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20 December 2019
Seffner Man Sentenced to 25 Years in Federal Prison for Firearms and Arson ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Joshua David Jordan (30, Seffner) to 25 years in federal prison for arson and for discharging a firearm during and in relation to attempted carjackings. The court also ordered Jordan to pay $82,200 in restitution to the victims of his crimes.
Jordan had pleaded guilty on September 4, 2019.
According to court documents, on the night of October 3, 2017, Jordan attempted to commit two armed carjackings in Hillsborough County, firing a semi-automatic handgun during each one. In the second attempted carjacking, Jordan shot the driver, who escaped and survived. Jordan then stole and set fire to a landscaping company’s spray truck, resulting in its destruction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Christopher Murray and Callan Albritton.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Retired City Clerk Sentenced for EmbezzlementRead the Press Release
WICHITA, KAN. – A retired city clerk of Caney, Kan. was sentenced Thursday to three years on federal probation for embezzling city funds, U.S. Attorney Stephen McAllister said. The defendant also was ordered to pay more than $150,000 in restitution.
Carole Sue Coker, 70, Oronogo, Mo., pleaded guilty to one count of mail fraud. Coker, who served as city clerk for about 40 years, admitted she took money from payments made to the city in the form of cash and checks.
In some cases, she did not deposit cash payments from customers into the city’s accounts. In other cases, she deposited only a portion of payments made in the form of checks.
McAllister commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Regional President of Outlaws Motorcycle Club Indicted on Firearms ChargesRead the Press Release
BOSTON – The regional president of the Outlaws Motorcycle Club was indicted yesterday by a federal grand jury in Boston for possession of an unregistered firearm.
Bruce Sartwell, a/k/a “Monster,” 48, of East Bridgewater, was indicted on one count of possession of an unregistered firearm. Sartwell was charged by criminal complaint and arrested in October 2019.
As alleged in the charging documents, Sartwell is the Regional President of the Brockton/East Bridgewater Chapters of the Outlaws Motorcycle Club. On Oct. 19, 2019, agents intercepted a package originating in China and addressed to Sartwell that was declared as a “Fuel Filter” but actually contained a firearm silencer. A review of importation records revealed that Sartwell had received approximately 65 shipments from Asia (over 55 from China), many of which were labeled as innocuous items that could have been more easily and cheaply purchased in the United States.
On Oct. 30, 2019, a search was executed at Sartwell’s residence where an AR-15 styled “ghost gun” – a firearm without any manufacturing or serial numbers – and firearm manufacturing tools, assembly parts including milling equipment, buffer spring, buffer tube, air-powered water dremel polish and a drill press were recovered.
In addition, two firearm silencers were found concealed in false bottom compartments, a guide for assembly and disassembly of an AR-15 rifle, 20 knives, a black powder handgun, a flare gun and various ammunition compatible with the AR-15 styled rifle. In the basement of the house, a floor-length mirror concealed the entrance to a hidden storage area that was found to contain a safe with silencer parts and a firearm assembly instruction book.
The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, New England Field Division made the announcement today. The U.S. Postal Inspection Service; Customs and Boarder Protection; Massachusetts State Police; East Bridgewater Police Department; Bristol County Sheriff’s Office; and the Massachusetts Environmental Protection Agency provided assistance with the investigation. Assistant U.S. Attorney Linsey Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Daniel Sweeris, age 36, was sentenced on December 17, 2019, to 36 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Sweeris, a previously convicted felon prohibited from possessing firearms, knowingly possessing a Jimenez Arms, model J.A. T-380 caliber semi-automatic pistol, which was found during a traffic stop of Sweeris’ vehicle at Rapid City in August 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Sweeris was immediately turned over to the custody of the U.S. Marshals Service.
Project Guardian: 118 Defendants Charged Federally in 2019 to Reduce Violence in LouisvilleRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman, surrounded by federal and local law enforcement partners, announced more than 100 felony offenders possessing firearms have been charged so-far in 2019 as part of the ongoing Project Guardian effort to fight back against the violent crime plaguing Metro Louisville.
This round of indictments brings the total number of defendants charged under the initiative to 223. During calendar year 2019 there have been 118 defendants charged, in calendar year 2018 there were 105 defendants charged in Louisville as part of the Project Guardian program. We have increased gun prosecutions 67 percent across the western district of Kentucky from fiscal year 2017 to fiscal year 2019.
The defendants charged this year are a result of the ongoing partnership between federal prosecutors and their counterparts from Jefferson County Commonwealth’s Attorney Tom Wine’s Office who work hand-in-hand with the Louisville Metro Police Department, the Bureau of Alcohol, Tobacco, & Firearms (ATF), the Federal Bureau of Investigation (FBI) and the Drug Enforcement Agency (DEA). The combined effort is a key component of the Department of Justice’s Project Guardian initiative - which targets the area’s most violent offenders.
