stolen Valor, creating fraudulent military discharge papers, and making false statements stemming from his scheme to defraud the Veterans’ Administration (VA) of hundreds of thousands of dollars in benefits.
The Indictment alleges that the defendant faked serving in the U.S. military, specifically the Navy SEALs, and even falsely represented that he had been a Prisoner of War, in order to secure healthcare benefits from the VA worth over $300,000. Due to these false representations, Meleski received healthcare from the VA in Priority Group 3, effectively receiving healthcare before deserving military service members. In reality, the defendant never served a single day in the U.S. military.
Meleski also allegedly filed for monetary compensation from the VA for Post-Traumatic Stress Disorder (PTSD) he claimed to have suffered as a result of an armed conflict in Beirut in which he had supposedly rescued injured teammates. In his application for disability benefits for PTSD, Meleski also falsely represented that he had been awarded the Silver Star for his heroic actions during his supposed time as a Navy SEAL. He also allegedly submitted another application to the VA for monetary compensation in which he used the obituaries of actual Navy SEALs, claiming that he had served alongside them.
Finally, Meleski also allegedly filed for disability benefits from the Social Security Administration (SSA) for injuries that were supposedly aggravated by his service in the U.S. military. He falsely testified under oath about these injuries in connection with a SSA Disability proceeding.
“These allegations are truly shocking and a huge insult to anybody who has worn our country’s uniform. If proven, Meleski deserves to face the consequences under the law. My Office will aggressively root out and prosecute this type of conduct with the seriousness of purpose that it deserves,” said U.S. Attorney McSwain.
If convicted, the defendant faces a maximum possible sentence of 68 years imprisonment, 3 years supervised release, a $2,250,000 fine, a $900 special assessment, and restitution of $302,121.21.
The case was investigated by Department of Veterans Affairs-Office of the Inspector General and Social Security Administration-Office of the Inspector General, and is being prosecuted by Special Assistant United States Attorney Megan Curran.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monongalia County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brendan Regan Boddie, of Morgantown, West Virginia, was sentenced today to 36 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Boddie, age 29, pled guilty to one count of “Unlawful Possession of Firearms by Person Convicted of Domestic Violence Crime” in May 2019. Boddie, having previously been convicted of domestic violence, admitted to having two pistols, two rifles, and one shotgun in April 2018 in Monongalia County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Thomas S. Kleeh presided.
Mid-State Emergency Medical Doctor Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
NASHVILLE, Tenn. – November 25, 2019 – Lawrence J. Valdez, M.D., 50, of Hendersonville, Tennessee, pleaded guilty today to one count of unlawful distribution of controlled substances, announced U.S. Attorney Don Cochran of the Middle District of Tennessee, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Acting Special Agent in Charge Daniel D. Dodds of the Drug Enforcement Administration’s (DEA) Louisville Division.
Valdez admitted today that in February 2017 he knowingly distributed oxymorphone, a Schedule II controlled substance, to a patient without a legitimate medical purpose and outside the usual course of professional practice. He further admitted to distributing Schedule II opioids to four different patients without a legitimate medical purpose and outside the course of professional practice on 16 other occasions between June 2016 and February 2017, and in exchange for sexual intercourse and other sexual acts with those patients.
The DEA, Tennessee’s 18th Judicial Drug Task Force and the District Attorney General’s Office for Tennessee’s 18th Judicial District investigated the case. Assistant Chief Kilby Macfadden and Trial Attorneys Anthony J. Burba and William M. Grady of the Criminal Division’s Fraud Section are prosecuting the case.
Valdez faces up to 20 years in prison and up to a $1 million fine when he is sentenced on April 3, 2020, by U.S. District Judge Eli J. Richardson.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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Michigan Man Sentenced for Fraudulent Use of Social Security Numbers and Aggravated Identity TheftRead the Press Release
United States Attorney Joe Kelly announced today that on November 25, 2019, Senior United States District Court Judge Laurie Smith Camp sentenced Christopher Charles Heinz, age 30, of Romulus, Michigan, to 54 months’ imprisonment, placed him on supervised release for three years, and ordered him to make restitution in the amount of $22,126 for his conviction for the fraudulent use of Social Security numbers and aggravated identity theft.
From December 2017 through June 2018, Heinz and another used stolen identifications of credit worthy individuals to purchase high-end cellphones at retail stores in Kearney, Holdrege, Norfolk, Beatrice, Columbus, Grand Island, Hastings, Ainsworth and O’Neill, Nebraska. Heinz provided counterfeit driver’s licenses and Social Security numbers belonging to actual people to stores to qualify for credit.
