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Friday 15 November 2019
Former Operator of Illegal Booter Services is Sentenced for Conspiracy to Commit Computer Damage and AbuseRead the Press Release
WASHINGTON – An Orland Park, Illinois, resident was sentenced yesterday to 13 months in prison, followed by three years of supervised release on one count of conspiracy to cause damage to internet-connected computers for his role in owning, administering and supporting illegal booter services that launched millions of illegal denial of service, or DDoS, attacks against victim computer systems in the United States and elsewhere.
Chief U.S. District Judge Terrence W. Boyle sentenced Sergiy P. Usatyuk, 21, in the U.S. District Court for the Eastern District of North Carolina. Usatyuk also was ordered to forfeit $542,925 in proceeds from the scheme, as well as dozens of servers and other computer equipment that facilitated the scheme and/or constitutes its proceeds.
According to the criminal information, Usatyuk combined with a co-conspirator to develop, control and operate a number of booter services and booter-related websites from around August 2015 through November 2017 that launched millions of DDoS attacks that disrupted the internet connections of targeted victim computers, rendered targeted websites slow or inaccessible, and interrupted normal business operations. The illegal services included ExoStress.in, (“ExoStresser”), QuezStresser.com, Betabooter.com (“Betabooter”), Databooter.com, Instabooter.com, Polystress.com and Zstress.net.
“The defendant made hundreds of thousands of dollars by launching countless indiscriminate cyber-attacks that victimized various segments of American society,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Criminal Division and our law enforcement partners will remain vigilant in protecting the American public from these types of sophisticated, far-reaching threats.”
“DDoS-for-hire services pose a malicious threat to the citizens of our district, as well as districts across the country, by impeding critical access to the internet and jeopardizing safety and security in the process,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “The operation and use of these services to disrupt the operations of our businesses and other institutions cannot be tolerated. Anyone who weaponizes web traffic in this manner will be vigorously pursued and prosecuted by my office.”
“This sentence demonstrates the FBI’s continuous commitment to unmasking malicious actors behind these type of egregious cyberattacks,” said Special Agent in Charge John Strong of the FBI’s North Carolina Field Office. “By calling out those criminals who hide behind their computer and launch attacks, the FBI is sending a strong message that we will work tirelessly with our law enforcement partners to investigate and hold all criminals accountable, no matter what weapon they use to terrorize others.”
“Booters” or “Stressers” are a class of publicly-available, web-based services that allow cybercriminals to launch distributed DDoS attacks that overwhelm a target computer system with unrequested traffic and, in turn, “boot” or “drop” the victim from the internet for a relatively small fee or no fee at all. To launch a DDoS attack using a booter, a cybercriminal often needs only a web browser and an online payment tool to subscribe to a provider, provide instructions for attacking a victim computer system, and deliver payment.
The DDoS attacks launched by the booters also harmed computer systems that were not directly targeted. For example, according to the criminal information, in November 2016, a Betabooter subscriber launched a series of DDoS attacks against a school district in the Pittsburgh, Pennsylvania, area that not only disrupted the school district’s computer systems, but affected the computer systems of 17 organizations that shared the same computer infrastructure, including other school districts, the county government, the county’s career and technology centers, and a Catholic Diocese in the area.
During the period of the conspiracy, Usatyuk and a co-conspirator gained in excess of $550,000 from charging subscriber fees to paying customers of their booter services and selling advertising space to other booter operators.
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cybercrime.
For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
The FBI’s Charlotte Field Office, Raleigh Resident Agency conducted the investigation. Additional assistance was provide by the FBI’s Chicago and Miami Field Offices, as well as the Defense Criminal Investigative Service.
Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Adam Hulbig and Matthew Fesak of the Eastern District of North Carolina are prosecuting the case.
Former Operator of Illegal Booter Services Sentenced for Conspiracy to Commit Computer Damage and AbuseRead the Press Release
An Orland Park, Illinois, resident was sentenced yesterday to 13 months in prison, followed by three years of supervised release on one count of conspiracy to cause damage to internet-connected computers for his role in owning, administering and supporting illegal booter services that launched millions of illegal denial of service, or DDoS, attacks against victim computer systems in the United States and elsewhere.
Chief U.S. District Judge Terrence W. Boyle sentenced Sergiy P. Usatyuk, 21, in the U.S. District Court for the Eastern District of North Carolina. Usatyuk also was ordered to forfeit $542,925 in proceeds from the scheme, as well as dozens of servers and other computer equipment that facilitated the scheme and/or constitutes its proceeds.
According to the criminal information, Usatyuk combined with a co-conspirator to develop, control and operate a number of booter services and booter-related websites from around August 2015 through November 2017 that launched millions of DDoS attacks that disrupted the internet connections of targeted victim computers, rendered targeted websites slow or inaccessible, and interrupted normal business operations. The illegal services included ExoStress.in, (“ExoStresser”), QuezStresser.com, Betabooter.com (“Betabooter”), Databooter.com, Instabooter.com, Polystress.com and Zstress.net.
“The defendant made hundreds of thousands of dollars by launching countless indiscriminate cyber-attacks that victimized various segments of American society,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Criminal Division and our law enforcement partners will remain vigilant in protecting the American public from these types of sophisticated, far-reaching threats.”
“DDoS-for-hire services pose a malicious threat to the citizens of our district, as well as districts across the country, by impeding critical access to the internet and jeopardizing safety and security in the process,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “The operation and use of these services to disrupt the operations of our businesses and other institutions cannot be tolerated. Anyone who weaponizes web traffic in this manner will be vigorously pursued and prosecuted by my office.”
“This sentence demonstrates the FBI’s continuous commitment to unmasking malicious actors behind these type of egregious cyberattacks,” said Special Agent in Charge John Strong of the FBI’s North Carolina Field Office. “By calling out those criminals who hide behind their computer and launch attacks, the FBI is sending a strong message that we will work tirelessly with our law enforcement partners to investigate and hold all criminals accountable, no matter what weapon they use to terrorize others.”
“Booters” or “Stressers” are a class of publicly available, web-based services that allow cybercriminals to launch distributed DDoS attacks that overwhelm a target computer system with unrequested traffic and, in turn, “boot” or “drop” the victim from the internet for a relatively small fee or no fee at all. To launch a DDoS attack using a booter, a cybercriminal often needs only a web browser and an online payment tool to subscribe to a provider, provide instructions for attacking a victim computer system, and deliver payment.
The DDoS attacks launched by the booters also harmed computer systems that were not directly targeted. For example, according to the criminal information, in November 2016, a Betabooter subscriber launched a series of DDoS attacks against a school district in the Pittsburgh, Pennsylvania, area that not only disrupted the school district’s computer systems, but affected the computer systems of 17 organizations that shared the same computer infrastructure, including other school districts, the county government, the county’s career and technology centers, and a Catholic Diocese in the area.
During the period of the conspiracy, Usatyuk and a co-conspirator gained in excess of $550,000 from charging subscriber fees to paying customers of their booter services and selling advertising space to other booter operators.
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cybercrime.
For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
The FBI’s Charlotte Field Office, Raleigh Resident Agency conducted the investigation. Additional assistance was provided by the FBI’s Chicago and Miami Field Offices, as well as the Defense Criminal Investigative Service.
Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Adam Hulbig and Matthew Fesak of the Eastern District of North Carolina are prosecuting the case.
Former Harrison County Sheriff’s Deputy found guilty of drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Former Harrison County Sheriff’s Deputy Timothy Rock, of Clarksburg, West Virginia, was convicted this week of drug charges, United States Attorney Bill Powell announced.
After a three-day trial, Rock, age 41, was found guilty of four counts of “Distribution of Heroin.” Rock distributed heroin in Harrison County in July, September, and October 2016.
“Everyone is subject to the rule of law. This particular defendant and former deputy crossed the line, and the jury rendered a verdict. The verdict in this difficult, but important case was due to the hard work and dedication of the prosecution team. The ultimate punishment is now up to the court,” said Powell.
At trial, three former confidential informants testified that Rock gave them heroin on dozens of occasions, most often by letting them keep a portion of heroin purchased in law enforcement monitored drug transactions. Two of the informants directly received uniquely packaged heroin labeled “FLIGHT 18” from Rock on other occasions. Trial evidence established that Rock acquired the FLIGHT 18 heroin from the evidence lockers at the now defunct Street Crimes and Drug Unit of the Harrison County Sheriff’s Office.
Other evidence demonstrated that Rock falsified sheriff’s department and court records to conceal his distribution of heroin to informants, and that he violated numerous other standard protocols with respect to managing informants, tracking government funds, securing evidence, and ensuring officer safety.
Rock faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. 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. Attorneys Andrew R. Cogar and Zelda E. Wesley are prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Former Employee of Hospital Charged with Compromising Dozens of Coworkers’ Email Accounts and Stealing Their Confidential InformationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of RICHARD LIRIANO for installing a malicious software program known as a “keylogger” on dozens of his coworkers’ computers at a New York City area hospital, obtaining unauthorized access to his victims’ email, social media and other online accounts, and using that unauthorized access to steal private and confidential files. Using his victims’ stolen credentials, LIRIANO repeatedly compromised their password-protected online accounts, and pilfered their sensitive personal photographs and other private documents.
LIRIANO was arrested yesterday and arraigned in federal court before United States Magistrate Judge Katharine H. Parker.
U.S. Attorney Geoffrey S. Berman said: “Richard Liriano, an information technology professional at a New York hospital, is alleged to have installed a ‘keylogger’ program onto dozens of his coworkers’ computers in order to spy on and steal personal information from them. Liriano allegedly used the access he gained through the malicious software to steal photos, tax records, and other personal information from his coworkers and people associated with them. As information technology increasingly becomes an integral part of our workplaces, ensuring the integrity of those systems becomes even more critical. The arrest of Liriano should serve as an error message to any information technology professionals seeking to capitalize on their trusted access to information: As in this case, you will be caught and prosecuted.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Whatever alleged motivation the subject in this case had, hacking into his co-workers lives, albeit extremely disturbing, wasn't the most egregious act. He allegedly installed a harmful program on computers that house vital and critical healthcare information for hospital patients, without a thought to what he could be compromising in his attempts to spy on people.”
According to the Indictment unsealed today in Manhattan federal court[1]:
From at least in or about 2017, up to and including at least about in or about September 28, 2018, LIRIANO misused administrative access provided to him as an information technology employee at a New York City-area hospital (“Hospital-1”), to log in to employee accounts, and copy other employees’ personal documents, including tax records, and personal photographs onto his own workspace computer for his own personal use.
To further his efforts to steal personal information from Hospital-1’s employees, LIRIANO, without authorization, secretly installed a malicious program known as a keylogger on the accounts of other, primarily female, employees. This program recorded and sent victim employees’ keystrokes to LIRIANO, which included the usernames and passwords those employees entered to access their personal web-based email accounts. Through the course of this conduct, LIRANO stole usernames and passwords for at least approximately 30 email accounts belonging to Hospital-1 employees or persons associated with those employees (the “Compromised Accounts”).
LIRIANO then used those stolen usernames and passwords to log in to the Compromised Accounts and obtain unauthorized access to other password-protected email, social media, photographs, and online accounts to which the Compromised Accounts were registered. Among other things, LIRIANO conducted searches for personal photographs in the Compromised Accounts.
* * *
LIRIANO, 33, of Bronx, New York, is charged in three counts. The first count charges him with transmitting a program to a protected computer that intentionally caused damage, which carries a maximum sentence of 10 years in prison. The second count charges him with intentionally accessing a protected computer without authorization and recklessly causing damage, which carries a maximum sentence of five years in prison. The third count is aggravated identity theft, which requires a two year prison term to be served consecutive to any sentence imposed on the computer intrusion charges. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the extraordinary work of the FBI and the New York City Police Department.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Elementary School Teacher’s Assistant Sentenced to 150 Months for Child-Exploitation CrimesRead the Press Release
A Springfield, Virginia, man was sentenced today to 150 months in prison followed by 20 years of supervised release for the attempted coercion and enticement of a minor and distribution of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Fairfax County Chief of Police Colonel Edwin C. Roessler Jr. made the announcement.
Monis Irfan, 21, a former substitute teacher and third-grade instructional assistant at two Fairfax County elementary schools, was sentenced today by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. Irfan previously pleaded guilty on July 19, 2019.
According to admissions that he made in connection with his guilty plea, in January 2019, Irfan began communicating online with an undercover Fairfax County police detective posing as the father of a seven-year-old child. Irfan repeatedly told the detective that he was sexually interested in and active with children, and discussed his desire to perform graphic sexual acts on the detective’s fictitious child. After several days of sending sexually explicit messages and images, Irfan drove to a predetermined location to meet the undercover detective and engage in sexual acts with the child. Irfan was arrested at that time. Additional investigation revealed that Irfan received and distributed child pornography videos depicting the sexual abuse of an infant over encrypted messaging apps on his mobile phone and also used his phone to record a video of himself engaging in sexually inappropriate behavior with a five-year-old child.