“The violent crime our city has suffered over the last few years cannot stand. But for too long in law enforcement, we’ve allowed our greatest limiting factor to be what it says on our badge,” said U.S. Attorney Russell Coleman. “Through Project Guardian and under the leadership of our federal, state, and local partners here in Louisville, we are true partners in tackling this threat to our families and our kids.”
“ATF’s core mission to reduce violent crime and enforce federal firearms laws is achieved each day through the strength of our partnerships with local and state law enforcement,” stated Acting Special Agent in Charge Tommy Estevan of ATF’s Louisville Division. “Already, Project Guardian is building on these relationships and ATF’s gun crime gun intelligence to effectively disrupt the shooting cycles and arrest those who ‘lie and buy’ firearms. These strategies are reducing the access of illegally obtained firearms and helping to make our communities safer for everyone.”
Defendants charged this year have previously been found guilty of numerous crimes including: burglary, kidnapping, narcotics trafficking, manufacturing methamphetamine, theft of identity without consent, assault 4th degree domestic violence, robbery, escape, fleeing/evading police, wanton endangerment, among other charges.
Successful prosecutions this year included, Marcus Bishop Jr., 22, of Louisville was sentenced to 15-years in federal prison, where there is no parole. Bishop was federally convicted of use of a firearm in furtherance of a drug trafficking crime and three counts of possession with intent to distribute heroin.
Jamar Garrison, 33, of Louisville, Kentucky, was sentenced this year to 20 years of federal imprisonment followed by 6 years of supervised release for possession of heroin with the intent to distribute, and possession of a handgun by a convicted felon. Garrison is a 27 time convicted felon with prior convictions for drug trafficking, robbery, felony assault, identity theft, wanton endangerment, wanton endangerment of a police officer, felony fleeing and evading, and assorted other felony and misdemeanor crimes.
As gang-related violence escalated in the summer months federal law enforcement ushered in a new level of collaboration as the United States Marshals Service (USMS), Louisville Metro Police Department (LMPD), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI) conducted Operation Iron Grip – a two week series of raids from July 22 to August 2, in an effort to reduce violent crime in Louisville. The raids led to more than 50 arrests and 13 firearms seized.
Following the raids the United States Attorney’s Office working with expertise from former LMPD Maj. Billy Hibbs and real-time crime data, erected eight billboards and five bus shelters with a strong message calling for residents to report felons with firearms in an effort to “stop gun violence.” In an addition to a plea, the billboards offered hope to residents and a phone number tip line.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release. If that firearm is possessed or used in furtherance of a drug trafficking crime, a defendant faces a mandatory minimum five years in prison in addition to the sentence received for the underlying charges, and could receive up to life in prison. Some of the 118 defendants qualify as Armed Career Criminals, facing a mandatory 15 year sentence, or repeat drug traffickers, facing a mandatory 15 years sentence and, in some cases, a mandatory 25 year sentence.
These cases are being prosecuted by Assistant United States Attorneys Joe Ansari, Ann Marie Blaylock, Robert Bonar, Nute Bonner, Bryan Calhoun, Tom Dyke, Larry Fentress, Marisa Ford, Alicia Gomez, Amanda Gregory, Lettricea Jefferson-Webb, Joshua Judd, Corrine Keel, Jo Lawless, Erin McKenzie, Spencer McKiness, Randy Ream, Mac Shannon, Amy Sullivan, Christopher Tieke, David Weiser, Stephanie Zimdahl and Special Assistant United States Attorneys Ebert Haegele and Elizabeth Jones Brown with assistance from Laura Stinson, Western District of Kentucky Grand Jury Coordinator. The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisville Metro Police Department, the Federal Bureau of Investigation (FBI) and the United States Drug Enforcement Administration (DEA) and with significant collaboration with Tom Wine and the Jefferson County Commonwealth’s Attorney’s Office.
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Project Guardian is a nationwide program launched in November 2019 by Attorney General William Barr as a complementary effort to the Project Safe Neighborhoods Program (PSN). Project Guardian uses existing gun laws to comprehensively attack gun violence through the aggressive enforcement of existing laws in an effort to incapacitate the most dangerous and violent offenders.
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 percent 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.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Police Impersonator Sentenced to Federal Prison for Illegally Obtaining Cell Phone RecordsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Matthew Marre, age 30, of Johnstown, Colorado was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 15 months imprisonment followed by 3 years of supervised release for fraudulently obtaining confidential phone records. The defendant appeared at the hearing in custody and was remanded at the hearing’s conclusion. The FBI joined in today’s announcement.
According to the stipulated facts contained in the plea agreement, Marre worked as a fugitive recovery agent, or bounty hunter, throughout Colorado. He contacted the four major cellular phone carriers – Sprint, Verizon, T-Mobile and AT&T – falsely claiming to be a law enforcement officer investigating exigent circumstances with suicidal subjects. In doing so, Marre submitted false documents and used an email address he had created to look like an official law enforcement email. Marre’s fraudulent requests involved cell phone GPS location information which he used in an effort to locate bounties rather than for a legitimate law enforcement purposes.
