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Friday 22 November 2019
Two Narcotic Smugglers Charged After Being Stopped with 1,355 pounds of Marijuana on VesselRead the Press Release
St. Thomas, USVI – Centeno A. Hansel-Andres and Cristian Valencia-Mendoza were charged with Conspiracy to Possess and Possession of a Controlled Substance with Intent to Distribute on Board a Vessel Subject to the Jurisdiction of the United States, United States Attorney Gretchen C.F. Shappert announced.
The court filings allege that defendants were on board a go-fast style vessel that was intercepted by a United States Coast Guard (USCG) cutter while on routine patrol. The USCG first sighted the go-fast vessel on October 18, 2019, at approximately 45 nautical miles north of Malpelo Island, Columbia. The vessel did not have any display indicating its nationality. The USCG boarded the vessel and successfully seized 21 bales of marijuana, consisting of approximately 1,355 pounds, and arrested the two individuals on board.
This case is being investigated by the United States Coast Guard and the Virgin Islands Drug Enforcement Agency. It is being prosecuted by Assistant United States Attorneys Adam Sleeper and Donna Rainwater.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Two Charged with Murder of Federal WitnessRead the Press Release
LOUISVILLE, Ky. – Two people have been charged with the murder of a witness aiding a federal investigation, announced United States Attorney Russell Coleman.
Bobby Lee Smith, 46, of Louisville, Kentucky, and Cynthia Allen, 31, of Louisville, Kentucky, were both charged in a three count indictment by a federal Grand Jury sitting in Louisville on Wednesday, November 20, 2019.
“Our system only works when the public shares information with law enforcement,” said U.S. Attorney Russell Coleman “And the rule of law requires that United States protects witnesses to crimes.”
According to the indictment, on or about May 8, 2016, in Jefferson County, Kentucky, the defendants aided and abetted each other, and did kill A.P., with the intent to retaliate for the attendance and testimony given by A.P. to a Grand Jury proceeding on or about October 8, 2014 in the Western District of Kentucky.
The defendants are also charged with tampering with a witness by killing. Smith and Allen aided and abetted each other, killing A.P., with the intent to prevent the attendance and testimony of A.P. in an official proceeding, the trial of case number 3:15-CR-00058, scheduled for November 28, 2016 with the intent to prevent the communication by A.P. to a law enforcement officer or judge of the United States relating to the commission of a federal offense.
The Grand Jury also charged the defendants, with tampering with a witness by killing. On or about May 8, 2016, Smith and Allen aided and abetted each other, killing A.P., a person assisting a federal criminal investigation.
If convicted by a jury, the defendants face no less than life imprisonment or the death penalty.
The case is being prosecuted by Assistant United States Attorneys Lettricea Jefferson-Webb and Robert Bonar. The case is being investigated by the Federal Bureau of Investigation (FBI) and the Louisville Metro Police Department (LMPD).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Twenty-Four Member Crystal Methamphetamine Distribution Operation Totally DismantledRead the Press Release
The final four traffickers were convicted by a jury after ten days of trial.
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that a 24-member drug trafficking operation has been totally dismantled, following a federal jury’s conviction of the final four defendants yesterday. Darrell Lee-Lamont Summers II, 28, Daryl Kevin Cannon, 27, Timothy Roy Mason, 39, and Tremain Lamar Braxton, 31, all from Benton Harbor, were convicted of conspiring to distribute methamphetamine and related crimes after a ten-day trial before the Honorable Robert J. Jonker, Chief United States District Judge. The men face up to life in prison when they are sentenced next year, and mandatory minimum terms of ten years, except Braxton, who faces a fifteen-year minimum because of a prior drug conviction.
Braxton was arrested in August 2018 during the multijurisdictional takedown of the methamphetamine ring. The other three defendants were added to the case in April 2019. With these last four convictions, all twenty-four defendants have been convicted in the cases charged as a result of the investigation, nineteen by guilty plea and five at trial. Richard Farmer, Sr., was convicted by a jury in May.
The evidence at trial demonstrated that Summers and Cannon brought or sent, in total, hundreds of thousands of dollars to suppliers in California and Arizona, who subsequently shipped hundreds of pounds of methamphetamine back to Michigan through the mail to them and others in the organization, including Raymond Stovall. The cash deliveries and shipments took place between 2016 and 2018. Mason began buying pounds of methamphetamine from Stovall in Kalamazoo and graduated to travelling to Arizona to order methamphetamine directly from a supplier, which he shipped to addresses he controlled in Erie, Pennsylvania. Braxton sold single pounds of methamphetamine for Stovall and drove Stovall and others to drug deals. The organization largely distributed the methamphetamine in southwest Michigan, including in greater Kalamazoo. Law enforcement intercepted three packages during the investigation, which in total contained approximately 14 pounds of crystal methamphetamine, between 96% and 99% pure. At the time of the interceptions, those 14 pounds alone were worth more than $40,000 on the southwest border from which they shipped and nearly $100,000 wholesale in Michigan.
"Crystal methamphetamine has flooded West Michigan," said U.S. Attorney Birge. "Federal, state and local law enforcement agencies are acutely aware of the challenge and working together to respond. With this operation dismantled and the suppliers and local dealers removed from the community, we see the effectiveness of our cooperative efforts. But there is much more work to
be done."
"DEA and law enforcement partners are working together to safeguard Michigan communities against dangerous and lethal drugs," said Keith Martin, Special Agent in Charge of the Detroit Field Division of the DEA. "Organizations whose sole purpose is making a profit by spreading poisons will be dismantled and brought to justice."
"Dismantling drug trafficking organizations like this one is a critical part of the FBI’s mission and is essential to keeping our communities safe from the violence that often accompanies these groups," said Steven M. D’Antuono, Special Agent in Charge of the FBI Detroit Division. "The combined efforts of the FBI, DEA, SWET, and KVET once again demonstrate the importance of combining the strengths, resources and expertise of federal and local agencies to fight these drug-trafficking networks."
This case was investigated by the FBI, the DEA, the U.S. Postal Inspection Service, the Kalamazoo Valley Enforcement Team, and the Southwest Enforcement Team (a component of the Michigan State Police), who were assisted by the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Michigan Department of Corrections, the Portage Police Department, the Kalamazoo Department of Public Safety, the Kalamazoo County Sheriff’s Office, the Berrien County Sheriff’s Office, the St. Joseph County Sheriff’s Office, and TSA Investigations – Detroit Field Office. The case was tried by Assistant U.S. Attorneys Justin M. Presant and Jonathan Roth.
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Texas Man Sentenced to 30 Years for Traveling to Engage in Sexual Activity with MinorsRead the Press Release
LEXINGTON, Ky. — Gregory Lee Hruby, 65, of Brazoria, Texas, was sentenced on Friday to 30 years in federal prison, by U.S. District Court Judge Gregory F. Van Tatenhove, for crossing state lines to engage in sexual acts with minors who had not attained the age of 12 and for possessing visual depictions of minors engaging in sexually explicit conduct.
According to trial testimony, Hruby communicated with an undercover law enforcement agent, who responded to a post that Hruby had placed on the Whisper Application. In the communications, the undercover officer portrayed herself as the mother of 9 and 11 year-old daughters, who was willing to permit Hruby to engage in sex with them. Hruby engaged in text and telephone conversations with the undercover officer, indicating his interest in engaging in sexual intercourse with the fictitious minors. Hruby was arrested after law enforcement officers met him at the airport in Lexington, on October 19, 2018, following his arrival on a flight from Houston, Texas. Hruby also had child pornography images on his phone.
Hruby was previously convicted of all three charges in July 2019.
Under federal law, Hruby must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for the remainder of his life.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steve Igyarto, Special Agent in Charge, Department of Homeland Security – Homeland Security Investigations (DHS-HSI); and Kentucky Attorney General Andy Beshear jointly announced the sentencing.
The investigation was conducted by DHS-HSI and the Cyber Crimes Branch of the Office of the Attorney General of Kentucky. The United States was represented by Assistant U.S. Attorneys David A. Marye and Tashena A. Fannin.
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Texas Man Charged for His Role in Operating Sham Medical Reimbursement Account ProgramRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that that JOSEPH A. BORINO, age 62, a resident of Spring Hill, Texas was charged on November 21, 2019 by a federal grand jury in an eight-count Indictment for his role in the marketing and operation of what claimed to be a Medical Reimbursement Program, Classic 105. In particular, BORINO were charged with conspiracy to defraud the United States and to make false statements and representations in connection with a multiple employer welfare arrangement (MEWA), in violation of Title 18, United States Code, Section 371 (Count 1); making false statements in connection with a MEWA, in violation of Title 29, United States Code, Sections 1131(b) and 1149 (Counts 2-6), and wire fraud, in violation of Title 18, United States Code, Section 1343 (Counts 7-8).
According to the Indictment, The Total Financial Group (TTFG) was a Louisiana business incorporated by Denis and Donna Joachim with the Louisiana Secretary of State on about January 6, 2005, that was most recently located at 406 N. Florida Street, Covington, Louisiana. BORINO was employed as the National Executive Marketing Director for TTFG. In that capacity, BORINO supervised, trained, and instructed TTFG’s regional sales personnel. BORINO also represented himself to be Denis Joachim’s “right hand man” in the operation of TTFG.
TTFG and its owners, with BORINO and others, created and marketed a Medical Reimbursement Account program called “Classic 105.” Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse them for medical expenses such as co-pays and deductibles; participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105. Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG’s marketing program told prospective employer-clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount. At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program.
According to the Indictment, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Moreover, as early as September 2014, BORINO, Denis Joachim, and others all participated in email exchanges that discussed that there were no third-party lenders or insurance policies to fund the loans. Rather, TTFG and its executives, including BORINO, arranged for the contribution, loan, and insurance policy to appear as a series of transactions that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. Consequently, TTFG, BORINO, and the Joachims caused federal FICA taxes and personal income taxes to be underpaid, amounts for which the employer-clients and employee-participants are individually responsible. In at least one instance, a former participant did not qualify for unemployment benefits based on her participation in Classic 105.
If convicted, BORINO faces a maximum term of imprisonment of 95 years, a fine of up to $2,000,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment (for each count of conviction). He may also be subject to forfeiture.
U.S. Attorney Strasser praised the work of the Internal Revenue Service – Criminal Investigations; Federal Bureau of Investigation; and United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration and expressed appreciation for the support provided by Senior Trial Attorney Rebecca Pyne, Department of Justice, Organized Crime and Gang Section, Labor-Management Racketeering Unit. Assistant United States Attorneys Jordan Ginsberg and Maria Carboni and Department of Justice Trial Attorney Jared Hasten are in charge of the prosecution.
Tahlequah Woman Sentenced to 17 Months for Unlawful Use of Communication FacilityRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jasmine Lea Meikle, age 38, of Tahlequah, Oklahoma, was sentenced to 17 months’ imprisonment and 1 year of supervised release for Unlawful Use Of A Communication Facility, in violation of Title 21, United States Code, Section 843(b). The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Information alleged that on or about September 24, 2018, in the Eastern District of Oklahoma, the defendant knowingly and intentionally used a communication facility, a cellular telephone, in facilitating the commission of Possession with Intent to Distribute Methamphetamine, a felony under Title 21, United States Code 841(a)(1).