The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force and the Fairfax County Police Department investigated the case. Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Maya D. Song of the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and 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.justice.gov/psc.
Former Elementary School Teacher’s Assistant Sentenced for Child-Exploitation CrimesRead the Press Release
ALEXANDRIA, Va. – A former Fairfax County elementary school teacher’s assistant was sentenced today to 12 1/2 years in prison and 20 years of supervised release for the attempted coercion and enticement of a minor and distribution of child pornography.
“Irfan was an elementary school employee who was entrusted with teaching and protecting our community’s children,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “But he was also a wolf in sheep’s clothing looking to prey on the most vulnerable members of our society, and he undertook a horrific hunt for opportunities to sexually abuse children. Our office is committed to working closely with state, local and federal authorities to ferret out such sexual predators, and we commend our investigative partners for their work in this case.”
According to court documents, Monis Irfan, 21, of Springfield, a substitute teacher and third-grade instructional assistant at two Fairfax County elementary schools, began communicating online with an undercover Fairfax County police detective who was posing as the father of a seven-year-old child in January 2019. Irfan repeatedly told the detective that he was interested in and sexually active with children, and discussed his desire to perform graphic sexual acts on the detective’s fictitious child. After several days of sending sexually explicit messages and images, Irfan drove to a predetermined location to meet the undercover detective and engage in sexual acts with the child. Irfan was arrested at that time. Additional investigation revealed that Irfan received and distributed child pornography videos depicting the sexual abuse of an infant over encrypted messaging apps on his mobile phone, and also used his phone to record a video of himself engaging in sexually inappropriate behavior with a five-year-old child.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Maya D. Song and Special Assistant U.S. Attorney William G. Clayman prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-120.
Former Department of Corrections Nurse Sentenced for Drug ConvictionRead the Press Release
BOSTON – A nurse at the Department of Correction’s Massachusetts Alcohol and Substance Abuse Center (MASAC) in Plymouth, was sentenced today for distributing Suboxone strips to inmates in the facility.
Julie A. Inglis-Somers, 40, of Kingston, Mass., was sentenced by U.S. District Court Judge Indira Talwani to time served (11 days) and three years of supervised release with the first three months to be served in home detention. Additionally, Inglis-Somers is prohibited from seeking reinstatement of her nursing license.
In June 2019, Inglis-Somers pleaded guilty to providing Suboxone to two inmates at MASAC on multiple occasions in November and December 2018. Suboxone, a Class III controlled substance used to treat heroin addiction, is sometimes misused to get high. Suboxone is a coveted contraband in prisons across the nation and is particularly popular in New England. In December 2018, Inglis-Somers was charged by criminal complaint and arrested in Jacksonville, Fla. after fleeing Massachusetts.
MASAC is one of five facilities in Massachusetts where, under Massachusetts General Laws, a state court judge can send a person who the judge determines to be a danger to self or others due to substance abuse. MASAC is the only such facility overseen by the Massachusetts Department of Corrections.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit prosecuted the case.
Former DMV Employee Sentenced for a Scheme to Issue Commercial Licenses to Unqualified DriversRead the Press Release
SACRAMENTO, Calif. — Lisa Terraciano, 53, of North Hollywood, was sentenced today to three years and four months in prison for a conspiracy to take bribes to provide Class A commercial driver’s licenses (CDLs) without the commercial applicants having to take or pass the required tests, U.S. Attorney McGregor W. Scott announced.
On November 3, 2017, former DMV employees Terraciano and Kari Scattaglia, 40, of Sylmar, pleaded guilty to a conspiracy to commit bribery, to commit identity fraud, and to commit unauthorized access of a computer. On Aug. 29, 2019, Scattaglia was sentenced to two years and eight months in prison for her participation in the conspiracy.
According to court documents, Terraciano worked for the DMV since June 2005 and was a Motor Vehicle Representative (MVR) in the Winnetka DMV office from 2014 through 2017. Scattaglia worked as a manager, assistant manager, and a Licensing-Registration Examiner (LRE) at the Arleta DMV and the Granada Hills Driver License Processing Center. Among other things, Terraciano and Scattaglia were responsible for processing applications for California CDLs. A CDL is required to drive passenger buses and to operate tractor-trailer trucks on California and interstate highways, including, in some cases, transporting hazardous materials.
In exchange for money, Terraciano and Scattaglia each accessed the DMV’s database in Sacramento to alter the records of commercial applicants to fraudulently show that the applicants had passed the required written tests when, in truth, the applicants had not passed the tests or, at times, even taken the written tests. In so doing, this caused the DMV to issue permits to those drivers as well as issue completed CDLs upon the applicants’ passing the behind-the-wheel driving tests.
According to the plea agreements, Terraciano caused at least 148 fraudulent CDLs, including permits, to be issued, and Scattaglia caused at least 68 fraudulent CDLs, including permits, to be issued.
This case was the product of an investigation by the Federal Bureau of Investigation, the Homeland Security Investigations, the U.S. Department of Transportation – Office of Inspector General, and the California Department of Motor Vehicles, Office of Internal Affairs. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.
Former Bedford VA Nursing Assistant Sentenced for Making False StatementsRead the Press Release
BOSTON – A former nursing assistant at the Veterans Affairs (VA) Medical Center in Bedford was sentenced today in federal court in Boston for making false statements to federal agents in connection with an investigation of a patient’s death.
Patricia A. Waible, 52, of Nashua, N.H., was sentenced by U.S. District Court Judge F. Dennis Saylor IV to one year of probation. In July 2019, Waible was charged and agreed to plead guilty to two counts of making false statements.
On July 3, 2016, Waible, a nursing assistant at the time, worked the overnight shift from midnight to 8:00 a.m. at the Bedford VA’s nursing home unit. During the shift, Waible’s responsibilities included conducting hourly bed checks. Early that morning, a patient who suffered from several serious medical ailments was found unresponsive and not breathing. The patient was transferred by ambulance to an emergency room, where he was later pronounced dead. During the ensuing investigation, on two separate occasions, Waible falsely stated to federal agents that she had conducted the hourly checks on the patient during her shift.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, made the announcement today. Assistant U.S. Attorneys Amanda P.M. Strachan, Chief of Lelling’s Health Care Fraud Unit, and William B. Brady, also of Lelling’s Health Care Fraud Unit, prosecuted the case.
Florida Man Pleads Guilty to Shipping Synthetic Drugs to Southwest VirginiaRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen announced today that Michael John Harrigan, 60, of Valrico, Fla. and Jared Andre Roa, 30, of Tampa, Fla., pleaded guilty last week to one count of conspiring to distribute Schedule I controlled substances in the form of synthetic cannabinoids.
At sentencing, each defendant faces a potential sentence of up to twenty years in prison and/or a fine of up to $1,000,000. Additionally, Harrigan agreed to forfeit $500,000 in criminal proceeds to the United States.
According to court documents, Harrigan and Roa admitted to packaging and shipping large quantities of AB-FUBINACA, a Schedule I synthetic cannabinoid, throughout the United States via the United States Postal Service, and other shipping services. Quantities of these drugs were sent to the Western District of Virginia from Florida, including packages that were intercepted before delivery in Coeburn, Va. in October 2014. Additionally, in September 2017, a search of a storage unit belonging to Roa in Tampa, Fla. yielded quantities of AB-FUBINACA, packaging materials, and address labels listing Harrigan’s name and address. Harrigan’s illegal profits from this drug activity were found to have been at least $500,000.
Roa is scheduled to be sentenced on February 25, 2019, in Abingdon. Harrigan’s sentencing is scheduled for March 2, 2019. According to Harrigan’s plea agreement, he must pay to the United States $50,000 within seven days his guilty plea and $450,000 on or before the date of his sentencing.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Postal Inspection Service, Drug Enforcement Administration, and the Southwest Virginia Drug Task Force. Assistant United States Attorney Lena Busscher is prosecuting the case for the United States.
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Fifteen Charged in Mt.Vernon Drug RingRead the Press Release
Fifteen men who allegedly participated in a drug trafficking ring in Mt. Vernon, Illinois, have
been indicted on federal methamphetamine-related charges, Steven D. Weinhoeft, U.S. Attorney for
the Southern District of Illinois, announced today. The seven-count indictment was returned on Oct.
24, 2019, and accuses the following men of engaging in a conspiracy to distribute 50 grams or more
of methamphetamine in Jefferson County, Illinois:
• David D. Hunt, 28, of Dayton, Ohio
• Trevon M. Taylor, 35, of Mt. Vernon, IL
• Dedrick R. Bell, 41, of Bluford, IL
• Chalar L. Taylor, 25, of Mt. Vernon, IL
• Major J. Monroe, 45, of Marion, IL
• Carlos D. Knox, 48, of Mt. Vernon, IL
• Korey B. Alexander, 35, of Centralia, IL
• Myron T. Seigart, 32, of Mt. Vernon, IL
• Brandon N. Barnett, 35, of Bloomington, IN
• Jhytrenton C. Ladd, 27, of Mt. Vernon, IL
• Keith Peoples, Jr., 33, of Mt. Vernon, IL
• Nathaniel Nesbit, Jr., 34, of Mt. Vernon, IL
• Terry M. Turner, 39, of Mt. Vernon, IL
• Cortez E. Davis, 40, of Mt. Vernon, IL
• Terwin L. Morgan, 38, of Mt. Vernon, IL
The charged conspiracy allegedly ran from June 2018 through September 2019. If convicted of the
conspiracy charge, all 15 defendants face 10 years to life imprisonment, up to a
$10 million fine, and supervised release of not less than 5 years.Hunt and Bell are also charged separately with knowingly and intentionally possessing with the
intent to distribute 50 grams or more of methamphetamine on various dates, while Knox is accused of
distributing 50 grams or more of methamphetamine on one occasion in February 2019. The indictment
further alleges that on separate occasions during the timeframe charged inthe conspiracy, Monroe and Turner each knowingly distributed 5 grams or more of
methamphetamine.
The additional charges against Hunt, Bell, and Knox are each punishable by 10 years to life
imprisonment, up to a $10 million fine, and supervised release of not less than 5 years. For their
individual counts, Monroe and Turner both face 5 to 40 years imprisonment, a fine of up to
$5 million, and supervised release of not less than 4 years.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be
innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.The investigation in this case was conducted by the Drug Enforcement Administration, the Mt. Vernon
Police Department, the Jefferson County Sheriff’s Office, the Illinois State Police, the
United States Marshal Service, the Marion Police Department, and the FBI.
Felon Cannot Hide from Nearly Seven Years in Federal Prison for Third Conviction for Unlawfully Possessing a GunRead the Press Release
A convicted felon who was twice previously convicted of being a felon in possession of a firearm was sentenced November 14, 2019, to nearly seven years in federal prison following his third such conviction.
Jamaal Baker, age 41, from Waterloo, Iowa, received the prison term after a May 30, 2019 guilty plea to possessing a firearm as a felon.
At the guilty plea, Baker admitted he unlawfully possessed a handgun on January 23, 2019. Evidence at sentencing established that Baker took a gun to his ex-wife’s house. Baker and his ex-wife got into a heated argument. During the argument, Baker told his ex-wife that he was going to kill her and then have the police kill him. The ex-wife left the house along with minor children that were present. As they were walking away from the house, Baker pulled the handgun out and at least one round was fired.
Police responded to the house after a neighbor, who operated a daycare in her home, called 9-1-1. After setting up a perimeter around the house, officers learned that Baker had fled the home and went to a local convenience store. Officers found him in the store attempting to hide from them in a walk-in freezer.
Baker has a long criminal history starting at age 17 while he was living in Chicago. From age 18 through age 32, Baker was convicted of five drug offenses, two battery offenses, and aggravated vehicular hijacking for being part of an incident involving armed robbery, carjacking, and kidnapping. He was also twice convicted of being a felon in possession of a firearm. Baker was a member of the Gangster Disciples gang during this time.
Baker was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Baker was sentenced to 81 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Baker is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2023.
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Federal-State Law Enforcement Partnership Results in Multiple Arrests in South Bay CountiesRead the Press Release
SAN FRANCISCO – Officials from over a dozen law enforcement agencies arrested and charged more than two dozen defendants with a variety of state and federal crimes pursuant to a joint federal-state effort to combat crime in South Bay counties, announced U.S. Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) San Francisco Field Division Special Agent in Charge Rayfield Roundtree.