Phone providers became suspicious of Marre’s requests for emergency assistance and contacted the FBI when their attempts to verify Marre’s claim to be a law enforcement officer were unsuccessful.
“Those who impersonate peace officers for their own private gain will be held accountable for their actions,” said U.S. Attorney Jason Dunn. “In this case, the defendant will have some time in federal prison to reflect on his conduct.”
"Impersonating a law enforcement officer is a serious offense," stated FBI Special Agent in Charge Dean Phillips. "Gaining access to private information without a legitimate law enforcement purpose, especially alleging a threat to life, undermines the lawful processes in place which allow us to investigate crime."
This case was investigated by the FBI Safe Streets Task Force. The defendant was prosecuted by Assistant U.S. Attorney Greg Holloway.
Placer County Woman Sentenced for an Investment Fraud Scheme That Targeted Investors in Failed Folsom Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — Kari Sonovich, 48, of Meadow Vista, was sentenced today to two years and three months in prison for an investment fraud scheme, U.S. Attorney McGregor W. Scott announced.
On Jan. 31, 2014, a federal grand jury returned a three-count indictment, charging Sonovich with mail fraud. According to court documents, between July 2008 and April 2009, Sonovich recruited investors to invest with her Las Vegas company, B&B Consulting Group LLC, by telling them that she could place their funds with an international trader who operated at an extremely high level, promising returns of up to 500% every 90 days. When investors deposited funds with her, Sonovich kept $454,000 of the funds for herself, even though she told the investors that all of their funds would be invested. No investor ever received the promised returns, and in most or all instances, no investor received any of their initial investment back.
Some investors in Sonovich’s scheme became involved at the same time that an earlier investment fraud scheme in which they had invested was collapsing. Anthony Vassallo, 40, and Kenneth Kenitzer, 76, ran that Folsom-based Ponzi scheme through their company Equity Investment Management & Trading (EIMT). Both were convicted for that scheme, Vassallo is serving a 16‑year prison sentence and Kenitzer was sentenced to 6 years in prison was released on July 5, 2019.
“The role of IRS - Criminal Investigation becomes even more important in Ponzi schemes and fraud cases due to the complex financial transactions that can take time to unravel,” said Kareem Carter, IRS - CI Special Agent in Charge, Oakland Field Office. ”The scheme targeted by Sonovich was conducted in a way that her victims suffered substantial financial losses. Today’s sentencing emphasizes the partnership between IRS and the U.S. Attorney’s Office and the pursuit of those who violate these types of federal laws.”
This case was the product of an investigation by IRS - Criminal Investigation. Assistant U.S. Attorneys Matthew Thuesen and Audrey B. Hemesath prosecuted the case.
Pine Ridge Man Sentenced to Prison for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Wakiyan Dreamer, age 21, was sentenced on December 16, 2019, to 37 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dreamer was indicted for the charge by a federal grand jury in April 2019. The charge related to Dreamer kicking a female victim in the face with shod feet at Pine Ridge on October 30, 2018. The victim suffered a black eye and other bruising about her head and face as a result of the assault.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Dreamer was immediately turned over to the custody of the U.S. Marshals Service.
Physician Group and Related Company Agree to Repay over $800,000 to Medicare for Unnecessary ServicesRead the Press Release
United States Attorney Matthew D. Krueger announced today that VPA, P.C. (VPA), and its management services affiliate, U.S. Medical Management (USMM), have agreed to pay $829,611 to the United States to resolve allegations that VPA and USMM billed Medicare for unnecessary physician visits.
VPA provides physician services for the elderly and other adults at their residences in twelve states, including Wisconsin. USMM provides management services for VPA, including billing services. The United States alleges that VPA and USMM routinely caused VPA’s physicians to conduct patient visits that were not medically necessary and then billed Medicare (through USMM) for those unnecessary visits. The government contends that VPA and USMM thus obtained over $800,000 from Medicare to which they were not entitled. The visits at issue occurred in Wisconsin from January 1, 2013 through March 31, 2016. VPA and USMM have agreed to repay Medicare for these visits.
“This settlement ensures that medical providers bill the Medicare program only for services that patients truly need,” stated United States Attorney Krueger. “It also ensures that the Medicare program will recoup its losses.”
“Medicare providers are not entitled to charge Medicare for services that patients do not need,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our federal, state and local partners to protect vital taxpayer dollars.”
Assistant United States Attorney Michael Carter represented the government in this matter, and the OIG assisted in the investigation. The settlement agreement states allegations only; the defendants do not admit liability for the allegations.
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Oil Tanker Owner, Operator, and Chief Engineer Convicted for Obstruction of Justice and Concealing Deliberate PollutionRead the Press Release
Nikolaos Vastardis, Evridiki Navigation Inc., and Liquimar Tankers Management Services Inc., were convicted by a federal jury in Wilmington, Delaware, of violating the Act to Prevent Pollution from Ships, falsifying ship’s documents, obstructing a U.S. Coast Guard inspection, and making false statements to U.S. Coast Guard inspectors. The crimes were committed in order to conceal Vastardis’ deliberate bypassing of required pollution prevention equipment in order to illegally discharge oil-contaminated bilge waste overboard from the foreign-flagged oil tanker Motor Tanker (M/T) Evridiki.