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.
Tacoma woman charged in 17-count indictment for seven year, $230,000+ benefits fraud schemeRead the Press Release
Seattle – A 39-year-old Tacoma resident was charged today in an indictment alleging wire fraud, theft of public funds, Social Security number misuse, aggravated identity theft, and embezzlement of mail by a postal employee. The indictment alleges ILIGANOA THERESA LAUOFO illegally collected more than $230,000 over the course of a fraud scheme that began in 2011 and continued until 2018. LAUOFO will make her initial appearance on December 5, 2019, at 9:00 a.m. in Seattle.
According to the indictment, LAUOFO lied about her household composition and income, used stolen identities to claim additional benefits and open bank and credit accounts, and stole checks from the mail during a period when she was employed by the U.S. Postal Service. Between April 2011 and December 2018, LAUOFO applied for welfare benefits, including food and income assistance, by claiming her husband did not live with the family. LAUOFO submitted falsified documents to bolster the claim that her husband lived elsewhere. Had her husband’s income been counted, she would not have qualified for the assistance she received. LAUOFO also stole and misused the identity information of minor children who lived in American Samoa, claiming they resided with her when they did not. By claiming these children, she received additional food and childcare benefits. LAUOFO submitted forged letters from doctors and landlords to support her claim that the children resided with her.
Additionally, starting in 2015, LAUOFO used the identity information of two family members residing in California and an acquaintance in American Samoa to receive additional benefits including food assistance, cash assistance, and childcare funds. She claimed still more children—again, actually living in American Samoa—were residing with her under these three false identities and created letters and documents to bolster those claims as well. All told, LAUOFO received more than $220,000 from this scheme to which she was not entitled.
The alleged fraud did not end with stolen benefits. LAUOFO used the identities she stole to open bank and credit accounts. She opened one of those accounts in the name of her ex-husband three years after he died. She deposited worthless checks in the bank account and quickly withdrew cash before the bank realized the fraud. More than $10,000 in loss resulted from that conduct.
Finally, in March 2018, when LAUOFO was employed by the U.S. Postal Service as a letter carrier, she stole and deposited two checks from the mail she was assigned to deliver. She deposited the checks into an account in the name of one of the identities she had stolen in the benefits fraud scheme.
LAUOFO is charged with six counts of wire fraud, four counts of theft of public funds, three counts of Social Security number misuse, three counts of aggravated identity theft and one count of embezzlement of mail by a postal employee.
Wire fraud is punishable by up to 20 years in prison. Theft of public funds is punishable by up to ten years in prison. Social Security number misuse and embezzlement by a postal employee are each punishable by up to five years in prison. Aggravated identity theft is punishable by a mandatory consecutive two-year prison term to follow any punishment imposed on the other counts of conviction.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Social Security Administration Office of Inspector General (SSA-OIG), Washington State Department of Social and Health Services Office of Fraud and Accountability (DSHS/OFA), and the United States Postal Service Office of Inspector General (USPS-OIG).The case is being prosecuted by Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration, specially designated to prosecute fraud cases in federal court.
Sylva Man Is Sentenced to More Than 13 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – Late yesterday, U.S. District Judge Martin Reidinger sentenced Frank Michael Lucas, 33, of Sylva, N.C. to 160 months in prison on drug trafficking charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Lucas to serve five years under court supervision and to pay a $10,000 fine.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Sheriff Chip Hall of the Jackson County Sheriff’s Office; Sheriff Curtis Cochran of the Swain County Sheriff’s Office; Chief Chris Hatton of the Sylva Police Department; and Chief Doug Pheasant of the Cherokee Indian Police Department join U.S. Attorney Murray in making today’s announcement.
According to information contained in filed court documents and yesterday’s sentencing hearing, on June 28, 2018, deputies with the Jackson County Sheriff’s Office were responding to a domestic call at the defendant’s camper located in Sylva. While there, law enforcement observed a firearm inside the camper. Lucas, who was at the time on probation for a state conviction, was prohibited from possessing a firearm. Subsequently, a North Carolina probation officer conducted a warrantless search and recovered from inside the camper several grams of methamphetamine, which Lucas possessed with the intent to distribute, four firearms, one of which was loaded, ammunition, and $7,468 in cash. Court records also show that on October 11, 2018, Lucas was also found to be in possession of a kilogram of methamphetamine with the intent to distribute it to others, and on October 25, 2018, Lucas possessed an additional firearm. In May 2019, Lucas pleaded guilty to possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
Lucas is currently in custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the DEA, the Jackson County Sheriff’s Office, the Swain County Sheriff’s Office, the Sylva Police Department and the Cherokee Indian Police Department for their investigation of this case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville prosecuted the case.
Statement from Solicitor General Noel Francisco on the Passing of Former Deputy Solicitor General David ShapiroRead the Press Release
Today, Solicitor General Noel Francisco issued the following statement on the passing of former Deputy Solicitor General David Shapiro:
“We are saddened to learn of the passing earlier this week of Professor David Shapiro. In addition to his tenure at Harvard Law School, David Shapiro was a Deputy Solicitor General in the Department of Justice from 1988 to 1991. He was a highly respected member of the legal profession and gifted appellate advocate on behalf of the United States, arguing ten cases before the Supreme Court. As a scholar, he was a preeminent expert in the field of federal courts and federal jurisdiction. As a colleague, he is remembered by those here at the Department as a rigorous thinker, elegant writer, and warm mentor -- open, straightforward, intellectually engaging, and all with good humor. We are honored to count David Shapiro as an alumnus of the Office of the Solicitor General, we are grateful for his service, and we join others who knew him in mourning his loss.”
St. John Parish Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DAVID PITTMAN, age 49, of St. John the Baptist Parish, Louisiana, pleaded guilty on November 21, 2019 to conspiring to distribute 50 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846.
PITTMAN now faces a mandatory minimum prison sentence of 10 years, a maximum life sentence, a possible fine of $10,000,000, and at least 5 years of supervised release. The Honorable Wendy B. Vitter, United States District Judge, will sentence PITTMAN on February 18, 2020.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and St. John the Baptist Parish Sheriff’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
St. Croix Man Who Possessed Firearm in School Zone Sentenced to 5 Years Federal ProbationRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Samuel Melendez, age 43, was sentenced on November 21, 2019 after being convicted of Possession of Firearm in a School Zone.
District Court Chief Judge Wilma A. Lewis sentenced Melendez to 5 years of Federal probation, a $1000 fine and ordered Melendez to pay a special assessment of $100.
According to court documents, on or about October 8, 2018, Samuel Melendez possessed a Jimenez Arms .380 Semi-Automatic pistol at the Frederiksted vegetable market, which is within 1000 feet of St. Patrick’s Elementary School. The firearm was tested and found to be operable. The Defendant did not have a valid license to possess a firearm, and the firearm had moved in and affected interstate commerce
The case was investigated by the Virgin Islands Police Department and Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
St. Croix Man Arrested on Drug ChargesRead the Press Release
St. Croix, USVI – On November 21, 2019, Keithley Parris, 32, of St. Croix, appeared before Magistrate Judge George W. Cannon for an Initial Appearance after his arrest by Homeland Security Investigations Special Agents on the charges of Conspiracy to Possess Cocaine with Intent to Distribute and Possession of Cocaine with Intent to Distribute. Parris was originally charged by Indictment on September 17, 2019, however, that Indictment was sealed until his arrest on November 21.
At the Initial Appearance, the United States moved to detain Parris. A Detention Hearing and Arraignment is set for November 23, 2019, before Magistrate Judge Cannon.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorneys Daniel H. Huston and Melissa Ortiz.
United States Attorney Gretchen C.F. Shappert reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Springfield Man Sentenced to Federal Prison for Drug Trafficking and Gun ChargesRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced Jimmy Lindsey, age 22, of Springfield, Louisiana, to 132 months in federal prison following his convictions of possession with intent to distribute methamphetamine, marijuana, and oxycodone, and possession of a firearm in furtherance of a drug trafficking crime. The Court further sentenced Lindsey to 4 years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions made as part of his guilty plea, Lindsey was on probation for felony narcotics distribution charges in Livingston Parish when agents with the Louisiana Probation and Parole, along with Livingston Parish Sheriff’s Office narcotics detectives, attempted to conduct a compliance check at his residence on July 5, 2018. Agents were aware that Lindsey would be driving a black BMW. While patrolling the area near Lindsey’s residence, detectives encountered a black BMW leaving the area. Detectives initiated a traffic stop after observing the driver of the BMW fail to utilize turn signals on two separate occasions.
As detectives approached the vehicle, they recognized the driver to be Lindsey. They also smelled a strong odor of marijuana emitting from the vehicle. As Lindsey was secured, the deputies found a loaded Smith and Wesson .380 pistol, in his back right pants pocket. The detectives also located methamphetamine and oxycodone pills in his right pants pocket, as well as two zip-lock bags of marijuana in the trunk of the vehicle.
Prior to possessing the firearm, Lindsey pled no contest to possession with intent to distribute marijuana, possession of oxycodone, possession of buprenorphine, and possession with intent to distribute marijuana in February 2017 in Livingston Parish.
U.S. Attorney Fremin stated, “This conviction and sentence is the result of diligent state and local law enforcement working with federal authorities to ensure our streets are safe. The message is clear – we will not tolerate repeat offenders who disregard conditions of felony probation and continue to engage in criminal behavior. I want to thank our prosecutor, the ATF, the Louisiana Probation and Parole Office, and the Livingston Parish Sheriff’s Office for their excellent work on this case.”
Livingston Parish Sheriff Jason Ard stated, “Our goal is to protect our citizens. I am proud of the LPSO Narcotics Division. I appreciate their dedication to Livingston Parish and the working relationship we have with the U.S. Attorney.”
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with critical assistance from the Louisiana Probation and Parole Office and the Livingston Parish Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Eli J. Abad.
Southern Pines Man Sentenced to 44 Months ImprisonmentRead the Press Release
GREENSBORO, N.C. - A previously convicted felon from Southern Pines was sentenced on November 12, 2019, in federal court in Winston-Salem, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
CLARK DuVAUL FRYE WADDELL, II, aka “Woody” Waddell, age 26, was sentenced to a 44 month term of imprisonment by Chief United States District Judge Thomas D. Schroeder. In addition to prison time, WADDELL was ordered to serve three years of supervised release and to pay a special assessment of $100.00. WADDELL pleaded guilty on August 8, 2019, to possession with intent to distribute marijuana and knowingly possessing a firearm after previously being convicted of a felony offense punishable by imprisonment for more than one year.
“The United States Attorney’s Office is committed to forging partnerships between federal, state and local law enforcement agencies in order to reduce violent crime and protect the people of the Middle District by identifying and prosecuting offenders like this.” said United States Attorney Martin. “I commend the Southern Pines Police Department, ATF, and AUSA DuPré for their diligence in this case.”