The investigation was spearheaded by the ATF. The agency coordinated operations with the U.S. Marshal Service; the Homeland Security Investigations, the Federal Bureau of Investigations, the San Mateo County Sheriff’s Office; the San Joaquin County Sherriff’s Office; the California Department of Corrections; the California Highway Patrol; and the police departments of Redwood City, San Mateo, San Francisco, and Daly City to arrest and charge the defendants. In addition to the arrests, law enforcement officials seized more than 130 firearms, 39 pounds of methamphetamine, and about 20 pounds of marijuana over the course of the operation.
“Guns and drugs are a dangerous combination,” said U.S. Attorney Anderson. “Public safety demands the kind of law enforcement cooperation we see in this enforcement action.”
“Combating violent crime is at the core of ATF’s mission and we stand at the frontline of eradicating violent crime from our streets,” said Special Agent in Charge Ray Roundtree, San Francisco Field Division, ATF. “It is our duty to make this community a safer place for you and your families. This operation was years in the making. Years ago, ATF and the San Mateo County Gang Intelligence Unit began laying the foundation for the culmination you see here today. We believe that one firearm in the hand of a criminal or prohibited person is one firearm too many. The work you see here today is about making neighborhoods safer because to us the most important thing is that you and your loved ones make it home safely every day. Today ATF and our partners stand united in honoring that promise to you. Through everyone’s hard work and dedication, this large-scale operation has been a true success. These are also our neighborhoods and today they are a safer place.”
The defendants have been charged with a variety of state and federal crimes. The defendants charged with federal crimes include the following:
Name
Age/Residence
Charges
Maximum Statutory Sentence
Francisco Garibay
21, South San Francisco
Distribution of fifty grams and more of methampheta-mine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii)
(two counts)
40 years in prison and a $5 million fine, per count
Jonathan Flores
20, San Mateo
Distribution of fifty grams and more of methampheta-mine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii)
(two counts)
40 years in prison and a $5 million fine
Vladimir Magallan- Gallegos
26, Modesto
Possession with intent to distribute fifty grams and more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(l)(B)(viii)
40 years in prison and a $5 million fine
Jonathan Robert Figueroa
25, Redwood City
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2
5 years in prison and a $250,000 fine, per count
Erizondo Mora-Tapia
25, East Palo Alto
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2
5 years in prison and a $250,000 fine, per count
Jesus Antonio Tapia
19, Sunnyvale
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $10,000 fine
Hernan Padilla- Landa
25, Tracy
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of a firearm with a removed serial number, in violation of 18 U.S.C. § 922(k)
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $250,000 fine
William Alexis-Villa
22, Menlo Park
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of a machine gun and aiding and abetting, in violation of 18 U.S.C. §§ 922(o) and 2;
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
(two counts)
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $250,000 fine
10 years in prison and a $10,000 fine, per count
Francisco Nunez-Nepita
21, East Palo Alto
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing in firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of a machine gun and aiding and abetting, in violation of 18 U.S.C. § 922(o), and 2
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $250,000 fine
Erik Acevedo-Cruz
19, Fremont
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $10,000 fine
Jaime Avina Barajas
19, East Palo Alto
Possession of a machine gun and aiding and abetting, in violation of 18 U.S.C. § 922(o) and 2;
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
10 years in prison and a $250,000 fine
10 years in prison and a $10,000 fine
Noe Robledo-Lopez, Jr.,
19, Redwood City
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
10 years in prison and a $10,000 fine
Jose Buenrostro
30, Redwood City
Conspiring to deal firearms without a license and dealing firearms without a license, in violation of 18 U.S.C. §§ 371 and 922(a)(1)(A);
Felon in possession of a firearm or ammunition, in violation of 18 U.S.C. § 922(g)(1);
Conspiring to distribute or possess with intent to distribute, and distributing or possessing with intent to distribute 50 grams and more of methamphetamine, in violation of 21 U.S.C. §§ 841(a), (b)(1)(B)(viii), and 846
5 years in prison and a $250,000 fine, per count
10 years in prison and a $250,000 fine
40 years in prison and a $5 million fine
Cristian Rafael Morales
23, San Mateo
Distribution of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
20 years in prison and a $1 million fine
Mario Carlos
24, Cottonwood
Felon in possession of a firearm or ammunition, in violation of 18 U.S.C. § 922(g)(1)
10 years in prison and a $250,000 fine
Daniel Zaragoza
32, Oakland
Felon in possession of a firearm or ammunition, in violation of 18 U.S.C. § 922(g)(1)
10 years in prison and a $250,000 fine
The indictments merely allege that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt. These prosecutions are the result of investigations by the ATF in coordination with Homeland Security Investigations (HSI) and the Federal Bureau of Investigation. Additional assistance was provided by the U.S. Marshal Service; the San Mateo County Sheriff’s Office; San Joaquin County Sherriff’s Office; the California Department of Corrections; the California Highway Patrol; and the police departments of Redwood City, San Mateo, San Francisco, and Daly City.
Federal Officials and Acoma Pueblo Leaders to Hold Press Conference to Make Significant Announcement regarding Item of Cultural PatrimonyRead the Press Release
ALBUQUERQUE, N.M. – Federal officials and Tribal Leaders of the Pueblo of Acoma will hold a press conference at 10:00 a.m., on Monday, November 18, 2019, at the offices of the Bureau of the Indian Affairs in Albuquerque, New Mexico, to make a significant announcement regarding an important item of cultural patrimony.
WHO: The Honorable John C. Anderson
U.S. Attorney for the District of New Mexico
The Honorable Brian Vallo
Governor of the Pueblo of Acoma
James C. Langenberg
Special Agent in Charge, FBI Albuquerque Division
James “Jim” James
Deputy Bureau Director-Field Operations, Bureau of Indian Affairs
Member, Pueblo of Ohkay Owingeh
WHAT: Press Conference
WHEN: Monday, November 18, 2019 at 10:00 a.m. MST
WHERE: Bureau of Indian Affairs – Southwest Regional Office
Conference Room 133 on the First Floor
1001 Indian School Road NW
Albuquerque, NM 87104
OPEN PRESS
NOTE: All media representatives must present government-issued photo I.D. (i.e., driver’s license) as well as valid media credentials when they check in with security upon entering the building. Media representatives may begin to arrive at 9:15 a.m. Inquiries regarding logistics should be directed to Sean Sullivan at 505-350-3153 or [email protected].
NOTE ALSO: Due to ongoing construction at the BIA-SWRO, visitors are encouraged to use 12th Street and Indian School to enter the premises.
Federal Officials and Acoma Pueblo Leaders to Hold Press Conference to Make Significant Announcement regarding Item of Cultural PatrimonyRead the Press Release
ALBUQUERQUE, N.M. – Federal officials and Tribal Leaders of the Pueblo of Acoma will hold a press conference at 10:00 a.m., on Monday, November 18, 2019, at the offices of the Bureau of the Indian Affairs in Albuquerque, New Mexico, to make a significant announcement regarding an important item of cultural patrimony.
WHO: The Honorable John C. Anderson
U.S. Attorney for the District of New Mexico
The Honorable Brian Vallo
Governor of the Pueblo of Acoma
James C. Langenberg
Special Agent in Charge, FBI Albuquerque Division
James “Jim” James
Deputy Bureau Director-Field Operations, Bureau of Indian Affairs
Member, Pueblo of Ohkay Owingeh
WHAT: Press Conference
WHEN: Monday, November 18, 2019 at 10:00 a.m. MST
WHERE: Bureau of Indian Affairs – Southwest Regional Office
Conference Room 133 on the First Floor
1001 Indian School Road NW
Albuquerque, NM 87104
OPEN PRESS
NOTE: All media representatives must present government-issued photo I.D. (i.e., driver’s license) as well as valid media credentials when they check in with security upon entering the building. Media representatives may begin to arrive at 9:15 a.m. Inquiries regarding logistics should be directed to Sean Sullivan at 505-350-3153 or [email protected].
NOTE ALSO: Due to ongoing construction at the BIA-SWRO, visitors are encouraged to use 12th Street and Indian School to enter the premises.
Farm Service Agency Executive Director, Former Clerk of Court, and 27 Others Indicted for Conspiracy to Commit Wire Fraud and Theft of Government FundsRead the Press Release
PANAMA CITY, FLORIDA – A federal grand jury in Tallahassee has returned a far-reaching indictment
that unveils a criminal network of 29 people who actively worked to defraud the federal government
and taxpayers of hundreds of thousands of dollars. At the helm of the scheme, a County Executive
Director of the United States Department of Agriculture’s Farm Service Agency is charged with
orchestrating a broad-based conspiracy to steal government drought assistance funds and hide the
actions through identify theft, tax evasion, and other federal crimes with a criminal network of
more than two dozen other people.The indictment, announced today by Lawrence Keefe, U.S. Attorney for the Northern District of
Florida as part of a crackdown by his office’s enhanced Public Trust Unit, produced a sweeping
roundup of 29 current and former federal, state, and local officials and local business people all
connected in the scheme to defraud the U.S. Department of Agriculture.The indictment alleges that Farm Service Agency director Duane Edward Crawson, 43, Bonifay,
Florida, led the conspiracy that included a former Holmes County Clerk of Court and numerous other
individuals who had served in positions of public trust and others in a variety of occupations.
Charges include conspiracy to commit wire fraud, theft of government funds, aggravated identity
theft, income tax evasion, and obstruction of Internal Revenue laws.“These individuals betrayed their duty as public servants and as citizens in a shallow but
breathtakingly bold effort to lie, cheat, and steal from their fellow citizens and our federal
government,” said Keefe. “This pattern of shameless criminality strikes at the very heart of our
system of self-government and undermines public trust in the integrity of our basic institutions.
The United States Attorney’s Office and all our law enforcement partners will be relentless in
pursuing and prosecuting all such violations of public trust.”The indictment alleges that between May and December 2017, Crawson -- while employed as the County
Executive Director of the USDA’s Farm Service Agency for Bay, Holmes, and Washington counties in
Florida -- devised a kickback scheme in which he and his co-conspirators unlawfully obtained approximately $373,483 in taxpayer funds by submitting fraudulent drought assistance claims.Crawson is alleged to have submitted fraudulent claims for livestock and farmland parcels that were
not actually owned or leased by the conspirators, resulting in drought assistance funds being
deposited into the conspirators’ bank accounts. The co-conspirators are alleged to have paid
Crawson a portion of the fraud proceeds in the form of cash kickbacks.The defendants’ trial is scheduled for January 6, 2020, at 8:00 a.m. at the United States
Courthouse in Pensacola, Florida.Each defendant faces the following potential penalties:
- Conspiracy to Commit Wire Fraud: a maximum of 20 years imprisonment and a $250,000 fine.
- Theft of Government Funds: a maximum of 10 years imprisonment and a $250,000 fine.Besides Crawson, the defendants are:
• Jeremiah Joe Rolling, 43, of Westville, Florida;
Investigator – Office of the State Public Defender• Jordan Ryan Hicks, 36, of Ponce De Leon, Florida;
Former Florida Department of Corrections Officer• Davey Eugene Mancill, 44, of Westville, Florida;
Mancill Masonry, LLC• James Stacey Paul, 46, of Bonifay, Florida;
Public Works - City of Bonifay, Florida• Kyle Martin Hudson, 39, of Westville, Florida;
Former Holmes County Clerk of Court• Christopher Marion Ammons, 31, of Ponce De Leon, Florida;
Heavy Equipment Operator• Danyel Michelle Witt, 44, of Bonifay, Florida;
Clerk – United States Postal Service• Sheryl Day Gillman, 52, of Bonifay, Florida;
Secretary - Florida Farm Bureau• Shyloe Rose Sachse, 40, of Bonifay, Florida;
Former Corrections Officer• Tillman Douglas Mears, 30, of Bonifay, Florida;
Public Works - City of Bonifay, Florida• Dawn Marie Crutchfield, 48, of Bonifay, Florida;
Medical Assitant• Justin Mikel Chopelas, 21, of Fayetteville, North Carolina;
Construction• Ronald Ryan Roof, 23, of Westville, Florida;
Specialist – Army National Guard• Megan Leann Roof, 22, of Caryville, Florida;
Hotel Clerk• Billy Coal Bradshaw, 35, of Bonifay, Florida;
Auto Parts Employee• James Erwin Mancill, 48, of Bonifay, Florida;
Auto Parts Employee• Joseph Matthew Crowder, 47, of Caryville, Florida;
Brick Mason – Mancill Masonry, LLC• Audrey Lynn Smith, 32, of Caryville, Florida;
Convenience Store Clerk• Brian Anthony Ammons, 44, of Ponce De Leon, Florida;
Heavy Equipment Operator• Taylor Ward Stripling, 28, of Westville, Florida;
Farm Laborer• Dawn Marie Roof, 44, of Chipley, Florida;
Licensed Practical Nurse• Daniel Olajuwon Boston, 33, of Chipley, Florida;
Brick Mason – Mancill Masonry, LLC• Chassity Lynn Lee, 31, of Bonifay, Florida;
Auto Parts Employee• Jennifer Marie McCabe, 30, of Bonifay, Florida;
Holmes County Council on Aging• Justina Rae Williams, 30, of Caryville, Florida;
Unemployed• Joseph Bailey Alexander, 22, of Chipley, Florida;
Poker Dealer• Douglas Edward Mixon, 60, of Westville, Florida;
Farmer• Dwayne Frazier White, 49, of Bonifay, Florida
Former City of Bonifay Police OfficerDuane Crawson, Davey Mancill, James Paul, and Danyel Witt face an additional charge of aggravated
identity theft, which carries a penalty of a minimum 2 years imprisonment consecutive to any other
term of imprisonment and a $250,000 fine. In addition, Crawson also faces charges of income tax
evasion, carrying a maximum of 5 years imprisonment and a $100,000 fine; and obstruction of Internal Revenue laws, carrying a maximum of 3 years imprisonment and a $5,000 fine.“The Livestock Forage Disaster Program (LFP) was created to help stabilize the U.S. livestock
industry and support producers whose grazing lands were significantly damaged by drought.