“This case demonstrates that those who pollute our oceans and deliberately mislead Coast Guard officials will be brought to justice,” said Assistant Attorney General Jeffrey Bossert of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to support the important work of the Coast Guard to deter deliberate vessel pollution.”
“The Coast Guard is committed to protecting the safety of the marine environment and our living marine resources,” said Rear Adm. Keith Smith, commander, 5th Coast Guard District. “Today’s conviction highlights our dedication to working with the Department of Justice to investigate and successfully prosecute those who violate the law and pollute our oceans and waterways.”
The M/T Evridiki was an 899 foot Liberian-flagged oil tanker owned by Evridiki Navigation and operated by Liqumar Tankers Management Services. Vastardis was the Chief Engineer of the M/T Evridiki. On March 10, 2019, the ship arrived in the Big Stone Anchorage, within Delaware Bay, for the purpose of delivering a cargo of crude oil. The following day, the ship underwent a U.S. Coast Guard inspection to determine, among other things, the vessel’s compliance with international environmental pollution prevention requirements.
The jury found that during the inspection, Evridiki, Liquimar, and Vastardis tried to deceive Coast Guard inspectors regarding the use of the ship’s oily water separator (OWS), a required pollution prevention device. Under the International Convention for the Prevention of Pollution from Ships (MARPOL), an international treaty to which the U.S. is a party, only bilge waste containing less than 15 parts per million (ppm) oil can be discharged overboard and must be first run through an OWS and oil content meter (OCM) to ensure that no waste containing more than 15 ppm oil is discharged. During the Coast Guard inspection, Vastardis operated the equipment with unmonitored valves that trapped fresh water inside the OCM’s sample line so that its oil sensor registered zero ppm instead of what was really being discharged overboard. However, historic OCM data recovered during the inspection proved that the OCM was being tricked and bypassed. When the Coast Guard opened the Evridiki’s OWS, they found it was fouled with copious amounts of oil and soot.
Each defendant was convicted of all four felony counts including knowingly failing to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships; obstruction of justice; obstruction of the Coast Guard’s inspection; and making a materially false statement to the Coast Guard concerning how the OWS was operated at sea.
U.S. District Court Judge Richard G. Andrews for the District of Delaware presided over the trial and will conduct sentencing on a date to be determined.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Kenneth E. Nelson, both with the Environmental Crimes Section of the U.S. Department of Justice, represented the government at trial. Assisting in the prosecution were Trial Attorney Joel La Bissonniere with the Environmental Crimes Section, Assistant U.S. Attorney Edmond Falgowski for the District of Delaware, and Lieutenant Commander Ben Robinson, attorney with the Coast Guard’s Office of Maritime and International Law. The Coast Guard’s Investigative Service investigated the case with assistance from the Coast Guard’s Sector Delaware Bay and Marine Safety Detachment in Lewes, Delaware.
Ocala Convicted Felon Sentenced to More Than 5 Years in Federal Prison on Federal Firearms ChargeRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II today sentenced Twon Deshay Kinsler (28, Ocala) to 5 years and 10 months in federal prison for possessing a firearm as a convicted felon. The court also ordered Kinsler to forfeit two handguns and ammunition used during the offense. Kinsler had pleaded on October 2, 2019.
According to court documents, on May 7, 2019, City of Ocala police officers responded to a call from a homeowner about an unknown man shooting firearms in a backyard of a residential area. They located Kinsler, who was sweating profusely and wearing a bulletproof vest, in the backyard of the residence. Kinsler had illegal drugs in his pockets and two loaded firearms at his feet. One of the firearms had previously been reported stolen. A gunshot residue test also confirmed the presence of gunpowder on Kinsler’s hands.
At the time, Kinsler was a convicted felon and therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Ocala Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Ocala Armed Career Criminal Sentenced to 15 Years in Federal Prison for Firearm and Narcotics OffensesRead the Press Release
Ocala, Florida – U.S. District Judge John Antoon today sentenced Daprix Devon Gadson (29, Ocala) to 15 years in federal prison for possessing a firearm as an armed career criminal and for possessing methamphetamine with the intent to distribute it. Gadson had pleaded guilty on September 5, 2019.
According to the plea agreement, on April 16, 2019, Gadson led officers from the Ocala Police Department on a high-speed vehicle chase when they attempted to pull him over for a traffic offense. After fleeing for approximately two miles, Gadson crashed his vehicle into a stop sign, disabling the car. Gadson then fled on foot, but was soon apprehended and arrested. During a subsequent search of Gadson’s vehicle, officers recovered a loaded semi-automatic handgun, 55 rounds of ammunition, and at least 20 grams of methamphetamine. At the time of his arrest, Gadson had 13 prior felony convictions, including 5 prior serious drug offenses. As a previous convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Ocala Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney William S. Hamilton.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Officer Safety Top Priority of U.s. Justice DepartmentRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that the United States Department of Justice has awarded $460,810.27 to 77 local law enforcement agencies in the Eastern District of North Carolina to reimburse them up to 50 percent of the cost of body armor vests purchased for law enforcement officers through the Bulletproof Vest Partnership Program. (see attached list of agencies) Additionally, Pitt County received $100,000.00 under the Body Worn Camera Policy and Implementation Program. This funding will enable them to improve their capacity to gather evidence and protect the safety of law enforcement officers and citizens.