“The Southern Pines Police Department prides itself on developing and maintaining a unified law enforcement/public safety approach to protect our community,” said Chief Bob Temme. “This ever improving shift in organizational culture not only involves the creation of external partnerships, but also citizen involvement, data analysis, intelligence gathering and problem solving. This arrest and conviction highlights many of these successful strategies.”
Court records show that on March 23, 2019, at approximately 2:20 am, officers from the Southern Pines Police Department attempted to stop a vehicle being operated by WADDELL in the area of East Indiana Avenue and Fort Bragg Road in Southern Pines. At this time, WADDELL drove though several residential streets stopping on East Hedgelawn Way, where he exited the vehicle without putting it in park, and fled from officers on foot. The vehicle came to rest after striking a utility box. While being pursued by officers, WADDELL was observed throwing a large bag of marijuana to the ground. As the foot chase continued, WADDELL was observed pulling a firearm from his person and attempted to discard it by throwing it. WADDELL was taken into custody by the pursuing officers. Recovered in this incident was over 57 grams of marijuana, $2,476.00 in U.S. currency, digital scales and a loaded Glock .40 caliber semi-automatic pistol.
WADDELL was previously convicted in Moore County for possession with intent to sell or deliver marijuana, and in Wake County, North Carolina, for possession of a firearm by a convicted felon and prohibited by state and federal law(s) from possessing a firearm. At the time of his arrest, he was out on a $100,000.00 bond following arrest by the Southern Pines Police Department on May 27, 2018, for various drug offenses and for resisting arrest.
The case was investigated by the Southern Pines Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Nicole R. DuPré.
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Southern Colorado Man Indicted on Federal Hate Crime and Explosives Charges for Plotting to Blow up SynagogueRead the Press Release
Assistant Attorney General Eric Dreiband for the Civil Rights Division and Assistant Attorney General John C. Demers for the National Security Division, U.S. Attorney Jason R. Dunn for the District of Colorado, and Special Agent in Charge Dean Phillips for the FBI Denver Division announced today that Richard Holzer, 27, of Pueblo, has been indicted by a federal grand jury in Denver for attempting to blow up a synagogue in Pueblo, Colorado.
The federal grand jury returned a three-count indictment. Count One charges Holzer with intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs, through force and the use and attempted use of explosives and fire. This charge is the same as was charged in the original complaint filed on Monday, Nov. 4, 2019. Count Two charges Holzer with attempted arson, and Count Three charges Holzer with using fire or an explosive device to commit a felony offense.
Holzer is currently in federal custody. He is scheduled to appear before a U.S. Magistrate Judge on Monday, Nov. 25 where he will be advised of the charges contained in the indictment, and arraigned on the charges. If convicted, Holzer faces a maximum penalty of 50 years in prison.
Assistant United States Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case, with assistance from Counterterrorism Section Trial Attorney Erin Creegan of the Justice Department’s National Security Division. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
Shooting Neighbor’s House with More Than 60 Rounds of Ammunition Results in over Seven Years in Federal PrisonRead the Press Release
A Cedar County man who shot his neighbor’s house over 60 times was sentenced today in federal court in Cedar Rapids to more than seven years in prison.
Randolph High, age 62, from Stanwood, Iowa, received the prison term after a May 30, 2019 guilty plea for being a felon in possession of ammunition.
In a plea agreement, High admitted that on January 27, 2019, he shot his neighbor’s house over 60 times. The neighbor’s house, vehicles, and camper sustained dozens of bullet impacts. The Cedar County Sheriff’s Office searched High’s home and found magazines for firearms, numerous .22 caliber rounds of ammunition, and 71 expended shell casings for a .22 caliber firearm.
High was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. High was sentenced to 92 months’ imprisonment. He was ordered to make $34,350 in restitution to his neighbor and their insurance company for the damage he caused to their house, vehicles, and other property. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated by the Cedar County Sheriff’s Office, Iowa State Patrol, and the Muscatine County Sheriff’s Office with the assistance of the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00033.
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Samsung Heavy Industries Company Ltd Agrees to Pay $75 Million in Global Penalties to Resolve Foreign Bribery CaseRead the Press Release
Samsung Heavy Industries Company Limited (Samsung Heavy Industries), a South Korea-based engineering company that provides shipbuilding, offshore platform construction, and other construction and engineering services, has agreed to pay total penalties of more than $75 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a scheme to pay millions of dollars in bribes to officials in Brazil.
Samsung Heavy Industries entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of Virginia charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to Senior U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Pursuant to its agreement with the Department, Samsung Heavy Industries has committed to pay a total criminal penalty of $75,481,600 – 50 percent ($37,740,800) of which will be paid to the United States within 10 business days of the deferred prosecution agreement and the remaining 50 percent ($37,740,800) of which will either be paid to Brazilian authorities pursuant to agreements between Samsung Heavy Industries and the Controladoria-Geral da União (CGU), Advogado-Geral da União (AGU) and Ministério Público Federal (MPF), or will be paid to the United States if at least $37,740,800 in payments are not made to the Brazilian authorities on or before Nov. 25, 2020. In related proceedings in Brazil, Samsung Heavy Industries entered into a memorandum of understanding with the CGU and AGU and a complementary agreement for the negotiation of a leniency agreement with the MPF.
“Samsung Heavy Industries paid millions of dollars to a Brazilian intermediary, knowing that some of that money would be used to bribe high-level executives at Petrobras and obtain a lucrative shipbuilding contract,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution is yet one more example of the Department’s continued commitment to root out bribery and to work with our foreign counterparts to investigate schemes spanning multiple international jurisdictions.”
“Samsung Heavy Industries caused millions of dollars in corrupt bribe payments to be paid to foreign officials to win business, upsetting what should have been a level playing field for other companies that followed the rules,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “Effective corporate policies and procedures are necessary to ensure that corporations do not engage in foreign bribery. We will continue to hold corporations accountable.”
“The FCPA encourages U.S. companies to fairly compete in an open, global marketplace,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Violations of the FCPA injure the integrity of our free economic system. Our agents work every day to uphold that economic integrity, and we urge anyone who suspects an FCPA violation to contact their local FBI Field Office.”
According to admissions by Samsung Heavy Industries, beginning in 2007 and continuing until 2013, the company conspired with others to violate the FCPA by corruptly providing approximately $20 million in commission payments to a Brazilian intermediary, knowing that portions of the money would be paid as bribes to officials at Petrobras, the Brazilian state-owned oil and state-controlled energy company, in order to secure improper business advantages and to cause Petrobras to enter into a contract to charter a drill ship that Samsung Heavy Industries was selling to a Houston-based offshore oil drilling company, which facilitated Samsung Heavy Industries executing the sale of the drill ship. Samsung Heavy Industries took actions in furtherance of the bribery conspiracy from its branch office located in the United States.
As part of the deferred prosecution agreement, Samsung Heavy Industries has agreed to continue to cooperate with the Department in any ongoing investigations and prosecutions relating to the conduct, including of individuals; to enhance its compliance program; and to report to the Department on the implementation of its enhanced compliance program.
In reaching the resolution with the Department, Samsung Heavy Industries received credit for its cooperation with the Department’s investigation and for taking remedial measures. For example, the company made significant enhancements to its compliance program, including hiring additional compliance staff, implementing enhanced anti-corruption policies and heightened due diligence controls over third party vendors, instituting mandatory anti-corruption training and improving whistleblower policies and procedures. The company did not receive full credit for its cooperation, however, due to its failure to meet reasonable deadlines imposed by the department and delays it caused in reaching a resolution. Accordingly, the total criminal penalty reflects a 20 percent reduction off the bottom of the applicable United States Sentencing Guidelines fine range.
The case is being investigated by the FBI. Trial Attorney Jonathan P. Robell, Acting Assistant Chief Andrew Gentin and Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia are prosecuting the case.
The MPF, CGU and AGU in Brazil provided significant assistance in this matter, as did law enforcement authorities in Monaco and Switzerland. The Criminal Division’s Office of International Affairs provided significant assistance as well.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Samsung Heavy Industries Company LTD Agrees to $75 Million Resolution in Foreign Bribery CaseRead the Press Release
ALEXANDRIA – Samsung Heavy Industries Company Limited (Samsung Heavy Industries), a South Korea-based engineering company that provides shipbuilding, offshore platform construction, and other construction and engineering services, has agreed to pay total penalties of more than $75 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a scheme to pay millions of dollars in bribes to officials in Brazil.
Samsung Heavy Industries entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of Virginia charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to Senior U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Pursuant to its agreement with the Department, Samsung Heavy Industries has committed to pay a total criminal penalty of $75,481,600 – 50 percent ($37,740,800) of which will be paid to the United States within 10 business days of the deferred prosecution agreement and the remaining 50 percent ($37,740,800) of which will either be paid to Brazilian authorities pursuant to agreements between Samsung Heavy Industries and the Controladoria-Geral da União (CGU), Advogado-Geral da União (AGU) and Ministério Público Federal (MPF), or will be paid to the United States if at least $37,740,800 in payments are not made to the Brazilian authorities on or before Nov. 25, 2020. In related proceedings in Brazil, Samsung Heavy Industries entered into a memorandum of understanding with the CGU and AGU and a complementary agreement for the negotiation of a leniency agreement with the MPF.
“Samsung Heavy Industries caused millions of dollars in corrupt bribe payments to be paid to foreign officials to win business, upsetting what should have been a level playing field for other companies that followed the rules,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “Effective corporate policies and procedures are necessary to ensure that corporations do not engage in foreign bribery. We will continue to hold corporations accountable.”
“Samsung Heavy Industries paid millions of dollars to a Brazilian intermediary, knowing that some of that money would be used to bribe high-level executives at Petrobras and obtain a lucrative shipbuilding contract,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution is yet one more example of the Department’s continued commitment to root out bribery and to work with our foreign counterparts to investigate schemes spanning multiple international jurisdictions.”
“The FCPA encourages U.S. companies to fairly compete in an open, global marketplace,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Violations of the FCPA injure the integrity of our free economic system. Our agents work every day to uphold that economic integrity, and we urge anyone who suspects an FCPA violation to contact their local FBI Field Office.”
According to admissions by Samsung Heavy Industries, beginning in 2007 and continuing until 2013, the company conspired with others to violate the FCPA by corruptly providing approximately $20 million in commission payments to a Brazilian intermediary, knowing that portions of the money would be paid as bribes to officials at Petrobras, the Brazilian state-owned oil and state-controlled energy company, in order to secure improper business advantages and to cause Petrobras to enter into a contract to charter a drill ship that Samsung Heavy Industries was selling to a Houston-based offshore oil drilling company, which facilitated Samsung Heavy Industries executing the sale of the drill ship. Samsung Heavy Industries took actions in furtherance of the bribery conspiracy from its branch office located in the United States.
As part of the deferred prosecution agreement, Samsung Heavy Industries has agreed to continue to cooperate with the Department in any ongoing investigations and prosecutions relating to the conduct, including of individuals; to enhance its compliance program; and to report to the Department on the implementation of its enhanced compliance program.
