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8 January 2020
Former Chief Lending Officer of New Jersey Bank Admits Making False Statements to United States in an Effort to Secure Federal Guarantees on LoansRead the Press Release
TRENTON, N.J. – A Pennsylvania man today admitted improperly securing a federal guarantee on a loan by making false statements to the Small Business Administration (SBA) about the creditworthiness of those loans while serving as the chief lending officer of a New Jersey bank, U.S. Attorney Craig Carpenito announced.
James Bortolotti, 51, pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to an information charging him with one count of knowingly making false statements for the purpose of influencing the action of the SBA.
According to documents filed in this case and statements made in court:
While serving as the chief lending officer of a New Jersey bank (Bank-1), Bortolotti became aware of a Small Business Administration lending program to incentivize lenders, including banks, to loan money to small businesses by providing a 75 percent SBA-backed guarantee on loans. When a lender applies an SBA guarantee on a loan, the lender must disclose information related to the creditworthiness of the small business. Bank-1 hired a consulting firm to help the bank apply for SBA-backed guarantees.
On Feb. 29, 2012, a consultant from the consulting firm submitted an application to the SBA for a guarantee of approximately $3.75 million on loans totaling approximately $5 million made to a small business located in Robbinsville, New Jersey. The application contained false information related to the creditworthiness of the business. Bortolotti knew the application contained false information, but reviewed and signed the application on behalf of the bank.
Making false statements for the purpose of influencing the action of the SBA carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for April 16, 2020.
U.S. Attorney Carpenito credited special agents of the SBA-Office of the Inspector General (SBA-OIG), under the direction of Special Agent in Charge Kevin Kupperbusch in Philadelphia; the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney J. Stephen Ferketic of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.
Defense counsel: William C. Cagney Esq., New Brunswick, New Jersey
Former Bank Branch Manager Sentenced to 33 Months for Scheme to Steal Funds from Elderly Account HoldersRead the Press Release
WASHINGTON – Fetehi Mohammed, 34, of Washington, D.C., who was a branch manager of a Wells Fargo Bank, N.A. in Alexandria, Virginia, was sentenced on Wednesday, January 8, 2020 to 33 months in prison for stealing funds from elderly customers’ accounts, depositing the funds in the form of cashiers’ checks into his personal accounts at another financial institution, and transferring stolen funds from Virginia to the District of Columbia for his use.
The announcement was made by U.S. Attorney Jessie K. Liu, Kelly R. Jackson, Special Agent in Charge of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington, Field Office, and Peter R. Rendina, Postal Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service.
On September 30, 2019, Mohammed pled guilty to a two-count Criminal Information charging in Count One - Interstate Transportation of Money Taken by Fraud, in violation of 18 U.S.C. 2314, and Count Two - Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, in violation of 18 U.S.C. 1957. Today, the Honorable Ellen S. Huvelle sentenced Mohammed to a 33-month term of incarceration followed by three years of supervised release on both counts to run concurrently to one another. The Court also ordered Mohammed to pay restitution to Wells Fargo Bank in the amount of $509,864.95. In addition, Judge Huvelle ordered Mohammed to pay a $38,779.01 forfeiture money judgment in addition to the restitution ordered. Wells Fargo Bank has covered the individual account holders for their losses due to Mohammed’s criminal conduct, so it will receive any restitution Mohammed pays.
As detailed in the statement of offense, from February 1, 2017, through on or about March 27, 2019, Mohammed exploited his position as a bank branch manager to execute a scheme to defraud elderly bank customers. Mohammed used the trust that he had built with a half-dozen senior clients to steal over $500,000 from their accounts and to transfer some of those funds from Virginia into the District of Columbia for his use and benefit.
“Fraud perpetrated against our senior citizens is deplorable,” said IRS-CI Special Agent in Charge Kelly R. Jackson. “Fetehi Mohammed used his position of trust as a bank manager to victimize elderly bank customers for his own personal benefit. Although his sentence won’t right his actions, we hope it brings some closure to those he defrauded.”
The U.S. Attorney’s Office works with the Internal Revenue Service, the U.S. Postal Inspection Service and other law enforcement partners on a Financial Crimes Task Force which investigates, among other things, crimes targeting older victims. The Office hopes to build on its work successfully prosecuting such cases and in addition, the Office will continue its extensive community outreach efforts in hopes of increasing awareness to protect seniors.
“This sentencing highlights the joint efforts of the U.S. Postal Inspection Service, our law enforcement partners and the U.S. Attorney’s Office to prosecute those who prey on our nation’s senior citizens,” said U.S. Postal Inspector in Charge for the Washington Division, Peter Rendina.
“Fetehi Mohammed exploited his position as a bank branch manager to defraud senior citizens of their savings. His sentencing illustrates the Department of Justice’s commitment to protecting elder adults and should send a clear message about the consequences for those who prey upon their vulnerability,” said U.S. Attorney Liu.
These efforts are part of the Department of Justice’s Elder Justice Initiative, a multi-faceted nationwide program to combat elder abuse, neglect and financial fraud and scams that target senior citizens. According to the Justice Department, each year an estimated $3 billion is stolen or defrauded from millions of American seniors. Through “grandparent scams,” fake prizes, romance scams, fraudulent IRS refunds, and even outright extortion, criminals try to exploit some of the most vulnerable Americans and steal their life’s savings.
With approximately 10,000 Americans turning 65 each day, the population of potential targets continues to grow. The U.S. Census Bureau projects that the population of Americans over 65 years of age will increase to 83.7 million in 2050, nearly double the estimated population of 43.1 million as of the most recent census.
In announcing the sentence, U.S. Attorney Liu praised the efforts of the U.S. Postal Inspector and the IRS agents who investigated the case. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist C. Rosalind Pressley and Assistant U.S. Attorney Diane Lucas, who prosecuted the case.
More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.ogv/elderjustice.
Florida businessman sentenced for role in Venezuela bribery schemeRead the Press Release
HOUSTON – A former general manager and partial owner of a Florida-based energy company was sentenced to 48 months in prison today for his role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Juan Jose Hernandez Comerma (Hernandez), 54, of Weston, Florida, pleaded guilty Jan. 10, 2017, to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA.
Today, U.S. District Judge Gray H. Miller of the Southern District of Texas imposed the four-year term and further ordered Hernandez to pay a fine of $127,000 and forfeit $3 million.
According to admissions made in connection with Hernandez’s plea, Hernandez conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. This ensured that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. From 2008 until 2012, while general manager and, later, partial owner of one of Shiera’s companies, Hernandez provided recreational travel and entertainment and offered bribes to PDVSA officials, including Alfonzo Eliezer Gravina Munoz (Gravina), based on a percentage of contracts the officials helped to award to Shiera’s companies.
Rincon, Shiera and Gravina have all also pleaded guilty in the case and await sentencing.
Hernandez is the sixth defendant to be sentenced as part of a larger, ongoing U.S. government investigation into bribery at PDVSA. Including Hernandez, Rincon, Shiera and Gravina, to date, the Justice Department has announced charges against 25 individuals, 19 of whom have pleaded guilty in connection with the investigation.
Immigration and Customs Enforcement's Homeland Security Investigations (HSI) in Houston is conducting the ongoing investigation with assistance from HSI in Boston. Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas (SDTX) are prosecuting the case along with Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section. SDTX AUSA Kristine Rollinson is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Please see the Justice Department’s FCPA page for more information.
Florida Man Sentenced for Wire Fraud Conspiracy, Aggravated Identity Theft and FEMA FraudRead the Press Release
BOSTON – A Florida man was sentenced yesterday in federal court in Boston in connection with the fraudulent abuse of the U.S. Postal Service’s (USPS) Informed Delivery electronic notification system, and in connection with FEMA fraud.
Kevens Louis, 26, of Plantation, Fla., was sentenced by U.S. District Court Judge Richard G. Stearns to 27 months in prison and one year of supervised release. In June 2019, Louis pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Louis and his co-conspirators, Fred Alcius, Lucson Appolon, and Peter Belony were charged with conspiracy to commit wire fraud in April 2019. Appolon and Belony previously pleaded guilty and were sentenced to two years in prison and three years of supervised release. Alcius remains a fugitive.
Informed Delivery is a free electronic notification service provided by the USPS that gives residential and P.O. Box customers the ability to digitally preview their incoming mail and manage their packages.
The defendants accessed victims’ personal identifying information, including names, Social Security numbers, dates of birth, and addresses on the “dark web” and then used the information to open credit cards in the victims’ names. The defendants then subscribed to Informed Delivery using the victims’ personal identifying information and a fraudulent email address created to track the delivery of credit cards to the victims’ residential mailboxes. The defendants subsequently intercepted the credit cards at mailboxes before the victims could receive them. The credit cards were then used by the defendants at ATMs and to purchase gift cards and other items for resale at retail establishments. The defendants traveled to states across the East Coast in furtherance of the fraud, including New Hampshire, Maine and Massachusetts.
Louis’s sentencing also resolved charges initially brought by the Southern District of Florida involving fraud in connection with a major disaster and aggravated identity theft. Specifically, on various occasions in 2017, Louis fraudulently submitted claims to FEMA for assistance.
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office in the Southern District of Florida; Federal Bureau of Investigation, Boston Field Office; Homeland Security Investigations in Boston; and the Concord, Fort Lauderdale (Fla.), Harvard, Kittery (Maine), Norfolk, Plantation (Fla.) Sherborn, and Weston Police Departments. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrime Unit prosecuted the case.
The details contained in the indictment are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Pleads Guilty to Trafficking in CITES-Protected Water Monitor LizardsRead the Press Release
Akbar Akram, a resident of Holiday, Florida, pleaded guilty today to illegally trafficking live water monitor lizards from the Philippines.
Akram, 44, pleaded guilty in Tampa before U.S. District Judge William F. Jung to one count of wildlife trafficking in violation of the Lacey Act.
According to plea documents, Akram admitted to illegally importing more than 20 live water monitor lizards from the Philippines between January and December 2016, in violation of United States law and the Convention on International Trade in Endangered Species (CITES) Treaty. To avoid detection by U.S. customs authorities, the lizards were placed in socks, which were sealed closed with tape, and then concealed inside electronic equipment and shipped under a false label. The equipment was then shipped via commercial carriers to Akram’s associate, who resided in Massachusetts.