The Law Enforcement Safety and Wellness Research and Evaluation Program is used to address safety, health and wellness priorities through research and evaluation. The Research Triangle Institute received $549,260.00 under this program.
“The importance of protecting those who protect us cannot be overstated,” said Mr. Higdon. “The Department of Justice continues to demonstrate this through programs like these that provide funding for both the physical and emotional well-being of our brave men and women who protect us all every day.”
Norton Doctor Pleads Guilty to Illegally Prescribing Prescription DrugsRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced that Dr. Raymond Michael Moore, 61, of Wise, Va., who had a medical practice in Norton, Va., pleaded guilty yesterday in United States District Court in Abingdon, to fourteen federal charges, including illegally prescribing more than 25,000 oxycodone pills, more than 17,000 hydrocodone pills, and more than 10,000 benzodiazepine pills; obtaining drugs by fraud; health care fraud; making a false statement to law enforcement; and failing to maintain required records.
“The public places great trust in physicians to act as gatekeepers to the powerful prescription drugs that have come to plague our communities,” First Assistant United States Attorney Daniel P. Bubar said today. “When they choose greed over their important obligation to help heal people, we will aggressively prosecute these doctors and seek to remove their ability to contribute to the opioid epidemic.”
According to evidence, Moore issued prescriptions for opioids and benzodiazepines without a legitimate medical purpose and beyond the bounds of medical practice. In addition, Moore originally told law enforcement that controlled substances found during execution of search warrants were returned from patients and were to be destroyed. He later admitted those controlled substances were for his personal use.
Pursuant to his plea agreement, Moore will pay more than $50,000 in restitution to Virginia Medicaid, will forfeit more than $100,000, and agreed to never again be a medical provider.
Sentencing was scheduled for March 26, 2020, at 2:00 p.m., before United States District Judge James P. Jones. At sentencing Moore faces a maximum sentence of imprisonment for a term of 80 years and a maximum fine of $4.25 million.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, is prosecuting the case for the United States. The case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Virginia State Police, and the Southwest Virginia Drug Task Force. Assistance with the search warrants was provided by the Norton Police Department, Big Stone Gap Police Department, Wise County Sheriff’s Office, Bristol Police Department, Wise Police Department, Martinsville Police Department, Buena Vista Police Department, Virginia Medicaid Fraud Control Unit, the Wise County Commonwealth’s Attorney, and the United States Department of Justice’s Appalachian Regional Prescription Opioid (ARPO) Strike Force.
New Orleans Man Sentenced to 77 Months for Being a Felon in Possession of FirearmsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that on December 19, 2019 KEVIN CRAWFORD (“CRAWFORD”), age 34, of New Orleans, was sentenced to 77 months imprisonment by Chief United States District Court Judge Nannette Jolivette Brown for being a prohibited person in possession of firearms. Additionally, CRAWFORD was ordered to serve three (3) years of supervised release and pay a $200.00 special assessment fee.
According to court documents, on April 12, 2018, New Orleans Police Department officers conducted a proactive patrol near 6100 N. Claiborne Ave. As the officers approached the area, CRAWFORD quickly walked away from a gold Infiniti sedan. Inside the sedan was an SKS, 7.62 x 39 mm caliber, semi-automatic rifle which was equipped with two extended magazines. CRAWFORD later admitted that he was the owner of the Infiniti.
On June 17, 2018, members of the New Orleans Police Department encountered CRAWFORD near 447 N. Rampart Street. This time, CRAWFORD drove a silver colored Infiniti (w/ a stolen temporary tag). When CRAWFORD returned to the vehicle, the officers approached to question him but he ran away. The officers apprehended CRAWFORD at the 1000 block of St. Louis Street. Inside the silver Infiniti was a chrome and black colored handgun sticking out from under the driver’s side car seat. The firearm was a stolen loaded Ruger Model P345, .45 caliber semi-automatic handgun. Due to his felon status, federal law prohibited CRAWFORD from possessing firearms.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Duane A. Evans is prosecuting the case.
New Jersey Resident Sentenced for Threatening to Murder A United States Congressman and His StaffRead the Press Release
CAMDEN, N.J. – A New Jersey resident was sentenced yesterday to 87 months in prison for threatening to murder former U.S. Rep. Frank LoBiondo and members of the congressman’s staff, U.S. Attorney Craig Carpenito announced.