In reaching the resolution with the Department, Samsung Heavy Industries received credit for its cooperation with the Department’s investigation and for taking remedial measures. For example, the company made significant enhancements to its compliance program, including hiring additional compliance staff, implementing enhanced anti-corruption policies and heightened due diligence controls over third party vendors, instituting mandatory anti-corruption training and improving whistleblower policies and procedures. The company did not receive full credit for its cooperation, however, due to its failure to meet reasonable deadlines imposed by the department and delays it caused in reaching a resolution. Accordingly, the total criminal penalty reflects a 20 percent reduction off the bottom of the applicable United States Sentencing Guidelines fine range.
The case is being investigated by the FBI. Trial Attorney Jonathan P. Robell, Acting Assistant Chief Andrew Gentin and Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia are prosecuting the case.
The MPF, CGU and AGU in Brazil provided significant assistance in this matter, as did law enforcement authorities in Monaco and Switzerland. The Criminal Division’s Office of International Affairs provided significant assistance as well.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Sacramento Resident Pleads Guilty to Identity Theft Involving a Rancho Cordova Veterinary ClinicRead the Press Release
SACRAMENTO, Calif. — Marie Antoinette Alcanter, 48, of Sacramento, pleaded guilty today to access device fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Alcanter obtained victims’ personal and financial information from co-defendant Rose Marie Segale, 41, of San Jose, formerly of Sacramento. Segale had obtained the information through her employment at a veterinary clinic. Alcanter used the information to make purchases and withdrawals using victims’ accounts, as well as to open new accounts using victims’ identities. When Alcanter’s residence was searched by federal agents, they found numerous documents that Segale had provided from the veterinary clinic. One of them was a statement for euthanasia and cremation of a dog, on which Segale had recorded the client’s credit card number. Using victims’ information, Alcanter obtained over $40,000 worth of items and cash between Dec. 2016 and March 2018.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.
Alcanter is scheduled to be sentenced on Feb. 21, 2020. Segale previously pleaded guilty and is scheduled to be sentenced on Jan. 17, 2020. Each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the access device fraud offense, as well as a mandatory two-year prison term for the aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rochester Man Sentenced for Trafficking Multiple Kilograms of FentanylRead the Press Release
CONCORD - Timothy Lafond, 41, of Rochester, was sentenced in federal court on Thursday, to 198 months for drug trafficking, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, in August 2018, Lafond made a series of fentanyl transactions with individual who were cooperating with the Drug Enforcement Administration. On September 4, 2018, the DEA conducted a motor vehicle stop of Lafond and arrested him as he left his Rochester apartment. During a search of Lafond, agents found several bags of fentanyl. In addition, agents located a backpack belonging to Lafond that contained 1.96 kilograms of fentanyl. Later that day, the DEA executed a search warrant at a storage unit belonging to Lafond. In the storage unit, an officer found another 1.1 kilograms of fentanyl.
Lafond pleaded guilty to possession of fentanyl with intent to distribute on July 30, 2019.
“Fentanyl is an incredibly deadly substance that is endangering the lives of people throughout New Hampshire,” said U.S. Attorney Murray. “By seizing multiple kilograms of fentanyl from this defendant, the DEA may have prevented countless overdoses and deaths. Fentanyl dealers in New Hampshire should take notice of this lengthy sentence. Continuing to sell this lethal drug, will result in arrest and incarceration in a federal prison for a substantial portion of their lives.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “The DEA will continue to use every resource available to identify those, like Mr. Lafond, who are contributing to the crisis. Today’s sentence not only holds Mr. Lafond accountable for his crimes but serves as a warning that DEA and its local, state and federal partners will do everything in our power to keep this poison off the streets of New Hampshire.”
This matter was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Seth Aframe and Charles Rombeau.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Road from Arizona to Kansas Leads to Federal PrisonRead the Press Release
TOPEKA, KAN. - An Arizona man was sentenced today to 15 years in federal prison for trafficking in heroin and fentanyl, U.S. Attorney Stephen McAllister said.
Devonte Jemell Starks, 30, Phoenix, Ariz., was convicted in a jury trial in April 2019 on count of possession with intent to distribute heroin and one count of possession with intent to distribute fentanyl.
During trial, the prosecutor presented evidence that Starks was one of four people in a car that the Kansas Highway Patrol stopped on Sept. 17, 2018, in Shawnee County. Troopers found more than 8 pounds of heroin and 4 pounds of fentanyl in the car.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Greg Hough for their work on the case.
Richard Holzer, Pueblo Synagogue Bomb Suspect, Indicted by Federal Grand Jury with Charges AddedRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn for the District of Colorado, Assistant Attorney General Eric Dreiband for the Civil Rights Division, Assistant Attorney General John C. Demers for the National Security Division, and Special Agent in Charge Dean Phillips for the FBI Denver Division announced today that Richard Holzer, age 27, of Pueblo, has been indicted by a federal grand jury in Denver for attempting to blow up a synagogue in Pueblo, Colorado.
The federal grand jury returned a three-count indictment. Count One charges Holzer with intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs, through force and the use and attempted use of explosives and fire. This charge is the same as was charged in the original complaint filed on Monday, November 4, 2019. Count Two charges Holzer with attempted arson, and Count Three charges Holzer with using fire or an explosive device to commit a felony offense.
Holzer is currently in federal custody. He is scheduled to appear before U.S. Magistrate Judge Scott T. Varholak on Monday, November 25, 2019 at 10:00 a.m., where he will be advised of the charges contained in the indictment, and arraigned on those charges. If convicted, Holzer faces a maximum penalty of 50 years in prison.
Assistant United States Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case on behalf of the government. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
Real Estate Developer and Property Manager Charged in Ponzi Scheme to Defraud Investors Out of Millions of DollarsRead the Press Release
NEWARK, N.J. – A property developer and manager has been arrested on charges stemming from a scheme to defraud real estate investors, U.S. Attorney Craig Carpenito announced today.
Herbert Whalen a/k/a “Bert Whalen,” 45, of Indianapolis, Indiana, was indicted by a federal grand jury on November 20, 2019, on one count of conspiracy to commit wire fraud and three counts of wire fraud. Whalen was arrested Nov. 21, 2019, and is scheduled to appear this afternoon before U.S. Magistrate Tim A. Baker in Indianapolis, Indiana. His arraignment date in Newark federal court has not yet been scheduled.
According to the indictment:
Between August 2016 and July 2018, Whalen, the owner of Oceanpointe Property Management in Indianapolis, Indiana, engaged in a scheme to obtain money from victim real estate investors by misrepresenting and concealing the poor condition of properties managed by Oceanpointe and by creating fake leases for unoccupied Oceanpointe properties. Employees from Company 1 and Oceanpointe promised investors that, after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment. In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal this fact from victim investors, Whalen and Coconspirator 1 directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented, when, in fact, the properties remained vacant. Whalen instructed Oceanpointe employees to place fake tenant names on leases to send to Oceanpointe investors.
When investors attempted to view the properties that they had purchased, Whalen directed Oceanpointe employees to cover the windows to make the properties appear to investors as if work was being completed, when, in fact, it was not. Oceanpointe employees did this to conceal the poor condition of the properties and the fact that the properties remained vacant. Whalen, Coconspirator 1, and others commingled tenant rent payments and selected which investors would be paid from the pool of funds in order to silence investors who voiced concerns and evade detection of the fraud. In order to prevent investors from leaving Oceanpointe and exposing the fraudulent conduct, Whalen directed an Oceanpointe employee to create a false identity and falsely claim, on an online real estate message forum, that the Oceanpointe employee was an investor with Oceanpointe and Company 1, and that Oceanpointe had addressed all of the concerns regarding the investment property. These misrepresentations and others led to millions of dollars in losses to investors, which Whalen used to, among other things, fund his and Coconspirator 1’s lifestyle.
The conspiracy count and the three counts of wire fraud with which Whalen is charged each carry a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Real Estate Developer and Loan Officer Plead Guilty to Conspiracy to Make False Statements to BanksRead the Press Release
Tampa, Florida – Mordechai Boaziz (68, Fort Lauderdale) and Jonathan Marmol (41, Odessa) have pleaded guilty to conspiracy to make false statements to financial institutions. Each faces a maximum penalty of 5 years in federal prison. A sentencing date has not yet been set.
According to their plea agreements, beginning around the summer of 2006 and continuing through August 2008, Boaziz and Marmol conspired with others to execute a scheme to influence the credit decisions of financial institutions in connection with the sale of condominium units at The Preserve at Temple Terrace, a 392-unit condominium complex. Boaziz was converting The Preserve from an apartment complex into a condominium complex and hired Marmol to market the units.
In order to recruit and entice otherwise unqualified buyers to purchase units at The Preserve, the conspirators offered to pay the prospective buyers’ down payments (“cash-to-close”). The conspirators then intentionally concealed from the financial institutions the cash-to-close payments made on behalf of the buyers.
In particular, the HUD-1 Settlement Statements submitted to the financial institutions falsely stated that the buyers brought their own cash-to-close funds to purchase the condominium units, which influenced the financial institutions’ mortgage loan approval decisions. In reality, Boaziz funded the buyers’ cash-to-close and routed the payments through Marmol and others. As a result of the conspiracy, the financial institutions that financed the condominium unit purchases at The Preserve sustained a total loss of approximately $5 million.
This case was investigated by the Federal Housing Finance Agency–Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay L. Hoffer.
Queens Man Convicted of Extortion Conspiracy and Threatening Physical ViolenceRead the Press Release
A federal jury in Brooklyn returned a guilty verdict yesterday against defendant Yuan Li for extortion conspiracy and threatening physical violence in furtherance of an extortion plan. The verdict followed a four-day trial before United States District Judge Brian M. Cogan. When sentenced, Li faces a maximum sentence of 40 years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“With this verdict, Li now faces punishment for his role in using fear, intimidation and threats of violence to extort a rival who dared to open a gambling parlor on his co-defendant’s turf,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office (FBI), and the New York City Police Department for their work on the case.
The government’s evidence at trial established that Li’s co-defendant, Anthony Pineda, operated numerous gambling parlors from which he distributed large amounts of methamphetamine, in Flushing, Queens. In September 2017, the victim opened a gambling parlor in a building on College Point Boulevard that also housed one of Pineda’s gambling parlors. On September 28, 2019, Li and Pineda demanded that the victim pay 10 percent of his parlor’s profits. When the victim refused, Pineda brandished a gun and Li reiterated his demand for payment, but to no avail. The next day, Li and Pineda again demanded that the victim provide a percentage of his parlor’s profits. Fearing for his safety, the victim contacted the FBI.
The trial was part of a larger prosecution of 11 additional defendants who previously pleaded guilty. On August 14, 2019, lead defendant Anthony Pineda pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine, possessing a firearm in furtherance of a drug trafficking crime and threatening physical violence in furtherance of an extortion plan. On various dates between April and September 2019, co-defendants Joung Hwa Yun, Yunfeng Goa, Lu Zhai, Marco Rescino, Jing Wang, Ivan Kaleda and Guanghua Shen each pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine. In June and July 2019, co-defendants Nan Zhang and Ting Li each pleaded guilty to conspiracy to distribute five grams or more of methamphetamine. On May 21, 2019, Si En Li pleaded guilty to operating an illegal gambling business.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia E. Moore and Drew Rolle are in charge of the prosecution.