As part of his plea, Akram admitted that he knew the monitor lizards he received had been taken in violation of Philippine law, and that the import violated U.S. law. Akram also admitted that upon receiving the monitor lizards, he sold some of them to customers, including customers in Colorado, Connecticut, and Massachusetts.
“Akram violated Philippine law and U.S. law by illegally trafficking live water monitor lizards,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “The Department of Justice will continue to prosecute those who flout federal laws and seek to profit from trafficking protected species.”
“The illegal trafficking of protected species is a violation of federal law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “We will continue to work with our partners, nationally and internationally, to thwart these crimes.”
Monitor lizard is the common name for lizards comprising the genus Varanus. Monitor lizard species (there are approximately 70) are characterized by elongated necks, heavy bodies, long-forked tongues, strong claws, and long tails. Monitor lizards have a vast geographical range and are native to Africa, Asia, and Oceania. Water monitor lizards are semi-aquatic monitor lizards endemic to South and Southeastern Asia. Water monitor lizards, as their name suggests, are water dependent and easily swim long distances. This ability has allowed them to inhabit many remote islands. Some species of water monitor lizard are common and abundant in the pet trade, while others are extremely rare and are found only on specific islands. In addition to suffering increasing habitat loss due to rainforest destruction, water monitor lizards are often illegally collected from the wild and killed for bush meat, traditional medicine, or for their skins. Water monitor lizards are also targeted for their popularity in the international exotic pet trade. Exotic pet traders seek these water monitor lizards due to their attractive patterns, unique colors, intelligence, and rarity. The yellow-headed water monitor (Varanus cumingi), the white-headed water monitor (Varanus nuchalis), and the marbled water monitor (Varanus marmoratus), are species of large monitor lizards endemic to the Philippines.
This case is part of Operation Sound of Silence, an ongoing effort by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice, to prosecute those involved in the illegal taking and trafficking in protected species, including water monitor lizards.
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, the United States Attorney’s Office for the Middle District of Florida, and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney Colin McDonell and Environmental Crimes Section Trial Attorney Gary N. Donner.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Florida Man Pleads Guilty to Trafficking in Cites-Protected Water Monitor LizardsRead the Press Release
Tampa, FL – Akbar Akram, a resident of Holiday, Florida, pleaded guilty today to illegally trafficking live water monitor lizards from the Philippines.
Akram, 44, pleaded guilty in Tampa before U.S. District Judge William F. Jung to one count of wildlife trafficking in violation of the Lacey Act.
According to plea documents, Akram admitted to illegally importing more than 20 live water monitor lizards from the Philippines between January and December 2016, in violation of United States law and the Convention on International Trade in Endangered Species (CITES) Treaty. To avoid detection by U.S. customs authorities, the lizards were placed in socks, which were sealed closed with tape, and then concealed inside electronic equipment and shipped under a false label. The equipment was then shipped via commercial carriers to Akram’s associate, who resided in Massachusetts.
As part of his plea, Akram admitted that he knew the monitor lizards he received had been taken in violation of Philippine law, and that the import violated U.S. law. Akram also admitted that upon receiving the monitor lizards, he sold some of them to customers, including customers in Colorado, Connecticut, and Massachusetts.
“Akram violated Philippine law and U.S. law by illegally trafficking live water monitor lizards,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “The Department of Justice will continue to prosecute those who flout federal laws and seek to profit from trafficking protected species.”
“The illegal trafficking of protected species is a violation of federal law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “We will continue to work with our partners, nationally and internationally, to thwart these crimes.”
Monitor lizard is the common name for lizards comprising the genus Varanus. Monitor lizard species (there are approximately 70) are characterized by elongated necks, heavy bodies, long-forked tongues, strong claws, and long tails. Monitor lizards have a vast geographical range and are native to Africa, Asia, and Oceania. Water monitor lizards are semi-aquatic monitor lizards endemic to South and Southeastern Asia. Water monitor lizards, as their name suggests, are water dependent and easily swim long distances. This ability has allowed them to inhabit many remote islands. Some species of water monitor lizard are common and abundant in the pet trade, while others are extremely rare and are found only on specific islands. In addition to suffering increasing habitat loss due to rainforest destruction, water monitor lizards are often illegally collected from the wild and killed for bush meat, traditional medicine, or for their skins. Water monitor lizards are also targeted for their popularity in the international exotic pet trade. Exotic pet traders seek these water monitor lizards due to their attractive patterns, unique colors, intelligence, and rarity. The yellow-headed water monitor (Varanus cumingi), the white-headed water monitor (Varanus nuchalis), and the marbled water monitor (Varanus marmoratus), are species of large monitor lizards endemic to the Philippines.
This case is part of Operation Sounds of Silence, an ongoing effort by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice, to prosecute those involved in the illegal taking and trafficking in protected species, including water monitor lizards.
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, the United States Attorney’s Office for the Middle District of Florida, and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney Colin McDonell and Environmental Crimes Section Trial Attorney Gary N. Donner.
Florida Businessman Sentenced to 48 Months in Prison for Role in Venezuela Bribery SchemeRead the Press Release
A former general manager and partial owner of a Florida-based energy company was sentenced to 48 months in prison today for his role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Juan Jose Hernandez Comerma (Hernandez), 54, of Weston, Florida, pleaded guilty Jan. 10, 2017, to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA.
Today, U.S. District Judge Gray H. Miller of the Southern District of Texas imposed the four-year term and further ordered Hernandez to pay a fine of $127,000 and forfeit $3 million.
According to admissions made in connection with Hernandez’s plea, Hernandez conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. This ensured that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. From 2008 until 2012, while employee, and later, partial owner, of one of Shiera’s companies, Hernandez provided recreational travel and entertainment and offered bribes to PDVSA officials, including Alfonzo Eliezer Gravina Munoz (Gravina), based on a percentage of contracts the officials helped to award to Shiera’s companies.
Rincon, Shiera and Gravina have all also pleaded guilty in the case and await sentencing.
Hernandez is the sixth defendant to be sentenced by Judge Miller as part of a larger, ongoing U.S. government investigation into bribery at PDVSA. Including Hernandez, Rincon, Shiera, and Gravina, to date, the Justice Department has announced charges against 25 individuals, 19 of whom have pleaded guilty in connection with the investigation.
HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston. Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
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/fcpa.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Birmingham Man on Gun and Drug ChargesRead the Press Release
Birmingham, Ala. – A federal jury yesterday convicted a man of having a firearm in furtherance of drug distribution in Birmingham, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
The jury returned its guilty verdict against Jonathan Moorer, 28, after two days of testimony before U.S. District Judge Abdul Kallon.
“This guilty verdict confirms that a convicted felon carrying a gun and drugs can only mean harm to the community,” Town said. “There is no daylight between our federal, state and local law enforcement partners when working to take convicted felons off the street. Federal bed space in prison is reserved for those who continue to plague our communities with illegal drugs and guns.”
“ATF’s Crime Gun Intelligence partnerships as part of Operation Relentless Pursuit focuses on the devastating impact of firearms violence and works with the entire community to deter poor choices and provide alternatives to resolve disputes,” Watson said.
Evidence at trial proved that during the investigation of another suspected drug dealer, Moorer, a convicted felon, was found in possession of a quantity of marijuana and a loaded semi-automatic pistol. The jury found that Moorer possessed the marijuana with intent to distribute. The jury also found Moorer to be a felon in possession of a firearm and that he possessed the same firearm in conjunction with his drug activity.
The maximum penalty for being a felon in possession of a firearm is 10 years in prison. Having a firearm in furtherance of a drug trafficking crime carries a mandatory sentence of 5 years in prison per count, to be served consecutively to any other sentence imposed for the crime. The charge of possession of marijuana with the intent to distribute carries a maximum sentence of 5 years.
ATF investigated the case along with the Birmingham Police Department, which Assistant U.S Attorneys Bill Simpson and John Camp are prosecuting.
Fayetteville Man Sentenced to Federal Prison for Drugs and Firearm ChargesRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that, James Blair, age 59, was sentenced today to 103 months in federal prison followed by 3 years of supervised release on one count of Conspiracy to Distribute Methamphetamine and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Offense. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings today in the United States District Court in Fayetteville.
In the month of April 2019, detectives with the Fourth Judicial District Drug Task Force began investigating the defendant Blair for trafficking methamphetamine in the Western District of Arkansas, Fayetteville Division.
During the investigation, Detectives learned that Blair would be travelling to the Tulsa Oklahoma area to re-supply methamphetamine. On May 12, 2019, upon his return to Fayetteville from Tulsa, Detectives stopped the vehicle and made contact with Blair. During the stop, Detectives located a firearm on Blair’s person. A search of the vehicle resulted in Detectives locating a distribution amount of methamphetamine on the floorboard.
The methamphetamine was subsequently sent to the DEA Southeast Laboratory in Miami, Florida and tested positive for 182 grams of methamphetamine. Blair was indicted by a federal grand jury in June of 2019 and entered a guilty plea in September of 2019.
This case was investigated by the State of Arkansas Fourth (4th) Judicial District Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
Former Supervisory Correctional Officer Sentenced to 24 Months in Federal Prison for Civil Rights ViolationRead the Press Release
WASHINGTON – A former Supervisory Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, was sentenced today in federal court for aiding and abetting the assault of an inmate.
Khristal Ford, 33, was sentenced by U.S. District Judge Marcia A. Crone to 24 months in federal prison followed by one year of supervised release. Ford previously pleaded guilty on May 29, 2019, to one count of aiding and abetting another correctional officer in the assault of an inmate housed at the facility.
According to plea documents and information presented in court, on June 8, 2017, while on duty at the FCC, Ford opened the door of a secured medical observation cell after A.A., an inmate, threw a tray at the locked door. Ford then told another correctional officer to “take care of it” and watched as the officer entered the cell and punched A.A. in the head three times without justification. Following this assault, Ford submitted written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified.
