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7 January 2020
Paterson Police Sergeant Arrested for Conspiracy to Violate Civil Rights and Filing a False Police ReportRead the Press Release
NEWARK, N.J. – A sergeant with the Paterson Police Department was arrested today and charged with conspiring to violate the civil rights of an individual in Paterson and with falsifying a corresponding police report, U.S. Attorney Craig Carpenito announced.
Police Officer Michael Cheff, 49, of Paterson, was arrested by the FBI this morning and charged by complaint with conspiring to deprive an individual of civil rights under color of law and with falsifying a police report. Cheff is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Certain Paterson police officers stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. These officers also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from them. Cheff routinely received a portion of these stolen monies from some of these officers and signed off on corresponding false police reports about the underlying incidents. In 2016, Cheff told one of the officers to start “tagging,” or logging into evidence, some of the money that the officer was stealing, because effecting narcotics arrests without logging money into evidence would otherwise raise questions.
On Nov. 14, 2017, three officers stopped and arrested an individual and one of the officers stole a few hundred dollars from that individual. The officers then went to the individual’s apartment, and Cheff joined them. One officer stayed behind to guard the arrested individual, who was handcuffed in a police car, while the others, including Cheff, obtained consent to search the apartment by lying to the individual’s mother.
Cheff and the other two officers then searched the individual’s room. Cheff located a safe inside a closet in the room and took money and narcotics from the safe. He handed a small portion of the money to one of the officers and told the officer to log it into evidence. Cheff put the rest of the money in his pocket. At the Paterson police station, in a bathroom, Cheff gave the officer who had stayed behind to guard the individual a portion of the stolen money and gave a portion of the stolen money to one of the officers who had searched the apartment with him.
Cheff also approved a police report that falsely stated that the officers had recovered $319 from a shelf in the individual’s room. In fact, Cheff knew that he had stolen a substantial sum of money from a safe in the room.
Later that day, one of the officers sent text messages to another officer discussing Cheff’s theft of money. The officer said, among other things, that Cheff “got us for over a stack today,” that “there was a safe” and that Cheff “grabbed the cash.” According to the individual whose apartment was searched, the safe contained approximately $2,700, and all of it was missing after the search was completed.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison. The false records charge carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Oklahoma City Man Sentenced to Three Decades for Possessing a Gun While Dealing DrugsRead the Press Release
OKLAHOMA CITY – TYRONE LEROY OUTLEY, 27, of Oklahoma City, Oklahoma, has been sentenced to 360 months in prison for possessing crack cocaine with intent to distribute, as well as possessing a firearm in furtherance of a drug-trafficking crime, announced U.S. Attorney Timothy J. Downing.
Outley was indicted on November 8, 2017, with three counts—possession of crack cocaine with intent to distribute, possession of a firearm in furtherance of a drug-trafficking crime, and felon in possession of a firearm—all of which stemmed from his March 15, 2017, arrest by Oklahoma City Police Department officers. At trial, the government presented evidence that Mr. Outley attempted to flee from law enforcement and refused to submit when caught by police. During the ensuing struggle, Outley repeatedly reached for his jacket pocket, which was later found to contain a loaded .22 caliber revolver. Also in that pocket was what the arresting officer described as a large crack rock. At the time of the offense, Mr. Outley had twice been convicted of possession of cocaine base with intent to distribute in the prior four years. He was also serving four deferred, suspended, or probationary sentences from state violations.
On October 11, 2018, the jury found Outley guilty on all counts. A subsequent Supreme Court decision led to the government dismissing the felon in possession count.
On December 16, 2019, U.S. District Judge Stephen P. Friot sentenced Outley to 300 months in prison on the drug count, to be followed by 60 months of imprisonment on the firearm count. Judge Friot also imposed fifteen years of supervised release.
This case is the result of an investigation by the Oklahoma City Police Department and the Federal Bureau of Investigation—Oklahoma City Field Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service. Assistant U.S. Attorneys David McCrary and Wilson McGarry prosecuted the case.
This case is part of the work of the Organized Crimes and Drug Enforcement Task Force, the Department of Justice’s signature initiatives to address and reduce drug-related criminal activity.
Norwood Woman Pleads Guilty to Distributing Synthetic Marijuana into State Correctional FacilitiesRead the Press Release
BOSTON – A Norwood woman pleaded guilty yesterday in federal court in Boston to distributing synthetic marijuana into state correctional facilities.
Caitlin Marcey, 27, pleaded guilty to distribution of a controlled substance before U.S. District Judge Patti B. Saris who scheduled sentencing for April 28, 2020. Marcey was arrested and charged in June 2019.
Marcey mailed papers soaked in synthetic marijuana, or “K2,” to Massachusetts correctional facilities. The most common means of doing so is by soaking or spraying synthetic marijuana onto documents and then transporting those documents, either in person or by mail, into the jail, where they can be smoked. It is also common to attempt to include documents soaked in synthetic marijuana in mailings disguised as legal mail, as this mail is generally not subjected to rigorous screening due to attorney-client privilege.
In November 2018, investigators at the Souza Baranowksi Correctional Center (SBCC) in Lancaster, Mass., monitored recorded jail calls during which Marcey arranged for the delivery of synthetic marijuana. Investigators subsequently intercepted mail sent by Marcey that purported to be an attorney mailing to an SBCC inmate. The records inside the mailing tested positive for synthetic marijuana.
The charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; Worcester County Sheriff Lew Evangelidis; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Lelling’s Worcester Branch Office are prosecuting the case.
North Texas Residents Indicted for Illegal Kickback ConspiracyRead the Press Release
PLANO, Texas – Three North Texas residents have been indicted for conspiring to pay for patient referrals in violation of the Anti-Kickback Statute in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown. The indictment was unsealed today.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally-funded programs, including Medicare, TRICARE, and Medicaid. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
Sultan Satar Sattar, 64, and his wife Bibi Zabeda Sattar, 61, of Fort Worth, Texas, and Jeffrey Paul Cornwell, a/k/a "Boomer," 43, of McKinney, Texas, were indicted by a federal grand jury on December 11, 2019. The indictment alleges that the defendants conspired to make an unlawful kickback arrangement involving payments for the referral of federal health care beneficiaries, in violation of 18 U.S.C. § 371. According to the indictment, the illegal arrangement concerned the referral of testing services to clinical laboratories located in Richmond, Virginia, and Frisco, Texas, in exchange for per-test compensation.
The Sattars were arraigned on December 30, 2019, before U.S. Magistrate Judge Kimberly Priest Johnson. Cornwell's initial appearance took place on January 7, 2020, also before Judge Johnson.
If convicted, the Sattars and Cornwell each face up to 5 years in federal prison.
This case is being investigated by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Defense Criminal Investigative Service, and the State of Texas Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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New York Man Indicted in Pittsburgh on Drug ChargeRead the Press Release
PITTSBURGH - A resident of Brooklyn, New York, has been indicted by a federal grand jury on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Quaruan Chance, age 31, as the sole defendant.
According to the Indictment, Chance was found to be in possession of 500 grams or more of cocaine.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine not to exceed $5,000,000, a term of supervised release of at least four years, or a combination thereof. 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 Mark V. Gurzo is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Detained in RI on Enticement, Interstate Travel to Engage in Illicit Sexual Conduct ChargesRead the Press Release
PROVIDENCE – A New Jersey man arrested by Rhode Island State Police and Homeland Security Investigations on Sunday after he traveled to Rhode Island to allegedly engage in sexual activity with a person he believed to be a 9th grade girl he befriended online has been ordered detained in federal custody, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
It is alleged that Amish Jayant Patel, 47, of Swedesboro, New Jersey, communicated online for nearly a month with a person he thought to be a 14-year-old, 9th grade Rhode Island female. It is alleged that during the online exchange of messages, Patel sent the girl photographs of himself and sexually explicit pictures. It is alleged that he arranged to meet with the girl in Rhode Island on January 5, 2020, to engage in illicit sexual activity. He allegedly told the girl he would purchase alcohol for them to share when they met.
The person he was actually communicating with was a Rhode Island State Police Detective assigned to the Internet Crimes Against Children Task Force.
According to court documents, when Patel arrived at T.F. Green Airport on Sunday he was followed by undercover law enforcement officers and agents as he deplaned, he traveled to a local liquor store where he purchased alcohol, and then to a pre-determined location where he was expecting to meet with the 14-year-old girl. He was arrested without incident.
Patel appeared in U.S. District Court in Providence on Monday and was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond, charged by way of a federal criminal complaint with enticement and travel in interstate commerce to engage in illicit sexual conduct.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Naugatuck Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANA NUNEZ, also known as Ana Pagoaga, 48, of Naugatuck, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to filing false tax returns.
According to court documents and statements made in court, Nunez owned and operated Nunez MultiServices, LLC, a tax return preparation service located in Naugatuck. From tax year 2011 and continuing at least through tax year 2014, Nunez falsified information on tax returns she prepared for clients and caused the returns to be filed with the Internal Revenue Service. On the returns, Nunez routinely inflated income or created fictitious income; falsified expenses, including education and child care expenses, and falsified deductions, such as business mileage.
Nunez pleaded guilty to two counts of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years on each count. A sentencing date is not scheduled.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Susan L. Wines and John T. Pierpont, Jr.
Missouri Woman Sentenced to Ten Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on January 3, 2020, Chanel Traci Huff, age 34, of Maryville, Missouri, was sentenced by United States District Court Chief Judge John A. Jarvey for conspiracy to distribute methamphetamine. Huff was sentenced to 120 months in prison to be followed by a term of supervised release of five years.
On February 2, 2019, Mills County law enforcement conducted a traffic stop of Huff’s vehicle and officers located 381 grams of methamphetamine and $7,000 in drug proceeds in her car. A search warrant was executed at Defendant’s residence and officers seized $15,000 in drug proceeds and a pistol.
This matter was investigated by the Southwest Iowa Narcotics Enforcement Task Force, Mills County Sheriff’s Office, Nodaway County (Missouri) Sheriff’s Office, and the Maryville (Missouri) Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Minnesota Man Sentenced to 5 Years on Methamphetamine ChargeRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that William Huff, 54, St. Paul, Minnesota, was sentenced today by Chief U.S. District Judge James D. Peterson to five years in federal prison for possessing methamphetamine with intent to distribute. Huff pleaded guilty to this charge on September 25, 2019.
On April 20, 2019, Wisconsin State Patrol troopers stopped Huff for speeding in Dunn County and determined that his driver’s license had been revoked. Due to the suspicious behavior of Huff and his passenger, troopers searched his vehicle. During the search, troopers found two bags containing a total of 131 grams of methamphetamine. During a post-arrest interview, Huff admitted that he had purchased the methamphetamine in Minnesota and planned to sell it in Eau Claire, Wisconsin.
The charge against Huff was a result of an investigation conducted by the Wisconsin State Patrol, the Dunn County Sheriff’s Office, and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Minneapolis Sex Offender Found Guilty of Child Pornography OffensesRead the Press Release
United States Attorney Erica H. MacDonald today announced JOHN EDWIN KUHNEL, 40, was convicted on nine counts of receipt of child pornography and two counts of possession of child pornography. KUHNEL was found guilty following a two-day bench trial before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. KUHNEL will be sentenced at a later date.