This case was investigated by the Federal Bureau of Investigation, the Social Security Administration - Office of Inspector General, the Nebraska States Patrol, Sheriff’s Offices of Brown County and Holt County Nebraska and the Police Departments in Lexington, Kearney, Holdrege, Norfolk, Beatrice, Columbus, Grand Island and Hastings.
Member of Hacker Collective Pleads Guilty to Federal Charges of Making Online Threats to Schools and Possessing Child PornographyRead the Press Release
LOS ANGELES – A North Carolina man pleaded guilty today to federal charges of making bogus threats of shootings and bombings to schools in the United Kingdom and the United States, including numerous schools in Southern California.
Timothy Dalton Vaughn, 21, of Winston-Salem, North Carolina, also admitted making false reports of a plane hijacking and conducting computer attacks, as well as possessing child pornography.
Vaughn – who used online handles that include “WantedbyFeds” and “Hacker_R_US” – pleaded guilty this afternoon to possession of child pornography, conspiring to make threats and damage a computer, and computer hacking.
Authorities have linked Vaughn to the Apophis Squad, a worldwide collective of computer hackers and swatters intent on using the Internet to cause chaos. The collective caused disruptions by making threatening phone calls, sending bogus reports of violent school attacks via email, and launching distributed denial-of-service (DDoS) attacks on websites. Vaughn and another man were named earlier this year in a grand jury indictment that alleged a series of cyber and swatting attacks in 2018, including threats of bombs and school shootings that were “designed to cause fear of imminent danger and did cause the closure of hundreds of schools on two continents on multiple occasions.”
Vaughn specifically admitted today that he provided to his co-defendant contact information for at least 86 school districts that received emailed threats of an armed student. The threatened attacks included the imminent detonation of a bomb made with ammonium nitrate and fuel oil, bombs placed under school transportation vehicles, and the placement of explosives under school buses and on sports fields, according to Vaughn’s plea agreement.
In a plea agreement filed in relation to today’s hearing, Vaughn admitted that in early 2018 he demanded 1.5 bitcoin (then worth approximately $20,000) from Hoonigan, a Long Beach motorsport company, to prevent denial-of-service attacks on its website. When the company refused to pay, he launched a DDoS attack that disabled hoonigan.com.
Vaughn also admitted helping his co-defendant make a false report of a hijacking on a United Airlines plane flying from London to San Francisco.
In relation to the child pornography count, Vaughn admitted possessing nearly 200 sexually explicit images and videos depicting children, including at least one toddler.
As a result of his guilty pleas, Vaughn will face a statutory maximum sentence of 35 years in federal prison when he is sentenced by United States District Judge Otis D. Wright II on June 8.
The second defendant named in the indictment – George Duke-Cohan, 20, of Hertfordshire, United Kingdom, who used online handles that included “DigitalCrimes” and “7R1D3N7” – is currently serving a prison sentence in Britain for the false report of the hijacking. Duke-Cohan is charged in the indictment with nine counts. If he were to be convicted, Duke-Cohan would face a statutory maximum sentence of 65 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the FBI with assistance provided by the United States Secret Service as part of the Electronic Crimes Task Force.
This case is being prosecuted by Assistant United States Attorney Julia S. Choe of the Cyber and Intellectual Property Crimes Section.
Manhattan U.S. Attorney Announces Charges Against Austin Man for Computer Hacking and Fraud Scheme to Steal Unreleased Music from Music Industry ProfessionalsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today the filing of a criminal indictment against CHRISTIAN ERAZO for conspiring with others to commit wire fraud and computer intrusion, as well as committing aggravated identity theft, by hacking a music producer’s social networking account to impersonate the producer in order to solicit and obtain unreleased music from other artists, which he then directed the artists to send to a fake email account in the producer’s name. In addition, ERAZO hacked the online accounts of two music management companies in order to steal unreleased music of numerous music industry professionals. ERAZO was arrested today in Austin, Texas. He will be presented in federal court in the Western District of Texas tomorrow before United States Magistrate Judge Mark Lane.
U.S. Attorney Geoffrey S. Berman said: “Christian Erazo and his co-conspirators allegedly hacked the accounts of music producers and management companies in order to steal over 50 gigabytes of content – including some music that had yet to be publicly released – and leaked it on the internet. Not only did this scheme cause the companies, producers, and artists financial harm, Erazo deprived the artists of the ability to release their own exclusive content at their discretion. Erazo’s conduct is a reminder of the potential destruction hackers can inflict, and the need for all users to practice strong measures against cyber intrusions.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Erazo’s alleged involvement in a hacking scheme to commit wire fraud and downloading 50 gigs of music, some unreleased, has affected the finances and reputations of a producer and several recording artists. Fraud schemes like this don’t just affect the victim, but can also trickle down negative effects to the consumer. New York’s robust cyber capabilities allow agents to track down criminals hiding behind their computer screen anywhere in the world to face the consequences of their actions.”