“The Department of Justice will not tolerate this abuse of authority,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to prosecute those who will assault inmates under their supervision.”
“The work of prison guards is obviously very difficult, but they cannot resort to unprovoked violence,” said United States Attorney Joseph Brown for the Eastern District of Texas. “They are expected to remain professional, and if they assault inmates, they will be arrested and prosecuted.”
“The public has a right to expect that Correctional Officers will keep federal prisons safe and secure and will perform the duties of their jobs with integrity. Ford did the exact opposite when she aided in the assault and civil rights violations of an inmate. She will rightly serve time for this offense,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.
This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Essex County Man Charged with Mortgage FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man will be arraigned today on charges that he engaged in a conspiracy to commit mortgage fraud that resulted in potential losses in excess of $1 million, U.S. Attorney Craig Carpenito announced.
Cabral Simpson, 43, of Belleville, New Jersey, appeared before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. He is charged by indictment with one count of conspiracy to commit wire fraud and two counts of wire fraud.
According to documents filed in this case and statements made in court:
Simpson, a real estate investor, and his conspirators engaged in mortgage fraud by creating fake bank statements and fake employee verification records for buyers of properties and transferring money into the buyers’ bank accounts for payment of the deposit for a property. Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers. They induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in potential losses.
The conspiracy and wire fraud counts with which Simpson is charged each carry a maximum potential penalty 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 U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrimes 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.
Dubuque Felon and Drug User Sentenced to Federal Prison for Unlawfully Possessing a GunRead the Press Release
A man who illegally possessed a firearm was sentenced January 6, 2020, to two years in federal prison.
Johnnie Raymond, age 22, from Dubuque, Iowa, received the prison term after a July 31, 2019 guilty plea to being a prohibited person in possession of a firearm. Raymond unlawfully possessed a gun while riding as a passenger in a car. He was prohibited from possessing firearms because he had been previously convicted of the felony crimes of gang participation and forgery in Dubuque County. He was also prohibited from possessing guns because he was a drug user.
Raymond was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Raymond was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Raymond is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Special Assistant United States Attorney Elizabeth Dupuich and investigated by Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1019-CJW.
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Dominican National Charged with Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national residing in Hyde Park was arrested yesterday on charges of aggravated identity theft and misuse of a passport.
Yris Sanchez, 48, was charged by a complaint with one count of misuse of a passport and one count of aggravated identity theft. Following an initial appearance, Sanchez was detained pending a detention hearing scheduled for Jan. 10, 2020.
According to court documents, Sanchez used the name and Social Security number of a U.S. citizen to apply for and use various U.S. Passports and at least one Massachusetts REAL ID driver’s license. Sanchez also used this person’s identifiers to apply for and use accounts with various banks, including Citizens Bank and Santander. In addition, Sanchez also used a different identity to obtain another U.S. Passport. Sanchez has previously been arrested under multiple identities.
The charge of misuse of a passport provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two year sentence to be served consecutive to any other sentence imposed, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service made the announcement today. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Who Conspired with Internet Pharmacy Organization to Unlawfully Sell Prescription Drugs Pleads GuiltyRead the Press Release
A Norfolk man has pleaded guilty to conspiring to unlawfully sell prescription drugs to consumers without valid prescriptions, the Department of Justice announced today.
According to court documents, from October 2007 to September 2010, Lawrence B. Ryan, 48, who was then a physician, conspired with RX Limited, an internet pharmacy organization, to sell prescription drugs without valid prescriptions to consumers in the United States. RX Limited sold these prescription drugs, including Fioricet (which contains butalbital, a barbiturate that is a controlled substance), carisoprodol (Soma), tramadol (Ultram), Viagra, Cialis, and others, using a network of its own websites and websites registered and operated by affiliates. RX Limited sent Ryan drug orders for “approval” as a participating physician. These drugs were sold to customers without a valid prescription, because there was no legitimate doctor-patient relationship between Ryan and the customers. Specifically, there was no face-to-face contact, no physical examination, no taking of patient histories, and no checking of the accuracy of information provided by the customers, including qualifying medical conditions. The drugs sold were accordingly misbranded because they were introduced into interstate commerce without valid prescriptions.
“The Department of Justice is committed to protecting consumers from unscrupulous medical professionals who assist others to unlawfully sell potentially harmful and addictive drugs to American consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.
During the time he worked as a participating physician for RX Limited, Ryan approved more than 158,000 illegal drug orders. Ryan pleaded guilty to conspiracy to distribute controlled substances and to introduce misbranded drugs into interstate commerce. U.S. Magistrate Judge Douglas E. Miller, sitting in the Eastern District of Virginia’s Norfolk Division, accepted the plea. Ryan faces a maximum penalty of five years in prison when sentenced on April 6, 2020.
Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Alan M. Salsbury of the U.S. Attorney’s Office for the Eastern District of Virginia are the prosecutors for the case. The Minnesota office of the Drug Enforcement Administration investigated the case, with assistance from the Internal Revenue Service, and the FDA’s Office of Criminal Investigations.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Detroit Heroin Dealer Sentenced to Six Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Detroit, Michigan man was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Ted Anthony Graham, 32, was sentenced to six years in prison for possession with intent to distribute heroin.
“A Detroit heroin dealer is headed to federal prison,” said United States Attorney Mike Stuart. “With the beginning of the new year, you can rest assured that our focus and sense of urgency remain on ridding West Virginia communities of out-of-state drug dealers.”
Graham previously admitted that on July 1, 2014, he was traveling to Charleston, West Virginia on Interstate 64. The vehicle he was traveling in was stopped near the Dunbar exit for a traffic violation. During the traffic stop, law enforcement discovered that Graham was in possession of 40.212 grams of heroin. Graham further admitted that on June 3, 2015, his motel room in Kanawha City was searched pursuant to a search warrant. Detectives located 56.093 grams of heroin, a digital scale, a drug ledger, and a black and silver 9mm pistol. Graham admitted that he intended to sell the heroin to other individuals in the Charleston area.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
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Defendant Sentenced to Life in Prison for the Murder of U.S. Border Patrol Agent Brian TerryRead the Press Release
Special Attorneys David Leshner and Todd Robinson
TUCSON, Arizona – Heraclio Osorio-Arellanes was sentenced in federal court today to life in prison for his role in the murder of 40-year-old U.S. Border Patrol Agent Brian Terry on December 14, 2010.
On February 12, 2019, a federal jury found that Osorio-Arellanes, 41, was part of an armed crew of bandits that murdered Agent Terry while they were attempting to rob drug smugglers transporting drugs from Mexico into the United States. Osorio-Arellanes was convicted of nine counts, including first degree murder, second degree murder, conspiracy to commit robbery, attempted robbery, assault on four Border Patrol Agents and carrying a firearm during a crime of violence. Osorio-Arellanes is the sixth of seven defendants in this case to be convicted and sentenced to date.
“Brian Terry exemplified the very best of law enforcement: A selfless, determined agent who was committed to protecting the people of the United States,” said U.S. Attorney Robert Brewer of the Southern District of California. “The United States has vigorously pursued justice for Agent Terry’s family and for the men and women of the U.S. Border Patrol. A life sentence for Agent Terry’s murder cannot eliminate his family’s suffering. But it is our hope that this sentence brings some degree of comfort to Agent Terry’s family in knowing that the individuals responsible for his murder will be held accountable.”
“Today’s sentencing reflects the FBI’s unwavering commitment to ensure that all those responsible for the death of U.S. Border Patrol Agent Brian Terry are brought to justice,” said Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office.
“Today brings us one step closer to justice for Agent Brian Terry’s murder,” said Tucson Sector Chief Roy Villareal. “The sentencing brings a painful time closer to an end and serves as a reminder of the grave dangers our agents face in their selfless commitment to the safety of their communities and country.”
According to the evidence presented at trial, on December 14, 2010, Agent Terry’s elite Border Patrol BORTAC unit was in a rural area north of Nogales, Arizona, to interdict an armed “rip crew” that was robbing drug traffickers. The BORTAC team observed a group of five bandits armed with assault rifles walking through a wash. The BORTAC agents announced their presence, and the bandits fired on the agents. The agents returned fire. A bullet fired by one of the bandits struck Agent Terry in the lower back. His fellow agents provided first aid, but Agent Terry was fatally injured.
Heraclio Osorio-Arellanes, also known as Jesus Lionel Sanchez Meza and Lionel Portillo-Meza, is one of seven defendants charged in the District of Arizona with murder and other crimes arising from the murder of Agent Terry. Osorio-Arellanes was taken into custody in 2017 by Mexican authorities in Chihuahua, Mexico based on a provisional arrest warrant issued at the request of the United States. He was transported to Mexico City for extradition proceedings and arrived in the United States on August 1, 2018.
Defendants Ivan Soto-Barraza and Jesus Lionel Sanchez-Meza were arrested in Mexico and subsequently extradited to the United States in 2014. They were convicted by a jury of first degree murder and other offenses in December 2015 following a jury trial and were sentenced to life in prison.
Defendants Manuel Osorio-Arellanes and Rosario Rafael Burboa-Alvarez pleaded guilty to first degree murder. Osorio-Arellanes was sentenced to 360 months in prison, and Burboa-Alvarez was sentenced to 324 months in prison.
Defendant Rito Osorio-Arellanes pleaded guilty to conspiracy to interfere with commerce by robbery and was sentenced to 96 months in prison.
Defendant Jesus Favela-Astorga was arrested by Mexican authorities in November 2017 pursuant to a provisional arrest request filed by the United States Government. He is pending extradition to the United States and will be tried for Agent Terry’s murder following his extradition.
The case is being prosecuted by attorneys from the Southern District of California, Special Attorneys Todd W. Robinson and David D. Leshner. The U.S. Attorney’s Office for the District of Arizona is recused. The case was investigated by the FBI. The apprehension was a coordinated effort by the Mexican Navy (SEMAR), Mexico’s Office of the Attorney General (PGR), FBI, U.S. Marshals Service and U.S. Border Patrol with significant assistance provided by the Criminal Division’s Office of International Affairs.