Defendant Convicted Yesterday:
YUAN LI (also known as “Mike”)
Age: 38
Queens, New YorkDefendants Awaiting Sentencing:
ANTHONY PINEDA
Age: 37
Queens, New York/San Francisco, CaliforniaYUNFENG GAO
Age: 34
Queens, New YorkIVAN KALEDA
Age: 29
Queens, New YorkSI EN LI
Age: 46
Brooklyn, New YorkTING LI
Age: 31
Queens, New YorkMARCO RESCINO
Age: 23
San Francisco, CaliforniaGUANGHUA SHEN
Age: 45Queens, New York
JIN WANG
Age: 35
Queens, New York
JOUNG HWA YUN
Age: 41
Queens, New YorkLU ZHAI
Age: 31
Queens, New YorkNAN ZHANG
Age: 32E.D.N.Y. Docket No. 18-CR-302 (MKB/BMC)
Providence Man Sentenced to 60 Months in Prison in Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE – A Providence man arrested by Newport Police members of the DEA Drug Task Force in August 2018 as he arrived at a pre-determined location in Newport to deliver heroin he arranged to sell to an undercover Newport Police Department detective was sentenced today to 60 months in federal prison for trafficking heroin, fentanyl, cocaine and crack cocaine, and for being a felon in possession of a firearm.
Franklin Valenzuela, 24, was arrested on August 31, 2018, as he arrived to deliver drugs for the third time in four days to the undercover Newport Police detective. The two previous deliveries tested positive for a mixture of heroin and fentanyl.
During the course of the investigation it was learned that Cranston Police Department detectives were also investigating Valenzuela’s drug trafficking activities.
At the time of his arrest, as he exited his vehicle, several small bags of heroin fell from Valenzuela’s lap. He was also found to be in possession of $1,393 in cash. According to court documents, Valenzuela consented to a search of his Providence residence from which law enforcement seized approximately 53 grams of a mixture of heroin and fentanyl, 90 grams of fentanyl, 70 grams of cocaine, 16 grams of crack cocaine, 412 grams of marijuana, a partly disassembled firearm, and $7,807 in cash.
An additional 22 grams of crack cocaine and 6 grams of fentanyl were found inside a secret compartment in Valenzuela’s vehicle.
On June 25, 2019, Valenzuela pleaded guilty to possession with intent to distribute cocaine base, heroin, cocaine, and fentanyl; distribution of cocaine and fentanyl; and felon in possession of a firearm.
At sentencing today, U.S. District Court Chief Judge William E. Smith sentenced Valenzuela to 60 months in federal prison to be followed by 4 years supervised release.
Valenzuela’s sentence is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the DEA’s New England Field Division Brian D. Boyle, Newport Police Chief Gary T. Silva, and Cranston Police Chief Colonel Michael J. Winquist.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Philadelphia Man Convicted at Trial for Illegal Possession of a Firearm as a FelonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Yasheam Washington, 31, of Philadelphia, PA was convicted today at trial for being a felon in possession of a firearm.
The evidence at trial showed that in November 2018, while police were patrolling the 1300 block of Chew Avenue in Philadelphia, they observed the defendant sleeping behind the wheel of a running car that was illegally parked. The officers became increasingly concerned for the defendant’s safety and pulled him out of the car, at which point they observed a firearm right underneath him, which they soon learned was loaded with live ammunition. As a previously convicted felon, Washington was prohibited from possessing a firearm.
“This is the second trial conviction secured by my Office this week of a felon illegally possessing a firearm in Philadelphia,” said U.S. Attorney McSwain. “As I have said many times, firearms in the hands of convicted felons undeniably pose a serious threat to public safety. Unlike the District Attorney, my Office and I treat illegal gun possession cases like the serious crimes that they are. That is what is needed in order to combat the City’s epidemic of homicides and shootings. The District Attorney is enabling this epidemic in many ways, not the least of which by routing illegal gun possession cases into diversionary programs designed for low-level, non-violent offenders -- not dangerous criminals and potential murderers.”
“ATF’s top priority is combating violent crime; one of the ways we accomplish that mission is by keeping firearms out of the hands of violent offenders,” said Donald Robinson, Special Agent in Charge, ATF Philadelphia Field Division. “This conviction is a perfect example of the collaborative effort between ATF and our partners at the Philadelphia Police Department and the United States Attorney’s Office in targeting violent offenders and protecting our communities.”
“The arrest and successful prosecution of Yasheam Washington, a recidivist offender, evidences the value of sustained collaboration between law enforcement partner agencies,” said Acting Philadelphia Police Commissioner Christine Coulter. “We anticipate that his conviction and attendant sentence will have an appreciable impact on the safety of the community we serve.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with substantial assistance from the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Erica Kivitz, Eric Henson, and Daniel Velez.
Peruvian national charged with assaulting and injuring deportation officers aboard Delta airlines flightRead the Press Release
ATLANTA – Jhovany Arias-Herrera has been arraigned on the federal charge of forcibly assaulting Homeland Security Investigation, Enforcement and Removal Operations, officers.
“Herrera, who is an illegal alien, allegedly assaulted and injured federal officers, and disrupted an airlines flight just prior to departure,” said U.S. Attorney Byung J. “BJay” Pak. “This defendant’s conduct caused physical injuries to federal law enforcement officers performing their duties and created havoc and panic for passengers aboard an airline. Our office has zero tolerance for individuals assaulting our law enforcement partners.”
“Every day the brave men and women of ERO face danger while carrying out their duties. I commend the quick reaction of those officers to prevent the situation onboard the aircraft from escalating further,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “An assault on any member of law enforcement is an assault on all of us and HSI will vigorously seek criminal prosecution on those who do in a court of law.”
According to U.S. Attorney Pak, the charges, and evidence presented at trial: On November 13, 2019, Herrera allegedly assaulted and resisted federal officers who were deporting him from the United States to Lima, Peru, his home country of origin. At the time of the incident, four HSI Enforcement and Removal Operations officers were transporting Herrera on Delta Airline flights from San Diego, California, through Atlanta with Peru as the final destination.
After arriving at Hartsfield-Jackson International Airport in Atlanta, the deportation officers escorted Herrera to the boarding area for the Atlanta flight. After boarding the flight, but before engaging his seatbelt, Herrera suddenly began screaming and demanding to use the bathroom. At the time, airline officials had already ordered passengers to fasten their seatbelts and closed and secured the door of the airplane. All the deportation officers present attempted to calm Herrera, including by allowing him access to the bathroom.
As an officer escorted Herrera to the bathroom, Herrera then punched the airplane wall frightening nearby passengers. Flight attendants responded and tried to calm the passengers as Herrera entered the bathroom. While Herrera was in the bathroom, another officer coordinated with a flight attendant to change Herrera’s seat assignment.
Herrera began yelling again after he left the bathroom and discovered his seat reassignment. The officers then decided to remove Herrera from the airplane. At the time, Herrera was seated in a middle seat, still screaming, and with clenched fists. As two of the officers tried to remove him, Herrera tore off his sweater and threw it at passengers seated in front of him. Two other officers immediately grabbed Herrera’s arms and attempted to escort him off the airplane. Herrera pulled away from the officers, began punching toward the officers’ face and chest areas, and tried to kick the officers’ legs and lower body.
During the struggle Herrera kicked an officer, striking him in the knee, causing bruising to that officer. Herrera repeatedly struck another officer as well. Eventually, the officers removed Herrera from the flight where Atlanta Police officers assisted in detaining him.
Jhovany Arias-Herrera, 27, of Lima, Peru, was arraigned Wednesday November 20, 2019. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the Government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
Homeland Security Investigations is investigating this case, with assistance from the Atlanta Police Department.
Assistant U.S. Attorneys Richard S. Moultrie, Jr., Chief of the office’s Violent Crime and National Security Section, and Radka Nations are handling the prosecution.
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.
Peoria Man Sentenced to 15 Years in Federal Prison for Trafficking MethRead the Press Release
PEORIA, Ill. – David A. Dodd, 45, of Peoria, Ill., has been ordered to serve 15 years in prison for possession of “ice” methamphetamine with the intent to distribute. At sentencing, on Nov. 20, Senior U.S. District Judge Joe Billy McDade further ordered that Dodd remain on supervised release for 10 years following his release from incarceration.
Dodd pleaded guilty on July 17, 2019. According to court documents, on Dec. 21, 2018, agents with the Pekin Police Department and Drug Enforcement Administration executed a search warrant on Dodd and his truck as he drove into Tazewell County on I-155 northbound. Officers recovered approximately five ounces of 100% pure ice methamphetamine from his truck at that time. Dodd admitted to agents that he had been trafficking meth from the St. Louis area for several months and selling it in the Pekin area. Additional methamphetamine and approximately $2600 in cash was found in Dodd’s apartment and seized by law enforcement.
According to public records, Dodd has a 2011 conviction for methamphetamine manufacturing in White County, Illinois, for which he served 10 years in the Illinois Department of Corrections, and four additional drug-related felonies from White County.
Dodd has remained in the custody of the U.S. Marshals Service since his arrest on these charges on Dec. 22, 2018.
Assistant U.S. Attorney Katherine Legge prosecuted the case, which was investigated by the Pekin Police Department and the Drug Enforcement Administration.
Pennsylvania Man Sentenced to 26 Years in Federal Prison for Coercion and Enticement of a Minor to Engage in Illegal Sexual ActivityRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell, III today sentenced Howard Keith Goodson, age 50, of Hatfield, Pennsylvania, to 26 years in federal prison, followed by lifetime supervised release, for coercion and enticement of a minor to engage in illegal sexual activity. Judge Russell also ordered that, upon his release from prison, Goodson must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Caroline County Sheriff Randy Bounds; Greensboro Police Chief Eric Lee; and Caroline County State’s Attorney Joe Riley.
According to his guilty plea, in late 2016 or early 2017 Goodson met the victim, who was a 15-year-old girl in ninth grade, on a social media website where the victim hosted a blog. Goodson and the victim began communicating through the social media website, but eventually corresponded through phone calls, text messages, and a smartphone-based messaging application. Goodson knew the victim was a minor. The nature of Goodson’s communication with Jane Doe was consistent with a Bondage, Discipline, Sadism, Masochism (BDSM) relationship in which the dominant partner employs psychological control over the submissive partner.
Between October 2017 and January 2018, Goodson sent a series of sexually explicit messages to the victim, including messages stating his dominance over the victim. Between January and April 2018, Goodson drove from Pennsylvania to Maryland to meet the victim on at least four occasions—at least three of which were to engage in illicit sexual conduct with the victim. Goodson continued to send sexually explicit messages to the victim, including messages discussing punishing the victim and stating that the victim was Goodson’s “property.” During a February 2018 visit to the victim’s residence in Maryland, Goodson produced four images documenting his sexual abuse of the victim.