According to the Superseding Indictment filed today in Manhattan federal court:
From at least in or about late 2016 through at least in or about April 2017, CHRISTIAN ERAZO, the defendant, and others known and unknown, unlawfully obtained unauthorized access to Internet cloud storage service accounts of two music management companies and a music producer (“Producer Victim-1”) by, among other things, using the credentials, or usernames and passwords, of individuals with authorized access to those accounts. From those accounts, ERAZO and his co-conspirators stole over approximately 50 gigabytes of music, including music that had not yet been publicly released from over 20 recording artists, as well as usernames and passwords to other online accounts, among other things. ERAZO and his co-conspirators also leaked on public online forums music that had not yet been publicly released, causing financial and reputational harm to Producer Victim-1 and other recording artists.
In addition, from at least in or about late 2016 through at least in or about late 2017, CHRISTIAN ERAZO, and others known and unknown, unlawfully accessed without authorization a social networking account belonging to Producer Victim-1, from which ERAZO and a co-conspirator (“CC-1”) impersonated Producer Victim-1 and sent private messages to numerous recording artists to solicit music from them that they had not yet released. ERAZO and CC-1 directed these artists to send their music to a fake email account that ERAZO created that incorporated Producer Victim-1’s professional name, which numerous artists did.
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ERAZO, 27, of Austin, Texas, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years; one count of conspiracy to commit computer intrusion, which carries a maximum sentence of five years; and one count of aggravated identity theft, which carries a mandatory minimum term of imprisonment of two years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Kristy J. Greenberg and Alexandra N. Rothman are in charge of the prosecution.
Madison Man Sentenced for Illegally Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Malcolm M. Whiteside, 27, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 21 months in federal prison for being a felon in possession of a firearm. Whiteside pleaded guilty to this charge on September 9, 2019.
On July 9, 2019, while investigating a domestic violence complaint, police officers arrested Whiteside outside of an apartment complex on the west side of Madison. During the arrest, Whiteside admitted he had a gun hidden inside the front of his pants. Officers found a stolen handgun inside of Whiteside’s sweatshirt pocket. Whiteside, a convicted felon, was prohibited from possessing firearms.
At sentencing, Judge Peterson expressed concern that Whiteside’s criminal history shows he has the potential of being a danger to the community. Judge Peterson specifically noted that other courts had given Whiteside “breaks,” but his criminal activity was “starting to escalate.”
The charge against Whiteside was the result of an investigation conducted by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Chadwick M. Elgersma.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Latin King Gang Member Sentenced to Life in PrisonRead the Press Release
HAMMOND-Darrick Vallodolid, 30, of Hobart, Indiana, and a member of the Chicago-based Latin Kings, was sentenced by Judge Simon to life in prison following his conviction at trial in May 2018 of conspiracy to participate in racketeering activity and conspiracy to distribute and possess with intent to distribute cocaine and marijuana, announced U.S. Attorney Kirsch.
The jury found that, to support a racketeering conspiracy, on Sunday, April 12, 2009, Vallodolid shot and killed Victor Lusinski, 16, of Lansing, Illinois, as Lusinski rode a bicycle near an elementary school in Hammond, Indiana. Vallodolid killed Lusinski because he thought Lusinski was a rival gang member. The jury also found that Vallodolid conspired to distribute or possess with intent to distribute at least five kilograms of cocaine and 100 kilograms of marijuana as part of the racketeering conspiracy.
“The sentence imposed today demonstrates that senseless gang violence that too often results in the loss of innocent life will never be tolerated,” said U.S. Attorney Kirsch. “Those who engage in this type of conduct will be prosecuted to the full extent of the law.”
Approximately 43 defendants have been charged with racketeering conspiracy as members of the Latin Kings in a criminal conspiracy extending back to 2003. The racketeering conspiracy charge alleges that gang members and associates were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated assault, sex trafficking, and narcotics distribution.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office and the U.S. Attorney’s Office, Northern District of Illinois, has also provided assistance. The Latin King case is being prosecuted by Northern District of Indiana Assistant U.S. Attorney David J. Nozick, Assistant U.S. Attorney Joseph A. Cooley, formerly of the Criminal Division’s Organized Crime and Gang Section, and Assistant U.S. Attorneys Dean R. Lanter and Nicholas J. Padilla.