“Mr. Kuhnel, a twice convicted child predator, must now face the consequences of his actions,” said U.S. Attorney Erica MacDonald. “Justice has prevailed in this case.”
As proven at trial, KUHNEL obtained and possessed child pornography images and videos while being supervised for a 2010 Hennepin County conviction for second-degree criminal sexual conduct. On November 29, 2016, following a meeting with his probation officer, KUHNEL admitted to unauthorized internet activity in violation of the terms of his supervision. Law enforcement’s forensic examination of KUHNEL’s two laptop computers revealed more than 33,000 child pornography images and videos. KUHNEL was instructed to return to the probation office the following day but, instead, KUHNEL fled the state and remained a fugitive until he was arrested in another state in 2017.
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 is the result of an investigation conducted by the FBI, the Minneapolis Police Department and the Hennepin County Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Emily A. Polachek.
Defendant Information:
JOHN EDWIN KUHNEL, 40
Minneapolis, Minn.
Convicted:
- Receipt of child pornography, 9 counts
- Possession of child pornography, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Middle District of Florida U.S. Attorney’s Office Collects More Than $98 Million in Locally Handled Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
Tampa – United States Attorney Maria Chapa Lopez announced today that the Middle District of Florida (MDFL) collected $98,607,097 in locally handled criminal and civil actions in the fiscal year ending September 30, 2019 (FY 2019). Of this amount, $79,862,063 was collected in local civil actions and $18,745,043 was collected in criminal actions.
The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $268,562,280 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the district’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $188,700,217 in these high profile, jointly handled cases. This represents the second largest recovery amount for a single year in the history of the district.
Additionally, the Office’s Asset Recovery Division, led by Chief Anita Cream, recovered $28,791,743 in asset forfeiture actions last fiscal year. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2019, nearly $10 million forfeited in the MDFL in this and prior years was returned to victims of the criminal offenses upon which the forfeitures were based, and more than $2.8 million was shared with federal, state, and local law enforcement agencies.
“The coordinated efforts between federal, state, and local partners have resulted in the recovery of millions of dollars from those who have used fraud and other means to violate federal laws,” said U.S. Attorney Chapa Lopez. “These recovered funds will serve to hold those responsible accountable for their misconduct and offenses, help victims recover from their losses, and assist law enforcement in pursuing justice.”
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
CIVIL HEALTHCARE FRAUD ENFORCEMENT CASE SUMMARIES
United States v. Regency, Inc., Case No. 8:19-civ-903 (M.D. Fla.)
The MDFL Civil Division, working in parallel with its Asset Recovery Division and Criminal Division, obtained an emergency temporary restraining order and preliminary injunctions that secured a historic $50 million in cash and other valuable property owned by 13 criminal healthcare fraud targets, pending resolution of criminal claims. The asset freeze is the largest of its kind on record. The defendants in this civil case are alleged to have engaged in a vast healthcare fraud scheme that generated a deluge of false claims for unnecessary orthotic braces that were shipped to Medicare beneficiaries. Boiler room call centers “cold called” Medicare beneficiaries and generated leads for store front durable medical equipment companies to exploit. The medical need for the orthotics was certified by internet doctors who had no relationship with the beneficiaries receiving the equipment.
United States v. Jayam Iyer, MD, Case No. 8:19-civ-446 (M.D. Fla.)
This civil case was worked in parallel with a criminal prosecution of a Clearwater anesthesiologist who was a national outlier prescriber of opiate medications. The parallel investigation resulted in an indictment and guilty plea for health care fraud that brought a six month prison sentence for the physician. Dr. Iyer also surrendered her DEA registration that permitted her to prescribe controlled substances, and her Florida medical license. She was excluded from participation in Medicare and Florida Medicaid programs, and has agreed to pay $102,126 to resolve civil claims under the False Claims Act.
Press releases: https://www.justice.gov/usao-mdfl/pr/clearwater-doctor-sentenced-prison-health-care-fraud
https://www.justice.gov/usao-mdfl/pr/former-clearwater-anesthesiologist-agrees-pay-102126-resolve-civil-healthcare-fraud
United States ex rel. Heaphy v. Miraca Life Sciences, Case No. 8:16-civ-3328 (M.D. Fla.)
A nationwide pathology group paid $63.5 million to resolve claims by two separate whistleblowers that it had provided kickbacks to referring physicians in the form of subsidies for electronic health records and technology consulting.
Press release: https://www.justice.gov/opa/pr/pathology-laboratory-agrees-pay-635-million-providing-illegal-inducements-referring
United States ex rel. Simon v. HealthSouth, Inc., Case No. 8:12-civ-236 (M.D. Fla.)
A nationwide provider of rehabilitation services paid $48 million to settle allegations by whistleblowers in six separate qui tam cases that the provider had defrauded the Medicare program through false information that distorted the medical conditions of patients in order to gain higher reimbursement from the program.
Press release: https://www.justice.gov/opa/pr/encompass-health-agrees-pay-48-million-resolve-false-claims-act-allegations-relating-its
Fagron Holding USA, LLC
A supplier of ingredients used in compounded pain cream medications created by specialty pharmacies agreed to pay $22.05 million to resolve allegations in two qui tam cases that it had defrauded the Department of Defense’s TRICARE program and the federal Workers’ Compensation program through a scheme that falsely inflated the average wholesale price of the ingredients. Because reimbursement depends upon the pricing reported to price listing agencies, the scheme permitted the supplier’s pharmacy customers to bill federal programs for thousands of dollars per prescription more than they were entitled to claim.
Press release: https://www.justice.gov/usao-mdfl/pr/compound-ingredient-supplier-fagron-holding-usa-llc-pay-2205-million-resolve
Celink
A Michigan based reverse mortgage loan servicer paid $4.25 million to resolve claims that it had improperly claimed interest payments from the Department of Housing and Urban Development’s Federal Housing Administration insurance program. HUD regulations impose specific requirements upon servicers claiming interest, and Celink’s claims to the agency failed to disclose facts that defeated its claims.
Press release: https://www.justice.gov/usao-mdfl/pr/celink-agrees-pay-425-million-resolve-its-alleged-liability-relating-its-servicing
United States ex rel. Webb v. Advanced Biohealing, Case No. 8:14-civ-1055 (M.D. Fla.)
Kevin Rakin, the CEO of a medical device manufacturer, paid $2.5 million to resolve allegations by a qui tam relator that he had conceived and implemented a nationwide kickback scheme that incentivized overutilization of a wound care medical device. In 2017, the manufacturer had settled kickback allegations against it in return for $350 million.
Press release: https://www.justice.gov/usao-mdfl/pr/former-advanced-biohealing-ceo-pay-25-million-settle-false-claims-act-allegations
United States ex rel. Hawks v. Heart & Vascular Inst. of Florida, Case No. 8:16-civ-1574 (M.D. Fla.)
An Orlando area vascular surgeon, Irfan Siddiqui, paid $2.23 million to resolve allegations by one of his patients that he had defrauded Medicare through false claims for medically unnecessary vein ablation services and up-coded evaluation and management services. He also had allegedly falsified patient records to justify claims for reimbursement.
Press release: https://www.justice.gov/usao-mdfl/pr/davenport-vascular-surgeon-agrees-pay-223-million-settle-health-care-fraud-claims
United States ex rel. Oha v. Advanced Pain Management and Spine Specialists, Case No. 2:15-civ-350 (M.D. Fla.)
The co-owner of the largest pain management practice in southwest Florida, Dr. Jonathan Daitch, paid $1.7 million to resolve civil fraud claims against him individually, that alleged he had submitted false claims to Medicare for medically unnecessary urine drug testing services. The co-owner of the practice, Dr. Michael Frey, earlier pleaded guilty to having received kickbacks from a local durable medical equipment provider and paid $2.8 million in a separate settlement to resolve civil fraud claims against him arising from kickback practices and for ordering medically unnecessary lab tests.
Press releases: https://www.justice.gov/usao-mdfl/pr/fort-myers-doctor-agrees-pay-more-17-million-resolve-allegations-fraud
https://www.justice.gov/usao-mdfl/pr/fort-myers-pain-management-physician-sentenced-eighteen-months-prison-kickback-scheme
United States ex rel. de Oca v. Conway Lakes NC, LLC, Case no. 6:16-civ-1374 (M.D. Fla.)
An Orlando skilled nursing facility, Conway Lakes NC, LLC, along with its former Administrator, Matthew File, its management company, Clear Choice Health Care, LLC, Clear Choice’s part-owner and President, Jeffrey Cleveland, Clear Choice’s part-owner and Senior Vice President, Geoffrey Fraser, and an Orlando-area orthopedic surgeon, Dr. Kenneth Krumins, agreed to pay $1.5 million to resolve a qui tam relator’s allegations that they had engaged in a kickback scheme concerning the referral of Medicare and TRICARE patients. Dr. Krumins received payments under a sham “medical director” agreement to induce him to illegally refer Medicare and TRICARE patients to Conway Lakes for rehabilitation services that were billed to the United States. Dr. Krumins’s settlement agreement also resolves allegations that he engaged in a similar kickback scheme with a related home health agency.
Press release: https://www.justice.gov/usao-mdfl/pr/orlando-skilled-nursing-facility-physician-and-related-providers-agree-pay-15-million
Mexican man convicted of trafficking cocaineRead the Press Release
LAREDO, Texas – A 22-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has pleaded guilty to charges of conspiring to import approximately nine kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
Leonardo Baltazar Martinez-Garza entered to entered the United States through the Lincoln-Juarez Port of Entry in Laredo Oct. 28, 2019, driving a 2009 black Chevrolet Optra. At initial inspection, he presented a border crossing card as a Mexican national and denied having any contraband.
Authorities referred him to secondary inspection where another officer with a trained service K-9 alerted to the possible presence of narcotics. A subsequent X-ray inspection revealed numerous anomalies within the dashboard behind a firewall. Law enforcement searched the vehicle and eventually discovered eight bundles weighing approximately 9.20 kilograms of a substance that tested positive for cocaine.
Martinez-Garza admitted he had been hired to illegally import narcotics into the United States from Mexico. He expected to be paid $1,000 after he successfully dropped off his vehicle at the Mall Del Norte in Laredo with the narcotics.
U.S. District Judge Marina Garcia Marmolejo accepted the guilty plea and set sentencing for April 22, 2020. At that time, he faces up to life in federal prison.
Martinez-Garza has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’ s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.
Meridian Man Pleads Guilty under Project EJECT to llegally Possessing a GunRead the Press Release
Jackson, Miss. – Edmond Dewayne Miller, 22, of Meridian, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 4, 2019, the Lauderdale County Sheriff’s Office responded to a noise complaint concerning loud music and multiple episodes of gunfire at Miller’s residence. Miller’s neighbors told the deputies that there had been consistent gunfire over a period of several days. One neighbor said that he had heard bullets pass near him while he was on his tractor in a pasture that bordered Miller’s property.
Two deputies went to Miller’s residence and spoke with him concerning the loud music and gunfire. The deputies cautioned Miller concerning the use of firearms in the area of other houses and asked him to turn down the music. At that time, the deputies were unaware that Miller had a prior felony conviction for aggravated assault. Miller agreed to turn down the music and indicated he would be more careful where he and his friends and family fired their weapons.