The victim’s mother saw Goodson leaving the house on April 16, 2018, contacted 911 and followed Goodson while contacting the victim’s father, who blocked the road ahead of where Goodson was driving, forcing Goodson to pull over. Goodson was arrested on federal charges on May 4, 2018, and has been in custody since that time.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the HSI, the Caroline County Sheriff’s Office, Greensboro Police Department, and the Caroline County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Judson T. Mihok, who prosecuted the federal case.
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Owner of Long Island Tax Preparation Business Sentenced to Prison for Preparing False ReturnsRead the Press Release
A former tax return preparer was sentenced to 24 months in prison today for aiding in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court filings and statements made in court, Mariano Exantus owned and operated Latrex Multi Service, a tax return preparation business located in Uniondale, New York. From at least 2011 through 2016, Exantus prepared and filed fraudulent tax returns for his clients with the Internal Revenue Service (IRS) in which he inflated their refunds, or caused the clients to be issued a refund to which they were not legally entitled. On these returns, Exantus falsified itemized deductions and also claimed false credits, including the American Opportunity Tax Credit. Exantus’s conduct caused a tax loss of more than $250,000 to the United States.
In addition to the prison term, U.S. District Judge Arthur D. Spatt ordered Exantus to serve one year of supervised release, and to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS - Criminal Investigation, who conducted the investigation, and Trial Attorneys Carl Brooker and Sarah Ranney of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Orthopedic Surgeon Sentenced to 2½ Years in Federal Prison for Receiving Kickbacks in Massive Health Care FraudRead the Press Release
SANTA ANA, California – A spinal surgeon was sentenced today to 30 months in federal prison for participating in a long-running health care fraud scheme in which he received at least $5 million in kickbacks for performing hundreds of spinal surgeries. The overall scheme resulted in more than $580 million in fraudulent bills being submitted, mostly to California’s worker compensation system.
Dr. Daniel Capen, 70, of Manhattan Beach, was sentenced by United States District Judge Josephine L. Staton, who also ordered Capen to forfeit $5 million to the United States and pay a $500,000 fine.
Capen, an orthopedic surgeon specializing in spinal surgeries, pleaded guilty in August 2018 to conspiracy to commit honest services fraud, and soliciting and receiving kickbacks for health care referrals.
The kickback scheme centered on Pacific Hospital in Long Beach, which specialized in surgeries, especially spinal and orthopedic procedures. Pacific Hospital’s owner, Michael D. Drobot, conspired with doctors, chiropractors and marketers to pay kickbacks in return for the referral of thousands of patients to Pacific Hospital for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system.
Capen received kickbacks for referring surgeries to Pacific Hospital and also for using medical hardware from a Pacific Hospital-affiliated entity during the spinal surgeries he performed. He also received kickbacks for referring medical services such as urine and drug testing to Pacific Hospital-affiliated entities.
In total, between 1998 and 2013, Capen accounted for approximately $142 million of Pacific Hospital’s claims to insurers, on which the hospital was paid approximately $56 million. Capen admitted to receiving at least $5 million in kickbacks during the course of his crimes.
Drobot is serving a five-year prison sentence for conspiracy and paying illegal kickbacks, and has admitted that he orchestrated a wide-ranging fraudulent kickback scheme where paid more than $50 million in bribes to doctors to steer hundreds of millions of dollars in spinal surgeries to his hospital. Drobot ultimately profited millions of dollars from the scheme. Drobot currently faces additional federal criminal charges for allegedly violating a court forfeiture order by illegally selling his luxury cars.
Seventeen defendants have been charged in connection with the scheme, and 10 of them have been convicted, including Drobot and his son. Another doctor – Timothy James Hunt, 55, of Palos Verdes Estates – was sentenced in late September to two years in federal prison after he admitted taking illegal kickbacks.
The investigation into the spinal surgery kickback scheme was conducted by the FBI; IRS Criminal Investigation; the California Department of Insurance; and the United States Postal Service, Office of Inspector General.
This case is being prosecuted by Assistant United States Attorneys Joseph T. McNally of the Violent and Organized Crime Section, Scott D. Tenley of the Santa Ana Branch Office, Ashwin Janakiram of the Major Frauds Section, and Victor A. Rodgers of the Asset Forfeiture Section.
Okmulgee Man Sentenced to 60 Months for Firearm Possession in Furtherance of Drug Trafficking CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Johnny Scott Sadler, age 48, of Okmulgee, Oklahoma, was sentenced to 60 months’ imprisonment and 5 years of supervised release for Possession Of A Firearm In Furtherance Of A Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
The Indictment alleged that on February 23, 2019, within the Eastern District of Oklahoma, the defendant knowingly possessed a Bushmaster Firearms Inc., Model BACR, Multi caliber semi-automatic rifle (.223 caliber barrel), a firearm, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
United States Attorney Brian J. Kuester said, “Firearms are tools of the trade for people involved in the business of drug dealing because violence is a characteristic of drug trafficking organizations. Every time we are able to investigate and prosecute a person who has used a weapon to further a drug trafficking crime, we have lessened the likelihood of violent crime in a community. That is one of DOJ’s top priorities.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.Nurse Pleads Guilty to Mail Fraud in Connection with Compound Pharmacy Fraud SchemeRead the Press Release
Jackson, Miss. – Fallon Deneem Page, 37, of Hattiesburg, pled guilty yesterday before Senior U.S. District Judge Keith Starrett to mail fraud in connection with a compound pharmacy fraud scheme, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
In October 2014, Page, a registered nurse, received $100 for each patient she referred to Medical Solutions of Ocean Springs, a company owned and operated by Dr. Shahajan Sultan. Each patient had to have health insurance benefits that would cover the cost of expensive compound medications manufactured and dispensed by a pharmacy located in Jackson County, Mississippi. If the patient was covered by health insurance, Page and others performed cursory medical examinations, sometimes in public locations such as parking lots, playgrounds, and gas stations. During the short assessments, the patients were prescribed expensive compound medications and their insurance companies were billed.
On October 23, 2014, Page provided a patient’s health insurance information to Medical Solutions of Ocean Springs and/or the pharmacy in Jackson County. The patient actually never had a consultation with the doctor. As a result of Page providing the information, the pharmacy shipped via Federal Express the compound medications. Page admitted to knowing there was no medical necessity for the expensive prescriptions, and she further admitted that she knew by submitting the claim, the health insurance company would pay. In total, the insurance company reimbursed the pharmacy for the October 23, 2014, prescriptions approximately $34,047.00.
Page will be sentenced by Judge Starrett on February 26, 2020, and faces a maximum penalty of 20 years in prison and a $250,000 fine.
The case was investigated by the FBI and the Department of Defense Criminal Investigative Service. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk prosecuted the case.
Northfield Woman Sentenced to 10 Years in Prison for Drug Trafficking and Firearms Conspiracy CrimesRead the Press Release
CONCORD – Kristina Blake, 29, of Northfield, was sentenced in federal court Thursday, to 10 years in prison for participating in a conspiracy to distribute methamphetamine and a conspiracy to possess firearms during a drug trafficking crime, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, on September 19, 2018, law enforcement officers encountered Blake and Daniel Irving in a vehicle near a convenience store in Concord, New Hampshire. Officers seized over 50 grams of methamphetamine and two firearms from the vehicle. In addition, drug paraphernalia, including a glass mirror, digital scale, a ledger, syringes and plastic baggies were seized.
Blake previously pleaded guilty on August 15, 2019. Irving was sentenced to 96 months on October 11, 2019.
“Methamphetamine is a dangerous drug and dealers should expect to spend years in a federal prison,” said U.S. Attorney Murray. “Sentences are increased where firearms are involved in the drug trafficking business. In order to protect the people of New Hampshire, will continue to seek lengthy prison terms for armed drug dealers.”
"Kristina Blake made the terrible choice to traffic in this highly addictive stimulant, the abuse of which is epidemic," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "The citizens of Concord can rest easy knowing Ms. Blake is off their streets for the decade to come, and that the FBI and our law enforcement partners remain committed to protecting their city from the scourge of pushers and pistols."
This matter was investigated by the Federal Bureau of Investigation and the Concord Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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New Orleans Man Sentenced to 102 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that defendant WAYNE BANKS, 33 years of age, of New Orleans, Louisiana, was sentenced on Thursday, November 21, 2019 by U.S. District Court Judge Mary Ann Vial Lemmon for charges relating to being a felon in possession of a firearm.
BANKS pled guilty on August 8, 2019, to being a felon in possession of a firearm, in violation of Title 18, United States Code, § 922(g)(1), possessing with the intent to distribute a quantity of heroin, in violation of Title 21, United States Code, § 841(a)(1), and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, § 924(c)(1)(A)(i).
Judge Mary Ann Vial Lemmon sentenced BANKS to 102 months in the Bureau of Prisons, as well as 3 years of supervised release following his term of imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the New Orleans Gang Task Force of the Federal Bureau of Investigation, Louisiana State Police and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Elizabeth Privitera was in charge of the prosecution.
New Jersey/Pennsylvania Doctor Pleads Guilty to Accepting Bribes and Kickbacks in Exchange for Prescribing Powerful Fentanyl DrugRead the Press Release
A doctor who practiced in New Jersey and Pennsylvania pleaded guilty today for his participation in a scheme to receive over $140,000 in bribes and kickbacks from a pharmaceutical company in exchange for prescribing large volumes of a powerful fentanyl narcotic.
Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field Office, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Office of Investigations – New York Region, Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s (DEA) New Jersey Division, Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service – Office of Inspector General (USPS-OIG) and Special Agent in Charge Michael C. Mikulka of the U.S. Department of Labor Office of Inspector General New York Region made the announcement.
Kenneth Sun, M.D., 58, of Easton, Pennsylvania, pleaded guilty to one count of conspiracy to defraud the United States and to pay and receive health care kickbacks before U.S. District Judge Anne E. Thompson of the District of New Jersey. Sentencing has been scheduled for Feb. 26, 2020, before Judge Thompson.
As part of his guilty plea, Sun admitted that from 2012 to 2016, he conspired with others to solicit and receive more than $140,000 in bribes and kickbacks from Insys Therapeutics, a pharmaceutical company based in Arizona in exchange for prescribing more than 28 million micrograms of Subsys, a powerful opioid narcotic designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue. Subsys contains fentanyl, a synthetic opioid pain reliever which is approximately 50 to 100 times more potent than morphine. The U.S. Food and Drug Administration approved Subsys solely for the “management of breakthrough pain in cancer patients who are already receiving and who are tolerant to around the clock therapy for their underlying persistent cancer pain.” Sun admitted that he prescribed Subsys to patients for whom Subsys was medically unnecessary, not eligible for insurance reimbursement and unsafe.