Kansas Man Swindled Buyer of Online Pharmacy BusinessRead the Press Release
KANSAS CITY, KAN. - A Kansas man pleaded guilty today to swindling the buyer of an online pharmacy business, U.S. Attorney Stephen McAllister said.
Jeffrey P. Wilson, 37, Olathe, Kan., pleaded guilty to one count of wire fraud. In his plea, Wilson admitted he placed an ad on Craigslist offering to sell Medx1.com, an online pharmacy business he claimed used a fulfillment pharmacy in India. When a man from Texas responded, Wilson made false statements and sent him fabricated bank records for the business. Wilson claimed the business was generating gross revenues of $15,000 to $40,000 a month, which was not true.
After paying Wilson $120,000, the victim learned the business had virtually no revenue and the website for the business had been shut down because Wilson failed to pay for monthly maintenance and hosting.
Sentencing is set for Feb. 18. He could face up to 20 years in federal prison and a fine up to $250,000. McAllister commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Justice Department Upgrades Amber Alert Website, Adds Resources for TribesRead the Press Release
The Department of Justice Office of Juvenile Justice and Delinquency Prevention (OJJDP), within the Office of Justice Programs (OJP), recently upgraded the America’s Missing: Broadcast Emergency Response (AMBER) Alert website, which now includes access to AMBER Alert in Indian Country.
The AMBER Alert program was established in 1996 when Dallas-Fort Worth broadcasters teamed with local police to develop an early warning system to help find abducted children. The program was created as a legacy to 9-year-old Amber Hagerman, who was kidnapped while riding her bicycle in Arlington, Texas, and then murdered. Other states and communities soon set up their own AMBER plans as the idea was adopted across the nation. Born Nov. 25, 1986, Amber Hagerman would have turned 33 today.
The website, managed by OJP, provides historical data on the program, publications, statistics, points of contact and other valuable information to help regional and state-level AMBER Alert training and coordination efforts. OJP helps states develop AMBER Alert plans and provides guidance on the issuance and dissemination of AMBER Alerts. States’ plans establish a framework to synchronize communication with law enforcement and the public and to coordinate search efforts for abducted children. Since its inception 23 years ago, the AMBER Alert program has helped 967 abducted children return home safely.
“We know that when an AMBER Alert is part of the response, the odds are high that an abducted child will come home safely,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan, who is the National Coordinator for the AMBER Alert Program. “This updated website gives our AMBER Alert partners more information, greater access to resources and a better chance to rescue endangered children.”
The website upgrade gives much needed access to Native American and Alaska Native communities who suffer rates of violence that far exceed the national average, including disproportionate rates of missing and murdered women and children. The website will also feature a summary of the AMBER Alert in Indian Country Initiative. This Initiative is a part of the 2018 Ashlynne Mike AMBER Alert in Indian Country Act which was born out of the abduction and murder of 11-year-old Ashlynne Mike of the Navajo Nation in 2016. At the time, tribal law enforcement officers did not have an AMBER Alert plan to notify people living on the reservation — a serious problem shared by tribes across the country. The legislation makes grants available to federally recognized tribes and villages and permits the use of grant funds to integrate state or regional AMBER Alert communication plans with tribes across the nation. The website updates will also provide other training and technical assistance resources. A Justice Department survey of 100 federally recognized tribes from 26 states revealed that 76 tribes participate in a state or regional AMBER Alert plan.
The website links to resources that support the AMBER Alert program through national partners and grantees of the OJJDP. These partners include the National Center for Missing & Exploited Children, Fox Valley Technical College, the Federal Communications Commission and the Federal Emergency Management Agency.
In addition to the website upgrade, the Department will conduct its annual National AMBER Alert Symposium next summer. The 2020 event will be a joint event to include AMBER Alert coordinators, Missing Persons Clearinghouse managers, as well as those working on issues implementing AMBER Alert in Indian Country.
The website can be accessed at https://amberalert.ojp.gov/.
About the Office of Justice Programs
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Seeks to Shut down South Florida Tax Return PreparersRead the Press Release
WASHINGTON – The United States filed a civil injunction suit seeking to bar Dimary Cordero, aka Dimary Cordero Torres, and her businesses—NMB Accounting and Tax Services LLC (NMB), and WFS Accounting and Tax Services LLC (WFS)—from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The complaint also seeks an order that Cordero, NMB and WFS disgorge ill-gotten fees that they obtained through their alleged misconduct.
According to the complaint, filed in the U.S. District Court for the Southern District of Florida, Cordero operates tax preparation stores in North Miami Beach and Miami, Florida through her businesses. The complaint alleges that the defendants falsely increase their customers’ refunds and profit through high, often undisclosed fees, at the expense of their customers and the Treasury.