Those involved in fraud and abuse of USDA farm programs will be investigated by our office to the
fullest extent. This is particularly applicable for USDA employees who violate the trust vested in
them by American taxpayers,” said U.S. Department of Agriculture, Office of Inspector General
Special Agent-in-Charge Bethanne M. Dinkins. “In this joint investigation with the Internal Revenue
Service-Criminal Investigation, we worked together to identify those who sought to profit from the
LFP through illegal schemes. The USDA Office of Inspector General will continue to dedicate
investigative resources and work with our law enforcement partners to protect the integrity of
these programs and bring to justice those who commit fraud.”The indictment culminates a 20-month investigation conducted by a partnership of law enforcement
agencies and prosecutors at all levels of government, including the United States Department of
Agriculture-Office of Inspector General and the Internal Revenue Service- Criminal Investigations.
Assistant United States Attorney Jason R. Coody is prosecuting the case.“Those who violate their oaths and abuse positions of trust in our community do so out of greed.
IRS Special Agents are uniquely skilled to follow the money trail and bring to light financial
transactions conducted in such ways as to stay undetected,” stated Ron Loecker, Assistant Special
Agent in Charge for IRS Criminal Investigation’s Tampa Field Office. “IRS is a committed partner of
the U.S. Attorney’s Office Public Integrity Unit and we stand ready to ensure our public officials
work honestly in communities throughout northern Florida.”An indictment is merely an allegation by a grand jury that a defendant has committed a violation of
federal criminal law and is not evidence of guilt. All defendants are presumed innocent and
entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a
reasonable doubt in a court of law.The United States Attorney's Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney's Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.Fall River Woman Indicted for Social Security FraudRead the Press Release
BOSTON – A Fall River woman was arrested today for fraudulently receiving Social Security disability benefits.
Gloria Camara, 60, was indicted on one count of theft of public funds and one count of making a false statement. She is scheduled to appear before U.S. District Court Magistrate Judge Dein at 3:30 p.m.
According to the indictment, over a period of ten years, Camara stole approximately $81,929 in Social Security benefits. In April 2017, she falsely told the Social Security Administration that her only income came in the form of unemployment compensation benefits and wages from two companies when she was also earning income as a caregiver.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of making a false statement provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Eleven Indicted for Conspiracy to Commit Healthcare Fraud Related to Kickbacks Involving Compounded Medication Prescriptions and Tricare BeneficiariesRead the Press Release
UPDATE
On October 18, 2021, a federal jury acquitted defendants Greg Carter and John Clark Walton of the charges alleged in the indictment described in the press release below.
Jacksonville, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Scott Balotin (49, Saint Johns), Greg Carter (62, Fleming Island), Thomas Jones (50, Jacksonville), John Clark Walton (49, Jacksonville), David Stevens (40, Callahan), Sam Todd (40, Jacksonville Beach), Derwin Allen (50, Jacksonville), and Pablo Ortiz (51, Middleburg) with conspiracy. Various defendants are also charged with multiple counts of receiving and paying kickbacks and/or money laundering. The maximum penalty for the conspiracy count and each count of money laundering is 10 years in federal prison. The maximum penalty for each count of receiving and paying kickbacks is 5 years in federal prison. The indictment also notifies the individuals that the United States intends to forfeit the proceeds traceable to the offense, as well as items and properties purchased with proceeds traceable to the offense, including a 2015 Cadillac Escalade, a 2015 Ford Thor Motor Coach, and two residences.
In a related case, a grand jury returned an indictment charging Qualla Miller (42, Orange Park), Earl Smalls (57, Jacksonville), and Mario Correa Jackson (35, Jacksonville) each with one count of conspiracy to commit health care fraud and separate counts of soliciting and receiving kickbacks. In addition, Smalls and Jackson were each charged with paying kickbacks, and Miller and Smalls were each charged with money laundering. The maximum penalty for the conspiracy count and each count of receiving and paying kickbacks is 5 years in federal prison. The maximum penalty for each count of money laundering is 10 years in federal prison. The indictment also notifies the individuals that the United States intends to forfeit the proceeds traceable to the offense.
According to the indictments, Balotin owned and operated Casepark, a marketing firm in Jacksonville that utilized sales representatives to market compounded medications, including creams for pain and scars, to health care benefit program beneficiaries. The creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000 for a one-month supply. Casepark focused its promotional efforts on TRICARE beneficiaries, based upon an understanding and belief that TRICARE would pay claims for these compounded medications. The indictment alleges that a large number of the prescriptions generated for the recruited TRICARE beneficiaries were directed to Park and King Pharmacy, owned and operated by Greg Carter. Casepark received approximately 55 percent of the after-cost amount of each claim paid by a health care benefit program to Park and King Pharmacy for each prescription filled. Casepark, and Park and King, paid the sales representatives a percentage of the paid claims they received from the pharmacies.
To induce beneficiaries to provide their TRICARE information and obtain prescriptions for compounded creams from various doctors, patient recruiters (Jones, Walton, Stevens, Todd, Allen, Ortiz, Miller, Smalls, and Jackson) agreed to make, made, and caused to be made illegal kickbacks in the form of cash payments to the beneficiaries. Those prescriptions were filled at Park and King and other pharmacies and resulted in commission payments being made to Casepark and its sales representatives, including the defendants.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, the Jacksonville Sheriff’s Office, the Florida Department of Law Enforcement, and the United States Marshals Service. It will be prosecuted by Assistant United States Attorney Julie Hackenberry.
Edward Ambrosino, Former Town of Hempstead Councilman, Sentenced to Prison for Tax EvasionRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Edward Ambrosino, a former Town of Hempstead Councilman, was sentenced to six months’ imprisonment for tax evasion, to be followed by three years’ supervised release. The Court also ordered Ambrosino to pay $700,000 in restitution to his former employer and $254,628 in restitution to the Internal Revenue Service (IRS). Ambrosino pleaded guilty in April 2019. The sentencing proceeding was held before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, IRS-Criminal Investigation, New York (IRS-CI), announced the sentence.
“Ambrosino, a licensed attorney and elected official charged with levying taxes, abused his positions of trust and was himself a tax cheat,” stated United States Attorney Donoghue. “This is yet another example of a public official on Long Island breaking the law, this time by failing to pay his fair share of taxes like every other citizen.” Mr. Donoghue expressed his thanks to IRS-CI and the FBI for their help during the investigation.
“The tax evasion perpetuated by Mr. Ambrosino impacts various services provided by the income taxes collected by the IRS on behalf of all of our citizens,” stated IRS-CI Special Agent-in-Charge Larsen.
As detailed in court filings, Ambrosino was an attorney licensed to practice in New York State, specializing in economic and industrial development and financings, and formerly was “Of Counsel” at a law firm based in Uniondale, New York (the “Law Firm”). In addition, Ambrosino served as a Councilman for the Town of Hempstead, New York, from March 2003 until he resigned last April.
In 2011, Ambrosino incorporated Vanderbilt Consulting Group, Inc. (“Vanderbilt”). Ambrosino was the sole shareholder of Vanderbilt. In September 2012, Ambrosino opened a bank account in the name of Vanderbilt (the “Vanderbilt Bank Account”); he was the sole authorized signer on the Vanderbilt Bank Account.
From 2013 through 2015, Ambrosino diverted to the Vanderbilt Bank Account more than $800,000 in legal fees from clients, including the Nassau County Industrial Development Agency (NCIDA) and the Nassau County Local Economic Assistance Corporation (NCLEAC), that were due as revenue to the Law Firm. While the defendant neither admitted nor denied wrongdoing with regard to his conduct related to the Law Firm, as part of his sentence, the Court ordered the defendant to pay $700,000 in restitution to the Law Firm.
Ambrosino also evaded substantial income tax and filed false and fraudulent corporate tax returns on behalf of Vanderbilt for the 2011, 2012 and 2013 tax years. Ambrosino evaded the assessment of income tax by claiming false and fraudulent business expense deductions and failing to report funds he diverted from the Law Firm. Specifically, Ambrosino claimed as a business expense rent for a Manhattan apartment that he paid for on behalf of a third-party. In addition, for the 2013 tax year, Ambrosino failed to claim approximately $335,000 in funds he diverted from the Law Firm on either his personal income tax return or the Vanderbilt corporate tax return. With respect to the 2014 tax year, Ambrosino did not timely file his personal tax return or the corporate tax return for Vanderbilt. As a result of Ambrosino’s conduct, the IRS suffered a tax loss of approximately $254,628 and the New York State Tax Department suffered a tax loss of approximately $56,517. At the time of sentencing, Ambrosino had substantially paid his tax debt to the IRS and the New York State Tax Department.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Catherine M. Mirabile is in charge of the prosecution.
The Defendant:
EDWARD AMBROSINO
Age: 55
North Valley Stream, NYE.D.N.Y. Docket No. 17-CR-162 (JS)
Duxbury Man Arrested on Child Pornography ChargeRead the Press Release
BOSTON – A Duxbury man was arrested and charged with a child pornography offense.
Louis Ackerman Jr., 45, was charged by criminal complaint with possession of child pornography. Ackerman had his initial appearance this afternoon before Magistrate Judge Donald L. Cabell who will schedule a detention hearing for next week. Ackerman remains in custody.
According to the charging document, during the execution of a federal search warrant at Ackerman’s home today, law enforcement found hundreds of videos and images of child pornography on his laptop and multiple printed computer pages depicting child pornography under his bed.
The charging statute provides for a sentence of up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of Massachusetts State Police; Barnstable Police Chief Matthew Sonnabend; and Duxbury Police Chief Stephen McDonald made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Durham Man Caught by Alamance County Child Exploitation Operation Sentenced to 10 Years in PrisonRead the Press Release
GREENSBORO, N.C. – A man who pleaded guilty to attempted enticement of a minor was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
I. JEFFREY BRANDEIS, 49, of Durham, North Carolina, pleaded guilty on July 25, 2019, to one count of attempted enticement of a minor. He was sentenced today by United States District Judge N. Carlton Tilley, Jr. to 120 months of imprisonment followed by 15 years of supervised release.
In September 2018, BRANDEIS used a popular chat application to contact an individual purporting to be a 13 year-old girl, but that was actually an undercover detective with the Alamance County Sheriff’s Office. BRANDEIS exchanged more than one thousand text messages with the undercover detective for several months, with many of those messages being of a sexual nature. BRANDEIS was arrested after he traveled to a park in Graham on the night of January 2, 2019, for the purpose of engaging in indecent liberties with a minor, as shown in his text messages.
Investigators seized BRANDEIS’S phone and, with the assistance of Homeland Security Investigations (HSI), found that the device had been used to navigate to websites that contained child pornography. Investigators subsequently seized BRANDEIS’s computer and examined it. Child pornography artifacts discovered on the computer revealed that it has been used to access and download child pornography over several years.