After leaving Miller’s residence the deputies were contacted by the same neighbors who told them that the music had been turned back up. One deputy returned to Miller’s residence and found Miller heading through the wood line in the direction of the complaining neighbor’s residence with a .40 caliber pistol in his waistband. The deputy stopped Miller and took custody of the firearm.
The deputies soon discovered that the firearm was stolen and that Miller was a convicted felon.
Miller was indicted by a federal grand jury on August 6, 2019. He will be sentenced on April 10, 2020, by Judge Jordan. Miller faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Member of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Sentenced to Five Years in PrisonRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 60 months in prison for participating in a scheme that used secret card-reading devices and pinhole cameras on various New York and New Jersey bank locations to steal at least $390,141.
U.S. Attorney Craig Carpenito, District of New Jersey; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Special Agent in Charge Brian Michael of the Department of Homeland Security, Homeland Security Investigations (HSI), Newark made the announcement.
Bogdan Rusu, 39, of Queens, New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Rusu and others engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York and New Jersey. Rusu and others captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts. As part of the scheme, Rusu and others installed devises on ATMs in New Jersey and elsewhere to illegally obtain customer account information, including account numbers and personal identification numbers. Rusu and others would then transfer the illegally obtained information to counterfeit payment cards and use those counterfeit cards to steal money from the accounts. Eleven other defendants charged in this scheme have pleaded guilty.
In addition to the prison term, Judge Salas sentenced Rusu to three years of supervised release and restitution of $390,141.
U.S. Attorney Carpentio and Assistant Attorney General Benczkowski credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Michael in Newark; special agents of the U.S. Secret Service, Boston Field Office; East Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; Medford, Massachusetts, Police Department; Ludlow, Massachusetts Police Department; and the Massachusetts State Police, with assistance from the victim banks, with the investigation leading to today’s guilty plea. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts, Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Angelica Sinopole of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Member of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Sentenced to 60 Months in PrisonRead the Press Release
A New York man was sentenced today to 60 months in prison followed by three years of supervised release for participating in a scheme that used secret card-reading devices and pinhole cameras on various New Jersey bank locations to steal at least $390,141.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito for the District of New Jersey, Special Agent in Charge Brian Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Newark, and Special Agent in Charge Thomas P. Baker of the U.S. Secret Service, Boston Field Office, made the announcement.
Bogdan Rusu, 39, of Queens, New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud. Judge Salas imposed the sentence today in Newark federal court.
According to court documents and statements made in court, from August 2014 to November 2016, Rusu and others engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York and New Jersey. Rusu and others captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts. As part of the scheme, Rusu and others installed devises on ATMs in New Jersey and elsewhere to illegally obtain customer account information, including account numbers and personal identification numbers. Rusu and others would then transfer the illegally obtained information to counterfeit payment cards and use those counterfeit cards to steal money from the accounts. 11 other defendants charged in this scheme have pleaded guilty.
HSI, along with special agents of the U.S. Secret Service, Boston Field Office; Massachusetts State Police; TD Bank Fraud Investigations; East Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; Ludlow, Massachusetts, Police Department, and Medford, Massachusetts, Police Department, with assistance from the victim banks, conducted the investigation. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts, Springfield Division assisted in the investigation and prosecution.
Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section and Assistant U.S. Attorney Angelica Sinopole of the U.S. Attorney’s Office Criminal Division Organized Crime and Gangs Unit in Newark prosecuted the case.
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.
Marion County man charged with child pornography chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Allen Bowman, of Fairmont, West Virginia, was indicted today on child pornography charges, U.S. Attorney Bill Powell announced.
Bowman, age 31, is charged with two counts of “Production of Child Pornography.” Bowman is accused enticing a minor into sexually explicit conduct for the purpose of pictures to distribute electronically. The crimes are alleged to have occurred in July 2019 in Marion County.
Bowman faces at least 15 years and up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The FBI, the Marion County Sheriff’s Office, and the Monongah Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Sues Dutchess County-Based Dover Greens for Violating Asbestos Safety RulesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter Lopez, Regional Administrator for the U.S. Environmental Protection Agency (“EPA”), Region 2, announced today that the United States has filed a civil lawsuit against DOVER GREENS, LLC (“DOVER GREENS”), for violations of the Clean Air Act (“CAA”) and EPA’s National Emissions Standards for Asbestos (“Asbestos NESHAP”) during renovation of the former Harlem Valley Psychiatric Center in Wingdale, New York (the “Campus”). DOVER GREENS violated the CAA and Asbestos NESHAP when it failed to take the necessary precautions and follow the proper protocols pertaining to the removal, handling, and disposal of asbestos. The Asbestos NESHAP is designed to protect the public health by preventing exposure to airborne asbestos fibers during building demolition or renovations, waste packaging, transportation, and disposal.
Along with the lawsuit, the United States has filed a consent decree, agreed to by DOVER GREENS, that resolves the violations through payment of a $575,000 financial penalty and the imposition of injunctive relief, including a requirement that DOVER GREENS provide medical monitoring to individuals potentially exposed to airborne asbestos fibers as a result of these violations. The consent decree remains subject to Court approval.
U.S. Attorney Geoffrey S. Berman said: “Despite knowing that it was required to comply with asbestos safety regulations, Dover Greens conducted renovations in flagrant violation of those regulations, risking the health of members of the public and workers at the facility. The consent decree ensures that Dover Greens will protect people from asbestos exposure in its further work on the Campus and provides medical monitoring for individuals who may have been exposed to asbestos due to Dover Greens’ conduct. Also, by requiring Dover Greens to pay a substantial penalty, we have sent a strong message that this conduct will not be tolerated.”
EPA Regional Administrator Peter Lopez stated: “We are determined to protect public health and the environment. The Clean Air Act and EPA’s National Emissions Standards for Asbestos have been set in place to do just that. This settlement sends the important message that we will not allow groups or individuals to skirt the law and put people at risk.”
The complaint filed in Manhattan federal court today alleges that in October 2013, DOVER GREENS violated the CAA and Asbestos NESHAP when it rushed to renovate numerous buildings at the Campus (the “October 2013 Work”) in order to prepare the Campus to host a fundraiser. DOVER GREENS knew that its buildings contained asbestos and that asbestos work practice regulations must be followed. However, it repeatedly failed to comply with these regulations in its work. In particular, the complaint alleges that DOVER GREENS violated Asbestos NESHAP requirements to inspect the Campus properly and notify EPA before commencing renovation activities; to remove, store, and dispose of asbestos-containing materials safely; and to have a trained representative present during the renovation. As a result of its conduct, DOVER GREENS’ employees, contractors, and the individuals who attended this fundraiser faced an increased risk of asbestos exposure.
The complaint also alleges that during EPA’s investigation, DOVER GREENS failed to provide EPA access and information, as required by the CAA.
* * *
In the consent decree lodged with the federal court today, DOVER GREENS admits, acknowledges, and accepts responsibility for the fact that it “failed to follow EPA regulations concerning asbestos when conducting the October 2013 Work.” DOVER GREENS further admits, acknowledges, and accepts responsibility for the following:
- DOVER GREENS failed to inspect the buildings at issue thoroughly for the presence of regulated asbestos-containing material (“RACM”) and notify EPA prior to commencing the October 2013 Work.
- DOVER GREENS failed to (a) ensure that all RACM was removed before beginning the renovation; (b) ensure that all RACM was adequately wetted before stripping it from buildings; and (c) ensure that all RACM remained wet until it was collected and contained for disposal.
- DOVER GREENS failed to seal all asbestos-containing materials in leak-tight containers while wet and failed to label containers or plastic bags containing RACM with proper warning labels and the name of the waste generator or the location at which waste was generated.
- DOVER GREENS failed to (a) dispose of asbestos waste at a proper disposal site; (b) ensure that properly marked vehicles were used to transport asbestos containing waste; (c) and maintain waste shipment records; and
- DOVER GREENS failed to have a trained representative present during the October 2013 Work.
- The October 2013 Work disturbed asbestos in numerous buildings, potentially exposing DOVER GREENS’ employees, contractors, and guests to asbestos.
- When EPA sought to investigate the October 2013 Work, DOVER GREENS failed to provide EPA inspectors with access to the Campus and failed to provide complete responses to EPA’s requests for information.
Pursuant to the consent decree, DOVER GREENS will pay a civil penalty of $575,000. The consent decree also requires DOVER GREENS to offer an initial asbestos medical surveillance exam and, if necessary, pay for ongoing medical surveillance for each individual who may have been exposed to asbestos as a result of the October 2013 Work. Further, DOVER GREENS agrees under the consent decree to conduct routine inspections of and, if necessary, repairs to all buildings on the Campus in order to prevent the release of asbestos fibers into the environment; ensure that warning signs are properly posted on Campus buildings; provide annual asbestos awareness training to DOVER GREENS’ maintenance employees; comply with a detailed Asbestos Operations & Maintenance Plan designed to minimize the potential for asbestos exposure to DOVER GREENS’ employees, building occupants, visitors, and workers; and comply in all respects with the CAA and Asbestos NESHAP when conducting asbestos abatement activity.
To provide public notice and to afford members of the public the opportunity to comment, the consent decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
U.S. Attorney Berman thanked the attorneys and enforcement staff at EPA Region 2 for their critical work in this matter.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Jacob Bergman is in charge of the case.
Manhattan U.S. Attorney Sues Chinatown Meat Distributor for Violations of Federal Meat and Poultry Inspection ActsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Carmen Rottenberg, Administrator of the U.S. Department of Agriculture’s (“USDA”) Food Safety and Inspection Service (“FSIS”), announced today the filing of a complaint and the entry of a consent decree against defendants CHUNG SHING MEATS, INC., also known as NEW CHUNG HING MEATS, INC., and its present and former owners or operators, WING HONG CHEUNG, MIAO HE FENG, YIU KWAN CHEUNG, and TIAN LUN FENG (collectively, the “defendants”), for violations of the Federal Meat Inspection Act and Poultry Products Inspection Act and related regulations at the defendants’ meat distributorship in Chinatown, Manhattan.
U.S. Attorney Geoffrey S. Berman said: “The owners and operators of Chung Shing Meats, Inc., disregarded federal regulations designed to ensure that food on people’s kitchen tables is wholesome and unadulterated. The defendants repeatedly sold uninspected meat products, in some instances selling uninspected beef bones as ‘Confucius Style Duckling.’ No style of duckling is composed of beef bones, let alone uninspected and potentially tainted beef bones. The defendants put people at risk. Today’s consent decree ensures that Chung Shing Meats will follow the law, protecting the public health and allowing consumers to have confidence in the safety of the food they buy.”
USDA FSIS Administrator Carmen Rottenberg said: “The defendants repeatedly violated food safety laws by selling misbranded meat and poultry products and thereby put consumers at risk for foodborne illnesses. The consent decree agreed to by the defendants ensures that they are not selling any uninspected meat or poultry products and outlines specific ramifications if the provisions of the decree are violated.”
According to the Complaint filed in Manhattan federal court:
The Federal Meat Inspection Act (“FMIA”) and Poultry Products Inspection Act (“PPIA”) protect the public health by imposing a set of inspections, labeling, and packaging requirements for meat and poultry products. These requirements allow consumers to have confidence in the safety of their meat and poultry products and permit public health officials to trace problems to their source.