Sun also admitted that the bribes and kickbacks he received from Insys Therapeutics in exchange for prescribing Subsys were disguised as “honoraria” for educational presentations regarding Subsys that Sun purportedly provided to licensed practitioners. In reality, Sun admitted, these presentations were a sham: they lacked the appropriate audience of licensed practitioners seeking educational information regarding Subsys; there was no presentation about Subsys whatsoever; the same individuals attended over and over again; and Sun did not attend some of the presentations at all. Sun caused Medicare to pay more than $847,000 for Subsys prescriptions that were medically unnecessary, procured through the payment of kickbacks and bribes and not eligible for Medicare reimbursement, he admitted.
The FBI, HHS-OIG, the DEA, USPS-OIG and DOL-OIG investigated the case. Trial Attorney Rebecca Yuan of the Criminal Division’s Fraud Section is 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.
New Haven Man Sentenced to 46 Months for Illegally Possessing and Selling FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDRE JOHNSON, also known as “Cuzz Crip” and “Cuzzy Blue,” 31, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 46 months of imprisonment, followed by three years of supervised release, for illegally possessing and selling firearms.
According to court documents and statements made in court, law enforcement made three controlled purchases of firearms from Johnson. During the third purchase, on February 28, 2019, Johnson sold a Taurus model PT 24/7 Pro DS 9mm, a loaded extended magazine and a loaded standard magazine in exchange for $900.
Johnson’s criminal history includes state felony convictions for illegal possession of an assault weapon and possession with intent to distribute a controlled substance.
Johnson has been detained since his arrest on April 11, 2019. On July 31, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Haven Police Department and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Monongalia County man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Buzzo, of Granville, West Virginia, was sentenced today to three years’ probation, with the first six months on home detention, for his involvement in a drug distribution operation, U.S. Attorney Bill Powell announced.
Buzzo, age 58, pled guilty to one count of “Aiding and Abetting Distribution of Cocaine Base” in April 2019. Buzzo, age 58, admitted to selling cocaine base in Monongalia County in June 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Mexican National Sentenced to 111 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Raul Alexis Gamez-Garcia, age 26, of Hermosillo, Senora, Mexico, was sentenced to 111 months’ imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2. The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration (“DEA”).
The Indictment alleged that on or about January 7, 2019 within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “This defendant chose to participate in the distribution of an illegal drug – methamphetamine – that has taken many lives. He will now be held accountable for the role he played for a drug trafficking organization. I am thankful for the continued diligence of the Oklahoma Highway Patrol and the DEA in their fight against drug trafficking.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.
Mexican National Previously Released Under Philadelphia’s Sanctuary City Policy Is Recaptured and Indicted for Illegal ReentryRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Alan Eder Torres-Gomez, 30, was charged today by Indictment with illegal reentry after deportation.
As has been previously reported publicly, Torres-Gomez was charged with state offenses in Philadelphia on September 14, 2018, and on that same day, he was charged federally by criminal complaint with illegal reentry after deportation. A United States Magistrate Judge then issued a federal warrant for his arrest. That federal arrest warrant was lodged at the Curran-Fromhold Correctional Facility in Philadelphia where Torres-Gomez was being held on his state charges. His state charges were dismissed on November 26, 2018, but Torres-Gomez did not appear on his federal charges because the City of Philadelphia released him from custody on November 28, 2018 without first notifying Immigration and Customs Enforcement (ICE) or the United States Marshals Service, despite the existence of the federal warrant.
As a result, Torres-Gomez has been on the loose for months, but he is now thankfully back in federal custody, no longer able to pose a threat to the community. And now he will have to answer the federal charges of illegal reentry after deportation.
The Indictment alleges that Torres-Gomez, an alien, and native and citizen of Mexico, was previously deported from the United States on or about August 11, 2009 and December 12, 2016. Following the latest of his deportations, Torres-Gomez allegedly reentered the United States illegally. If convicted of this current illegal reentry offense, the defendant faces a maximum possible sentence of 2 years’ imprisonment.
“Philadelphia’s sanctuary city policy politicizes law enforcement by playing favorites in which one group of people (illegal aliens) is singled out as not having to follow the law. This creates a double-standard that is un-American, morally wrong and makes a mockery of the rule of law," said U.S. Attorney McSwain. "It also threatens public safety when, as here, the City ignores lawful federal arrest warrants and detainers. Nobody who cares about equal treatment under the law – or about public safety – can support the City’s policy. We at the U.S. Attorney’s Office will continue to enforce the rule of law in a neutral, non-partisan manner, rather than playing favorites.”
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Timothy M. Stengel
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Memphis Man Sentenced to 20 Years in Federal Prison for Attempted Business Robbery and Discharging a Firearm During a Crime of ViolenceRead the Press Release
Memphis, TN – Lamar Clancy, 26, has been sentenced to 243 months in federal prison for the attempted armed robbery of the Boost Mobile Store at 4684 Millbranch in Memphis. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented at trial, Clancy and another man entered the store wearing masks and pointing handguns at store employees. Two of the store employees drew their firearms to defend against the shots fired by Clancy and his accomplice. After one of the unarmed employees was shot, Clancy, who himself was also shot, retreated from the store with the other robber. Clancy was dropped off at the Methodist South Hospital emergency room minutes after the attempted robbery, and was apprehended by the Memphis Police.
On May 9, 2019, after a four-day federal jury trial, Clancy was found guilty on a two-count indictment for attempted business robbery and discharging a firearm during a crime of violence.
Today, U. S. District Court Judge John T. Fowlkes Jr., sentenced Clancy to 243 months in federal prison followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Violent crimes must be met with significant consequences in order to incapacitate dangerous offenders, deter future violence, achieve justice for victims and the community, and uphold the rule of law. This sentence demonstrates our commitment and resolve to protect the public by making violent trigger-pullers pay for their crimes."
This case was investigated by FBI Safe Streets Task Force Agents.
The United States Attorney’s Office, Western District of Tennessee prosecuted this case on behalf of the government.
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Maryland man offers guilty plea for cyberstalking Ohio victimsRead the Press Release
COLUMBUS, Ohio – A Maryland man offered a guilty plea today in U.S. District Court to cyberstalking victims in the Southern District of Ohio.
Vincent Brocoli, 32, of Essex, Md., was indicted by a federal grand jury in August.
According to court documents, from August 2016 until April 2019, Brocoli (also known as Matthew Dehart, BunchMedia and BunchMarketing), cyberstalked a female victim and her parents by creating social media accounts in their names, sending them threats, and using the Internet to cause substantial emotional distress to their family.
Brocoli created social media accounts like @xokirstylies1, @xokirstyslut1 and @killyourselfkirsty, among others.
The defendant used the Internet to post photos of the victim with a cross on her forehead and send messages like “I hope you get cancer and die UGLY SLLUT [sic],” and “Go away and die. Just put a gun in your mouth and get it over with.”
Court documents also details that, over the course of nearly three years, Brocoli used the Internet and multiple social media platforms to post threatening and sexually vulgar comments, calling the victim a “worthless lying slut” and a “whore.” Brocoli also used the Internet to post comments asserting that the victim and her husband had AIDS, like claiming that the victim “took [her husband]’s gay cum down her throat and now she has aids. Diseased whorebag.”
Brocoli posed as the victim’s father and mother online by creating multiple Instagram and Twitter handles using their names. He also used the Internet to post comments to the victim’s mother, calling her a “pedophile,” commenting that she needed “to be arrested for child abuse,” and telling her to “Shut up and die.” Brocoli further used the Internet to post to the victim’s father that he would “be the first to go to hell and answer to the real God when the time comes.”
Cyberstalking is a federal crime punishable by up to five years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered today before U.S. Magistrate Judge Kimberly A. Jolson. Assistant United States Attorney Jessica H. Kim and Special Assistant United States Attorney Christopher N. St. Pierre are representing the United States in this case.
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Maryland Man Sentenced to Prison for Credit Card OffensesRead the Press Release
Portland, Maine: A Beltsville, Maryland man was sentenced today in federal court in Portland for his involvement in a conspiracy to use stolen credit card numbers, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr., sentenced Marcellin N’Din, 36, to concurrent sentences of 22 months imprisonment and three years of supervised release on two access-device-fraud charges. He was also ordered to pay a $1,000 fine. The amount of restitution he will be ordered to pay to victims will be determined at a later date. He pleaded guilty on July 10, 2019.
According to court records, N’Din conspired with others to use counterfeit credit cards at Maine stores. N’Din himself used counterfeit cards to make purchases at several Maine stores in August 2018. A search of a hotel room used by a co-defendant, Bryan Boley, in January of this year led to the seizure of several dozen plastic cards, 47 of which had been fraudulently re-encoded; about 25 receipts showing purchases of gift cards and other items; and a credit card reader/writer.
Last week, Boley was sentenced to 22 months imprisonment and three years of supervised release, and ordered to pay a $1000 fine.
The U.S. Secret Service; the Maine State Police; and the Auburn, Brunswick, Cape Elizabeth and Yarmouth police departments investigated the case.
Mansfield Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A Mansfield man was sentenced today in federal court in Boston for failure to register as a sex offender.
Lawrence Sheedy, 45, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison and five years of supervised release. In November 2018, Sheedy pleaded guilty to one count of failure to register as a sex offender. Sheedy was indicted in May 2018 and has been in federal custody since completing a state sentence in January 2019.
In 2004, Sheedy was convicted in Virginia of one count of sexual battery on a child less than thirteen years of age and sentenced to 20 years in prison, with four years to serve and the balance suspended for 20 years of probation. As a result, under Virginia law, Sheedy was required to register as a sex offender for life, and required by the Sex Offender Registration and Notification Act (SORNA) to register as a sex offender in any jurisdiction where he resided or worked. After his release from prison on this offense, Sheedy was convicted of other offenses and served additional time in prison.
In 2017, after his most recent release from prison, Sheedy left Virginia without the permission of the probation department, and moved to Massachusetts, where he lived in Mansfield and eventually worked in Foxborough. He did not inform authorities in Virginia that he had moved, and did not register as a sex offender in Massachusetts. In March 2018, Sheedy was arrested for an unrelated state offense, and discovered to be in violation of probation out of Virginia. Law enforcement also learned that Sheedy had not registered, as required by law, with the Massachusetts Sex Offender Registry Board.
United States Attorney Andrew E. Lelling and John Gibbons, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Lelling’s Major Crimes Unit prosecuted the case.
Manhattan U.S. Attorney Announces Indictment and Arrest of Ophthalmologist for Healthcare FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that AMEET GOYAL, M.D. (“GOYAL”), an ophthalmologist with practices in Rye, Mt. Kisco, and Wappingers Falls, New York, and Greenwich, Connecticut, has been indicted for healthcare fraud. Mr. Berman’s Office also today filed a civil fraud complaint against GOYAL and the entity that owns his medical practice, AMEET GOYAL, M.D, P.C. d/b/a/ THE EYE ASSOCIATES GROUP (the “Practice”), under the False Claims Act.
Specifically, the Indictment charges GOYAL with fraudulently billing patients, Medicare, and private insurance programs millions of dollars, between 2010 and 2017, for complex eye surgeries that GOYAL had not actually performed. The Civil Complaint further alleges that GOYAL and his Practice engaged in widespread healthcare fraud by consistently “upcoding” these and other surgical procedures, examinations, and tests in fraudulent billings submitted to Medicare and Medicaid. As alleged, GOYAL also falsified patient medical records, pressured other employees in his Practice to engage in the scheme, and initiated debt collection proceedings against patients who did not pay the full amounts of his fraudulently billed charges.