The Alamance County Sheriff’s Office and Homeland Security Investigations (HSI) are both members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. With the consistent support of HSI, the referenced undercover child exploitation operation conducted by the Alamance County Sheriff’s Office has resulted in multiple arrests and convictions.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse, and prosecuted by Assistant United States Attorney Eric L. Iverson. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
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Drug Dealer Sentenced to More Than 17 Years in Prison for Selling Fentanyl That Caused Overdose Death of Public School Teacher in the BronxRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KASHAWN LYONS was sentenced to 210 months in prison in connection with his sale of the fentanyl that resulted in the death of Matthew Azimi, a public school teacher in the Bronx. LYONS pled guilty to narcotics conspiracy on January 14, 2019. As part of his guilty plea, LYONS stipulated that he sold the drugs that resulted in the death of Mr. Azimi. U.S. District Judge Andrew L. Carter, Jr. imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Kashawn Lyons admitted to selling a fatal dose of fentanyl to Matthew Azimi, a public school teacher in the Bronx, who overdosed inside of his schoolhouse at the age of 36. The tragic death of a public educator is a reminder of the pervasiveness of the opioid epidemic and its destructive effect on our society. Today’s sentence serves as a reminder that lengthy prison terms will result from dealing deadly opioids.”
According to court documents and statements made in open court:
On November 30, 2017, Matthew Azimi, age 36, was found dead inside a faculty bathroom at a special education public school in the Bronx (the “School”) where Mr. Azimi was a teacher. The New York City Police Department (“NYPD”) responded to the School and began investigating Mr. Azimi’s death. An autopsy conducted following Mr. Azimi’s death revealed that he died from a lethal dose of fentanyl. NYPD officers recovered a syringe and a pink glassine bag with no stamp or other distinctive marking next to Mr. Azimi’s body. NYPD also recovered Mr. Azimi’s cellphone.
The NYPD was able to trace the last three completed calls that Mr. Azimi made before he overdosed on November 30, 2017 to a cellphone used by LYONS. Through surveillance, the NYPD learned that LYONS continued to sell fentanyl and heroin in the vicinity of the School. In February 2018, the NYPD made undercover buys of fentanyl and heroin from LYONS in close proximity to the School. The fentanyl and heroin purchased from LYONS was packaged in the same unique pink glassine bags as the one that was found next to Mr. Azimi’s body.
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In addition to the prison term, LYONS, 33, of the Bronx, New York, was sentenced to five years of supervised release.
Mr. Berman praised the outstanding investigative work of the NYPD in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Justin V. Rodriguez and Jacob Warren are in charge of the prosecution.
Dayton businessman sentenced for mail fraudRead the Press Release
DAYTON – Dayton businessman Clayton Luckie was sentenced in U.S. District Court today to four months imprisonment followed by four months of home detention for his role in defrauding the City of Dayton’s disadvantaged business program.
Luckie, who pleaded guilty on July 2 to one count of mail fraud, was also ordered to serve three years under court supervision following his prison term, and perform 100 hours of community service.
According to court documents, Luckie agreed in 2016 to help create a fake paper trail indicating to Dayton that a company had performed work under a disadvantaged business component. In return he understood that he would receive a small portion of any funds received from the contract with the city.
Luckie ordered large magnetic signs emblazoned with the name of the company and intended to put them on the trucks of another company to make it appear that the first company was doing the work. Luckie also created fake invoices intended for submission to Dayton. Luckie received $2,000 for his role in the scheme.
Luckie is one of seven people charged as part of an ongoing public corruption investigation.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Joseph Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the sentence imposed today by U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Brent Tabacchi, SaMee Harden and Dominick S. Gerace are representing the United States in this case.
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Convicted Felon Sentenced to 100 Months for Illegally Possessing Weapons and Drugs at Gun ShowRead the Press Release
Memphis, TN – Jonathan Shelton, 29, has been sentenced to 100 months in federal prison for being a convicted felon illegally in possession of firearms and drugs. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on April 23, 2017 at approximately 4:30 PM, Multi-Agency Gang Unit ("MGU") detectives were investigating a theft near the gun show at the Agricenter at 7777 Walnut Grove Road. While there, they were stopped by the security detail at the gun show, who told the officers that an individual was causing a disturbance inside the gun show and smelled very strongly of marijuana. This individual was later identified as Jonathan Shelton. Officers watched Shelton hand a large amount of cash to a female and then be escorted out of the gun show by security. The female was later identified as Tammy Fox, 50,—Shelton’s mother.
Officers followed Shelton outside and saw him get into the rear left passenger seat of a 2006 Mitsubishi Endeavor. A short time later, Fox exited the gun show carrying a Spikes Tactical multi-caliber pistol--a black semi-automatic AR-15 style pistol. She then got into the rear right passenger seat and handed the pistol to Shelton. Detectives followed the vehicle and conducted a traffic stop because the windows were tinted below the Tennessee legal limit.
The car had four occupants: Shelton in the left rear passenger seat; Fox in the right rear passenger seat; Mario Silas, 39, in the front passenger seat; and, Sheritha Wells, 39, the registered owner of the vehicle, in the driver’s seat. Officers saw in plain view the Spikes Tactical multi-caliber pistol on the floorboard of the left rear passenger seat where Shelton was seated and could smell marijuana emanating from the vehicle. A K9 unit on scene provided a positive alert for narcotics.
Officers searched the vehicle based on the marijuana smell and on the K9 positive alert. In a brown purse, they found 0.7 grams of cocaine, 1.2 grams of heroin, 4.8 grams of marijuana and a Ruger .357 caliber revolver. Officers also recovered a stolen Springfield Armory .45 caliber pistol in the glove box and the Spikes Tactical multi-caliber pistol from the left rear floorboard.
All of the occupants of the vehicle waived their rights and gave statements to the police. Wells denied knowledge of any of the firearms or drugs. Silas admitted to possessing the stolen Springfield Armory .45 caliber pistol. Shelton admitted to possessing the Spikes Tactical multi-caliber pistol, the Ruger .357 revolver and all of the drugs. He later admitted on recorded jail calls to putting the gun and drugs in his mother’s purse. Fox admitted to purchasing the Spikes Tactical multi caliber pistol for her son. At the time of these events Silas was a convicted felon; Shelton was a knowingly convicted felon; and Fox had been knowingly convicted of a misdemeanor crime of domestic violence.
On November 13, 2019, U.S. District Court Judge John T. Fowlkes Jr., sentenced Shelton to 100 months in federal prison followed by 3 years supervised release. On November 28, 2018, the co-defendant Silas was sentenced to 180 months imprisonment and 3 years supervised release. Tammy Fox has pleaded guilty to being in possession of a firearm after being convicted of a misdemeanor crime of domestic violence and is set for sentencing on January 9, 2020.
U.S. Attorney D. Michael Dunavant said: "Reducing gun and violent crime is the top priority of this office and the Department of Justice. Prohibited persons in possession of firearms, such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to their families and the community at large. Clearly, all three of these defendants possessed firearms despite their prohibited status, and I commend the work of our federal and local law enforcement partners in holding them responsible and removing them from our streets."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Multi-Agency Gang Unit.
Assistant U.S. Attorney J. William Crow prosecuted this case on behalf of the government.
Compounding Pharmacy and Its Owner Pay More Than $200,000 to Resolve False Claims Act AllegationsRead the Press Release
A compounding pharmacy headquartered in Lenexa, Kansas, along with its owner, agreed to pay $205,000 to resolve allegations that the pharmacy submitted false claims to Tricare, the health care program for uniformed service members, retirees, and their families. Neither the owner nor the pharmacy admitted liability as part of the settlement.
Midwest Compounders, Inc., and its owner, Troy DeLong, agreed to settle allegations that claims submitted to Tricare from June 2012 to December 2014 were fraudulent for purposes of the False Claims Act. The United States alleged that certain claims for compound medications during this period resulted from unlawful arrangements between the pharmacy and prescribers or marketers, or were otherwise improperly inflated in that the claims sought payment for medically unnecessary dosages or for redundant active ingredients.
The allegations were made in a qui tam, or whistleblower, lawsuit. The lawsuit was brought under the False Claims Act, which punishes violators who submit false claims to the government or who knowingly attempt to avoid an obligation to repay federal funds. The whistleblower provisions allow private parties who have knowledge of fraud committed against the government to file suit on behalf of the government and share in any recovery. The individual who filed this lawsuit received a share of the total amount recovered.
The matter was handled by Assistant United States Attorney Jake Schunk and investigated by the Defense Criminal Investigative Service. The lawsuit is captioned United States ex rel. Sten v. Midwest Compounders, et al.
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Cocaine Trafficker Sentenced to Nearly 15 Years in PrisonRead the Press Release
RICHMOND, Va. – A Hopewell man was sentenced today to nearly 15 years in prison for his role in a cocaine trafficking conspiracy.
According to court documents, Lorenzo Coleman, 41, was the leader and organizer of a multi-defendant drug trafficking ring that distributed cocaine into Hopewell and the surrounding areas. Coleman admitted that between 2013 and 2015, he conspired to distribute nearly 15 kilograms of cocaine. Coleman fled Virginia in July 2017, but was located by the U.S. Marshals Service last June and returned to Virginia. As part of his plea, Coleman has agreed to forfeit the sum of $500,000, which represents the proceeds of the crime to which he has pleaded guilty.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel John F. Keohane, Chief of Hopewell Police Department, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-9.
Clinton Man Sentenced to Seven Years for Possessing a Firearm and High-Capacity MagazinesRead the Press Release
OKLAHOMA CITY – JASON SCOTT PEDRO, 37, of Clinton, has been sentenced to 84 months in prison for being a felon in possession of a firearm, announced U.S. Attorney Timothy J. Downing.
On April 16, 2019, a federal grand jury indicted Pedro for possessing a firearm on February 7, 2019, during a traffic stop. In particular, he possessed a lower receiver of an AR-15-style rifle, along with five loaded high-capacity magazines.
Pedro pleaded guilty on June 25, 2019.
On November 14, U.S. District Judge David L. Russell sentenced Pedro to 84 months in prison, an upward variance from an advisory sentencing guideline range of 51 to 63 months. Pedro will be required to serve three years on supervised release after his prison term. This sentence was based, among other things, on the nature and circumstances of the offense and the need to protect the public from further crimes of the defendant, whose criminal history includes two offenses involving domestic violence.
This case is the result of an investigation by the Clinton Police Department and the U.S. Department of Homeland Security. Prosecuted by Assistant U.S. Attorney Mary E. Walters, it is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime.
Reference is made to court filings for further information.
California Health System and Surgical Group Agree to Settle Claims Arising from Improper Compensation ArrangementsRead the Press Release
Several hospitals owned and operated by Sutter Health (Sutter), a California-based healthcare services provider, and Sacramento Cardiovascular Surgeons Medical Group Inc. (Sac Cardio), a practice group of three cardiovascular surgeons, have agreed to pay the United States a total of $46,123,516 to resolve allegations arising from claims they submitted to the Medicare program, the Department of Justice announced today.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. It is intended to ensure that medical decision-making is not influenced by improper financial incentives and is instead based on the best interests of the patient.
As part of the settlements announced today, one of Sutter’s hospitals, Sutter Memorial Center Sacramento (SMCS), has agreed to pay $30.5 million to resolve certain allegations that, from 2012 to 2014, it violated the Stark Law by billing Medicare for services referred by Sac Cardio physicians, to whom it paid amounts under a series of compensation arrangements that exceeded the fair market value of the services provided. Relatedly, Sac Cardio has agreed to pay $506,000 to resolve allegations that it knowingly submitted duplicative bills to Medicare for services performed by physician assistants that it was leasing to SMCS under one of those compensation arrangements.
“Improper financial arrangements between hospitals and physicians can influence the type and amount of health care that is provided,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department is committed to taking action to eliminate improper inducements that can impact physician decision-making.”
“This office will continue to take all appropriate action to help ensure that the beneficiaries of federal health care programs receive services untainted by improper financial incentives,” said U.S. Attorney David L. Anderson for the Northern District of California.
“Providers must rigorously comply with the law and Medicare requirements” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “This office is committed to pursuing enforcement actions that will ensure the integrity of federal health care programs.”
Separately, Sutter has agreed to pay $15,117,516 to resolve other conduct that it self‑disclosed to the United States, principally concerning additional violations of the Stark Law. Specifically, Sutter hospitals submitted Medicare claims that resulted from referrals by physicians to whom those hospitals (1) paid compensation under personal services arrangements that exceeded the fair market value of the services provided; (2) leased office space at below-market rates; and (3) reimbursed physician-recruitment expenses that exceeded the actual recruitment expenses at issue. Additionally, several Sutter ambulatory surgical centers double-billed the Medicare program by submitting claims that included radiological services for which Medicare separately paid another entity that had performed those services.
Certain allegations relating to SMCS and Sac Cardio were originally brought by Laurie Hanvey in a lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the federal government and to share in any recovery. The whistleblower will receive $5,891,140 as her share of the federal government’s recovery in this case. The case is captioned United States ex rel. Hanvey v. Sutter Health et al., Civil Action No. 14-4100 (N.D. Cal.).