For years, the defendants repeatedly violated federal law by selling uninspected and misbranded meat and poultry products to retailers in New York City from their facility at 19 Catherine Street, New York, New York. The defendants routinely prepared and sold meat and poultry products without meeting the minimum federal meat inspection and identification requirements of the FMIA and the PPIA, including by misbranding or repackaging meat and poultry products without the marks of federal inspection. USDA has identified FMIA and PPIA violations by the defendants that include selling uninspected or misbranded roast pork, pork chops, roast ducks, beef brisket, Silkie chickens, and other beef, poultry, and pork products. In all, USDA’s inspections have uncovered over 400 pounds of meat products sold or offered for sale in violation of the FMIA and PPIA. Although USDA inspectors repeatedly warned the defendants, they did not conform their conduct to the law.
In the consent decree entered today, the defendants admit, acknowledge, and accept responsibility for the following:
- The defendants have repeatedly sold non-federally inspected and misbranded meat and poultry products to retailers for resale, in violation of federal law.
- Among other instances, on or about April 29, 2019, May 2, 2019, and April 6, 2018, the defendants sold for resale non-federally inspected sliced beef meat, non-federally inspected pork baby ribs, non-federally inspected beef shin meat, or non-federally inspected beef bones misbranded as Confucius Style Duckling.
Pursuant to the consent decree, the defendants are enjoined from (1) selling or transporting any meat or poultry products required to be inspected and passed by USDA’s Food Safety and Inspection Service that have not been inspected and passed by USDA inspectors; (2) preparing or processing meat or poultry products in unsanitary conditions; and (3) engaging in any other conduct that would violate the FMIA, PPIA, and related regulations. The consent decree also requires the defendants to keep records that fully disclose transactions involving meat or poultry products and to complete mandatory training in relevant federal law and regulations. The defendants are subject to additional actions, including civil monetary penalties, termination of exempt status, contempt sanctions, and other relief, if they violate the provisions of the consent decree.
Mr. Berman thanked the USDA for its investigative efforts on this matter.
This case is being handled by this Office’s Environmental Protection Unit of the Civil Division, as part of its Food Safety Initiative. Assistant United States Attorney Steven J. Kochevar is in charge of the case.
Manchester Man Sentenced to 14 Years for Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Israel Perez, 52, of Manchester, was sentenced to 168 months in federal prison for participating in a fentanyl trafficking conspiracy in a seven-defendant narcotics case, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in 2018 Perez conspired with other persons to distribute fentanyl as part of a drug trafficking organization. Investigators made controlled purchases of approximately 330 grams of fentanyl from Perez in Manchester between January and May of 2018.
Perez previously pleaded guilty on August 22, 2019.
Co-defendants Lucas Rios, Abelino Morales-Padilla, Jose Hiram Martinez Rolon, Karina Reyes, Samuel Ramos, and Billy Damuel Maldonado Cancel previously pleaded guilty to fentanyl trafficking charges in the same case. Cancel was sentenced to 33 months and Samuel Ramos was sentenced to 22 months.
“Fentanyl traffickers have caused substantial damage to families and communities throughout New Hampshire,” said U.S. Attorney Murray. “In order to protect the health and safety of our citizens, we work closely with federal, state and local law enforcement to identify, prosecute, and incarcerate fentanyl dealers. The substantial prison term imposed in this case should serve as a warning to all involved in this deadly trade.”
“Drug dealers like Perez may think they can hide from justice, but today’s sentence proves otherwise,” said Jason J. Molina, Acting Special Agent in Charge for HSI Boston. “HSI and our law enforcement partners will continue to investigate and dismantle organizations like this one that distribute deadly drugs with no regard for human life.”
This matter was investigated by the U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, the New Hampshire State Police, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney John Davis.
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Manchester Felon Sentenced to Ten Years for Unlawful Firearm PossessionRead the Press Release
CONCORD- Christopher Mann, 35, of Manchester, was sentenced on Monday to 120 months in federal prison for possessing a firearm after a felony conviction, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court in 2006, Mann was convicted in federal court of robbing a pizza restaurant in Concord using a gun and sentenced to 12 years in prison. Mann was released from federal custody to supervised release in August 2017. In early April 2018, Mann's supervised release was revoked for possessing methamphetamine.
On April 16, 2018, the United States Marshals Service executed an arrest warrant for Mann. Mann was arrested while in the passenger seat of car that was owned by his girlfriend, which was parked in a driveway in Manchester, New Hampshire.
After a Deputy U.S. Marshal placed Mann under arrest, the deputy saw a Glock .357 caliber handgun on the passenger seat where Mann had been sitting. Mann was then searched incident to arrest. During that search, officers recovered two magazines of ammunition in Mann’s pocket.
Mann previously pleaded guilty on August 19, 2019.
“In order to keep our community safe, we must keep guns out of the hands of criminals,” said U.S. Attorney Murray. “The law enforcement officers in this case helped protect the public by disarming and arresting a dangerous felon. This case demonstrates that those who commit gun crimes in New Hampshire should expect to serve substantial prison terms.”
“Working with our law enforcement partners to combat violent crime and to keep guns out of the hands of violent offenders is ATF’s top priority,” said Kelly D. Brady, Special Agent in Charge of the ATF Boston Field Division. “Today’s sentencing is another example of the importance of law enforcement partnerships and their effectiveness in protecting the safety and security of communities.”
"Mann’s arrest is yet another example of the diligent work of the U.S. Marshals Service and ATF working collaboratively to make New Hampshire streets safer,” said U.S. Marshal Nick Willard. “The professionalism and dedication to the case by Assistant US Attorneys Davis and Aframe brought about this just sentence.”
This matter was investigated by the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorneys Jennifer Cole Davis and Seth R. Aframe.
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Man admits to smuggling attempt that led to rollover accidentRead the Press Release
LAREDO, Texas – A 30-year-old Mexican national has pleaded guilty for his role in a conspiracy to transport aliens within the United States, announced U.S. Attorney Ryan K. Patrick.
On Oct. 7, 2019, authorities spotted a group of individuals crossing from the Mexican side of Falcon Lake via a boat and entering a red Ford Explorer in the United States. They located the SUV and attempted to get behind it. However, the driver – later identified Ruben Ernesto Mendoza-Zapata – fled the scene at a high rate of speed. During the pursuit, Mendoza-Zapata tried rounding a curve, but rolled the vehicle several times.
Law enforcement secured the scene and rescued the occupants, one of whom was pinned underneath the vehicle. At the time of the rollover, a 6-year-old boy was also in the SUV.
Mendoza-Zapata and two others were taken to the hospital but have since recovered.
Mendoza-Zapata, also in the United States illegally, claimed a man in Zapata approached him and offered to pay him to transport the undocumented aliens.
U.S. District Judge Marina Garcia Marmolejo accepted the plea and will set sentencing at a later date. At that time, Mendoza-Zapata faces up to 20 years in federal prison and a possible $250,000 fine. Not a U.S. citizen, he is expected to face removal proceedings following the sentence.
He has been and will remain in custody pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney David Fawcett is prosecuting the case.
Man Charged for Reporting a False Bomb ThreatRead the Press Release
A Tulsa man has been charged by Criminal Complaint for allegedly reporting that a drive-up nuclear suitcase bomb would be detonated at Tulsa International Airport, announced U.S. Attorney Trent Shores.
Anthony John Michalski, 64, of Tulsa, is charged with providing false information about bombs at an airport. According to the Criminal Complaint, Michalski called in the anonymous tip to the Tulsa International Airport at 2:33 p.m. on Dec. 24, 2019, stating the bomb would arrive within three hours of his phone call. At the end of the call, he stated that he needed to hang up before he was caught or killed.
“The U.S. Attorney’s Office and our law enforcement partners take seriously any terroristic threat that could put our community at risk. In this case, Mr. Michalski is charged with falsely claiming a nuclear device would be delivered and detonated at Tulsa International Airport on Christmas Eve,” said U.S. Attorney Trent Shores. “Law enforcement officials from the Tulsa Airport Police Department, Tulsa Police Department Explosive Detection K-9 Unit, FBI, and Transportation Security Administration immediately investigated the threat, canvassing the airport and surrounding garages. They found no credible threat to public safety. To have this team of agents and officers come together on Christmas Eve to ensure the safety of the public was most impressive. It’s also a reminder of the selfless sacrifice of law enforcement officers. They spend time away from their families to ensure ours are safe.”
On Dec. 28, 2019, Michalski was arrested. According to the Criminal Complaint, Michalski allegedly admitted to making calls related to the bomb threat at the airport. He claimed that he made the calls because he was being held hostage by a terrorist organization. Officers also discovered a cell phone call placed to the airport at 2:33 p.m. in the defendant’s call history.
The Tulsa Airport Police Department, Tulsa Police Department, FBI, and Transportation Security Administration conducted the investigation. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
This matter will proceed in U.S. District Court in Tulsa, where the Criminal Complaint is currently pending. A Criminal Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
Maine Man Pleads Guilty to Possessing a Firearm with an Obliterated Serial NumberRead the Press Release
Bangor, Maine: A Bangor-area man pleaded guilty yesterday in federal court in Bangor to possessing a firearm with an obliterated serial number, U.S. Attorney Halsey B. Frank announced.
According to court records, on December 14, 2018, Bangor police officers responded to a local homeless shelter to investigate a report that staff members had discovered a firearm in a resident’s belongings. The resident, Tykell Jones, 20, admitted to possessing the firearm, a Taurus 9 mm pistol, and acknowledged that the serial number had been obliterated at the time he purchased the pistol in a private sale.
Jones faces up to five 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 Bangor Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Ludlow Woman Sentenced for Bank FraudRead the Press Release
BOSTON – A Ludlow woman was sentenced today in federal court in Springfield for bank fraud.
Beth Zastawny, 53, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one day in prison and three years of supervised release. In the first year of supervised release, the defendant will be subject to home confinement. In May 2019, Zastawny pleaded guilty to one count of bank fraud and three counts of money laundering.