Joseph Brodie, 40, of Millville, New Jersey, was previously convicted in Camden federal court on two counts of making threats to officials, officers and employees of the United States – specifically, for a telephone threat to murder LoBiondo’s chief of staff and an email threat to murder LoBiondo, his chief of staff, his veterans affairs liaison, and all of the other staff of the Mays Landing office. During the sentencing hearing yesterday, the Court determined that over the course of the prosecution, Brodie had obstructed justice and that there also was evidence to show he had intended to carry out his threats.
According to documents filed in this case and the evidence presented at trial:
In the spring of 2017, Brodie reached out to LoBiondo seeking assistance with the medical care and treatment that Brodie was receiving from the Veterans Administration. Over the course of the next few months, Brodie spoke and corresponded with the congressman’s Veterans Affairs Liaison and a caseworker, both of whom assisted him with appointments and meetings regarding his medical care. On Sept. 19, 2017, Brodie contacted the congressman’s office and spoke to the chief of staff on the phone. Brodie wanted the chief of staff to arrange a meeting with the congressman, but the chief of staff refused. During this phone call, Brodie became angry and ultimately threatened the life of the chief of staff – calling him “a dead man.”
Approximately an hour and a half later, Brodie sent an email to the congressman’s veterans’ affairs liaison as well as the caseworker, threatening their lives as well as the lives of the congressman and his staff in the Mays Landing Office. In this email, Brodie stated that he wanted to meet the congressman “face to face” and he pointed out “how easy” it was to find the congressman’s Mays Landing Office. Brodie also attached a terrain map of the area, with the area around the congressman’s office enlarged for detail and a red pinpoint location marker on the office. Writing about the map, Brodie stated, “[i]t even shows the environment and surrounding terrain, parking lots, wooded areas, etc., (like the kind a highly trained Combat Infantryman would use)…”
On the same day as the threats, Brodie sent text messages to his fiancée stating: “I threaten the life of a Congressman’s Chief of Staff. I’m pretty sure the Secret Service are going to investigate.” He also wrote that he was “prepared” for any law enforcement officers who might respond to his home. He wrote, “I’ll give them a chance to leave. If not, it’ll be First Blood Part II Type Shit (if you never saw that Rambo movie).” Brodie also wrote, “I won’t surrender. It’s not in me.” The same day, Brodie spoke to his fiancée on the phone and told her that he was going to travel to an address in New Jersey, that he had GPS coordinates in his car, that he was going to kill LoBiondo’s chief of staff, and that there was going to be a “blood bath.”
One week later, in a statement recorded by the FBI, Brodie confessed to having made the phone threat to the chief of staff on Sept. 19, 2017, and to having sent the email threat on Sept. 19, 2017.
The evidence showed that at the time Brodie made these threats, Brodie owned several firearms and a large amount of ammunition at his home.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Capitol Police, under the direction of Chief Steven Sund; officers from the N.J. State Police, under the direction of Col. Patrick J. Callahan; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, with the investigation leading to yesterday’s sentencing.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Jason Richardson, of the Camden office.
Defense counsel: Gina Amoriello, Esquire, Westmont, NJ and Philadelphia, PA
Nevada Man Indicted on Attempted Coercion of a Minor and Travel for Sex ChargesRead the Press Release
PITTSBURGH - A resident of North Las Vegas, Nevada, has been indicted by a federal grand jury in Pittsburgh on charges of Attempted Coercion and Enticement of a Minor to Engage in Illegal Sexual Activity and Travel With Intent to Engage in Illicit Sexual Conduct, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on Dec. 17 and unsealed today, named Renad Bautista, age 30, as the sole defendant.
According to the Indictment, from in and around April 2018, until on or about December 9, 2019, Bautista used the Internet to knowingly attempt to entice a minor to engage in illegal sexual activity. The Indictment further alleges that on from on or about December 5, 2019 until on or about December 9, 2019, Bautista travelled for the purpose of engaging in illicit sexual contact.
The law provides for a maximum total sentence of not more than life in prison, a fine of $750,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the West Mifflin Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Montgomery Doctor Convicted on Drug Distribution, Health Care Fraud, and Money Laundering ChargesRead the Press Release
Montgomery, Alabama – On Thursday, December 19, 2019, a federal jury convicted Dr. Richard A. Stehl, 59, of Montgomery, Alabama, on 94 counts of unlawfully distributing controlled substances, two counts of health care fraud, and five counts of money laundering, announced United States Attorney Louis V. Franklin, Sr, DEA Assistant Special Agent in Charge Clay Morris, and HHS-OIG Special Agent in Charge Derrick L. Jackson. In reaching its verdict, the jury found Dr. Stehl guilty on each of the 101 counts at issue in the case.