The complaint alleges that the defendants engage in the following misconduct:
- Falsely claiming the Earned Income Tax Credit;
- Fabricating businesses and related business income and expenses;
- Fabricating deductions, such as personal expenses and phony job-related expenses;
- Claiming education credits based on fabricated education-related expenses and
- Charging deceptive and unconscionable fees.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Iowa Man Pleads Guilty to Fraud Charge for Role in Crude Oil Futures Trading SchemeRead the Press Release
An Iowa man pleaded guilty today to a fraud charge for his role in a crude oil futures trading scheme, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group in Washington.
Lon Olen Friedrichsen, 61, of Alton, Iowa, pleaded guilty to one count of wire fraud before U.S. Magistrate Judge Kelly K.E. Mahoney of the Northern District of Iowa. Sentencing has been not yet been scheduled.
As part of his guilty plea, Friedrichsen admitted that he solicited victims on Craigslist by falsely advertising himself as an experienced and successful trader handling millions of dollars in investor funds. In fact, Friedrichsen had no such experience; he was not handling millions of dollars in funds; and regularly incurred massive losses in victims’ accounts, he admitted. In furtherance of his scheme, Friedrichsen repeatedly sent victims account performance records showing tens of thousands of dollars in profits. Friedichsen admitted that these records were in fact from practice accounts and that he sent these emails intending that the victims believe that the practice accounts were actual trading accounts.
Friedrichsen further admitted that, as a result of these misrepresentations, he induced victims to enter into agreements obligating them to open trading accounts that the victims were to fund with thousands of dollars. Victims would then provide Friedrichsen with login credentials so he could access the accounts and agreed to split any profits with Friedrichsen. Friedrichsen, however, took risky positions that resulted in investors incurring losses of hundreds of thousands of dollars, at which point Friedrichsen disappeared and refused to engage in further communications with investors. Friedrichsen admitted to causing approximately 40 victims to incur losses exceeding $550,000.
This case was investigated by the U.S. Postal Inspection Service. Trial Attorneys Michelle Pascucci and Kevin Mahne of the Criminal Division’s Fraud Section are prosecuting the case. The Commodity Futures Trading Commission provided assistance in this case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Huntington Parolee Sentenced for Possessing FirearmRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to federal prison for a gun crime, announced United States Attorney Mike Stuart. Zachary Whitmore, 28, was sentenced to 24 months in prison and three years of supervised release for being a felon in possession of a firearm.
Whitmore previously admitted that on November 1, 2018, a Trooper with the West Virginia State Police assisted the West Virginia Division of Corrections Probation and Parole with locating a parolee. Whitmore was found walking on a street in Huntington. Officers found a 22 Magnum American Arms Revolver in his pocket. Whitmore was prohibited from possessing a firearm under federal law because of a 2015 felony conviction in Cabell County, West Virginia.
The West Virginia State Police and the West Virginia Division of Corrections Probation and Parole conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
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Hubert Man Sentenced to More Than 15 Years Imprisonment on Child Pornography ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III, sentenced JAMES ROBERT BONNETTE, 39, of Hubert, NC to 188 months’ imprisonment, followed by a lifetime term of supervised release. BONNETTE pled guilty on July 22, 2019 to one count of receipt of child pornography.
A 2017 investigation into a file sharing network identified BONNETTE’s IP address as advertising known child pornography files and files were directly downloaded from BONNETTE’s IP address. An administrative subpoena identified BONNETTE’s residence and a search warrant was obtained. On October 27, 2017, investigators executed the search warrant and multiple devices were seized.
BONNETTE agreed to speak with investigators and, during the interview, admitted to downloading and storing child pornography. A forensic review of the seized devices uncovered two hard drives containing thousands of images and videos of child pornography.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
The Federal Bureau of Investigation’s Child Exploitation Task Force investigated this case. Assistant United States Attorneys Melissa Belle Kessler and Bryan M. Stephany represented the government.
Holyoke Operation Results in Arrest of 42 IndividualsRead the Press Release
BOSTON – 42 individuals have been charged with federal drug and firearm offenses as part of a coordinated enforcement operation in the City of Holyoke dubbed “Operation Open Air.”
The enforcement operation, which took place during October, was a coordinated effort by federal, state and local partners to focus on drug distribution activity in the City of Holyoke. The operation targeted the distribution of opioids, including heroin, and resulted in charges against a total of 17 people for federal drug offenses and an additional 25 for state firearms and drug offenses.
“These defendants sold heroin and fentanyl so they could profit from a crisis that is killing about 2000 Massachusetts residents a year,” said United States Attorney Andrew E. Lelling. “During this operation, law enforcement targeted and dismantled illegal drug markets operating in plain sight. Thanks to the coordinated partnership of local, state and federal law enforcement, dangerous drugs have been removed from the streets and Holyoke and surrounding communities are safer for all residents.”