These matters were handled on behalf of the government by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Northern District of California, and the U.S. Attorney’s Office for the Eastern District of California. Investigative support was provided by the Department of Health and Human Services’ Office of the Inspector General.
The claims resolved by these settlements are allegations only and there has been no determination of liability.
California Health System Agrees to Pay over $15M to Settle Claims Arising from Improper Compensation Arrangements and Double BillingRead the Press Release
SACRAMENTO, Calif. — Sutter Health has agreed to pay $15,117,516 to resolve conduct concerning violations of the Physician Self-Referral Law, commonly known as the Stark Law, as well as double-billing for certain services, U.S. Attorney McGregor W. Scott announced today.
The Stark Law prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The law is intended to ensure that medical decision-making is not influenced by improper financial incentives and is instead based on the best interests of the patient.
The conduct at issue was self-disclosed by Sutter to the United States, and includes submission of claims to Medicare that resulted from referrals by physicians to whom certain Sutter hospitals: (1) paid compensation under personal services arrangements that exceeded the fair market value of the services provided; (2) leased office space at below-market rates; and (3) paid reimbursements of physician-recruitment expenses that exceeded the actual recruitment expenses at issue. Additionally, several Sutter ambulatory surgical centers double-billed the Medicare program by submitting claims that included radiological services for which Medicare separately paid another entity that had performed those services.
“Providers must rigorously comply with the law and Medicare requirements” said U.S. Attorney Scott. “This office is committed to pursuing enforcement actions that will ensure the integrity of federal health care programs.”
This settlement is the result of work by the U.S. Attorney’s Office for the Eastern District of California with help from the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
California Health Group and Surgical Group Agree to Settle Claims Arising from Improper Compensation ArrangementsRead the Press Release
SAN FRANCISCO – Several hospitals owned and operated by Sutter Health (“Sutter”), a California-based healthcare services provider, and Sacramento Cardiovascular Surgeons Medical Group, Inc. (“Sac Cardio”), a practice group of three cardiovascular surgeons, have agreed to pay the United States a total of $46,123,516.36 to resolve allegations related to reimbursement claims they submitted to the Medicare program, the Department of Justice announced today.
The Physician Self Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The law is intended to ensure that medical decisions are not influenced by improper financial incentives.
As part of the settlements announced today, one of Sutter’s hospitals, Sutter Memorial Center Sacramento (“SMCS”), has agreed to pay $30.5 million to resolve allegations that, from 2012 to 2014, it violated the Stark Law by billing Medicare for services referred by Sac Cardio physicians, to whom it paid amounts under a series of compensation arrangements that exceeded the fair market value of the services provided. Relatedly, Sac Cardio has agreed to pay $506,000 to resolve allegations that it improperly submitted duplicative bills to Medicare for services performed by physician assistants that it was leasing to SMCS under one of those compensation arrangements.
“Improper financial arrangements between hospitals and physicians can influence the type and amount of health care that is provided,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department is committed to taking action to eliminate improper inducements that can corrupt the integrity of physician decision-making.”
“Medical decisions should be based on the best interests of the patient, not improper financial incentives. In this case, the Stark Law is being enforced to ensure that Medicare recipients and other beneficiaries of federal health care programs receive care untainted by prohibited financial incentives,” said David L. Anderson, United States Attorney for the Northern District of California.
Separately, Sutter has agreed to pay $15,117,516.36 to resolve other conduct that the company itself disclosed to the United States, principally concerning additional violations of the Stark Law. Specifically, Sutter hospitals submitted Medicare claims that resulted from referrals by physicians to whom those hospitals (1) paid compensation under personal services arrangements that exceeded the fair market value of the services provided; (2) leased office space at below-market rates; and (3) paid reimbursements of physician-recruitment expenses that exceeded the actual recruitment expenses at issue. Additionally, several Sutter ambulatory surgical centers double-billed the Medicare program by submitting claims that included radiological services for which Medicare separately paid another entity that had performed those services.
“Providers must rigorously comply with the law and Medicare requirements” said United States Attorney McGregor Scott. “This office is committed to pursuing enforcement actions that will ensure the integrity of federal health care programs.”
The allegations relating to SMCS and Sac Cardio were originally brought by Laurie Hanvey in a lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the federal government and to share in any recovery. The whistleblower will receive $5,891,140 as her share of the federal government’s recovery in this case.
These matters were handled on behalf of the government by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Northern District of California, and the U.S. Attorney’s Office for the Eastern District of California. Investigative support was provided by the Department of Health and Human Services’ Office of the Inspector General.
The claims resolved by these settlements are allegations only and there has been no determination of liability.
Buffalo Man Pleads Guilty to Drug Conspiracy ChargeRead 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 Angelo Kidd, 31, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with intent to distribute, and distributing, 28 grams or more of crack cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that between August 2018 and June 18, 2019, the defendant conspired with others to sell crack cocaine. On August 31, 2018, Buffalo Police Officers executed a search warrant at 67 and 76 Townsend Street in Buffalo. Kidd was detained along with Charles Washington, John Sanders, Jr., and others. Officers recovered approximately 158 grams of crack cocaine, approximately 76 grams of marijuana, and items used to process and package crack cocaine for distribution. These items included cooking pans, "cut" of white powder, sandwich bags, and a digital scale that contained crack cocaine residue. Officers also recovered approximately $3,163 in United States currency.
On January 21, 2019, the Town of Tonawanda Police Department conducted a stop of a vehicle driven by John Sanders, Jr. The defendant was in the passenger seat. A search of the vehicle recovered 462 grams of marijuana in a vacuum sealed bag in the trunk, and approximately $3,000 to $4,000 in United States currency.
A total of 10 defendants were charged in this case, Kidd is the first to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the City of Tonawanda Police Department, under the direction of Chief William Strassburg.
Sentencing is scheduled for February 26, 2020, before Judge Arcara.
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Atlantic City Woman Sentenced to 78 Months in Prison for Money LaunderingRead the Press Release
CAMDEN, N.J. – An Atlantic City woman was sentenced to 78 months in prison for her role in a drug trafficking and money laundering operation in the Atlantic County area, U.S. Attorney Craig Carpenito announced today.
Jazmin Vega, 45, previously pleaded guilty to one count of an indictment charging her with conspiracy to commit money laundering. U.S. District Judge Renee Marie Bumb imposed the sentence Nov. 14, 2019, in Camden federal court.
According to documents filed in this case and statements made in court:
From 2010 through December 2014, Vega’s long-time paramour, Toye Tutis, 47, operated a large-scale drug trafficking ring out of the Ta’Ja Laundromat in Atlantic City, purchasing and distributing between 150 to 450 kilograms of cocaine and approximately 26 kilograms of heroin, and laundering between $1.5 and $3 million in drug proceeds. Tutis was aided by Vega, who admitted to laundering his drug trafficking proceeds in several ways, including through the couple’s various businesses – Ta’Ja Construction I LLC; Ta’Ja Real Estate Investors LLC; and Integrity Heating and Cooling LLC; and by purchasing more than 30 properties with tainted funds.
In addition to the prison term, Judge Bumb sentenced Vega to three years of supervised release and fined her $1,000. As part of their plea agreements, Vega and Tutis must forfeit 20 properties, cash and other assets.
Tutis also pleaded guilty and was sentenced to 264 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to sentencing.
He also thanked the New Jersey State Police; the Pennsylvania State Police, the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield, and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Camden Office.
Atlanta drug trafficker sentenced for heroin distributionRead the Press Release
ATLANTA – Ramone Shirley has been sentenced for possession with the intent to distribute heroin. Shirley is a prior convicted felon who had nearly 200 grams of heroin and two firearms in his possession when officers arrested him in 2018.
“Repeat offenders like Shirley pose a serious threat to public safety,” said U.S. Attorney Byung J. “BJay” Pak. “Their continual return to criminal activity represents a lack of fear of consequences for their actions. Citizens deserve safety and a drug-free community. Through our commitment to Operation SCOPE, we will continue prosecuting and removing repeat offenders from our streets.”
“This is a perfect example of cooperative drug law enforcement. The Atlanta-Carolinas HIDTA is committed to working with our Federal, State, Local and Tribal partners to rid our communities of this poison,” said HIDTA Executive Director Dan R. Salter.
“The successful results of this investigation should let career criminals like Mr. Shirley know that those who flood our streets with dangerous drugs like heroin, will ultimately be brought to justice by DEA, its law enforcement partners and the United States Attorney’s Office,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.
“We are pleased that our combined efforts have led to the conviction of this repeat offender and he will no longer be distributing his poison on the streets of Atlanta,” said Homeland Security Investigations (HSI) Acting Special Agent in Charge Robert J. Hammer. “HSI is proud of its strong partnership with DEA Atlanta and will continue to partner with them to maximize our capabilities in dismantling these criminal networks.”
According to U.S. Attorney Pak, the charges and other information presented in court: In June 2016, Shirley distributed three kilograms of cocaine to another drug dealer inside his shop in Atlanta, Georgia. The cocaine was seized by Georgia State Patrol during a traffic stop, and DEA and Homeland Security Investigations agents eventually identified Shirley as the cocaine source.
After further investigation, agents arrested Shirley at his home on charges of distributing the cocaine seized in the 2016 traffic stop. During the arrest, they found a kilo-press, money counter, nearly 200 grams of heroin, and two loaded firearms, including one with an extended magazine. Agents also found parts of a kilo-press at Shirley’s shop, and his phone had videos of him waving vacuum-sealed bundles of cash. As a result of his conviction, Shirley forfeited his boat, a truck, two Harley Davidson motorcycles, and cash.
Ramone Shirley, a/k/a “Big Play Ray,” 44, of Atlanta, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to seven years in prison to be followed by four years of supervised release. Shirley was convicted on these charges on April 9, 2019, after he pleaded guilty.
This case is presented as a part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), which is an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl have on our neighborhoods.
The Drug Enforcement Administration, the Atlanta-Carolina High Intensity Drug Trafficking Area Program, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated this case.
Assistant U.S. Attorney Nicholas Hartigan prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Appleton Duo Indicted on Federal Firearm ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that November 14, 2019, a federal grand jury issued an indictment against Mason O. Beudry (age: 23) and Juan M. Cardenas (age: 23) both of Appleton, Wisconsin.
The indictment alleges that Cardenas made a “false and fictitious” statement in connection with the acquisition of a Taurus G2C model 9mm handgun from a Grand Chute, Wisconsin, Fleet Farm store in violation of Title 18, United States Code, Section 922(a)(6). It further alleges that Beaudry subsequently possessed the firearm purchased by Cardenas despite Beaudry’s status as a convicted felon contrary to Title 18, United States Code, Section 922(g)(1).
Each faces up to ten years’ imprisonment, a $250,000 fine, and three years of supervised release if convicted of their respective charges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Appleton Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Antioch Resident Sentenced to More Than 11 Years in Prison for Possession of Child PornographyRead the Press Release
OAKLAND – Sonny Mitchell was sentenced today to 135 months in prison for possession of child pornography, announced United States Attorney David L. Anderson and United States Secret Service Special Agent in Charge Thomas C. Edwards. The Honorable Jon S. Tigar, U.S. District Judge, handed down the sentence earlier today.
Mitchell, 45, of Antioch, pleaded guilty to the charge on August 16, 2019. According to his plea agreement, Mitchell admitted to possessing and distributing to others images of children as young as seven years old engaged in sexually explicit conduct. Mitchell used a social media platform to communicate with others and then distribute the images, which included videos and GIFs (Graphics Interchange Format). In one video, an adult male voice is heard giving directions to two minors who were engaged in sexually explicit conduct. Mitchell also agreed he was subject to a minimum sentence of ten years imprisonment because of his conviction in 1999 for unlawful sex with a minor.
A federal grand jury indicted Mitchell on May 9, 2019, charging him with two counts of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b)(1), and one count of possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2). Mitchell pleaded guilty to the possession count and the distribution counts were dismissed at sentencing.
This investigation began when a member of the public called local police to report Mitchell’s transmission of child pornography using a social media platform. In addition, during the course of the investigation, Mitchell was identified as the user of a social media account that had been reported by the National Center for Missing and Exploited Children (NCMEC) as being used to transmit child pornography. NCMEC had received a cyber-tip indicating that an individual was using a social media platform to send child pornography to other users. Law enforcement eventually identified Mitchell as the user of the account transmitting the images.
In addition to the prison term, Judge Tigar sentenced Mitchell to seven years of supervised release. The defendant will begin serving the prison term immediately. In addition, Judge Tigar scheduled a hearing for January 24, 2020, to determine issues regarding restitution.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Rodriguez and Kathleen Turner. The prosecution is the result of an investigation by the U.S. Secret Service, the Silicon Valley Internet Crimes Against Children Task Force, the Contra Costa District Attorney’s Office, and the Antioch Police Department.