“The conviction and life sentence for Heraclio Osorio-Arellanes is the result of the dedicated efforts of the Federal Bureau of Investigation, including Special Agent Michelle Terwilliger, who has handled this case since December 2010,” U.S. Attorney Brewer said. He also praised prosecutors Leshner and Robinson for their dedication to achieving justice in this case.
Daughter Illegally Collects Her Mother's Federal Pension Benefits Following Her Mother's DeathRead the Press Release
St. Louis, MO – Karen Dickerson, 70, of St. Louis County, pleaded guilty to one felony count of theft of government funds. Dickerson appeared in federal court today before U.S. District Judge Rodney W. Sippel who accepted her plea and set her sentencing date for April 8, 2020.
According to court documents, Karen Dickerson’s mother, Bernadine Dickerson, received monthly retirement payments through the Civil Service Retirement System, as she was retired from the federal government. Bernadine Dickerson died on April 25, 1995. Her monthly federal pension payments continued to be deposited into a bank account that was held jointly with her son, Warren Dickerson, who passed away in 2012. At that point, Karen Dickerson became Power of Attorney on the account. The federal government was not notified of Bernadine’s death during 1995, and Karen continued to collect her deceased mother’s pension benefits from the bank account until she finally reported her mother’s death to the federal government during September 2017. The total monthly pension payments made following Warren Dickerson’s death was approximately $107,383.
Karen Dickerson faces a maximum penalty of 10 years in prison and a $250,000 fine. Restitution is also mandatory. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The U.S. Office of Personnel Management is investigating this case. Special Assistant U.S. Attorney Diane Klocke is handling the case for the U.S. Attorney’s Office.
D.C. Man Pleads Guilty to Firearms Charge in ATF Firearms and Narcotics InvestigationRead the Press Release
WASHINGTON – Bayney Pinard Parker, 39, of Southeast, D.C. pled guilty on Tuesday, January 7, 2020 to a federal firearms charge stemming from his narcotics trafficking in the summer and fall of 2019, announced U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Parker pled guilty in the U.S. District Court for the District of Columbia to one count of Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense. He will be sentenced on March 20, 2020 by the Honorable Judge Amit P. Mehta. He faces a minimum term of incarceration of five years, up to life in prison.
Parker was arrested after the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) engaged in a large-scale investigation of the 2900 block of Martin Luther King Jr. Avenue, Southeast, Washington, D.C. for narcotics trafficking. During the investigation, the ATF conducted several controlled purchases of narcotics from the defendant, to include the purchase of cocaine base (also known as crack cocaine). On October 3, 2019, ATF obtained a search warrant and conducted a search of the defendant’s residence, finding .40 caliber ammunition, several green ziplocs containing crack, a digital scale, drug paraphernalia, and $1,818 in U.S. currency. ATF also located a Glock gun box and 9mm magazine, along with a Palmer 80 firearm and accompanying ammunition.
“This investigation is another example of our determination to target drug trafficking organizations that are bringing in crack and firearms into neighborhoods of the District of Columbia,” said U.S. Attorney Liu. “Through this coordinated law enforcement effort, we were able to remove significant quantities of drugs as well as dangerous firearms from the community.”
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
This case was also prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the District of Columbia, U.S. Attorney Jessie K. Liu coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case, including ATF and MPD. They also expressed appreciation for the assistance provided by the United States Secret Service, U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland.
Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Gregory Rosen of the Violent Crime and Narcotics Section, Paralegal Specialist Teesha Tobias, Kim Hall, Candace Battle, and Legal Assistant Peter Gaboton.
Convicted Felon Pleads Guilty to Possessing 23 Firearms and More Than 3,000 Rounds of AmmunitionRead the Press Release
Ocala, Florida – Nicholas Allen Groves (35, Ocala) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Groves had been indicted on November 20, 2019.
According to the plea agreement, on November 6, 2019, federal agents executed a search warrant at Groves’s residence and seized 25 firearms (revolvers, pistols, rifles and shotguns), 3,171 rounds of ammunition, a homemade firearm silencer, and several 40 mm grenade shells. Experts later determined that 23 of the firearms had crossed state lines, making them the subject of federal prosecution. Groves, who has a previous felony conviction for assault-first degree (Maryland), is prohibited from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Marion County Sheriff’s Office, and the City of Ocala Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Clarksville Man Who Shot at Police Officers Pleads Guilty to Federal Firearms ChargeRead the Press Release
NASHVILLE, Tenn. – January 8, 2020 – – Elique Camacho, 22, of Clarksville, Tennessee, pleaded guilty yesterday in U.S. District Court to possessing a firearm after being convicted of a crime of domestic violence, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Camacho was indicted in July 2018, after an incident on June 24, 2018, where Clarksville police officers were called to the scene of a domestic assault and upon arrival, Camacho was attempting to leave the scene. As officers approached his vehicle, Camacho drove toward them and struck one of the officers with his vehicle and fled. As Clarksville officers pursued Camacho, he fired several rounds at the officers from his vehicle. One of the officers subsequently rammed and disabled Camacho’s vehicle, after which, he fled on foot and hid in a wooded area overnight, before being arrested the following day at a friend’s house. At the time of his arrest, Camacho was in possession of a 9mm handgun.
Camacho had previously been convicted of domestic assault in January 2017 and was prohibited from possessing a firearm.
The plea agreement calls for Camacho to receive a sentence of 10 years in prison when he is sentenced on May 18, 2020.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Clarksville Police Department. Assistant U.S. Attorney Brooke Schiferle is prosecuting the case.
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Chippewa County Man Sentenced to 30 Years in Prison for Producing Images of Child Sexual AbuseRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MATTHEW ERIC DOLVEN, 31, to 360 months in prison for producing and distributing images and videos depicting his sexual abuse of a minor. DOLVEN, who pleaded guilty to a two-count felony information on February 26, 2019, was sentenced today before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minnesota.
United States Attorney Erica MacDonald said, “Matthew Dolven’s egregious and despicable actions caused incalculable harm to the victim, harm that no child should ever have to endure. For his crimes, this child predator will spend the next 30 years in prison.”
According to the felony information and documents filed in court, between June 1, 2016, and June 27, 2018, DOLVEN sexually molested a minor victim and used a smartphone to record the abuse. DOLVEN used various social media platforms to distribute to others the child sexual abuse images and videos he produced.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case was the result of an investigation conducted by the FBI, the Chippewa County Sheriff’s Office, and the Montevideo Police Department.
Assistant U.S. Attorney Laura M. Provinzino and former Assistant U.S. Attorney Carol M. Kayser prosecuted the case.
Defendant Information:
MATTHEW ERIC DOLVEN, a/k/a “VEECE07,” 31
Sherburne County Jail
Convicted:
- Production of child pornography, 1 count
- Distribution of child pornography, 1 count
Sentenced:
- 360 months in prison
- 20 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Chicago Sex Trafficker Sentenced to Ten Years in PrisonRead the Press Release
CHICAGO — A Chicago man has been sentenced to ten years in federal prison for exploiting several young men and a woman in a national sex trafficking operation.
TIMOTHY DORSEY facilitated the prostitution of his victims in the Chicago area and throughout the country, including Arizona, California, Colorado, Georgia, Michigan, Missouri, Nevada and Texas. Dorsey sought customers for his victims through online advertisements that offered erotic massage services but contained code words to convey that sex acts would be included. He booked and funded his workers’ travel expenses to meet with individuals who responded to the ads, and he collected at least half of the illicit proceeds. Dorsey threatened to assault or kill anyone who left his sex trafficking operation.
Dorsey, 52, pleaded guilty last year to two counts of transporting an individual in interstate commerce to engage in prostitution. U.S. District Judge John J. Tharp., Jr., on Tuesday imposed the ten-year prison sentence. In determining the sentence, Judge Tharp found that the government demonstrated that Dorsey directed one his workers to murder a man who had left Dorsey’s organization to work on his own. The man was shot multiple times outside of a motel in Schiller Park on Feb. 27, 2015. The individual who fired the shots was convicted of murder in the Circuit Court of Cook County and sentenced to 50 years in prison.
Dorsey's sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The U.S. Attorney’s Office for the Middle District of Georgia and the Schiller Park Police Department provided valuable assistance.
“Timothy Dorsey recruited young men and women who were struggling with emotional and substance abuse issues into his national prostitution operation,” Assistant U.S. Attorneys Jared C. Jodrey and Maureen E. Merin argued in the government’s sentencing memorandum. “He preyed on young people with troubled family situations, mental health and drug abuse issues, and he emotionally and physically abused them while they were involved in his organization.”
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Chamberlain Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Chamberlain, South Dakota, man convicted on two counts of Abusive Sexual Contact with a Child Incapable of Consent was sentenced on January 2, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
James Blue, Jr., a/k/a “BJ”, age 39, was sentenced to 144 months in federal prison, followed by 8 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Blue was indicted by a federal grand jury on March 13, 2018. He pled guilty on October 8, 2019.
The conviction stemmed from multiple incidents between 2011 and 2015. During this time, Blue engaged in sexual acts with two minors who had not attained the age of 12 years, and who were incapable of appraising the nature of the conduct and declining participation and communicating an unwillingness to engage in the abusive sexual contact.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Blue was immediately turned over to the custody of the U.S. Marshals Service.
Carriere, MS Man Pleads Guilty to Intentionally Accessing a Protected Computer in Excess of AuthorizationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that COLBI TRENT DEFIORE, age 27, a resident of Carriere, Mississippi, pleaded guilty on January 7, 2020 before United States District Judge Jay A. Zainey to a one-count indictment with intentionally accessing a protected computer in excess of authorization for the purpose of commercial advantage and private financial gain, and in furtherance of the commission of a felony, in violation of 18 U.S.C. ' 1030(a)(2)(C).
According to court documents, DEFIORE worked as a seasonal employee for Company A, a Virginia-based company in the technology sector that supported the Centers for Medicare & Medicaid Services (CMS) by operating contact centers to assist with, among other things, Medicare enrollment. One of the centers, at which DEFIORE worked, was located in Bogalusa, Louisiana. On numerous occasions, up to at least November 12, 2018, DEFIORE improperly accessed and obtained, the personal identifying information of more than 8,000 individuals by improperly accessing the healthcare.gov database.