The trial evidence showed that, from 2010 through 2018, Stehl operated a medical practice called Healthcare on Demand. For most of that time, the practice was located at 201 Winton M. Blount Loop in Montgomery—just off of Taylor Road. At his practice, Stehl prescribed addictive controlled substances, including hydrocodone cough syrup, Adderall, Xanax, Klonopin, Valium, and Ativan, despite knowing no legitimate medical purposes existed to support these prescriptions. Stehl also required his patients to return for monthly office visits if they wanted refills on their medications. After doing nothing more than giving the patient a refill, Stehl would bill the patient’s insurance company for the cost of a 25-minute office visit and a moderately complex physical examination. Finally, Stehl laundered the proceeds of his drug distribution and health care fraud through a web of shell corporations, business entities registered in the names of family members, and investment accounts. In doing so, Stehl attempted to hide the approximately $1,000,000.00 he was generating each year from his medical practice. Stehl even went so far as to hide in excess of $70,000.00 in cash in a filing cabinet in his garage.
During the trial, the jury heard from ten of Stehl’s former patients. Each patient received multiple controlled substance prescriptions from Stehl. Several of the patients either developed addictions while seeing Stehl or had existing addictions worsened as a result of the supposed medical treatment Stehl provided. One patient stated that she would wait four hours to see Stehl and, by the time she made it to the examination room, she would demand that Stehl give her a prescription and let her leave, which he would then do. Another described driving in excess of four hours to see Stehl because she knew that Stehl would give her the drugs that she wanted. A third patient stated that Stehl gave her routine steroid injections, even though she reported to Stehl that she was allergic to steroids. After receiving several injections from Stehl, this patient wound up in the hospital.
Following these convictions, Stehl faces a significant sentence that could keep him in prison for the rest of his life, as well as substantial fines. The Court could also require Stehl to forfeit to the government his medical office building, his residence, the proceeds of an investment account containing over $400,000.00, and the cash found in his garage.
“Dr. Stehl put profit over patient care,” stated United States Attorney Franklin. “Over the past few years, my office has worked hard to take unnecessary prescription drugs out of medicine cabinets and off of the streets. I hope that this case reinforces the message that medical professionals like Dr. Stehl who use their prescription pads to become drug dealers will be held accountable. I am grateful to our law enforcement partners for their tireless work investigating this case. This verdict is a testament to their dedication.”
“Yesterday, another physician who has abandoned his Hippocratic Oath was dealt a substantial blow with guilty verdicts on over 100 counts of criminal activity,” stated DEA Assistant Special Agent in Charge Clay Morris. “Thanks to a jury of his peers, the United States Attorney's Office, and our law enforcement partners, Dr. Stehl is no longer a source of dangerous and addictive drugs in our community. Dr. Stehl's shameless disrespect for the law and for the safety of his patients has now been dealt with. He is no longer a threat and remains where he belongs— behind bars.”
“A doctor is entrusted with caring for his patients, not pushing unnecessary drugs and services on patients,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Dr. Stehl continuously put his financial gain above the health and safety of our local residents. HHS-OIG continues to focus resources on those who divert and unnecessarily prescribe drugs for profit and abuse.”
“The Alabama Board of Medical Examiners and the Medical Licensure Commission of Alabama are charged with protecting the health and safety of our citizens of this great State of Alabama,” stated William M. Perkins, Associate Executive Director for the Alabama State Board of Medical Examiners. “This agency is proud to be in partnership with the many state and federal agencies that participated in this important prosecution.”
The Drug Enforcement Administration and Health and Human Services-Office of the Inspector General investigated this case, with assistance from the Alabama Board of Medical Examiners. They were also aided by the Internal Revenue Service-Criminal Investigation. Additional assistance was provided by the Alabama Law Enforcement Agency, the Millbrook Police Department, the Opelika Police Department, the Montgomery Police Department, and the United States Marshals Service. Assistant United States Attorneys Jonathan S. Ross, Megan A. Kirkpatrick, and Alice S. LaCour prosecuted the case, along with Assistant United States Attorneys R. Rand Neeley and Brett Talley.
Milwaukee Medical Doctor and Clinic Office Manager Convicted of Unlawfully Distributing OpioidsRead the Press Release
United States Attorney Matthew D. Krueger announced today that on December 17, 2019, Steven Kotsonis, a medical doctor, 38, of Menomonee Falls, pleaded guilty in federal district court to one count of unlawfully distributing Oxycodone outside of a professional medical practice and not for a legitimate medical purpose. Susan Moyer, 57, of Milwaukee, who is not a licensed medical provider and was the clinic’s office manager, previously pleaded guilty to one count of conspiracy to possess with intent to distribute and distribute controlled substances, including Oxycodone, and one count of distribution of Oxycodone.
Pursuant to his guilty plea, Kotsonis admitted that in 2012, he relocated his practice from the Beaver Medical Clinic and changed the name to the Compassionate Care Clinic. Moyer was the officer manager at the Compassionate Care Clinic, and also was the co-owner of the clinic. Moyer is not a licensed health care provider and there were no other licensed physicians, nurses, or other health care providers working at the Compassionate Care Clinic aside from Kotsonis.