Alleged Leader of Chicago-Area Street Gang Charged with Attempting to Provide Material Support to ISISRead the Press Release
CHICAGO — The suspected leader of a Chicago-area street gang has been arrested for allegedly attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).
JASON BROWN, also known as “Abdul Ja’Me,” provided $500 in cash to an individual on three separate occasions this year, with the understanding that the money would be wired to an ISIS soldier engaged in active combat in Syria, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Unbeknownst to Brown, the individual to whom he provided the money was confidentially working with law enforcement, and the purported ISIS fighter was actually an undercover law enforcement officer, the complaint states.
Brown, 37, of Lombard, Ill., was arrested Thursday. He is charged with attempting to provide material support and resources to a foreign terrorist organization. A detention hearing is set for Nov. 21, 2019, at 11:00 a.m., before U.S. Magistrate Judge Sunil R. Harjani in Chicago.
The complaint alleges that Brown is the leader of the AHK street gang, which is based in the Chicago suburb of Bellwood and comprised of former members of other gangs, including the Black P Stones, Gangster Disciples, and Four Corner Hustlers.
Six other alleged AHK members or associates were charged in a separate complaint with federal drug offenses. According to the charges, AHK members allegedly trafficked various narcotics in the Chicago area, including a fentanyl analogue, heroin, and cocaine, and often boasted about the gang’s activities on social media. As part of the investigation, law enforcement shut down the gang’s operation of two illicit drug markets on the West Side of Chicago and executed search warrants at numerous locations.
“The conduct alleged in these two complaints presents grave risks to our communities,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We will seek accountability to the fullest extent of the law.”
“These charges underscore the ceaseless efforts of federal, state, and local law enforcement agencies to disrupt the illegal flow of money and drugs,” said Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. “The FBI is proud to collaborate with its partners to make our neighborhoods safer and to keep valuable resources out of the hands of gang and terrorist organizations.”
U.S. Attorney Lausch announced the charges along with John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice, and Eddie Johnson, Superintendent of the Chicago Police Department. Substantial investigative assistance was provided by the IRS Criminal Investigation Division, Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Lombard, Ill., Police Department, and Addison, Ill., Police Department. The government is represented by Assistant U.S. Attorneys Shoba Pillay, Sean Driscoll and Nicholas Eichenseer of the Northern District of Illinois, with support from the National Security Division, Counterterrorism Section.
The alleged AHK members or associates charged with conspiracy to possess a fentanyl analogue, heroin, and cocaine with the intent to distribute are TRISTAN CLANTON, 34, of Chicago, RANDALL LANGSTON, 25, of Bellwood, Ill., his brother, BRANDON LANGSTON, 22, of Bellwood, Ill., HEZEKIAH WYATT, 19, of Hillside, Ill., LENOLIS MUHAMMAD-CURTIS, 24, of Bellwood, Ill., and FRANK THAXTON, 19, of Chicago. Clanton, Brandon Langston, Wyatt and Muhammad-Curtis were arrested Thursday. Judge Harjani set their detention hearings for next week. Thaxton is currently in the custody of state law enforcement, and a federal court appearance will be scheduled at a later date. An arrest warrant has been issued for Randall Langston.
According to the charges, Clanton is an influential AHK member who leads a drug trafficking operation in Chicago and Bellwood. The organization is responsible for trafficking more than a half kilogram of heroin, at least 474 grams of fentanyl analogue, and distribution quantities of cocaine and other drugs, the charges allege. Clanton and his crew sold drugs near two intersections in the North Lawndale and Humboldt Park neighborhoods of Chicago, according to the complaint. Law enforcement shut down the crew’s operation of these markets as part of the federal probe.
The public is reminded that charges contain only accusations and are not evidence of guilt. The material support charge is punishable by up to 20 years in prison. The drug conspiracy charge carries a maximum sentence of life in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Alexandria Man Sentenced to Prison for Distributing Anabolic SteroidsRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to five years in prison for manufacturing and distributing anabolic steroids and money laundering.
According to court documents, John Russell Kestel, 38, ran an anabolic steroid manufacturing and distribution conspiracy for at least three years. Kestel imported raw steroid powders from China and manufactured them into consumable steroid products in a clandestine laboratory in the basement of his home in Alexandria. In addition to steroid products, Kestel concocted homemade versions of pharmaceutical drugs intended to counter the side effects of long-term steroid abuse.
Kestel then distributed his homemade steroid products through social media sites including Facebook. After confirming the interest of potential clients in a private Facebook group, Kestel would direct them to a password-protected website where they could place orders and make payments.
Kestel utilized an elaborate money laundering scheme to conceal and disguise the nature of the proceeds of his steroid manufacturing and distribution operation. The money laundering scheme involved bank accounts that had been opened by the defendant in a multitude of names, including the names of real people known to the defendant and using their personally identifiable information.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Jason Trigger and Assistant U.S. Attorney Dennis M. Fitzpatick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-244.
Additional Charges Filed Against Former NFL Player, More Defendants in Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Additional charges have been filed against a former Kansas City Chiefs football player and eight co-defendants for their roles in a drug-trafficking conspiracy that operated primarily in Eastern Jackson County.
Saousoalii P. Siavii Jr., also known as “Junior,” 41, of Independence, Missouri, was charged in a nine-count superseding indictment returned under seal by a federal grand jury in Kansas City, Missouri, on Wednesday, Nov. 13. The superseding indictment replaces the original indictment against Siavii and includes additional charges and eight additional defendants. The indictment was unsealed today following the arrests and initial court appearances of some of those defendants.
The federal indictment alleges that Siavii, along with Marion D. McCrorey, also known as “Doug,” 40, Andrew A. Tofaeono, also known as “Drew,” 35, Isaac M. Butler, 34, Michelle M. Andrews, 37, Katie M. Thompson, also known as “Muneca,” 25, Michelle L. Morris, 25, and James J. Leach, 39, all of Independence; and Kristannie Casteel, 31, of Blue Springs, Missouri; participated in a conspiracy to distribute methamphetamine from July 11, 2018, to Nov. 13, 2019.
In addition to the conspiracy, Siavii is charged with two counts of possessing a firearm in furtherance of drug trafficking. Siavii allegedly possessed a Sturm Ruger 9mm semi-automatic handgun on Aug. 4, 2019, and a Smith and Wesson 9mm semi-automatic pistol on Aug. 24, 2019.
Siavii and Andrews are also each charged with one count of being a drug user in possession of a firearm. Siavii allegedly possessed a Phoenix Arms .22-caliber semi-automatic pistol on April 7, 2019. Andrews allegedly possessed a Kel-Tec .380-caliber pistol July 10, 2019.
Siavii is also charged with two counts of possessing methamphetamine with the intent to distribute. Tofaeono is also charged with one count of possessing methamphetamine with the intent to distribute.
Leach is also charged with being a felon in possession of a firearm. Leach, who has prior felony convictions, allegedly possessed a Ward’s Western Field 12-gauge pump-action shotgun on Sept. 30, 2019.
According to an affidavit filed in support of the original criminal complaint, Siavii was arrested on Aug. 24, 2019. Independence police officers responded to parking lot on U.S. 40 Highway, where a witness said he located his friend’s stolen 2017 Jeep Wrangler Sport. The witness told police he saw a man, later identified as Siavii, getting out of the driver’s seat of the vehicle.
Officers contacted Siavii, the affidavit says, who disregarded their commands, and an officer deployed his Taser on Siavii. Siavii, who is six feet, five inches tall and weighs approximately 330 pounds, fell to the ground. Officers attempted to gain control as he began to actively resist arrest. Siavii began pushing himself up off the ground, at which time a loaded Smith and Wesson 9mm pistol fell directly in front of him within his reach. An officer drew his duty weapon and put it to Siavii’s back, due to him not being under physical control, while another officer grabbed Siavii’s firearm and threw it several feet away. Officers continued to fight with Siavii, the affidavit says, while giving him commands to stop resisting and to place his hands behind his back. An officer deployed his Taser on Siavii again with little effect. Siavii was able to get on top of the officer, who was on the ground at this point. Another officer was eventually able to put Siavii in a neck restraint and render him unconscious long enough to handcuff him. Siavii continued to resist even after being handcuffed.
In addition to the Aug. 24 incident, the affidavit cites several more incidents in which Siavii was arrested while in possession of illegal drugs and firearms. In one incident, when officers responded to a report of a stolen Chevrolet Silverado that was tracked by On-Star to a motel parking lot, Siavii attempted to flee on foot, then resisted arrest, and fought with officers. In another incident, Siavii led officers in a vehicle pursuit that reached speeds up to 101 m.p.h. Siavii’s vehicle eventually left the roadway and he fled on foot before being located by officers and taken into custody.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Robert Smith. It was investigated by the Independence, Mo., Police Department.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced LEWAUN CHRISTOPHER PORTER, 43, of Aurora, Colorado on November 12, 2019 for possession with intent to distribute methamphetamine, cocaine, and heroin, carrying a firearm during and in relation to a drug trafficking crime, and being a felon in possession of a firearm. Porter was arrested in Cheyenne, Wyoming. He received one hundred eight months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $200.00 and a $300.00 special assessment. The Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Alan B. Johnson sentenced DAVID ANTHONY MCKEOWN, 51, of Casper, Wyoming on November 12, 2019 for conspiracy to distribute methamphetamine. McKeown was arrested in Casper, Wyoming. He received eighty-four months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $400.00 and a $100.00 special assessment. The Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced NICHOLAS ROSS HALCOTT, 20, of Cheyenne, Wyoming on November 14, 2019 for stealing of firearms from federal firearms license. Halcott was arrested in Cheyenne, Wyoming. He received thirty-seven months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $3,500.00 and a $100.00 special assessment. The Cheyenne Police Department and the ATF investigated this case.
Achille Man Pleads Guilty to Possession of Stolen FirearmsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Shane Northcutt, age 42, of Achille, Oklahoma, entered a guilty plea to Possession Of Stolen Firearms, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about March 5, 2019, in the Eastern District of Oklahoma, the defendant, knowingly possessed stolen firearms which had been shipped and transported in interstate commerce, knowing and having reasonable cause to believe the firearms were stolen.
The charges arose from an investigation by the Achille Police Department, the Bryan County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
79 Guns Taken Off Streets in Greater Lawrence Area and over 30 Individuals ChargedRead the Press Release
BOSTON – Thirty-two individuals have been charged with federal and state drug and gun charges. Seventy-nine guns, including assault weapons, have been removed from streets in the Greater Lawrence area.
This morning, over 70 federal, state and local law enforcement officers carried out the arrests of individuals alleged to have sold a large number of firearms and a variety of controlled substances, including fentanyl, heroin and cocaine. Eighteen of the 32 defendants are alleged to be members or associates of the Trinitarios street gang in Lawrence.
The following individuals were charged in U.S. District Court:
- Arismendy Gil-Padilla, a/k/a “Flow,” 29, of Methuen, was charged with being a felon in possession of firearms and ammunition, and distribution of and possession with intent to distribute cocaine and 40 grams or more of fentanyl;
- Jonathan Arias, 29, of Indianapolis, Ind., was charged with being a felon in possession of firearms and ammunition;
- Emilio Rodriguez, 32, of Lynn, was charged with distribution of and possession with intent to distribute 28 grams or more of cocaine base;
- Enrique Rosario, a/k/a “Kike”, 32, of Lawrence, was charged with being a felon in possession of firearms and ammunition;
- John Harry Morales, a/k/a “Harry”, 33, of Lawrence, was charged with being a felon in possession of firearms and ammunition;
- Jose Aponte, a/k/a “Kiko”, 33, of Lawrence, was charged with distribution of and possession with intent to distribute 100 grams or more of heroin, and being a felon in possession of firearms and ammunition;
- Jose Omar Hernandez-Aragones, a/k/a “Omar,” 22, of Lawrence, was charged with being a felon in possession of firearms and ammunition and distribution of and possession with intent to distribute cocaine and cocaine base;
- Kevin Gomez, a/k/a “Monkey,” 31, of Haverhill, was charged with distribution of and possession with intent to distribute heroin, and being a felon in possession of firearms and ammunition;
- Keysi Batista, 30, of Methuen, was charged with distribution of and possession with intent to distribute 40 grams or more of fentanyl;
- Luis Ruiz Gonzalez, 27, of Lawrence, was charged with being a felon in possession of firearms and ammunition, distribution of and possession with intent to distribute fentanyl; and
- Yisthen Ynoa, a/k/a “Cantifla,” 34, of Lawrence, was charged with distribution of and possession with intent to distribute cocaine.