Zastawny committed bank fraud in connection with a $4.2 million loan package for her Chicopee-based company, Diecast Connections Company Inc. In January 2015, Blue Hills Bank, relying upon Zastawny’s false representations, extended the loans. Zastawny submitted fake financial statements to the bank, and made false representations about Diecast’s assets and liabilities in order to make it appear that Diecast’s financial condition was much stronger than it actually was. After obtaining the loan proceeds, Zastawny paid back creditors who had not been disclosed to the bank, and the funds were used for purposes not called for in the loan agreement between Diecast and Blue Hills Bank. In July 2016, Blue Hills Bank foreclosed on the loan after Zastawny failed to meet the terms of the loan agreement, which resulted in a substantial loss for the bank.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
Local Pain Management Doctor Pleads Guilty to Conspiracy to Distribute Controlled Substances and Health Care FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Eugene Gosy, 59, of Clarence, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to distribute controlled substances and healthcare fraud. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorneys Jonathan P. Cantil, Brendan T. Cullinane, and Charles J. Volkert, who are handling the case, stated that in carrying out the conspiracy, Dr. Gosy and his employees at the Gosy Center, which included nurse practitioners and physician assistants working under Dr. Gosy’s direction and control, issued more prescriptions for controlled substances annually than any other prescriber or prescribing entity in New York State, including hospitals. Specifically, Dr. Gosy and his employees carried out their conspiracy by:
• prescribing controlled substances without conducting a physical examination and/or after conducting only a limited and inadequate physical examination;
• prescribing controlled substances in ways that were likely to cause, and did cause, dependence and addiction, and that contributed to existing addictions;
• issuing prescriptions for controlled substances in dosages and/or in combinations dangerous to the health and safety of the patient;
• issuing prescriptions for controlled substances despite indications that patients were abusing and misusing the prescribed controlled substances;
• prescribing controlled substances without monitoring or using objective treatment information;
• recommending a course of treatment, including the prescription of controlled substances, which caused patients to become so addicted to opioid drugs that some eventually utilized heroin and other street drugs, in order to satisfy their addiction;
• issuing prescriptions for controlled substances to patients despite knowing that such patients had overdosed, or had otherwise been hospitalized for conditions relating to misuse of controlled substances;
• continuing to prescribe controlled substances in the same manner, and failing to adapt practices to prevent additional deaths and overdoses, despite having notice that treatment they were following had resulted in obvious drug-seeking behavior and addiction; numerous patient overdoses; and patient deaths;
• signing death certificates, in the absence of an autopsy or medical examination, for deceased patients to whom Gosy and/or his employees had prescribed controlled substances despite aberrant behaviors;
• recommending a course of treatment, including the prescribing of controlled substances, which caused the death of at least six individuals, and contributed to the deaths of others;
• utilizing a telephonic patient prescription renewal process, whereby patients could obtain prescriptions for Schedule II, III and IV controlled substances that were prepared by persons who were not medically trained and issued by mid-level providers who had inadequate knowledge about the prescription and the patient, and without adequate review of the prescription and the patient’s chart;
• Dr. Gosy pre-signing blank prescriptions and permitting other persons to fill out the remaining information for the prescription, when he would leave the Buffalo area for extended periods;
• Dr. Gosy failing properly to review and sign his own patient file notes, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• Dr. Gosy failing properly to review patient file notes/reports prepared by mid-level providers working under his supervision and working in collaboration with him, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• failing adequately to review records provided to the office from other providers, and failing to obtain a complete patient history and information about present illness and conditions;
• prescribing controlled substances to individuals while failing to refer the patient to and/or ensure compliance with drug addiction treatment despite aberrant behaviors, and requests from patients and/or their family members for help with addiction;
• prescribing methadone to individuals exhibiting aberrant behaviors, outside of a methadone clinic setting, and without employing additional safety precautions or referring the patient to addiction treatment;
• Dr. Gosy, beginning in 2008, circumventing state and federal regulations by prescribing buprenorphine for the treatment of narcotics addiction, improperly using his regular DEA number, and sometimes labeling the prescriptions as for “pain management,” even when the drug was being prescribed primarily for the purpose of treating narcotics addiction;
• Dr. Gosy issuing prescriptions to patients for buprenorphine, a Schedule III controlled substance, for the treatment of narcotics addiction, without having completed the required medical training course in order to be a “qualifying physician” to treat narcotics addiction;
• Dr. Gosy failing to complete training requirements, including Continuing Medical Education courses, Worker’s Compensation training, and Infectious Disease Control training, and instead requiring members of his office staff to take the online courses purporting to be the defendant; and
• Dr. Gosy engaging in prescribing patterns whereby high-risk patients that had run out of their prescribed opioids were given buprenorphine until Dr. Gosy could again prescribe other opioids.
Other practices adopted and used in defendant Gosy’s office included the following:
• Mid-level providers (Physician Assistants and Nurse Practitioners) were encouraged to maximize volume of patients seen. Providers who saw certain volumes of patients received monetary bonuses, and/or gifts. Providers who saw less patients were threatened with pay cuts. Providers also earned credit towards bonuses for performing certain, more lucrative procedures on patients.
• Beginning in 2012, a “script line” was established which allowed patients seeking prescriptions, who were not scheduled for an office visit, to call and request a prescription. The “script line” was attended to by individuals with no medical training or certification. They were responsible for drafting the requested prescriptions with the proper drug and dosage, checking the patient’s file for “alerts,” and the New York State iStop program, a Prescription Monitoring Program. Each week a mid-level provider was designated to sign all, or almost all, prescriptions requested through the “script line.” This typically amounted to hundreds of prescriptions per day, many of which were for patients whom the practitioner had never seen and/or with whom the practitioner had little or no familiarity.
• A system was in place for ordering urine drug tests whereby, once the test was ordered, an employee other than the treating practitioner would typically fill out the request form for the laboratory. As a result, the drug screens often tested for the presence or absence of drugs other than those actually prescribed to the patient. However, as part of the usual course of medical practice, urine drug tests should have been ordered and reviewed in consultation with the patient’s medical file, including history and list of current prescribed medications. This is because urine drug testing provided valuable objective information to assist in diagnostic and therapeutic decision making, provided confirmation of compliance with the treatment plan, and provided indication of overutilization of prescribed drugs, diversion/non-use of prescribed drugs, the use of prescription drugs not prescribed to a particular patient, and/or the use of alcohol or illicit street drugs.• As with the “script line,” toxicology results, including urine drug screens, were reviewed by a mid-level provider, many of whom had never seen the patient and/or with whom the practitioner had little or no familiarity. As a result, tests were often labeled as “consistent,” and not given appropriate attention, even when the tests showed the presence of a non-prescribed drug, or the lack of a prescribed drug.
• Patient records often contained incorrect or insufficient information to justify a diagnosis and warrant treatment. Mid-level providers frequently dictated their office notes, failed to review their notes after transcription, and “batch signed” large quantities of notes without review. In addition, Dr. Gosy rarely, if ever, signed his own notes, and arranged for others to affix his signature to office notes and patient files, in order to facilitate more expeditious billing.
“Recognizing that our fight against the opioid epidemic requires a 3-prong approach—which includes enforcement, treatment, and prevention—today’s plea represents the high-water mark of success in our enforcement efforts,” stated U.S. Attorney Kennedy. “Although even one death is still too many, through the aggressive prosecution posture adopted by my office, we have helped to turn the tide on the opioid epidemic in Erie County. This prosecution has helped to enhance communication and cooperation between the law enforcement and the medical communities. Together, we have come to recognize and take advantage of the direct link that exists between public health and public safety.”
“Dr. Gosy’s reckless prescribing endangered public welfare and continued to fuel the opioid epidemic that plagues our nation,” said Scott J. Lampert, Special Agent-in-Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Physicians will be held responsible for their prescribing practices. We look forward to continue working with our State and Federal law enforcement partners in fighting this epidemic and safeguarding taxpayer-funded government health programs.”
“There isn’t a fine line between a patient who needs pain medication for a legitimate reason and a customer needing a prescription to feed a habit,” said DEA Special Agent-in-Charge Ray Donovan. “Today’s plea is proof that Dr. Gosy knew the difference. I commend the DEA Buffalo Tactical Diversion Squad and the Western District of New York for their diligent efforts identifying, investigating and prosecuting illegal opioid sources of supply in order to save lives.”
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in- Charge, New York Field Division; the Federal Bureau of Investigation’s Western New York Health Care Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent-in-Charge Scott Lampert; the Army National Guard - New York National Guard Counterdrug Task Force, under the direction of Lt. Col. Nicholas Dean; the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; the New York State Office of the Workers’ Compensation Fraud Inspector General, under the direction of Inspector General Letizia Tagliafierro; and the New York State Bureau of Narcotics Enforcement.
Sentencing is scheduled for May 21, 2020, at 9:30 a.m. before Judge Geraci.
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Lewiston Man Sentenced to Prison for Crack TraffickingRead the Press Release
Portland, Maine: A Lewiston man was sentenced yesterday in federal court in Portland for distributing cocaine base, commonly known as “crack,” U.S. Attorney Halsey B. Frank announced.
U.S. District Court Judge Nancy Torresen sentenced Everton Jones, 23, to 16 months in prison and three years of supervised release. Jones pleaded guilty on August 22, 2019.
According to court records, on June 1, 2018, Jones sold approximately one-half ounce of crack to another individual at a residence in Lewiston.
The FBI’s Southern Maine Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Maine State Police; and the Lewiston Police Department investigated the case.
Lawton Woman Sentenced to Four Years in Prison for Bank and Wire FraudRead the Press Release
OKLAHOMA CITY – Lori Christine Woodson, 63, of Lawton, has been sentenced to four years in prison after pleading guilty to one count of bank fraud and one count of wire fraud, announced United States Attorney Timothy J. Downing.
According to an information filed on January 28, 2019, Woodson induced Fort Sill National Bank to loan her and another person $1,013,902 by making false representations to the bank. In particular, Woodson overstated the value of her interest in assets, including a condominium in Snowmass, Colorado, and a closely held real estate company. She additionally understated her liabilities to other banks by approximately $3 million. Also, according to the information, Woodson defrauded two acquaintances by misappropriating purported investments in Snowmass condominiums.
At a guilty plea hearing on April 22, 2019, Woodson admitted committing bank fraud and defrauding two acquaintances.
On January 7, 2020, U.S. District Judge Scott L. Palk sentenced Woodson to 48 months in prison and a three-year term of supervised release. Taking into account relevant conduct, the Court ordered restitution of $3,640,308.41 split among four bank victims and four individuals. The Court allowed Woodson to self-report on February 11, 2020, to complete her sentence.
This case is the result of an investigation by the Department of Treasury’s Office of Inspector General and the FBI Oklahoma City Field Office, with the assistance of the Comanche County District Attorney’s Office and the Oklahoma State Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Farrior.
Reference is made to court records for further information. To download a photo of U.S. Attorney Downing, click here.
Las Vegas Man Indicted on Child Sex Trafficking and Witness Tampering ChargesRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas resident made his initial appearance today, January 7, 2020, after being charged in a 15-count indictment for allegedly committing, among other crimes, sex trafficking of children and tampering with a witness, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
“Sex trafficking is one of the most devastating crimes, especially when vulnerable child victims are exploited,” said U.S. Attorney Trutanich. “January is Human Trafficking Prevention Month, and this case exemplifies the U.S. Attorney’s Office’s commitment to working with our law enforcement partners to bring justice to perpetrators.”
Jacques Anton Lanier, also known as John Dupree, was indicated by a Grand Jury on December 31, 2019, on eight counts of coercion and enticement, four counts of sex trafficking of children, one count of traveling interstate with intent to engage in illicit sexual conduct, one count of transfer of obscene material to a minor, and one count of tampering with a witness. Lanier appeared today before United States Magistrate Judge Daniel J. Albregts. A jury trial is scheduled for March 9, 2020, before United States District Judge Gloria M. Navarro.
According to allegations contained in the indictment, beginning in April 2017 through December 2017, Lanier coerced, enticed, and persuaded eight females under the age of 18 years old to engage in prostitution and sexual activities for which Lanier could be charged with a criminal offense. He recruited four of those victims to engage in a commercial sex act. Lanier also traveled across state lines to engage in illicit sexual conduct and transferred obscene matter to a victim under the age of 16 years old. In addition, Lanier is charged with tampering with a victim through intimidation, threats, and corruptly persuading that victim to evade legal process — and to recant a prior statement made to law enforcement — between April 2018 and March 2019.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation, Las Vegas Metropolitan Police Department, and North Las Vegas Police Department and is being prosecuted by Assistant United States Attorney Bianca R. Pucci.
This investigation is 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 the U.S. Attorneys’ Offices and the 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.justice.gov/psc.