“The catastrophic abuse of opioids is filling emergency rooms and graveyards. ‘Operation Open Air’ was carried out to temper future casualties of this crisis in the Pioneer Valley by shutting down the open peddling of deadly drugs in public spaces,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI and our law enforcement partners take pride in having struck one more serious blow to ruthless traffickers preying on our vulnerable neighbors.”
The majority of criminal charges resulted from “sweeps” in the City of Holyoke that targeted individuals distributing opioids in open, public spaces. The enforcement actions brought together federal, state and local officers from Western Massachusetts to conduct surveillance, investigate and arrest defendants.
The following defendants were arrested on federal charges:
- Dennis Roman, 34, of Holyoke, conspiracy to distribute heroin and distribution of heroin;
- Ronny Authier, 21, of Holyoke, distribution of and possession with intent to distribute heroin;
- Christopher Lebron, 31, of Holyoke, distribution of heroin;
- Alexis Santana, 18, of Holyoke, distribution of heroin;
- Jayson Quinones, 35, of Holyoke, distribution of heroin;
- Herman Gomez, 20, of Holyoke, distribution of heroin;
- Joevani Pagan, 28, of Holyoke, distribution of heroin;
- Alexis Tapia, 34, of Holyoke, distribution of heroin and cocaine;
- Juan Rivera-Velez, distribution of heroin;
- Milagros Gaetan, 50, distribution of heroin;
- Jose Cruz, 42, distribution of cocaine;
- Jeffrey Caride, 38, of Holyoke, distribution of heroin;
- Miquiana Laboy, 22, of Holyoke, distribution of heroin and cocaine;
- Gilbert Ramos, 25, of Holyoke, distribution of heroin;
- Manuel Sanchez, 26, of Holyoke, distribution of heroin;
- Pedro Rivas-Morales, 21, of Holyoke, distribution of and possession with intent to distribute heroin; and
- Roberto Santiago; 44, of Holyoke, distribution of and possession with intent to distribute heroin.
The charge of drug distribution provides for a sentence of up to 20 years in prison, at least three years of supervised release and a $1 million fine. The charge of conspiracy to distribute provides for a sentence of up to 20 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; Hampden District Attorney Anthony D. Gulluni; FBI SAC Bonavolonta; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manuel Febo made the announcement today. Valuable assistance was provided by the FBI’s Western Massachusetts Gang Task Force and the Holyoke Police Department. Assistant U.S. Attorneys Todd Newhouse, Neil Desroches, Christopher Morgan, and Catherine Curley of Lelling’s Springfield Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hartford Man Sentenced to 4 Years in Federal Prison for Distributing Drugs, Violating ProbationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHARLES KELLEY, 45, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 48 months of imprisonment, followed by four years of supervised release, for distributing narcotics, and for violating the conditions of his probation from a prior federal drug conviction.
According to court documents and statements made in court, in April 2018, law enforcement received information that Kelley was engaged in drug trafficking activity in Hartford. On April 5, 2018, a court-authorized search of Kelley’s residence revealed approximately 66 grams of fentanyl, 42 grams of cocaine, 76 grams of crack cocaine, cocaine base, eight grams of heroin, items used to process and package narcotics for street sale, and $6,542 in cash. Kelley was arrested on state charges at that time.
Kelley has been detained since his federal arrest on November 7, 2018. On April 25, 2019, he pleaded guilty to possession with intent to distribute cocaine base (“crack”).
This is Kelley’s third federal narcotics conviction, and he was on federal probation following a conviction in January 2016 for distributing heroin and cocaine.
Judge Meyer sentenced Kelley to 36 months of imprisonment for distributing narcotics, and a consecutive 12 months of imprisonment for violating the conditions of his probation.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department, with the assistance of the Massachusetts State Police. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Dave Vatti.
Harrison County man sentenced for role in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Paul Casto, of Clarksburg, West Virginia, was sentenced today to 108 months incarceration for his involvement in a methamphetamine distribution conspiracy, U.S. Attorney Bill Powell announced.
Casto, age 56, pled guilty to one count of “Distribution of Methamphetamine” in May 2019. Casto admitted to selling methamphetamine in Harrison County in June 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part 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.
U.S. District Judge Thomas S. Kleeh presided.