The following 21 individuals were charged by the Essex County District Attorney’s Office with various state firearm and drug offenses:
- Pedro Arias, 63, of Lawrence;
- Jonathan Delgado, 35, of Lawrence;
- Victor Diaz, 22, of Lawrence;
- Luis Diaz-Brito, a/k/a “Blackie,” 22, of Lawrence;
- Yolvie Diaz-Martinez, 22, of Salem;
- Ulises Espinal, a/k/a “Ezequiel,” 34, of Methuen;
- Robinson Gaston-Santana, 29, of Lawrence;
- Francis Gotay, 29, of Haverhill;
- J.M.[1];
- J.R.2;
- Jose Nunez, a/k/a “Oreja,” 24, of Methuen;
- Anthony Nunez-Romano, 20, of Methuen;
- Alexis Paredes, a/k/a “Cabeza,” 31, of Lawrence;
- Kevin Perez-Lorenzo, 20, of Salem;
- Guaril Poche-Brito, a/k/a ‘Chamakito,” 21, of Haverhill;
- Kenneth Rodriguez, 31, of Lawrence;
- Temistocles Santana, a/k/a “Omar,” 28, of Lawrence;
- Jael Guillen-Perez, 20, of Haverhill;
- Alan Acosta, 23, of Lawrence;
- Abigail Arias, 20, of Lawrence; and
- Eliezer Taveras, a/k/a “Bad Bunny,” 18, of Lawrence.
Depending on the drug quantity, the federal drug trafficking conspiracy and distribution charges provide a sentence of up to 20 years, 40 years, or life in prison; a minimum of three, four or five years and up to a lifetime of supervised release; and fines of $1 million, $5 million and $10 million. The federal firearms charges provide for sentences of up to 10 years in prison, three years of supervised release and a fine of $250,000.
United States Attorney Andrew Lelling; Essex County District Attorney Jonathan Blodgett; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Carol Mici of the Massachusetts Department of Corrections; and Lawrence Police Chief Roy P. Vasque made the announcement today. The FBI’s North Shore Gang Task Force provided assistance with the investigation.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
[1] These individuals are juveniles or were juveniles at the time they committed criminal offenses.
$50 Profit for Crimes Leads to 50 Months in Prison for Greenville ManRead the Press Release
A Greenville man who made $50 from his crimes will repay each dollar with a month in prison. Aeron
Michael Davis, 28, has been sentenced to 50 months imprisonment and three years of supervised
release for methamphetamine distribution and for being a felon in possession of a firearm.Court documents establish that on Feb. 21, 2017, Davis, a previously convicted felon, facilitated
the sale of a .22 caliber pistol by another man, Wade Garrett McWhorter. Davis received
$30 for his part. Six days later, Davis helped arrange for a buyer to purchase under 5 grams of
pure methamphetamine, commonly known as “ice,” from McWhorter. For his efforts on that occasion,
Davis received another $20.McWhorter and Davis were charged in the same indictment. Davis pleaded guilty in July to the two
counts in which he was named. The following month, McWhorter pleaded guilty to all six charges
against him – three counts of being a felon in possession of a firearm and three more counts of
distributing methamphetamine. He is due to be sentenced on Dec. 11, 2019.The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation
leading to the charges in this case.
Thursday 14 November 2019
York County Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gilbert Joseph Swann, III, age 67, of Delta Borough, Pennsylvania, was indicted on November 13, 2019, by a federal grand jury for exploitation of minors.
According to United States Attorney David J. Freed, the indictment alleges that Swann received and possessed images of child pornography between May 2012 and July 2013, in York County. The indictment also seeks forfeiture of all electronic equipment used to take those images, Freed said.
This case was investigated by the Pennsylvania State Police with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for receipt of child pornography charge is 20 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 5 years. The possession of child pornography charge is punishable by a maximum of 10 years’ imprisonment and a $250,000 fine. Both charges carry a term of supervised released following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wood County Man Sentenced for Federal Gun ChargeRead the Press Release
CHARLSTON, W.Va. – A Wood County man was sentenced to prison for a federal gun charge, announced United States Attorney Mike Stuart. Robert Adams, 34, was sentenced to 60 months in prison for being a felon in possession of ammunition. Adams is currently in state prison serving a sentence of three to fifteen years. He will begin serving his federal sentence after completing his state sentence.
“We are working with a sense of urgency to prevent and reduce gun crime throughout the District,” said United States Attorney Mike Stuart. “Partnerships with federal, state and local law enforcement to insure violators of federal gun laws are held accountable are critical to our success. Those partnerships are strong.”
Adams previously admitted that on July 23, 2017, he knowingly possessed a Remington-Peters 4-10 shotgun cartridge, in and affecting commerce. Adams was prohibited from possessing the ammunition because of a 2008 felony offense of burglary in the Circuit Court of Wood County.
The Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Steven I. Loew handled the prosecution.
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Williamsville Father and Son Arrested with Marijuana at the BorderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kenneth Francis Munroe, 60, and his son Kenneth Philip Munroe, 30, both of Williamsville, NY, were arrested and charged by criminal complaint with entry of goods by means of false statements and simple possession of a controlled substance. The charges carry a maximum penalty of two years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that on November 8, 2019, at approximately 3:38 p.m., the defendants attempted to enter the U.S. from Canada at the Peace Bridge Port of Entry. Kenneth Philip Munroe was driving the vehicle. According to the complaint, during primary inspection, both defendants told a Customs and Border Protection officer that they did not have any drugs and/or contraband. However, the officer smelled the odor of marijuana emanating from the vehicle and referred the father and son for secondary inspection.
During secondary inspection, officers recovered: two bags of suspected marijuana, which had been concealed in the pants of Kenneth Philip Munroe; three bags of suspected marijuana, which had been concealed in the pants of Kenneth Francis Munroe; and a sixth bag of suspected marijuana, which had been secreted under the driver’s seat. Approximately 250 grams of suspected marijuana were contained within those six packages recovered from the defendants and their vehicle.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and were released.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Western PA Felon Sentenced to Prison for Attempted Possession of Xanax and Illegal Possession of GunsRead the Press Release
PITTSBURGH, Pa. - A resident of Jeannette, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 15 months to be followed by three years of supervised release on his conviction of attempted possession with intent to distribute alprazolam and possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
Senior United States District Court Judge Donetta W. Ambrose imposed the sentence on James Robert Czachowski, age 22.
According to information presented to the court, in April 2018, agents interdicted an international express parcel addressed to the defendant with a return address in the United Kingdom. Pursuant to extended border search authority, agents opened the package which contained 11,000 pills consistent with the size and shape of Xanax. On April 11, 2018, U.S. Postal Inspectors made a controlled delivery of the parcel as addressed. The defendant’s father signed for the package. As the defendant’s father removed the package from the residence, but before he could deliver it to his son, agents stopped the defendant’s father, who stated that the package was to be delivered to his son at an address in Pittsburgh. The defendant contacted his father on the phone while his father was with the agents. Agents overheard the defendant ask his father whether he left yet and if everything was OK.
Agents then went to the defendant’s residence. The defendant admitted to investigators that he had purchased narcotics over the DarkNet for approximately one year. He admitted that he paid $4,200 for 10,000 Xanax bars and that he intended to sell them for $1.50 per bar. The defendant gave permission to search his residence and admitted to possessing a .22 revolver. A .380 9mm revolver, a Springfield XD 9mm and numerous rounds of ammunition were recovered, as well. As a result of a prior felony conviction, the defendant is prohibited from possessing firearms and/or ammunition.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The United States Postal Inspection Service, Homeland Security Investigations and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Czachowski.
Vallejo Man Sentenced to over 7 Years in Prison for International Money Laundering Conspiracy and Tax FraudRead the Press Release
SACRAMENTO, Calif. — Marty Marciano Boone, 58, of Vallejo, was sentenced today by U.S. District Judge Troy L. Nunley to seven years and three months in prison following his conviction after jury trial for conspiracy to commit money laundering, two counts of substantive money laundering, and filing a false tax return, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, Marty Boone and his wife and co-defendant Ronda Boone, 56, filed separate false tax returns claiming that they were owed millions of dollars in refunds from the IRS. While the IRS flagged Ronda Boone’s tax return as fraudulent and denied her claim, Marty Boone’s false return resulted in the IRS paying him over $1.9 million in a refund check. Evidence at trial established that Marty and Ronda Boone then laundered those funds through domestic and foreign accounts, including by establishing a shell corporation in Cyprus and a church in the state of Washington through which the defendants moved the fraudulently obtained money.
This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
Ronda Boone is scheduled to be sentenced on Nov. 21. She faces a maximum penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
United States Files False Claims Act Complaint against South Dakota Neurosurgeon and Physician-Owned DistributorshipsRead the Press Release
The United States has filed a complaint against Sioux Falls, South Dakota, neurosurgeon Wilson Asfora M.D., Medical Designs LLC, and Sicage LLC alleging False Claims Act violations arising from the alleged payment of kickbacks to Asfora tied to the devices he used in spinal surgeries, the Justice Department announced today. Medical Designs and Sicage are medical device distributorships in South Dakota owned and operated by Asfora.
The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, and other federal healthcare programs. The government’s complaint alleges that Asfora, Medical Designs, and Sicage engaged in multiple kickback schemes designed to pay Asfora hundreds of thousands of dollars in exchange for Asfora using spinal devices distributed by Medical Designs and Sicage in his spine surgeries. Despite receiving numerous warnings that he was performing medically unnecessary procedures with the devices in which he had a financial interest, Asfora allegedly continued to perform such procedures while personally profiting from his use of devices sold by Medical Designs and Sicage. The United States previously resolved related civil claims against several Sanford Health entities in October 2019.
“The Department of Justice will seek to hold accountable physicians and medical device companies that receive or pay illegal kickbacks in any form,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Improper inducements have no place in our federal healthcare system where medical decisions should be based on the healthcare needs of patients and not on a physician’s personal financial interest.”
“Our office will aggressively pursue anyone who colludes to violate federal law and compromise the integrity of our healthcare system,” said U.S. Attorney Ron Parsons for the District of South Dakota.
“Government health program patients should be confident that surgical procedures are medically needed, not performed to increase physician profits,” said Curt L. Muller, Special Agent in Charge of the Office of Inspector General at the U.S. Department of Health and Human Services. “For years our fraud alert has warned that physician distributorships are inherently suspect under the Anti-Kickback statute.”
The United States filed its complaint in a lawsuit pending in the U.S. District Court for the District of South Dakota that was filed under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, a private citizen can sue on behalf of the government and receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating the case, as it has done here. Those who violate the act are subject to treble damages and penalties.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of South Dakota, with assistance from the Department of Health and Human Service’s Office of Inspector General.
The case is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.). The claims asserted against the defendants are allegations only, and there has been no determination of liability.
United States Attorney General Announces Launch of Project Guardian – A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
Today, United States Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
U.S. Attorney’s Office hosts roundtable discussion on sexual harassment in the workplaceRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas, Equal Employment Opportunity Commission and the Justice Department’s Civil Rights Division hosted a roundtable to discuss the problem of sexual harassment in the workplace, announced U.S. Attorney Ryan K. Patrick.
The Department of Justice, through the U.S. Attorney’s Offices and the Employment Litigation Section of the Civil Rights Division, enforces Title VII of the Civil Rights Act of 1964 against state and local government employers. The law prohibits discrimination in employment on the basis of race, color, national origin, sex and religion. Sexual harassment is among the conduct the law prohibits because it is a form of sex discrimination.
Harassment comes in many forms and can be verbal or nonverbal. It can be face-to-face or online. It can involve physical conduct or the display of images. Both men and women can be harassers or the victims of harassment. Harassment does not have to be repeated to be improper. A single incident can be enough, if severe.
This roundtable, which is the first in the country, is part of the Justice Department’s Sexual Harassment in the Workplace Initiative. The initiative seeks to bring sex discrimination claims against state and local government employers with a renewed emphasis on sexual harassment charges. The department also works to develop effective remedial measures that can be used to hold public sector employers accountable where systemic Title VII violations have been found. This includes identifying changes to existing employer practices and policies that will result in safe work environments. The creation of this initiative reflects the Department of Justice’s commitment to the aggressive enforcement of the nation’s anti-discrimination laws and an expansion of the Civil Rights Division’s efforts to eradicate sexual harassment by public employers.
This office is working closely with the Employment Litigation Section of the Civil Rights Division to spread the word here in the district about options to help public sector employees. Roundtable discussions like this one are one way to increase awareness and build strong partnerships in the community to combat this problem together.
Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website.
DOJ encourages anyone who has experienced sexual harassment in the workplace, or knows someone who has, to contact the Civil Rights Division.