Specifically, DEFIORE conducted “bulk searches” of the database, which he was prohibited from doing, and was able to view the personal information of healthcare.gov customers. DEFIORE then copied the results of his searches onto a virtual clipboard and sent them to himself via email. After work hours, DEFIORE accessed Company A’s network remotely without authorization to retrieve his work email. DEFIORE used the personal information of at least five consumers to apply fraudulently for at least six credit cards, loans, and lines of credit for his personal benefit.
DEFIORE faces a maximum term of imprisonment of five years, a fine of up to $250,000, three years supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Zainey has been scheduled for April 7, 2020.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Burlington County Man Charged with Wire Fraud and Money Laundering for Defrauding Internet DonorsRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was indicted today for his role in a GoFundMe scheme that collected money from donors on the internet, purportedly to benefit a homeless man, U.S. Attorney Craig Carpenito announced today.
Mark D’Amico, 40, formerly of Bordentown, New Jersey, was indicted on one count each of conspiring to commit wire fraud and conspiring to commit money laundering, as well as on four substantive counts of wire fraud and 10 substantive counts of money laundering. He was previously charged by criminal complaint on Oct. 2, 2019.
On March 6, 2019, two conspirators – Katelyn McClure and Johnny Bobbitt Jr. – pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, respectively, in connection with the same scheme. They are both awaiting sentencing.
According to documents filed in this case and statements made in court:
In November 2017, D’Amico and McClure created a crowd source funding page on GoFundMe’s website, titled: “Paying It Forward.” The campaign solicited donations from the public, purportedly for the benefit of homeless veteran Bobbitt. D’Amico and McClure posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a good Samaritan and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited, with a goal of $10,000, to get Bobbitt off the streets and provide living expenses for him.
The story told by D’Amico and McClure was not true. McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure conspired to create the false story to obtain money from donors based on false information. The false story was quickly picked up by local and national news outlets and went viral. Approximately $400,000 from more than 14,000 donors throughout the country was raised in less than one month.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts by D’Amico for gambling, as well as for vacations, a BMW automobile, clothing, handbags and other personal items and expenses.
In mid-November 2017, when the donations had reached approximately $1,700, D’Amico and McClure told Bobbitt about the campaign and the false story. In December 2017, after D’Amico helped open a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
The charge of wire fraud conspiracy and the four substantive wire fraud charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of conspiracy to commit money laundering, as well as five of the substantive money laundering counts, each carry a maximum penalty of 10 years in prison and a fine of $250,000. The remaining five charges of money laundering charges each carry a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; and officers of the Florence Township Police Department for their work on the case.
The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorney Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Broken Arrow Woman Faces Charges for Wire Fraud and Filing a False Tax ReturnRead the Press Release
A Broken Arrow woman was arraigned Wednesday in U.S. District Court for stealing $654,579 from her employer. Brandy Okey, 39, is charged with wire fraud and filing a false tax return.
“The marketplace is dependent, in part, on the ethical, honest and lawful actions of those who work within it. That is especially true for someone in the position of chief financial officer,” said U.S. Attorney Trent Shores. “Unfortunately, as in this case, there are those who criminally exploit their positions of trust. The United States Attorney’s Office will continue to aggressively prosecute white collar criminals who thieve, embezzle, and otherwise defraud.”
According to court documents, Okey had access to finances and cash deposits in her position at a company in the Northern District of Oklahoma. Okey allegedly took the company’s cash deposits or a portion of the deposits for her own personal gain from December 2015 to September 2018. As part of her scheme, Okey shredded the original deposit slips or prepared new slips showing a lower deposit amount. On April 27, 2017, Okey is alleged to have transmitted a false report to the company’s board of directors in order to hide her crimes. Okey is further charged with filing a false tax return for the year 2017 when she failed to report approximately the $294,450 in income that she acquired through the scheme.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts is prosecuting the case.
Box Elder woman admits stabbing manRead the Press Release
GREAT FALLS – A Box Elder woman today admitted she stabbed a man in the hand and chest with a butterfly knife on the Rocky Boy’s Reservation last year, U.S. Attorney Kurt Alme said.
Katie Lynn Big Bow, 44, pleaded guilty to assault of a dating partner. Big Bow faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided and set sentencing for May 7. Big Bow was detained pending further proceedings.
The prosecution said in court records that the assault occurred on May 2, 2019 when Big Bow stabbed the victim with a butterfly knife in the left hand and upper chest at his house in Box Elder. The victim was transported to the Northern Montana Hospital for treatment. Big Bow and the victim are in a relationship.
Assistant U.S. Attorney Paulette Stewart is prosecuting the case, which was investigated by the FBI and Rocky Boy’s Chippewa Cree Law Enforcement.
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Bookkeeper Convicted of Wire Fraud Sentenced to Probation for Three YearsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that LATANYA A. BRITTON, age 41, a resident of LaPlace, Louisiana, was sentenced January 7, 2020 for Wire Fraud, in violation of Title 18, United States Code, Section 1343. Judge Vitter sentenced Britton to a term of probation for three (3) years, the first six (6) months to be served as a period of home incarceration. In addition, Britton was ordered to pay full restitution to the victims. Lastly, Britton will need to complete fifty (50) hours of community service.
According to court records, on January 22, 2018, BRITTON was hired as a bookkeeper in the client accounting services department at Accounting Firm A. Accounting Firm A was located in New Orleans, Louisiana and provided client accounting services to local businesses and individuals. Client B, a restaurant located in the New Orleans French Quarter, was a small business client of Accounting Firm A. BRITTON became the bookkeeper for Client B and was entrusted with the daily accounting and bill paying for Client B’s account. Accounting Firm A utilized a cloud-based accounting software called Restaurant 365 to manage the account for Client B. Restaurant 365 allowed BRITTON authorized access to Client B’s bank account. BRITTON’s position allowed her to issue checks to Client B’s vendors that contained an electronic signature of the managing shareholder of Client B.
On August 16, 2018, BRITTON established an entity named Lagniappe Accounting Services, L.L.C. (“Lagniappe”). Navy Federal Credit Union (“NFCU”) was a domestic financial banking institution headquartered in Vienna, Virginia. All check images received by NFCU either from a NFCU branch, ATM, e-deposit, or other channel, were transmitted to computer servers located in Vienna, Virginia. On August 24, 2018, BRITTON opened bank account No. ******2479 with NFCU under the name Lagniappe.
BRITTON devised and implemented a scheme to defraud Client B by embezzling approximately $32,000 from Client B’s bank account. BRITTON accessed Restaurant 365 software to delete approximately 31 check entries payable to Lagniappe that she fraudulently issued from Client B’s account. BRITTON opened an account with NFCU in the name Lagniappe in order to deposit funds she embezzled from Client B. BRITTON used her NFCU Lagniappe account debit card to pay for personal expenses at retailers such as Bed Bath & Beyond, Dillard’s, JCPenney’s, Old Navy, DSW, and at various nail spas. It was further part of the scheme and artifice to defraud, and in an effort to conceal her conduct, that on December 30, 2018, BRITTON made false statements in an email to Client B’s managing shareholder after he contacted BRITTON regarding a suspicious check written to Lagniappe. BRITTON was terminated from Accounting Firm A on January 3, 2019.
U.S. Attorney Peter G. Strasser praised the work of the United States Secret Service. The prosecution of the case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Billings man admits meth trafficking crimesRead the Press Release
BILLINGS – An investigation into a methamphetamine conspiracy led to a Billings man who admitted drug trafficking crimes today after agents found 30 pounds of meth and $11,380 cash in his vehicle, U.S. Attorney Kurt Alme said.
Jerry Ray Schuster, 56, pleaded guilty to conspiracy to possess with intent to distribute meth and to possession with intent to distribute meth. Schuster faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. District Judge Susan Watters presided and set sentencing for May 7. Schuster was released pending further proceedings.
The prosecution said in court records that an investigation into meth trafficking led to Schuster and a co-defendant, Byrne Mestas. Mestas, 62, of Billings, has pleaded not guilty.
Law enforcement served a search warrant at Schuster’s and Mestas’ trailer on May 3, 2019. In the trailer residence, agents found one pound of meth, three rifles, drug paraphernalia and receipts corroborating trips to California. A pound of meth is the equivalent of about 3,624 doses.
Agents executed a second search warrant three days later on four vehicles located at the Schuster and Mestas residence. A search of a Suzuki Swift registered to Schuster found 30 pounds of meth located in three backpacks, $11,380 in cash and receipts documenting a trip to California. Thirty pounds of meth is the equivalent of about 108,720 doses and has a street value of about $225,000. In the other three vehicles, agents found another pound of meth, 100 pills, cash and other items.
Assistant U.S. Attorney Julie Patten is prosecuting the case, which was investigated by the FBI Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Armed Career Criminal Pleads Guilty to Possessing A Firearm and AmmunitionRead the Press Release
Ocala, Florida – Shelley Devaughn Cook (42, Ocala) today pleaded guilty to possessing a firearm and ammunition as a convicted felon. He faces a mandatory minimum sentence of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
Cook had been indicted on August 19, 2019.
According to the facts presented in court, detectives from the City of Ocala Police Department observed Cook with an open alcoholic beverage container in a public area, in violation of a city ordinance. Cook ignored repeated requests from the detectives to pour out his drink, then fled on foot as the detectives approached him. Once apprehended, the detectives discovered a loaded semi-automatic pistol in Cook’s waistband. Cook also had quantities of MDMA (ecstasy), heroin, fentanyl, and marijuana in his possession.
Cook has eight prior state felony convictions, including robbery with a deadly weapon (firearm), aggravated battery, felony battery, fleeing and eluding law enforcement, and illegal drug possession, and is therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Akron Man Pleads Guilty to Heroin ChargeRead the Press Release
CHARLESTON, W.Va. – An Akron man pled guilty to a heroin charge, announced United States Attorney Mike Stuart. Deangelo “O” Reeves, 34, pled guilty to possessing heroin with the intent to distribute it.