HDS Gang Members and Associates Charged with Fentanyl and Other Drug Trafficking in Allegheny County’s Eastern CommunitiesRead the Press Release
PITTSBURGH - Thirteen residents of Allegheny County, have been indicted by a federal grand jury in Pittsburgh, and six other defendants have been charged by criminal complaint, on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today. The indictments and complaints detail a group of drug traffickers identifying themselves as "Hustlas Don’t Sleep" (HDS), who sold a variety of controlled substances, including fentanyl, fentanyl analogues, crack cocaine, and heroin, primarily out of the McKeesport, Turtle Creek, Wilkinsburg and Monroeville areas if Allegheny County.
"This investigation and prosecution of the HDS gang is the result of sustained, coordinated work by federal, state and local law enforcement working together," said U.S. Attorney Brady. "As long as there are neighborhoods in western Pennsylvania terrorized by gang violence and drug dealers, we will continue to fight for you and your families."
"Violent groups don't belong in our neighborhoods," said FBI Pittsburgh Special Agent in Charge Robert Jones. "Last year, Allegheny, Beaver and Washington Counties were designated as High Intensity Drug Trafficking Areas or HIDTA's. Today's arrests are just one example of the work the Allegheny County HIDTA Task Force is doing to rid the community of dangerous drugs and destructive behavior. The message is clear. The FBI and our law enforcement partners are committed to investigating, arresting and prosecuting those who make a living off of selling drugs."
The five-count superseding indictment named the following individuals:
• Robert Howell Jr., age 31, of Monroeville, PA 15146;
• Brandoun Calhoun, age 27, of Pittsburgh, PA 15218;
• Pressley Calhoun, III, age 57, of Wilkinsburg, PA 15221;
• Brandon Campbell-Taylor, age 27, of Pittsburgh, PA 15233;
• Duane Eugene Cash, Jr., age 48, of Monroeville, PA 15146;
• Wesley Ellis-Barnes, age 31, of Pittsburgh, PA 15218;
• Timothy Harper, age 37, of Monroeville, PA 15146;
• Jason Jackson, age 26, of Pittsburgh, PA 15221;
• Jamal Knox, age 25, of Verona, PA 15147;
• Maurice Miller, age 32, of Pittsburgh, PA 15235;
• Joseph Posey, Jr., age 22, of Wilkinsburg, PA 15221;
• Curtis Saxton-Smith, age 30, address unknown; and
• Che Williams, age 33, of Pittsburgh, PA 15221.
According to the superseding indictment, from September 2017 until November 2019, the defendants conspired to possess with the intent to distribute and did distribute 1 kilogram or more of heroin, a Schedule I controlled substance, 280 grams or more of cocaine base, in a form commonly known as crack, 100 grams or more of fentanyl and 400 grams or more of fentanyl, Schedule II controlled substances. The superseding indictment further alleges that on December 7, 2017, Duane Eugene Cash, Jr., possessed with intent to distribute 100 grams or more of an analogue of fentanyl, 100 grams or more of heroin, 40 grams or more of fentanyl, 50 grams or more of methamphetamine, and quantities of cocaine, marijuana and tramadol. The superseding indictment further alleges that Cash, a convicted felon, possessed a firearm in furtherance of his drug trafficking activities. The superseding indictment further alleges that on September 27, 2019, Brandon Calhoun possessed a firearm and ammunition, knowing he had been convicted of a crime punishable by imprisonment exceeding one year. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
In addition, six other defendants connected to the HDS drug trafficking organization were charged by criminal complaint. For the defendants charged by complaint, the law requires subsequent presentation of the case to a federal grand jury.
"The Allegheny County Police Drug Task Force is committed to working with our federal, state and local partners to pursue the parasites who continue to traffic poison in our communities without regard to the effects of their crimes on society," said Allegheny County Police Superintendent Coleman McDonough. "I want to thank the United States Attorney’s Office for vigorously pursuing the HIDTA designation for Southwest Pennsylvania: this designation helped to ensure our Task Force is adequately funded and equipped for long term investigations of this nature. This operation shows what we can accomplish working together."
"The people of Pittsburgh and western Pennsylvania deserve to live in drug-free and violence-free neighborhoods. This coordinated effort illustrates the unwavering commitment of the Pittsburgh Bureau of Police and our partner law enforcement agencies to guard, protect and serve our communities," Pittsburgh Police Chief Scott Schubert said. "We applaud the work of the Pittsburgh Police and Allegheny County HIDTA Task Forces, and we remain committed to our involvement in the task force and to stamping out all forms of violence and illegal drug trafficking in our neighborhoods."
The law provides for a maximum total sentence of life in prison, a fine of $10,000,000, or both for all of the indicted defendants. Cash faces an additional $10,500,000 fine. Calhoun faces an additional $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway and Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Monroeville Police Department, the Attorney General’s Office, the Drug Enforcement Agency’s Maryland Office, and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
GBK Gang Member Sentenced to 12½ Years in Federal Prison for Drug CrimeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to 12½ years’ (150 months’) imprisonment on his conviction of conspiracy to distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Tyree Davis, age 35.