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Kyle Man Sentenced to 15 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted by virtue of a federal jury trial for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on January 3, 2020, by U.S. District Judge Jeffrey L. Viken. The trial was held August 26-29, 2019.
Brendon Janis, age 35, was sentenced to 15 years in federal prison, followed by 5 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
From approximately the summer of 2015 through July 2018, Janis distributed multiple pounds of methamphetamine in the area of Kyle. He had multiple sub-distributors who assisted him. During the execution of a federal search warrant at his residence in April 2017, Janis had several handguns, which were forfeited.
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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Badlands Safe Trails Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Badlands Task Force is comprised of law enforcement from the Federal Bureau of Investigation, Bureau of Indian Affairs Drug Enforcement Division, South Dakota Division of Criminal Investigation, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case. Multiple co-conspirators have already been sentenced and two more remain pending trial in May 2020.
Janis was immediately returned to the custody of the U.S. Marshals Service.
Kankakee Man Sentenced to 10 Years in Prison for Role in Armed Robbery of Champaign Sprint StoreRead the Press Release
URBANA, Ill. – Senior U.S. District Judge Michael M. Mihm today sentenced Andre L. Williams, 30, of Kankakee, Ill., to 10 years in prison for his role in the July 2016 armed robbery of a Champaign Sprint store. Williams has been in the custody of the U.S. Marshals since his arrest in October 2018, and will be transferred to the federal Bureau of Prisons to serve his sentence.
On May 24, 2019, Williams pleaded guilty to his role in the armed robbery of the Sprint store located on North Prospect in Champaign, Ill., on July 28, 2016. Williams also admitted his role in the armed robbery of another Sprint store, in Coldwater, Mich., that occurred on Aug. 27, 2016.
Williams admitted that he recruited two men, Thomas James and Andre Nunn, to commit the armed robbery of the Champaign store. During the robbery, two customers and two employees were held at gun point and their wrists and ankles were bound with zip-ties. Williams admitted that he gave instructions and explained how to use the zip ties. Williams received the majority of the proceeds of the robbery, approximately $10,000, and gave the others involved less than $2,000. The 52 cell phones stolen from the store were transferred to William’s vehicle and taken to a location outside of Chicago to be sold to another person.
Others involved in the Champaign armed robbery have previously been convicted and sentenced to prison terms: Thomas James – 19 years; Andre Nunn 8 years, 4 months; Randy Williams, the getaway driver – 15 years; and Randy’s cousin Jaevontae Williams – 7 years.
In addition to the prison sentence, Williams was ordered to pay restitution of $32,021 to the Champaign Sprint store and $42,129 to the Coldwater, Michigan store.
The case was prosecuted by Assistant U.S. Attorneys Elly Peirson and Ryan Finlen. The charges were investigated by the Federal Bureau of Investigation, the Champaign Police Department, the Kankakee Police Department, and Illinois State Police.
Justice Department Announces Settlement with Walmart over Discrimination Claim by Naval ReservistRead the Press Release
WASHINGTON – The Department of Justice announced today the resolution of a lawsuit in which Naval Petty Officer Third Class Lindsey Hunger alleged that Walmart violated her rights when it failed to offer her employment at the Walmart store located at 2545 Rimrock Avenue in Grand Junction, Colorado because of her upcoming Naval Reserve commitments. Ms. Hunger had alleged that Walmart’s actions violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). The Department of Justice Civil Rights Division and United States Attorney’s Office represented Petty Officer Hunger in the lawsuit.
As part of the settlement, which includes backpay for Petty Officer Hunger, Walmart has agreed to review and revise its employment and internal hiring policies across the corporation. It has also agreed to revise the policies to include the following language: “Walmart prohibits discrimination against individuals, including applicants, based on their military service (including required military training obligations) or membership in the uniformed services.” Walmart will also ensure that “all supervisors, managers, and administrative staff” in the Grand Junction, Colorado store at issue receive training — developed in consultation with the United States —“on the requirements of USERRA and on employees’ and service members’ rights and obligations under the statute."
“Walmart is one of the nation’s largest employers and scores of dedicated servicemembers all across the United States will benefit from this settlement and Walmart’s agreement to update its employment and training practices,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “On behalf of a grateful nation, the Department of Justice will continue aggressively to enforce the federal civil rights laws on behalf of all servicemembers, including the citizen-soldiers of our National Guard and Reserve. Their sacrifice to serve should never jeopardize their ability to earn a living.”
“It is an honor to represent the men and women of our armed forces and ensure that their military training commitments do not deter employers from hiring them,” said U.S. Attorney Jason Dunn for the District of Colorado. “By obtaining Walmart’s agreement to amend its national hiring practices, this case will have a lasting impact.”
This lawsuit stems from a complaint that Ms. Hunger filed with the United States Department of Labor, which, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service, referred the matter to the Department of Justice.
The Justice Department’s Civil Rights Division, the United States Attorney’s Office for the District of Colorado, and the Department of Labor’s Veterans’ Employment and Training Service all give high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado and Andrew Braniff from the Department of Justice’s Civil Rights Division.
Johnstown Man Indicted on Drug ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The Indictment named Andrew R. Colvin, 27, as the sole defendant.
According to the Indictment presented to the court, on or about October 7, 2019, Colvin possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of marijuana. Further, on or about October 9, 2019, Colvin possessed with intent to distribute one gram or more of lysergic acid diethylamide (LSD), and a quantity of a mixture and substance containing a detectable amount of marijuana, cocaine, methylenedioxymethamphetamine (MDMA), ketamine, and tetrahydrocannabinol (THC).
The law provides for a maximum sentence of 15 years in prison and a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Department of Homeland Security, Homeland Security Investigation and the Cambria County Drug Task Force conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
James Michael Wells Sentenced to Life in Federal Prison for Murdering Two Coast Guard EmployeesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that James Michael Wells, 68, was sentenced today by U.S. District Judge Sharon L. Gleason to serve life in federal prison for the April 2012 murders of two U.S. Coast Guard (USCG) employees, Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle.
Wells was arrested in February 2013 for the murders of Hopkins and Belisle, who were both Wells’ co-workers at the USCG antenna maintenance facility, located at the USCG Communication Station (COMMSTA) on Kodiak Island, Alaska. Wells was convicted in 2014 and the case was reversed by the Ninth Circuit Court of Appeals in December 2017. After a three-week long re-trial that ended in October 2019, a federal jury convicted Wells of two counts of first degree murder, two counts of murder of an officer or employee of the United States, and two counts of possession and use of a firearm in relation to a crime of violence.
“James Wells has received the sentence he deserves for snuffing out the lives of two fine men,” said U.S. Attorney Bryan Schroder. “The thought of a Coast Guard employee plotting and killing two of his shipmates is shocking and abhorrent in an organization known for its core values of Honor, Respect, and Devotion to Duty. Petty Officer First Class James Hopkins and retired Chief Rich Belisle embodied those values, and their families can take comfort in two lives well-lived.”
“This case illustrates the tireless pursuit and determination of agents and prosecutors to ensure justice was served on behalf of the Hopkins and Belisle families, who remain in our thoughts,” said Jeffery Peterson, the Special Agent in Charge of FBI’s Anchorage Field Office. “This sentence is also particularly impactful, given the close relationship we at the FBI, and many Alaskans, have with the U.S. Coast Guard. The unique partnership shared between the FBI, U.S. Coast Guard Investigative Service, the Alaska State Troopers, and the U.S. Attorney’s Office was essential to this successful outcome.”
“This was a heinous and cowardly act committed upon two members of the Coast Guard family,” said Paul M. Shultz, the Special Agent in Charge of CGIS Northwest Region. “It is a relief that after nearly eight years, family and loved ones can find closure.”
Evidence at trial established that on April 12, 2012, between 7:09 and 7:14 a.m., Wells had shot and killed Hopkins and Belisle with a .44 revolver while working at their duty stations in the Rigger Shop at COMMSTA. First responders noted no evidence of a break-in or robbery and both men appeared to be victims of a targeted killing. Wells was due to arrive at the Rigger Shop the same time respectively as Hopkins and Belisle, but instead left two phone messages for Hopkins and Belisle, noted to be after the victims’ time of death, stating Wells was running late due to a flat tire. Wells ended up arriving to the Rigger Shop over an hour after his normal start time, immediately claiming to have had a flat tire.
USCG security videos captured Wells passing the Main Gate at Base Kodiak at 6:48 a.m. in his white Dodge truck on his way toward the Kodiak Airport, and returning back toward his residence at 7:22 a.m. However, a small blue SUV, owned by Wells, was captured on USCG security videos passing the Rigger Shop front entrance. The evidence showed Wells drove his white Dodge pickup truck to the airport, where he swapped vehicles and drove Nancy Wells’ blue Honda CR-V to COMMSTA to commit the murders. There was a 34-minute period of time for which James Wells could not account and that unexplained discrepancy captured the attention of the interviewing agents. Additionally, a tire with a nail in it was seized and through extensive testing, the examiner concluded that the nail had been manually inserted into the tire, undermining the foundation of Wells’ alibi that he had picked up a nail while driving to work on the morning of the murders.
At today’s sentencing hearing, U.S. District Judge Sharon L. Gleason made specific findings for the record that Wells threatened or unlawfully interfered with witnesses and that during the trial, Wells testified on several occasions in a “materially false manner.”
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution of this case, with support from the U.S. Coast Guard Investigative Service (CGIS), and the Alaska State Troopers (AST). Deputy Criminal Chief Steven Skrocki prosecuted the case along with Assistant U.S. Attorney Christina Sherman, and U.S. Coast Guard Commander Kelly Stevens, who was appointed as a Special Assistant U.S. Attorney.
Harrison County man charged with firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Al-Teric Garrett, of Clarksburg, West Virginia, was indicted today on a firearms charge, U.S. Attorney Bill Powell announced.
Garrett, age 28, is charged with one count of “Unlawful Possession of a Firearm.” Garrett, who was previously convicted of felony charges and prohibited from having a firearm, is accused of having a 9mm pistol in August 2019 in Harrison County.
Garrett faces up to 15 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Pittsburgh Man Pleads Guilty in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA- A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges related to narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Kyleif Harley, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl before United States District Judge William S. Stickman IV. The defendant acknowledged his responsibility for the distribution of 15 grams of a mixture of heroin and fentanyl. Mr. Harley is one of 37 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Intercepted communications demonstrated that Harley possessed and distributed heroin and fentanyl, and communicated directly with his co-defendant, Christopher Highsmith, who was among the leaders of the drug trafficking conspiracy, in order to develop his drug trafficking business. The court was further informed that during a traffic stop of Harley near Philadelphia on August 1, 2018, law enforcement officials seized 261 stamps bags of heroin, over 60 pills that tested positive for various forms of fentanyl, and items related to narcotics distribution that were purchased in the Western District of Pennsylvania. Harley later pleaded guilty to state charges that stemmed from the traffic stop.
Judge Stickman scheduled sentencing for July 6, 2020 at 10:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Mr. Harley remains in custody pending the sentencing hearing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Former Investment Banker Pleads Guilty to Insider TradingRead the Press Release
Audrey Strauss, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515, announced that BRYAN COHEN, a former investment banker based in New York, pled guilty today to conspiring to commit securities fraud. COHEN’s plea stems from stealing material, nonpublic information (“MNPI”) from the investment bank where he worked and passing it to a securities trader based in Switzerland.