GOYAL was arrested this morning and was arraigned in federal court today before United States Magistrate Judge Paul E. Davison. The case is assigned to U.S. District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Dr. Ameet Goyal repeatedly upcoded minor ophthalmological procedures, defrauding insurers and patients by grossly overbilling, netting millions in ill-gotten gains in the process. As further alleged, Goyal also billed for tests and procedures that were never performed, falsified medical records, bullied others in his practice to abet the scheme, and intimidated patients who questioned their bills. Thanks to our law enforcement partners, Goyal’s conduct has come into focus. Ameet Goyal now faces criminal prosecution and civil sanctions for his conduct.”
FBI Assistant Director William F. Sweeney Jr. said: “When we go to the doctor, we have to put our faith in their knowledge because they have expertise we don’t. Dr. Goyal allegedly lied to patients about what they were being billed for, forced them to pay for treatments they didn’t receive, and then threatened his staff if they expressed alarm about taking part in the fraud. Medical practitioners who are more concerned with their profits than with the health of their patients are going against the oath they took, they are doing harm and they should be held accountable.”
HHS-OIG Special Agent in Charge Scott Lampert said: “Goyal’s reprehensible conduct compromised patient care and undermined the integrity of the Medicare program. Along with our law enforcement partners, HHS-OIG will continue to protect the public and ensure that those who bill for services provided by taxpayer funded health care programs do so in an honest manner.”
According to the Indictment[1]:
From at least in or about January 2010 through in or about March 2017, GOYAL systematically submitted false and fraudulent claims that misrepresented the services provided to patients of the Practice and falsely billed for higher-paying surgical treatments than the lower-paying, minor procedures actually performed.
For example, GOYAL and others at the Practice routinely treated patients for an excision of a chalazion, a small bump on an eyelid, typically removed in less than 15 minutes. An excision of chalazion, when billed truthfully under its associated code, paid the Practice approximately $200 on average from patients and insurance programs. However, GOYAL systematically billed an excision of chalazion and other similar superficial eyelid procedures as if he had performed an orbitotomy together with a conjunctivoplasty, which are complex surgeries into the orbit of the eye, often to remove an orbital tumor, that typically take an hour or more to perform. These substantial surgeries, as billed, paid the Practice approximately $1,400 on average from a combination of insurance and patient out-of-pocket payments. Goyal also upcoded certain superficial procedures as an excision and repair of eyelid, a type of higher-paying eyelid surgery involving reconstruction or removal of certain lesions other than chalazions. During the relevant time period, GOYAL billed less than 40 chalazions under the billing code designated for excision of chalazion, while billing over 1,400 orbitotomies, over 700 bundled conjunctivoplasties, and over 1,600 excision and repair of eyelid surgeries, all of which he claimed to have performed personally.
To further effectuate the scheme, GOYAL directed other employees of the Practice, including other ophthalmologists, to upcode minor procedures into higher-paying surgeries. GOYAL threatened the livelihood of employees who were reluctant to comply with these directions.
Between about January 2010 through about March 2017, GOYAL caused the Practice to bill insurance programs and patients over $8 million for supposedly performed orbitotomies, bundled conjunctivoplasties, and excisions and repair of eyelid. The Practice received over $3 million in payments for these claims, a substantial portion of which were fraudulently billed.
According to the Civil Complaint, in addition to falsely billing for orbitotomies and conjunctivoplasties and other related codes:
GOYAL and his Practice routinely submitted fraudulent claims to Medicare and Medicaid for a wide range of other surgical procedures, examinations, and tests purportedly performed by GOYAL that were not actually performed, not medically necessary, not documented in the medical records, and/or failed to otherwise comply with Medicare and Medicaid rules and regulations. In order to justify this billing, GOYAL falsified patient diagnoses and prepared operative reports that falsely described the procedures performed on patients. The lawsuit seeks to recover treble damages and civil penalties under the False Claims Act.
* * *
GOYAL, 56, of Rye, New York, is charged with three counts in the Indictment. The first count charges healthcare fraud, which carries a maximum sentence of 10 years in prison; the second count charges wire fraud, which carries a maximum sentence of 20 years in prison; the third count charges making false statements relating to health care matters, which carries a maximum sentence of five years in prison. The maximum potential sentences 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 the FBI and HHS-OIG.
This criminal case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Vladislav Vainberg, David Felton, and Margery Feinzig are in charge of the prosecution. The civil lawsuit is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the civil case.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man with over Thirty Prior Criminal Convictions Sentenced to Federal Prison for Selling CocaineRead the Press Release
An Iowa man who distributed cocaine was sentenced today to 30 months in federal prison.
Antonio Robertson, age 43, from Manchester, Iowa, received the prison sentence after a May 31, 2019 guilty plea to distribution of cocaine after a prior felony drug conviction.
Information disclosed at sentencing and at his plea hearing showed that on two occasions in October 2018, Robertson sold cocaine to another person. Robertson has 31 prior criminal convictions, five of which are violent offenses. Two of Robertson’s prior convictions were firearms-related offenses and thirteen of his offenses occurred while he was on probation or parole for another offense.
Robertson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Robertson was sentenced to 30 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Manchester Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00027.
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Maine Man Arrested for Hobbs Act RobberyRead the Press Release
BOSTON – A Maine man has been arrested and charged with Hobbs Act robbery.
William “Billy” Angelesco, 48, of Saco, Maine, was indicted on one count of interfering with commerce by threats or violence. Angelesco was arrested this morning and will appear in federal court in Portland, Maine today. He will appear in Boston at a later date.
The charging statute provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Abington Police Chief David G. Majenski made the announcement today. Assistance was provided by the Saco (Maine) Police Department. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
MS-13 Gang Member Sentenced for Role in Gang-Related AssaultRead the Press Release
ALEXANDRIA, Va. – An MS-13 gang member was sentenced today to 38 months in prison for his role and participation in a violent gang-related assault of a victim with multiple bats.
Marlon Edgardo Huezo Rivera, aka “Oscuro,” 19, of Falls Church, a member or associate of the Chilangueras clique of MS-13 in Northern Virginia, is the final charged defendant to be sentenced in this case.
“This purpose of this senseless assault was to serve MS-13’s warped code of violence and overarching mission of instilling fear through violence,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Huezo Rivera’s conduct demonstrates his contempt for the law and his total disregard for the safety of the people who make up this community.”
According to court documents, Huezo Rivera and several other members and associates of MS-13 lured the victim to James Lee Park in Falls Church so that they could assault the victim. Rivera and other members and associates of MS-13 believed the victim was cooperating with law enforcement, falsely representing himself as a member of MS-13, and disparaging the Silvas clique of MS-13. After luring the victim to the park under false pretenses, Huezo Rivera, and approximately a dozen other members and associates of MS-13, beat the victim with bats, fists, and feet for approximately three minutes. As a result of the beating, the victim suffered multiple broken limbs and was hospitalized for several days.
"Today's sentencing shows how focused the Washington Field Office and its local, state and federal partners are in dismantling the MS-13 threat in the Capital Region," said Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office. "Huezo Rivera and his fellow gang members terrorized our community, but his sentencing today sends a clear message that violent criminals cannot evade the law. I would like to thank the FBI Special Agents, the prosecutors, and our local partners for their hard work on this case."
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Nicholas U. Murphy II, Cristina Stam, and Special Assistant U.S. Attorney Shauna Hale prosecuted the case.
This investigation was conducted by the Federal Bureau of Investigation, Washington Field Office's Safe Street/HIDTA Task Force - Northern Virginia with the Fairfax County Police. This task force is composed of FBI Agents, along with Detectives from the Fairfax County Police, the Prince William County Police, the Loudon County Sheriff's Office, the Fauquier County Sheriff's Office, the Arlington County Police, the Herndon Police Department, the Leesburg Police Department, the Vienna Police Department, the Fairfax City Police, the Alexandria City Police, along with Agents from the Department of Homeland Security, Homeland Security Investigations, Officers of the Immigration and Customs Enforcement and works cooperatively with the USMS, ATF, the Falls Church Police Department, the Prince George's County Police, MPD and the Montgomery County Police. This task force is charged with investigating, disrupting and dismantling MS-13 activity impacting the Capital Region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-129.
Local rapper sent to federal prison for sex trafficking of a minorRead the Press Release
HOUSTON – A 27-year-old Houston resident and member of The Sauce Factory has been sentenced for conspiracy and sex trafficking, announced U.S. Attorney Ryan K. Patrick. A Houston federal jury deliberated for less than eight hours before convicting Jaimian Sims May 20 after five days of trial.
Today, U.S. District Judge David Hittner sentenced Sims to life in prison. Sims was further ordered to pay $1575 in restitution to a minor victim. In handing down the sentence, Judge Hittner stated Sims was a threat to society. The court also noted he had received several letters of support, one in particular claiming Sims was a positive role model in the community. The government contended Sims has not made any contribution to society and that he and other members of The Sauce Factory waive around firearms, large amounts of cash and glorify a materialistic lifestyle built on the backs of sexually-exploited women. Sims will also be required to register as a sex offender.
At trial, the jury heard that Sims trafficked both adult and minor females.
In one instance, Sims had directed a co-defendant - Tabbetha Mangis, 22, of La Grange - to find another co-defendant - Gary Shawn Haynes Jr. - 23 of Houston - to find Haynes a girl for prostitution. The victim, only 17 years of age, was picked up from her residence and transported to a 5,000 square foot residence in Northwest Houston, known as “The Mansion.”
After a brief stay there, the jury heard that the minor was taken to the Express Inn where she was given an identification card in order to rent a room. Sims had instructed an adult victim to provide the card to the minor. He had also told that adult to take photos of the minor female victim and post ads for her which was used to solicit customers who would pay for sex.
The jury heard testimony from the adult victim who described her fear of Sims because he always carried a gun and he had assaulted some of the other women who engaged in commercial sex on his behalf.
Testimony also revealed the minor victim wanted to be “arrested” because she was afraid the perpetrators would think she was speaking to law enforcement on her own. This dovetailed with the government’s expert testimony on victimology and the pimp/prostitution subculture amongst those involved in that world as “the game.” The expert described for the jury the meaning of several terms associated with and used by those within this subculture to include victims and defendants.
The jury also saw and heard three rap videos featuring Sims which contained many of the terms people use in the game. In the videos, Sims refers to two of his co-defendants and their roles in the organization. He references selling “white” women and how successful he is at being a pimp.
The defense attempted to convince the jury that the women were not victims and engaged in the sex acts willingly nor did he use force, fraud 0r coercion to make them do so. They were not convinced and found him guilty of conspiracy to commit sex trafficking of a minor and sex trafficking of a minor.
Mangis and Haynes previously pleaded guilty for their roles.
Sims has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Harris County Constable’s Office Precinct 4 and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sherri Zack and Kimberly Leo prosecuted the case.