According to information presented to the court, 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 wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Tyree Davis conspired to distribute quantities of crack cocaine, primarily in and around the Greenway Projects.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with 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, for the investigation leading to the successful prosecution of Davis.
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.
Fredonia Man Charged with Producing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dustin Post, 24, of Fredonia, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years in prison, and a fine of $250,000.
Special Assistant U.S. Attorney Catherine Dagonese, who is handling the case, stated that according to the criminal complaint, the New York State Police in Fredonia, in August 2019, received a parental complaint involving the commission of a possible sex offense upon a minor. According to the parent, the parent’s eight-year old child (Minor Victim 1) told the parent that the child had been sexually abused by the defendant, a family friend, sometime in the summer of 2018. When interviewed by the Child Advocacy Center, Minor Victim 1 stated that Post took the minor victim to a house, blindfolded her, and sexually abused her. Minor Victim 1 believes that the defendant likely video-recorded the abuse, adding that defendant showed her pictures of other children and explained that he had videos of other children engaging in similar conduct.
The complaint further alleges that defendant, also in the summer of 2019, video-recorded his abuse of a 12 year-old girl (Minor Victim 2) and, in 2018, received images of an 11 year-old girl (Minor Victim 3), via Snapchat.
On November 15, 2019, investigators removed a cellular telephone, a laptop computer, and four flash drives from defendant’s residence. An initial review of the electronic devices recovered multiple images and videos of suspected child pornography.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was being held pending a November 26, 2019, detention hearing.
Members of the public who have specific information related to this case are urged to contact HSI at 716-464-6070 or [email protected]. HSI victim-witness specialists will be available to assist any parent or guardian should they need victim-related resources. The complaint is a result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the New York State Police, under the direction of Major Edward Kennedy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Four Georgia Residents Charged in South Florida with Participating in a Scheme to Defraud Retirees and Federal Benefit ProgramsRead the Press Release
On November 21, 2019, four Georgia residents had their initial appearances in South Florida on charges related to their alleged involvement in an international scheme to defraud retirees of their veterans and social security benefits.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge David Spilker of the Veteran Affairs Office of Inspector General (VA OIG), Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Charlotte Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations’ (HSI) Miami Field Office, and Special Agent in Charge Rodregas W. Owens of the Social Security Administration Office of the Inspector General (SSA OIG), Atlanta Field Division made the announcement.
Jamare Mason, 25, of Lithonia, Ronaldo Garfield Green, 27, of Snellville, Mario Andre Ricketts, 24, of Carrollton, and Omar Shaquille Bailey, 24, of Snellville, all of Georgia, and three other individuals were charged with conspiracy to commit bank fraud and wire fraud (Case No. 19-CR-60313). The four Georgia residents had their initial appearances before U.S. Magistrate Judge Patrick M. Hunt in Fort Lauderdale, Florida.
According to allegations in the indictment, between May 2012 and July 2017, the defendants and three other individuals participated in a scheme to defraud the U.S. Department of Veterans Affairs and the Social Security Administration by fraudulently redirecting retirees’ benefits to accounts controlled by them. The scheme, which was international in scope, involved conspirators in Jamaica, Georgia, and Florida. The conspirators obtained the personal identifying information of veterans and social security beneficiaries and used that information unlawful access and gain control of beneficiaries’ accounts at the U.S. Department of Veterans Affairs and/or Social Security Administration. After doing so, the conspirators redirected the benefits to bank accounts, as well as prepaid debit cards and accounts, which they controlled. The subjects then withdraw the funds from ATM machines or transferred funds to other accounts, for their own personal use.
An indictment is a charging instrument containing accusations. A defendant is presumed innocent unless proven guilty in a court of law.
A calendar call for defendants Mason, Green, Ricketts and Bailey has been scheduled for January 14, 2020 at 1:30 p.m. in Fort Lauderdale before U.S. District Judge Roy K. Altman. A jury trial has been scheduled for January 21, 2020.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Transnational Elder Fraud Strike Force, including our partners at the VA OIG, USPIS, HSI, and SSA OIG. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers. Assistant U.S. Attorney Alison Lehr is responsible for the asset forfeiture component of the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report their victimization and suspected fraud schemes. To find the right reporting agency visit https://www.justice.gov/elderjustice/roadmap or call the victim connect hotline at 1-855-484-2846.
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.
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 on http://pacer.flsd.uscourts.gov.