COHEN was arrested on October 18, 2019, and pled guilty today before United States Magistrate Judge Debra Freeman. COHEN’s case is assigned to United States District Judge William H. Pauley III.
According to the Superseding Indictment and statements made in open court:
COHEN was an investment banker working in the investment banking division of a global investment banking advisory firm (“Investment Bank A”). By virtue of his employment at Investment Bank A, COHEN had access to MNPI relating to corporate transactions, and was under duties and obligations to keep that MNPI strictly confidential. COHEN previously worked in the London office of Investment Bank A, and later transferred to its New York office.
Notwithstanding his duties to keep the MNPI confidential, between 2015 and 2017, COHEN stole MNPI from Investment Bank A and passed it to a securities trader based in Switzerland in order to enable the securities trader to place timely, profitable trades based on the MNPI. COHEN informed the securities trader about corporate acquisitions and provided updates about how the deals were progressing over time. Some of the inside information that COHEN provided related to companies whose securities were listed on United States exchanges. The information that COHEN provided ultimately resulted in substantial profits for the traders who received it and traded based on it. In exchange for providing MNPI he stole from Investment Bank A, COHEN received benefits, including cash, from the securities trader.
COHEN took steps to conceal his scheme, including communicating through prepaid, “burner” cellphones, which he picked up at a Manhattan business, and receiving cash in person and through intermediaries.
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COHEN, 33, pled guilty to one count of conspiring to commit securities fraud. This charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the work of the FBI. She further thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation. She added that the FBI’s investigation was ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper, Daniel Tracer, and Drew Skinner are in charge of the prosecution.
Former Clearwater Anesthesiologist Agrees to Pay $102,126 to Resolve Civil Healthcare Fraud AllegationsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces today that Dr. Jayam Krishna Iyer has agreed to pay the United States $102,126.98 to resolve allegations that she violated the False Claims Act while practicing as a pain management physician. These civil claims are related to Iyer’s guilty plea to criminal health care fraud in 2018, which involved her billing Medicare for office visits when the patient was not present for the visit and for issuing prescriptions for Schedule II controlled substances.
The settlement arises from a lawsuit filed by the United States styled United States v. Jayam Krishna Iyer, M.D., et al., Case No. 8:18-cv-446-WFJ-JSS (M.D. Fla.).
In 2017, the United States Attorney’s Office’s Civil Division opened a civil investigation into whether Iyer had prescribed medically unnecessary prescriptions for opioids in violation of the False Claims Act. Separately, on August 24, 2018, Iyer pleaded guilty to one count of criminal health care fraud based on her fraudulent claims for office visits. As part of the criminal plea agreement, Iyer agreed to forfeit $51,521 paid by Medicare as a result of the fraud and to pay restitution. She was sentenced to serve six months in federal prison. Iyer also agreed to surrender her Florida medical license, as well as the DEA registration which had permitted her to prescribe controlled substances for her patients, and to not reapply for a DEA registration for 20 years. Iyer further agreed to permanent exclusion from Medicare, Medicaid, and all other federal healthcare programs. On February 20, 2019, the United States sued Iyer under the False Claims Act to collect civil damages and penalties based on her admissions as part of her criminal plea.
“By using all of the tools available to law enforcement, including civil enforcement, we in the Middle District of Florida will continue to target medical professionals who flood our streets with dangerous opioids without regard for the health and welfare of their patients,” said U. S. Attorney Maria Chapa Lopez.
“Writing prescriptions for controlled substances without examining patients – as alleged in this case – indicates that a health care professional is more concerned with profits than patients,” said Special Agent in Charge Omar Pérez Aybar of the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s settlement reaffirms our commitment to ensuring that physicians fulfill their professional obligation to serve their patients’ health needs as well as appropriately bill government health care programs.”
Today’s settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, assisted by the Department of Health & Human Services, Office of Inspector General, and the Federal Bureau of Investigation. Assistant United States Attorney Lindsay Saxe Griffin led the civil investigation.
Florida Man Pleads Guilty in High-Profile Macon, Georgia Mail Theft CaseRead the Press Release
MACON, Ga. – A Miami, Florida man pleaded guilty to stealing mail and checks out of a Macon mailbox, an action that triggered the victim to hold the defendant at gunpoint in an effort to prevent his escape, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Jeremy Brown, 31, entered a guilty plea to one count of theft of mail before U.S. District Judge Marc Treadwell today. Defendant Brown is facing a maximum term of five years in prison, a maximum fine of $250,000 and three years supervised release. Sentencing is scheduled for April 1, 2020. There is no parole in the federal system.
According to the stipulation of fact entered in court, the victim observed a white Ford Mustang driven by Brown stopping at the mailboxes at his home and his parents’ home next door on June 12, 2018. Suspecting the individuals inside the vehicle were stealing mail, the victim reviewed his personal security camera footage, which confirmed that mail was being stolen from his mailbox. The victim alerted his mail carrier the following day. The mail carrier called the victim before delivering the mail on June 13, 2018. The victim positioned his vehicle in a neighbor’s driveway so he could block the individuals he suspected were stealing his mail if they came again. Brown returned in the same white Mustang, and again removed mail from the mailbox. The victim blocked the road with his vehicle, called law enforcement and held the suspects at gunpoint until law enforcement arrived. Brown admitted to stealing mail, which included a $1,041 check made payable to the victim, as well as two additional checks in the amount of $15,555.02 and $700, made payable to other individuals.
“Theft of mail is a serious federal offense and violators will be prosecuted,” said U.S. Attorney Charlie Peeler. “I want to thank the Bibb County Sheriff’s Office for quickly responding to this situation, and the U.S. Postal Inspection Service for their excellent work in this matter.”
The case was investigated by the U.S. Postal Inspection Service and the Bibb County Sheriff’s Office. Assistant U.S. Attorney William Keyes is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Final Operation Independence Day Defendant Pleads Guilty to Attempted Receipt of Child PornographyRead the Press Release
A Skiatook man pleaded guilty in U.S. District Court Tuesday to attempted receipt of child pornography, announced U.S. Attorney Trent Shores.
Corey Daniel Vessar, 31, is the final defendant to enter a guilty plea in the Northern District of Oklahoma after being arrested as a result of Operation Independence Day, a month-long operation to apprehend predators and recover victims of child exploitation and sex trafficking.
“Corey Vessar tried to convince someone he believed to be a 14-year-old girl to send him sexually graphic images. Thankfully it was an undercover officer and not actually someone’s child,” said U.S. Attorney Trent Shores. “I respect the investigators and prosecutors willing to perform the difficult work of investigating these predators. Every day, these officers bear witness to the perverse actions of predators who seek to groom and exploit our children. The service of police officers and federal agents who pursue justice for children - the most innocent among us - is to be commended.”
In his plea agreement, Vessar admitted that from June 11 to June 18, 2019, he attempted to receive child pornography from an individual he believed to be a 14-year-old female. Instead, he was communicating with an undercover officer. During the discussions, Vessar sent the “girl” sexually explicit pictures and videos of himself and also requested she send explicit images.
U.S. District Judge Claire V. Eagan set sentencing for April 13, 2020.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
Operation Independence Day is part of the broader Project Safe Childhood initiative. PSC combats the growing epidemic of child sexual exploitation and abuse and was launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fentanyl Trafficker Sentenced to 7 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANGEL RODRIGUEZ, also known as “Red,” 26, formerly of Manchester, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, law enforcement identified Rodriguez as a significant distributor of fentanyl. On February 4, 2019, investigators arranged a controlled purchase of 200 grams of fentanyl from Rodriguez in exchange for $13,000. Rodriguez was arrested on that date after he met the purchaser an automotive business on Wethersfield Avenue in Hartford in possession of approximately 200 grams of fentanyl. At the time of his arrest, Rodriguez also possessed a loaded 9mm pistol and approximately $2,600 in cash. A subsequent search of Rodriguez’s Manchester residence revealed more than 200 grams of marijuana, a .45 caliber rifle, three boxes of ammunition, and other firearm-related items.
200 grams of fentanyl is the equivalent of approximately 8,000 doses.
On October 15, 2019, Rodriguez pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Rodriguez, who is currently released on a $100,000 bond and residing in Hartford, is required to report to prison on March 25, 2020.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Fayetteville Man Sentenced to 6 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced yesterday that Chad Skirvin, age 38, of Fayetteville, Arkansas, was sentenced yesterday to 72 months in federal prison followed by fifteen years of supervised release on one count of Accessing the Internet with Intent to View Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, investigators with the Internet Crimes Against Children (ICAC) Taskforce conducted a search of Skirvin’s residence and located multiple computer devices. A forensic review of the devices revealed numerous images of child pornography.
Skirvin was indicted in May of 2019 and entered a guilty plea in September of 2019.
This case was investigated by the Department of Homeland Security, the Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Evans Landscaping owner sentenced to prison for defrauding city, state small business programsRead the Press Release
CINCINNATI – The owner of Evans Landscaping, Inc. was sentenced in U.S. District Court today to 21 months in prison for defrauding the City of Cincinnati and other public entities through fraudulent small business contracts.
Doug Evans, 57, of Newtown, Ohio, and Jim Bailey, vice president of operations for Evans Landscaping, were convicted following a jury trial in December 2018. Evans Landscaping, Inc. was also convicted of the fraud scheme.
Evans Landscaping is an Ohio company headquartered in Cincinnati that performs demolition, site-work, grading, hauling, recycling and landscaping services. Given the size and ownership of the company, Evans Landscaping does not qualify as a small business enterprise (SBE).
In order to qualify for the City of Cincinnati’s SBE program, a company must be independently controlled, operated and managed by a qualifying individual whose net worth does not exceed certain limits. The program also requires that the company be directly responsible for providing the supplies or services to the City without relying upon others who are not owners or employees of the company.
Similarly, the State of Ohio has established an Encouraging Diversity, Growth, and Equity program (EDGE) for economically disadvantaged businesses that are at least 51% owned and controlled by an economically disadvantaged person. The size of the business must not exceed the definition of a “small business.”
In 2008, the defendants (along with others) established, controlled and operated a demolition company, Ergon Site Construction, LLC, for the benefit of Evans Landscaping. Ergon’s president and owner, Korey Jordan, had no prior experience in the field but provided IT services for Evans Landscaping. Ergon (with the help of the coconspirators) fraudulently obtained a certification as an SBE contractor with the City of Cincinnati while concealing Evans Landscaping’s involvement in and control over Ergon. Ergon also fraudulently obtained a State of Ohio EDGE contractor certification as a minority-owned business.
Evans and Evans Landscaping provided startup funds to Ergon. Jordan did not make any capital contributions to the establishment of the company.
Evans Landscaping personnel prepared and filed the legal documentation to register Ergon as an LLC, created the company’s name and logo, ordered Ergon apparel, and bought equipment labels with Ergon’s logo.
Evans paid Jordan a monthly salary through the Ergon payroll and Evans Landscaping employees handled virtually all of the accounting and office management functions of Ergon. For example:
Evans Landscaping officers and employees directed virtually all field and construction operations of Ergon, including on-site supervision and the managing of Ergon field workers.
From 2011 through 2014, Ergon bid on and received more than 100 residential demolition contracts with the City of Cincinnati, totaling approximately $1.9 million, by leveraging Ergon’s fraudulent SBE status.