“An all too familiar occurrence,” said United States Attorney Mike Stuart. “Regardless of whether they are from Detroit or Akron, or right here at home, drug dealers caught peddling poisons in my District will be prosecuted to the fullest extent of the law.”
Reeves admitted that on March 5, 2018 he threw a bag of heroin out of his car while being followed by police on McKee Avenue in Charleston. The heroin had a street value of over $1,000 and Reeves admitted he had intended to distribute it.
Reeves faces up to 20 years in prison when sentenced on April 22, 2020.
The Metro Drug Enforcement Network Team (MDENT) investigated the case. United States District Judge C. Irene presided over the hearing. Assistant United States Attorney Stefan Hasselblad is handling the prosecution.
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7 January 2020
Whitefield Man Pleads Guilty to Illegally Possessing FirearmRead the Press Release
Bangor, Maine: A Whitefield man pleaded guilty today in federal court in Bangor to being a felon in possession of a firearm, U.S. Attorney Halsey B. Frank announced.
According to court records, on April 22, 2019, a Winthrop Police Department detective saw an individual, later identified as Samuel Caison, 36, carrying what appeared to be a firearm wrapped up in material in Augusta. The individual placed the firearm in the trunk of a car. Officers with the Augusta Police Department later located Caison driving the car and pulled him over. Officers found a .22 caliber rifle in the trunk. Caison was prohibited from possessing firearms due to multiple prior felony convictions, including convictions for Robbery in 2005, Aggravated Assault and Illegal Possession of a Firearm in 2010 and Terrorizing in 2013.
Caison faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Augusta Police Department, the Winthrop Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. 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. For more information about PSN, please visit http://www.justice.gov/psn.
Webster City Man Sentenced on Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while possessing a firearm was sentenced January 2, 2020, to 12 years in federal prison.
Jaime Candelario-Mercado, 38, from Webster City, Iowa, received the prison term after an August 28, 2019, guilty plea to conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking crimes.
At the guilty plea hearing, Candelario-Mercado admitted that from about April 2018 through January 2019, he and others conspired to distribute more than sixteen pounds of methamphetamine in the Webster City and Eagle Grove area. In June 2018, he was arrested along with another person with about 2 ounces of marijuana, 2 ounces of methamphetamine and a loaded handgun. On six separate occasions in January 2019, Candelario-Mercado and another distributed over 190 grams of pure methamphetamine to individuals cooperating with law enforcement. Defendant further admitted that he possessed a gun during his distribution of methamphetamine to protect his person, money and drugs.
Candelario-Mercado was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Candelario-Mercado was sentenced to 144 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Candelario-Mercado is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Wright County, Iowa Sheriff’s Office, and Iowa Division of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3005.
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Waxhaw, N.C. Man Charged with Orchestrating $800,000 Investment Scheme Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – Kamlesh Gopal Pardasani, 49, of Waxhaw, N.C., appeared in court this morning in Charlotte, on federal charges related to an $800,000 investment scheme he allegedly orchestrated, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The federal indictment was filed on June 19, 2018, in the Western District of North Carolina, and was unsealed on November 30, 2019, after Pardasani was arrested at the Philadelphia International Airport upon entering the United States from India.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, from August 2016 to June 2017, Pardasani executed a scheme to defraud at least five victims of more than $800,000, by inducing the victims to invest in his company, FreightGuru.com LLC (FreightGuru). As alleged in the indictment, to induce his victims to invest their money, Pardasani falsely represented that he would use the investors’ money to fund a specific shipment of goods, and that, once the shipment cleared, the victims’ return rate on their initial investment would be between 15% and 20%. Pardasani also lied to victims by falsely assuring them that their funds were secure and safe, when in fact he used the victims’ money to fund his lifestyle, pay off personal creditors, and to engage in high-risk securities trading in his personal trading account. The indictment also alleges that after failing to invest the victims’ funds as promised, Pardasani continued to make additional false and fraudulent representations to lull victims and provide excuses for failing to return the victims’ money.
Pardasani is charged with wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine, and money laundering, which carries a maximum prison term of 10 years and a fine of not more than twice the amount of criminally derived property in the transaction or $250,000.
The details contained in the indictment are allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Charlotte Field Office led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Waterford Man Sentenced to Prison for Distributing OxycodoneRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RODNEY COTE, 54, of Waterford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to nine months of imprisonment, followed by six months of home confinement and three years of supervised release, for distributing oxycodone.
According to court documents and statements made in court, in February 2018, law enforcement learned that Cote was obtaining a monthly prescription for 120 80mg oxycodone pills and selling the pills for cash. The investigation revealed that Cote had been filling the monthly prescription for at least three years. On four occasions between May and July 2018, investigators made controlled purchases of 120 pills from Cote in exchange for $2,000. On September 20, 2018, investigators purchased 240 pills for $5,000. Cote was arrested on November 7, 2018, after he agreed to sell another 240 pills.
On March 4, 2019, Cote pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone.
As part of his sentence, Cote was ordered to forfeit $19,700.
Cote, who is released on a $75,000 bond, was ordered to report to prison on April 7, 2020.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Van Zandt County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 51-year-old Edgewood, Texas man has pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Timothy Dwayne Henson pleaded guilty to conspiracy to possess with intent to distribute methamphetamine before U.S. Magistrate Judge John D. Love on Jan. 7, 2020.
According to information presented in court, on two separate occasions in July 2018, Henson sold methamphetamine during controlled purchases in Van Zandt County. On Sep. 9, 2018, law enforcement executed a search warrant at his residence in Van Zandt County and recovered methamphetamine. Henson admitted to being involved in a conspiracy to obtain and distribute methamphetamine, and that he was directly responsible for the distribution of at least 500 grams of methamphetamine. Henson was indicted by a federal grand jury on Aug. 8, 2018 and charged with federal drug trafficking crimes.
Under federal statutes, Henson faces up to 40 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.
United States files False Claims Act complaint against Community Health NetworkRead the Press Release
Indianapolis – The United States has filed a complaint against Community Health Network Inc. (Community) in the U.S. District Court for the Southern District of Indiana, the Department of Justice announced today. Community, an integrated health care system in central Indiana, is alleged to have violated the Stark Law and thereby submitted false claims to the Medicare program.
The Stark Law prohibits a hospital from billing Medicare for services referred by a physician with whom the hospital has an improper financial relationship that does not meet any statutory or regulatory exception. The government’s complaint alleges that Community had employment relationships with a number of physicians that did not meet any Stark Law exception because the compensation Community paid to the physicians was well above fair market value and because Community conditioned paying bonuses on physicians achieving a minimum target of referral revenues to the hospital. The complaint alleges that Community received referrals from these physicians in violation of the Stark Law and submitted claims to Medicare knowing that the claims for those referred services were not eligible for payment.
“Improper financial relationships between hospitals and physicians corrupt clinical decision-making, threaten patient care, and ultimately drive up Medicare costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We are committed to eliminating these improper inducements and thereby ensuring the Medicare program remains fiscally sound to serve our nation’s senior citizens.”
“Our goal at the U.S. Attorney’s Office is to serve the citizens and help ensure safety in their communities,” said U.S. Attorney Josh Minkler for the Southern District of Indiana. “Hospitals are responsible for not only the health and well-being of their patients, but are also required to establish a compliance program in order to protect against improper payments, fraud and abuse as a condition of enrollment in the Medicare program.”
The United States filed its complaint in a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).
This case is being handled by the Justice Department’s Civil Division and the United States Attorney’s Office for the Southern District of Indiana, with assistance from the Office of Inspector General of the Department of Health and Human Services. The case is captioned United States and the State of Indiana ex rel. Thomas Fischer v. Community Health Network, Inc., et al. No. 1:14-cv-1215 (RLY-DKL) (S.D. Ind.).
The claims in which the United States has intervened are allegations only, and there has been no determination of liability.
United States Files False Claims Act Complaint against Community Health NetworkRead the Press Release
The United States has filed a complaint against Community Health Network Inc. (Community) in the U.S. District Court for the Southern District of Indiana, the Department of Justice announced today. Community, an integrated health care system in central Indiana, is alleged to have violated the Stark Law and thereby submitted false claims to the Medicare program.
The Stark Law prohibits a hospital from billing Medicare for services referred by a physician with whom the hospital has an improper financial relationship that does not meet any statutory or regulatory exception. The government’s complaint alleges that Community had employment relationships with a number of physicians that did not meet any Stark Law exception because the compensation Community paid to the physicians was well above fair market value and because Community conditioned paying bonuses on physicians achieving a minimum target of referral revenues to the hospital. The complaint alleges that Community received referrals from these physicians in violation of the Stark Law and submitted claims to Medicare knowing that the claims for those referred services were not eligible for payment.
“Improper financial relationships between hospitals and physicians corrupt clinical decision-making, threaten patient care, and ultimately drive up Medicare costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We are committed to eliminating these improper inducements and thereby ensuring the Medicare program remains fiscally sound to serve our nation’s senior citizens.”
“Our goal at the U.S. Attorney’s Office is to serve the citizens and help ensure safety in their communities,” said U.S. Attorney Josh Minkler for the Southern District of Indiana. “Hospitals are responsible for not only the health and well-being of their patients, but are also required to establish a compliance program in order to protect against improper payments, fraud and abuse as a condition of enrollment in the Medicare program.”
The United States filed its complaint in a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).
This case is being handled by the Justice Department’s Civil Division and the United States Attorney’s Office for the Southern District of Indiana, with assistance from the Office of Inspector General of the Department of Health and Human Services. The case is captioned United States and the State of Indiana ex rel. Thomas Fischer v. Community Health Network, Inc., et al. No. 1:14-cv-1215 (RLY-DKL) (S.D. Ind.).
The claims in which the United States has intervened are allegations only, and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
UNC Agrees to Pay More Than $4.5 Million to the United States Following Self-Disclosure of Errors in Grant Accounting ProceduresRead the Press Release
GREENSBORO, N.C. - The University of North Carolina at Chapel Hill (UNC) has agreed to pay the government $4,552,058.03 to resolve an overpayment resulting from errors in grant accounting procedures from January 1, 2007 through June 30, 2011, and from October 1, 2014 through March 31, 2017, U.S. Attorney Matthew G. T. Martin for the Middle District of North Carolina announced.
This settlement results from self-disclosures to the National Institutes of Health (NIH) of the U.S. Department of Health and Human Services (HHS) and later to the U.S. Attorney’s Office for the Middle District of North Carolina. UNC first discovered errors in 2011, and subsequently made written self-disclosures to the United States relating to grant closeout procedures. UNC later made an additional self-disclosure relating grant accounting issues, after it implemented new financial system software. Due to these errors, the University inadvertently retained excess funds, charged salary costs to awards after the award term had ended, and retained excess cash. UNC fully cooperated with the government’s investigation of the self-disclosures, and has implemented changes to its Office of Sponsored Research to ensure future compliance.
“Our office is committed to ensuring that federal grant dollars are properly applied and accounted for,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “We appreciate UNC’s disclosure of these issues and hope this matter serves as a reminder to other institutions that receive tax dollars that they must have controls in place to ensure federal tax dollars are used as intended.”
The settlement in this matter was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of North Carolina, the HHS Office of Inspector General (“HHS-OIG”), and the NIH Division of Program Integrity.
Recipients of federal awards who identify potential violations of law that may have resulted in the submission of improper claims relating to those awards should know that it is Department of Justice policy that entities or individuals that make proactive, timely, and voluntary self-disclosures will receive credit during the resolution of such matters.
In addition, recipients of HHS awards may self-disclose conduct to HHS-OIG. On July 11, 2019, HHS-OIG released new Grant Self-Disclosure Program Guidance, which is available on its website. The Program provides HHS award recipients and sub-recipients with a framework for disclosing, coordinating, evaluating, and resolving potential violations of law relating to their awards or sub-awards.
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Two Portland Residents Indicted for Illegally Possessing Same Stolen HandgunRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that two Portland residents have been charged with unlawfully possessing the same stolen handgun.
Christopher Eugene Miller, 28, and Kebrin Larry Jones, 27, are charged in a two-count indictment with unlawfully possessing a stolen Taurus model PT-845, .45 caliber handgun.
Miller and Jones join Desmond Boris Washington, 34, also of Portland, who was previously charged in a separate criminal case for unlawfully possessing the same handgun. All three defendants are convicted felons and not permitted to possess firearms.
Agents recovered the stolen firearm while executing a search warrant on Washington’s Portland residence. All three defendants memorialized their unlawful possession of firearms in a publicly-available music video posted to YouTube.
Miller was arraigned today by U.S. Magistrate Judge Stacie F. Beckerman. Miller and Jones, who was arraigned separately last week, were both ordered detained pending trial. Washington was arraigned in November 2018 and awaits a three-day trial beginning March 3, 2020.
This case was investigated by Homeland Security Investigations and is being prosecuted by the U.S. Attorney's Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The 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.
Two New Jersey Men Sentenced to Prison for Phony Debt Elimination SchemeRead the Press Release
NEWARK, N.J. – Two New Jersey men were today sentenced to prison terms for their respective roles in using phony monetary instruments to obtain luxury vehicles and other high value items; one of the defendants was additionally convicted of bankruptcy fraud, U.S. Attorney Craig Carpenito announced.
Germaine Howard King, a/k/a “Germaine Howard,” 47, of Elizabeth, New Jersey, was sentenced to 70 months in prison, and Daniel D. Dxrams, currently known as “Daniel Kusi,” formerly known as “Danny D. Dxrams,” 41, of Maplewood, New Jersey, was sentenced to 57 months in prison. U.S. District Judge John Michael Vasquez imposed the sentences today in Newark federal court.
King was convicted for his role in a scheme to defraud banks and other lenders using phony money orders to fraudulently discharge a $400,000 mortgage, to fraudulently obtain two Mercedes Benz (one 2007 and one 2010) cars, and to pay off credit card bills. In addition, King was convicted of a scheme to use phony cashier’s checks to pay off his co-defendant’s five luxury cars.
Dxrams was convicted for his role in a scheme to fraudulently pay off a Rolls Royce, Bentley, and three Mercedes Benz cars (two 2015 cars and one 2016 car). In addition, Dxrams was convicted of bankruptcy fraud and making a false oath during a bankruptcy proceeding.
Two co-defendant were sentenced by Judge Vasquez on Dec. 18, 2019: Melissa Reynolds, 43, of Elizabeth, who previously pleaded guilty to an information charging her with conspiracy to commit mail fraud, mail fraud affecting financial institutions, and bank fraud, was sentenced to one year and one day in prison, five years of supervised release, restitution of $587,081 and forfeiture of $548,242; Arthur N. Martin 3rd was sentenced to time served (one day), three years of supervised release and fined $12,000.
According to documents filed in this case and the evidence at trial:
King conspired with Reynolds to make fraudulent money orders on their home computers. They mailed these phony money orders to a credit union in an effort to fraudulently pay off their two Mercedes Benz cars. Although the credit union rejected both bogus money orders, King and Reynolds mailed correspondences to the credit union falsely claiming that the debt was satisfied. They then stopped paying their car loans, and King kept the car. King and Reynolds mailed a fraudulent money order in the amount of $432,000 to a financial institution to pay off their mortgage. The financial institution erroneously accepted the fraudulent payment and credited it as a payoff for the mortgage. When the financial institution filed a suit seeking to reinstate the fraudulently discharged mortgage, King and Reynolds continued to allege in court that the mortgage had been paid and submitted a phony receipt for the bogus money order. King also made and mailed fraudulent money orders in an attempt to pay off his credit card bills.
Dxrams, King, and Reynolds conspired to fraudulently pay off Dxrams’ five luxury cars. They sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain a 2012 Bentley for free. Dxrams sold the car to a third party for approximately $82,000 and then issued a bank check to King for approximately $25,000. The defendants also used this scheme in an effort to fraudulently obtain three Mercedes-Benz cars and a Rolls Royce.
Dxrams was also convicted of bankruptcy fraud and making a false oath before the bankruptcy court. In December 2017, Dxrams filed a bankruptcy petition under penalty of perjury. He falsely concealed his ownership of a car rental business and the gross receipts he earned through this car rental business, his sale of the Bentley, his receipt of money from a personal injury lawsuit, his ownership of firearms, and his marital status, among other things. In January 2018, Dxrams appeared before the bankruptcy trustee and, after being placed under oath, made false statements concerning his bankruptcy petition and his sale of the Bentley.
In addition to the prison terms, Judge Vasquez sentenced King to five years of supervised release and restitution of $597,781. Dxrams was sentenced to three years of supervised release, restitution of $93,236 and forfeiture of $82,000.
U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi with the investigation leading to the convictions.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman, of the National Security Unit, in Newark.
Defense counsel: King: Pro Se
Dxrams: Michael Orozco Esq., Woodland Park, New Jersey
Reynolds: Robert J. Degroot Esq., and Oleg Nekritin Esq., NewarkTwo Individuals Plead Guilty to the Robbery of A Red Lake RestaurantRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of ROBERT LEE JOURDAIN, SR., 26, to one count of robbery. JOURDAIN entered his plea today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota. On December 19, 2019, JOURDAIN’s co-defendant COURTNEY JOHN BARRETT, JR., 30, also pleaded guilty to one count of robbery. The defendants will be sentenced at a later date.
According to the defendants’ guilty pleas and documents filed in court, on May 1, 2019, at approximately 9:30 pm, JOURDAIN and BARRETT entered the Snack Shack on the Red Lake Indian Reservation armed with weapons. BARRETT held his weapon to an employee’s head while JOURDAIN brandished his weapon. The defendants stole approximately $73 from the cash register and $83 from an employee’s purse.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Special Assistant U.S. Attorney Gina L. Allery is prosecuting the case.
Defendant Information:
ROBERT LEE JOURDAIN, SR., 26
Red Lake, Minn.
Convicted:
- Robbery, 1 count
COURTNEY JOHN BARRETT, JR., 30
Red Lake, Minn.
Convicted:
- Robbery, 1 count
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Two Associates of Nuestra Familia Prison Gang Plead Guilty to Federal RICO ConspiracyRead the Press Release
SAN JOSE – Erik Lopez, a/k/a Bimbo, and Alejo Alex Alegre, IV, a/k/a Chino, pleaded guilty today to racketeering conspiracy charges for their respective roles as associates of the Nuestra Familia prison gang, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty pleas were accepted by the Honorable Beth L. Freeman, United States District Judge. Five additional members of the prison gang have pleaded guilty to related conspiracy charges, one of whom Judge Freeman sentenced today to seven years in prison.
According to the plea agreements, between December 2, 2012, and April 14, 2014, Lopez, 25, and Alegre, 28, both were members of the Nuestra Familia/Salinas Norteños Enterprise. The Enterprise consisted of members and associates of the Nuestra Familia prison gang as well as Norteño street gangs in Salinas, Calif., and the surrounding areas. Members and associates of the Enterprise agreed to commit crimes such as murder, narcotics trafficking, and other acts of violence through a pattern of racketeering activity. Norteño gang members pledge their allegiance and loyalty to Nuestra Familia and are instructed on its rules, rituals, and obligations. Gang rules and discipline are maintained by assaulting and threatening those individuals who violate the rules or pose a threat to the organization. Inside prisons and local jails, all members and associates of Nuestra Familia and Norteños work together to maintain the structure and follow the rules of the Enterprise.
In their plea agreements, Lopez and Alegre admit to participating in the distribution of narcotics to other inmates at Monterey County Jail. Also, the plea agreements describe the roles of the defendants in “removals” as a means of violently enforcing the most important of the gang’s rules while they were in the jail. The term “removal” refers to a violent attack designed to remove (from both the custodial housing unit and the gang itself) a member of the gang who committed a serious violation of the gang’s rules. A removal is accomplished by having one or more “hitters” stab the victim and then having at least two “bombers” assault the target by punching and kicking the victim without weapons. The purpose of the subsequent beating is to inflict upon the victim maximum damage while giving the hitters time to wash themselves and get rid of weapons.