In a similar fashion, during the same timeframe, Evans Landscaping bid on State demolition and construction projects – particularly public school, university and municipal projects – by claiming Ergon would provide a percentage of the services and receive part of the funds to be paid.
On at least one occasion, Evans Landscaping listed a different subcontractor, won the contract, and performed the work without using, paying or even notifying the EDGE subcontractor named.
Specifically, Evans Landscaping, Doug Evans and Bailey were convicted of two counts of conspiracy to commit wire fraud and three counts of wire fraud.
Korey Jordan (president of Ergon), Maurice Patterson (former CFO of Evans Landscaping), John Dietrich (former CFO of Evans Landscaping) and Michael Moeller (former manager at Evans Landscaping) have pleaded guilty in relation to this case. Patterson, Dietrich and Bailey are all scheduled for sentencing later this week.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Ohio Attorney General Dave Yost announced the sentence imposed today by U.S. District Court Judge Michael R. Barrett. Assistant Deputy Criminal Chief Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter are representing the United States in this case.
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El Salvadoran National Involved in Bridgeport Shooting Death Admits Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that DOUGLAS ALEXANDER RIVAS, 37, a citizen of El Salvador, pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to illegal reentry by a removed alien.
According to court documents and statements made in court, in March 2003, Rivas was convicted in Connecticut state court of misdemeanor offenses, including criminal trespass in the first degree, criminal mischief in the second degree, and reckless endangerment in the first degree. For these convictions, he received an 11-month suspend sentence and three years of probation. In March 2007, Rivas was removed to El Salvador.
Rivas subsequently illegally reentered the U.S.
On April 25, 2017, Rivas was arrested, in Florida, in connection with the shooting death of a 36-year old man at the El Paraiso Restaurant in Bridgeport on September 25, 2016. He has been detained since his arrest.
Judge Underhill scheduled sentencing for March 30, 2020, at which time Rivas faces a maximum term of imprisonment of two years.
On November 8, 2019, in relation to the 2016 shooting death, Rivas pleaded guilty in state court to manslaughter in the first degree, and criminal possession of a firearm. He awaits sentencing for these offenses.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Eau Claire Felon Sentenced to 30 Months for Possessing FirearmRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Lamont Davis, 30, Eau Claire, Wisconsin, was sentenced today by U.S. District William M. Conley to 30 months in federal prison for being a felon in possession of a firearm. This prison term will be followed by three years of supervised release.
In July 2019, a hospital in Eau Claire came into contact with a minor who said Davis was drunk, physically abusive to his children, and that he had a gun. Eau Claire police officers responded to Davis’s residence and arrested him after finding him in possession of a 9mm pistol. Davis reached for his weapon when the officers encountered him. Davis had been previously convicted of felony offenses, including assault, and was prohibited from possessing a firearm.
Judge Conley said Davis is a “profound alcoholic who has yet to address this problem,” and that he has “caused domestic disturbances that have terrorized his girlfriend and children.”
The charge against Davis was the result of an investigation conducted by the Eau Claire Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Julie Pfluger.
The charge against Davis was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
East Bay Drug Trafficker Sentenced to Five Years in Prison for Possession of FirearmsRead the Press Release
OAKLAND – Donta Lashaun Perry was sentenced today to 60 months and one day in prison for being a felon in possession of a firearm and for possessing firearms in connection with drug trafficking, announced United States Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
Perry, 31, of San Leandro, Calif., pleaded guilty to the charges on October 1, 2019. According to his plea agreement, Perry admitted that he possessed a 9mm handgun and an AR 15 short barreled rifle when the California Highway Patrol arrested him on March 7, 2018. In the agreement, Perry also admitted that on that date he was a convicted felon who was not eligible to possess a firearm. Perry further admitted that he possessed marijuana, that he intended to distribute the drugs, and that he possessed his firearms in furtherance of his drug trafficking, including to defend his drugs against potential theft.
Perry initially was charged by the Alameda County District Attorney’s Office, but absconded after posting bail. He remained a fugitive for approximately 10 months until his arrest in the Western District of Oklahoma in March 2019.
A superseding information was filed on September 30, 2019, charging Perry with one count of felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1), and one count of using, carrying, or possessing a firearm during and in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c). Perry pleaded guilty to both charges.
In addition to the prison term, Judge White ordered Perry to serve a three-year period of supervised release and to pay a $200 special assessment.
Special Assistant United States Attorney Christopher Vieira is prosecuting the case, with the assistance of Lenora Hamilton. This case is the result of an investigation by the ATF and the California Highway Patrol.
Eagle Butte Man Sentenced on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of two counts of Assault Resulting in Serious Bodily Injury was sentenced on January 3, 2020, by U.S. District Judge Roberto A. Lange.
Oscar Lance Whiteman, age 31, was sentenced to 54 months in federal prison, followed by 3 years of supervised release on each count, to run concurrently, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Whiteman was indicted by a federal grand jury on September 4, 2019. He pled guilty on October 7, 2019.
The conviction stemmed from an incident on August 11, 2019, where Whiteman assaulted a female and a male, which resulted in serious bodily injury to both victims.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Whiteman was immediately remanded to the custody of the U.S. Marshals Service.
Dominican National Living in Lawrence Sentenced for Possession of Fentanyl with Intent to DistributeRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for possession with intent to distribute fentanyl.
Santos Obispo Guerrero Lara, 35, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (approximately seven months). In October 2019, Guerrero Lara pleaded guilty to one count of possession with intent to distribute fentanyl.
Lara attempted to sell approximately 20g of fentanyl to an undercover agent. Lara was arrested in Lawrence on June 6, 2019, as part of a 10-week coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Jason J. Molina, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Boston made the announcement today. Valuable assistance was provided by the Andover Police Department. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Criminal Division prosecuted the case.
District Man Sentenced to Five Years for Shooting at Seventh District Police OfficerRead the Press Release
WASHINGTON – John Hudson, Sr., 31, of Washington, DC, was sentenced on January 6, 2020 to 60 months’ imprisonment and five years of supervised release after pleading guilty to one count of Felony Assault on a Police Officer While Armed back on November 1, 2019. He was sentenced by the Honorable Rainey Brandt yesterday morning in the Superior Court of the District of Columbia.
U.S. Attorney Jessie K. Liu and Chief Peter Newsham, Metropolitan Police Department made the announcement.
According to the government’s evidence, on September 18, 2019, at approximately 2:15 a.m., a Metropolitan Police Department Officer, in a marked patrol car and full police uniform, observed the defendant drive through a red light at the intersection of Suitland Parkway SE and Stanton Road SE. The officer attempted to initiate a traffic stop, but the defendant fled from the officer in his vehicle, ultimately crashing at the intersection of Morris Road SE and Elvans Road SE. When the MPD officer got out of his patrol car on Morris Road SE, the defendant ran straight towards him, passed the officer, and fired two shots over his shoulder at him. The officer returned fire, but the defendant disappeared into the tree line off Morris Road SE.
Upon canvassing the area, officers recovered a Glock 26 9mm handgun near the tree line where the defendant entered the woods. The handgun had a 31 round capacity magazine inside, with 23 cartridges remaining. On Morris Road SE, near where the officer was pursuing the defendant, multiple cartridge casings were recovered. Two of those cartridge casings matched the cartridge casings inside the magazine of the Glock 26 9mm recovered from the scene.
The defendant was ultimately apprehended by Seventh District officers in the woods shortly after the events took place. The MPD officer identified the defendant on scene as the man who shot at him. The defendant was placed under arrest, and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of Victim Witness Advocate Elsa Maltese and Assistant United States Attorney Kimberly Paschall, who investigated and prosecuted the matter.
Director of Not-For-Profit in Henderson, N.C. Sentenced for Theft of Federal FundsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced COMULUS LATEZES BRIDGES, 41, of Douglasville, Georgia to 15 months imprisonment, followed by 3 years of supervised release and was ordered to pay $209,877 in restitution. On July 10, 2019, BRIDGES pled guilty to theft of federal childcare and adult food program funds.
The U.S. Department of Agriculture’s (USDA) Child and Adult Care Food Program (CACFP) is a federal program that, among other things, is designed to provide food assistance to young children in out-of-home care. The At-Risk Afterschool Meals (ARAM) component of CAFCP offers federal funding to qualifying afterschool programs that serve meals and snacks to children in low-income areas.
BRIDGES was the director of Beyond the Barriers Outreach, Inc. (“BTBO”), a not-for-profit organization headquartered in Henderson, North Carolina. In 2012, BTBO, through BRIDGES, applied for and was approved to participate in the ARAM component of CACFP. BTBO was authorized to receive reimbursement for afterschool meals and snacks that BRIDGES claimed would be served to school-aged students at its afterschool center located in Henderson.
BTBO participated in CACFP from January 2013 to April 2016. During this period, BRIDGES submitted monthly claims for reimbursement for daily meals and snacks purportedly served to as many as 90 students at its Henderson afterschool center. However, the investigation revealed that BRIDGES’ claims were false. Soon after BTBO was approved by CACFP, BRIDGES moved to Georgia and did not operate an afterschool program in Henderson. Due to BRIDGES’ non-payment of utility bills, the afterschool center was without electricity, gas, and water/sewer services most of the time period during which BRIDGES claimed to operate an afterschool program.
As a result of the fraud, BRIDGES received $209,887 in unauthorized payments. Most of the fraudulently obtained funds were diverted to BRIDGES’ personal expenses in Georgia, such as restaurants, gas, apartment lease, cell phone bill, beauty supplies, massages, and payments associated with a Chapter 13 bankruptcy proceeding.
The United States Department of Agriculture, Office of Inspector General conducted the investigation. Assistant United States Attorney Toby Lathan represented the government.
Decatur Man Indicted on Charges of Child Exploitation, Child PornographyRead the Press Release
URBANA, Ill. – A grand jury today returned an indictment that charges Daniel A. Betty, 27, of the 100 block of S. 29th Street, Decatur, Ill., with sexual exploitation and enticement of a minor and receiving child pornography in September 2019.
Betty was previously arrested and charged in a criminal complaint on Dec. 16, 2019. Betty made his initial court appearance on Dec. 16, before U.S. Magistrate Judge Eric I. Long, in Urbana, who ordered that Betty remain detained in the custody of the U.S. Marshals Service.
According to the affidavit filed in support of the criminal complaint, Betty met a minor female from Champaign, Ill., using the social application “Spotafriend.” According to the affidavit, Spotafriend advertises itself as a “swiping app for teens ages 13-19,” that uses internet and cellular data to connect individuals to become friends. The app claims that it “is not a teen dating app.”
According to the affidavit, Betty allegedly portrayed himself as a 17-year-old male from Decatur, Ill. Using the app, Betty allegedly began communication with the minor female, and in October 2019, Betty drove from Decatur to Champaign and met the minor. Prior to meeting, Betty had told the minor he was 19 years old.
If convicted, the statutory maximum penalty for sexual exploitation of a minor (two counts) is a minimum 15 years to 30 years in prison; for enticement of a minor, the penalty is 10 years to life; and for receiving child pornography the penalty is five to 20 years in prison.
Assistant U.S. Attorney Elly M. Peirson is representing the government in the prosecution. The charges are the result of an investigation by the Champaign and Decatur Police Departments in cooperation with the Champaign County State’s Attorney’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.