Alegre admitted that he participated in the November 13, 2013, removal of a victim from one of the housing units of the Monterey County Jail. Alegre admitted that he was the hitter for the removal and repeatedly stabbed the victim in the head, torso, and arms. Alegre acknowledged that immediately after the victim was stabbed, two bombers began punching and kicking the victim to allow Alegre to escape being caught by guards with the stabbing weapon.
Lopez admitted that he participated in the December 2, 2012, removal of a victim from one of the housing units at the Monterey County Jail. Lopez admitted that he was a bomber in the attack and that he and another bomber punched and kicked the victim to inflict the maximum damage possible and to allow the hitter to escape. Lopez acknowledged that the victim was stabbed in the chest and back over 20 times by the hitter. Lopez also admitted being a bomber on the February 25, 2013, removal of a victim. Lopez punched and kicked the victim after a hitter stabbed the victim in the head.
On September 27, 2018, a federal grand jury indicted Lopez, Alegre, and several other defendants with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d). Both Lopez and Alegre also were charged with conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), and conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6). Alegre was also charged with attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), and assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(3). Lopez was also charged with felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Both defendants pleaded guilty to the racketeering conspiracy charge, wherein they admitted that murder was an object of the conspiracy. If they comply with their plea agreements, the additional charges will be dismissed at sentencing.
Judge Freeman scheduled the sentencing hearing for Lopez for April 7, 2020, and the sentencing hearing for Alegre for May 5, 2020. Pursuant to the terms of their plea agreements, both Lopez and Alegre have agreed that a reasonable and appropriate disposition of their respective cases would include a term of imprisonment of 10 years. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The following additional defendants have pleaded guilty to crimes as part of the criminal Enterprise and are scheduled to be sentenced in the case:
Name
Charges
Sentencing
Michael James Rice a/k/a Redwood
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Scheduled for March 3, 2020
Jeffrey Lopez, a/k/a T-Bone
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Scheduled for March 17, 2020
Juan Alvarez, a/k/a Chucky
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Scheduled for March 31, 2020
Ramon Montoya, a/k/a Little Ray
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Scheduled for March 31, 2020
Additionally, today, Judge Freeman sentenced Alberto Moreno, a/k/a Doughboy, to seven years in prison for his role in the criminal RICO Enterprise. Moreno, 26, pleaded guilty to racketeering conspiracy on November 12, 2019. In his plea agreement, Moreno admitted that he was a member of the Enterprise and that he participated in the distribution of narcotics to other inmates at Monterey County Jail. Moreno also admitted that he participated as a bomber in an April 29, 2013, attack, in which the victim was stabbed in the head by the hitter.
Assistant U.S. Attorneys Claudia A. Quiroz and Stephen Meyer are prosecuting the case. The prosecution is the result of an investigation by the FBI with assistance from the Salinas Police Department, the Monterey County Sheriff’s Office, the California Highway Patrol, and the California Department of Corrections and Rehabilitation.
Twice-Deported Belizean National with Three Prior Felony Convictions Indicted for Illegally Reentering the United StatesRead the Press Release
LOS ANGELES – A twice-deported Belizean national who currently is serving a nine-year sentence in a California prison for a domestic violence-related conviction was charged today with one felony count of illegal re-entry into the United States following his deportation.
Akeem Garnett, 37, a.k.a. “Akeen Dean Garnett” and “Emerson Edmund Hewitt,” whose most recent residence was in Beverly Hills, was named in a one-count federal grand jury indictment that alleges he illegally re-entered the United States.
According to the indictment, Garnett was deported from the United States on September 1, 2016 and November 16, 2017. He was most-recently found in Los Angeles County on April 9, 2019.
Garnett is charged with re-entering and remaining in the United States knowingly and voluntarily without having obtained permission from the United States Attorney General or the Secretary of Homeland Security following his deportation.
Garnett’s criminal history includes a conviction in Los Angeles Superior Court for attempted first-degree residential burglary in 2011, for which he was sentenced to two years in state prison, according to the indictment. In 2012, Garnett was convicted in Los Angeles Superior Court of first-degree residential burglary with enhancements for committing the offense while on bail and for the benefit of a street gang, the indictment alleges. He was sentenced to nine years in state prison for that offense, the indictment states.
Currently, Garnett is incarcerated at North Kern State Prison in Delano after being convicted in July 2019 of corporal injury on a spouse, with an enhancement for personally causing great bodily injury.
He is expected to be brought to federal court in Los Angeles to face the federal illegal re-entry charge in the coming months.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Garnett faces a statutory maximum sentence of 10 years in federal prison.
U.S. Immigration and Customs Enforcement investigated this case.
This matter is being prosecuted by Special Assistant United States Attorney Matthew C. Chan of the General Crimes Section.
Tampa Bay Autism Service Provider Agrees to Pay $675,000 to Resolve Civil Healthcare Fraud AllegationsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces today that Behavioral Consulting of Tampa Bay (“BCOTB”) has agreed to pay the United States $675,000 to resolve allegations that BCOTB violated the False Claims Act by submitting false or fraudulent claims to the TRICARE program, a health care program for uniformed service members, retirees, and their families.
The United States initiated an investigation after an audit by TRICARE’s managed care support contractor (Humana Military Program Integrity) revealed alleged false or fraudulent claims to TRICARE for applied behavior analysis therapy (“ABA”) and other services to TRICARE beneficiaries with autism spectrum disorder. Today’s settlement resolves allegations that BCOTB submitted claims to TRICARE that (1) misrepresented the identity of the rendering provider, (2) misrepresented the service provided, (3) requested payment for more units of time than supported by the medical record, and (4) were not substantiated by a medical record, and therefore requested payment for services that were not rendered.
“Companies that commit to providing intensive behavioral treatment to children with autism, at a pivotal time in their development, should be held accountable for their actions,” said U.S. Attorney Maria Chapa Lopez. “Our Office is committed to protecting our military service members and their families and the programs that make it possible for their children with special needs to receive these vital services.”
"In this case, the provider's overbilling cheated TRICARE out of money meant for children's therapeutic services," stated Special Agent-in-Charge Cynthia Bruce of the Defense Criminal Investigative Service (DCIS) Southeast Field Office. "DCIS will aggressively pursue those who exploit government programs intended to help our military service members, veterans, and their families and will dedicate all needed resources to bring them to justice."
Today’s settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, assisted by the Defense Criminal Investigative Service and Humana Military Program Integrity. Assistant United States Attorney Lindsay Saxe Griffin led the civil investigation.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
St. Louis City Man Pleads Guilty to Robbing Fireworks Stand in St. Charles County at GunpointRead the Press Release
St. Louis, MO –Duianete Moore, 38, of St. Louis City, MO, pleaded guilty to federal felony charges of robbery, possession of a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm. Moore appeared in federal court today before United States District Judge Ronnie L. White who accepted his plea and set his sentencing date for April 7, 2020.
According to court documents, Moore engaged in on-going criminal activity throughout the spring and summer of 2018, including the theft of firearms from vehicles on four separate occasions. Further, on June 26, 2018, Moore and a female rushed into Crazy Cheap Fireworks tent in St. Charles County. Moore pointed a firearm at the employees, demanded they lay on the ground and not to look at him. Victims had their wallets and cell phones taken by Moore and the female. Three cash registers were taken containing U.S. currency from the proceeds of fireworks sales. At the time of Moore’s subsequent arrest, Moore possessed a backpack containing a loaded .45 caliber semi-automatic pistol with a drum magazine.
Moore faces up to 20 years in prison on the robbery charge. In addition, Moore faces between seven years and life in prison on the charge of possession of a firearm in furtherance of a crime of violence and not more than ten years on the felon in possession charge. Each count carries a fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Tom Mehan is handling the case.
Rosebud Man Indicted for Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Gabriel White Lance, age 20, was indicted on September 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 3, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 23, 2019, White Lance knowingly engaged in, and attempted to engage in, a sexual act with a minor female.
The charge is merely an accusation and White Lance is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Lance was released on bond pending trial. A trial date has not been set.
Rochester Man Sentenced to 120 Months for Fentanyl Trafficking and Gun CrimesRead the Press Release
CONCORD – Matthew MacLeod, 34, of Rochester, was sentenced to 120 months in federal prison for possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 7, 2018, officers from the Rochester Police Department conducted a traffic stop of a vehicle driven by MacLeod. During a later search of the vehicle, officers found multiple drugs, including cocaine and over 40 grams of fentanyl. MacLeod possessed the drugs with the intent to sell them. Officers also seized a firearm from the vehicle.
MacLeod previously pleaded guilty on September 17, 2019.
“Drug dealers present a serious threat to all of our citizens,” said U.S. Attorney Murray. “Dealers who possess firearms while doing business pose an even greater danger to the safety of everyone around them. To protect Granite Staters from violent crime, we will not hesitate to seek long prison sentences for armed drug dealers."
"Matthew MacLeod chose to deal deadly narcotics, he chose to drive armed with a gun, and he chose to endanger the lives of his customers," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "He'll now spend the next 10 years of his life behind bars for his role in New Hampshire's opioid epidemic.”
This matter was investigated by the Federal Bureau of Investigation and the Rochester Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Rapid City Man Sentenced to 10 Years in Prison on Drug ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Dustin Seegrist, age 37, was sentenced on January 3, 2020, to 10 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Seegrist possessing more than 310 grams of methamphetamine and 2 firearms at Rapid City in September 2018, which was found in a backpack hidden underneath Seegrist’s sweatshirt after he came into contact with a Rapid City police officer.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Seegrist was immediately turned over to the custody of the U.S. Marshals Service.
Pittsburgh Felon Charged with Unlawful Possession of a Pistol and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on January 7, named Aaron Lyons, 25, of Pittsburgh, Pennsylvania as the sole defendant.
According to the Indictment, on or about November 19, 2019, Lyons, a convicted felon, unlawfully possessed a .40 caliber Smith and Wesson pistol and 11 rounds of .40 caliber ammunition. The Indictment also alleges that the defendant had been convicted in April 2018 of unlawfully possessing a firearm as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reductions 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 prevent and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.