The investigation of the Compassionate Care Clinic revealed that only cash was accepted and individuals paid $200 to $350 in cash to obtain a prescription. Prescriptions were written for large quantities of Oxycodone, particularly Oxycodone 30mg (an average of 150-180 tablets per month). Moyer typically filled out the prescriptions and had Kotsonis sign the prescriptions without Kotsonis actually seeing the individual patient. Individuals frequently obtained prescriptions at the Compassionate Care Clinic without being examined or having their vitals (height, weight, blood pressure) taken during their visit. During an office visit to the Compassionate Care Clinic during the course of the investigation, Moyer was recorded referring to herself as the “Oxy Czar.”
Kotsonis and Moyer are scheduled to be sentenced in March. Each faces a maximum penalty of twenty years’ imprisonment, a fine of up to $1,000,000, at least three years of supervised release, up to a maximum of a lifetime term of supervised release, and a special assessment of $100.
“This case underscores the Justice Department’s commitment to combatting the opioid crisis,” said United States Attorney Krueger. “Far too many Wisconsinites have seen loved ones suffer from an opioid addiction or, worse, an overdose. Because the path to addiction often begins with prescription opioids, we are committed to investigating and prosecuting prescribers like Kotsonis who deal drugs behind the façade of medical practice.”
DEA Assistant Special Agent in Charge Paul Maxwell commented, “The Drug Enforcement Administration is committed to identifying and investigating those medical “professionals” who use their positions of trust to become drug dealers for personal profit. This investigation is an example of our resolve to hold those individuals accountable for their actions.”
This case was investigated by the DEA. The case is being prosecuted by Assistant United States Attorneys Matthew Jacobs and Laura S. Kwaterski.
Information and resources concerning the opioid crisis and the DEA’s “360 Strategy” for addressing the crisis may be found at the DEA’s website, www.dea.gov
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Middletown Used Car Dealer Admits Defrauding Lenders, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that GEORGE HAJATI, 41, of Cromwell, waived his right to be indicted and pleaded guilty today in Bridgeport federal court to one count of wire fraud stemming from an auto loan fraud scheme. Hajati also admitted that he violated the conditions of his supervised release that followed a prior federal conviction.
According to court documents and statements made in court, Hajati owned and operated a used car dealership located at 1075 Newfield Street in Middletown known as Car Nation, LLC, Car Nation CT, LLC, and Middletown Motorcars. In connection with automobile loan applications for multiple borrowers, Hajati, and employees at his direction, submitted documents and statements to victim lenders that falsely represented the borrower’s employment, salary, sources of income, and the fact and amount of a down payment. The false documents included fictitious or altered borrower pay stubs and income verification letters purportedly from the Social Security Administration. Hajati falsely indicated that borrowers made salaries they did not make, worked at jobs they did not work, received income from the Social Security Administration they did not receive, and made down payments they did not make. In some instances, the borrower was not aware of, and did not consent to, Hajati using his or her personal identifying information to obtain automobile loans in these ways.
Between approximately April 2016 and July 2019, Hajati defrauded victim lenders of $654,952.56 through this scheme.
Hajati was arrested on a federal criminal complaint on July 2, 2019.
Hajati was previously convicted of federal conspiracy and fraud offenses related to a Hartford-area mortgage fraud scheme that defrauded various lenders of more than $1 million. In August 2015, Hajati was sentenced in Hartford federal court to 12 months and one day of imprisonment, followed by three years of supervised release. He was released from federal prison in August 2016, and was on supervised release at the time of the auto loan fraud.
Hajati is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on March 6, 2020, at which time he faces a maximum term of imprisonment of 30 years for the fraud offense, and two years of imprisonment for violating the conditions of his supervised release.
Hajati is released on a $560,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
Metairie Man Charged with Defrauding His Employer and Filing False Tax ReturnRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEEPAK “JACK” JAGTIANI, age 60, a resident of Metairie, was charged on December 19, 2019 in a two-count indictment with wire fraud and making false statements on a federal income tax return.
According to the indictment, from 2007 to 2019, JAGTIANI served as the comptroller of Dan-Gulf Shipping, Inc., a Metairie-based freight forwarding company. In that capacity, JAGTIANI had the authority to manage the payroll and other accounts for Dan-Gulf. Using his authority, JAGTIANI paid himself excessive salaries and benefits from 2009 through early 2019. In total, JAGTIANI defrauded Dan-Gulf of over $7,000,000.00. The indictment also alleges that JAGTIANI filed false personal tax returns in April 2018, in which he claimed that he and his spouse sustained $998,335.00 in business losses from a “catering business” in order to reduce their tax burden. In truth and in fact, neither JAGTIANI nor his spouse operated any catering business.
If convicted of wire fraud, JAGTIANI faces a maximum of 20 years in prison, a $250,000.00 fine, and up to three years of supervised release. If convicted of filing false tax returns, JAGTIANI faces a maximum of three years of imprisonment, a $250,000.00 fine, and up to one year of supervised release.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, including the U.S. Secret Service, the Internal Revenue Service – Criminal Investigations, and the Jefferson Parish Sheriff’s Office. U.S. Attorney Strasser also extended his thanks to the Jefferson Parish District Attorney’s Office for their assistance in this matter. This case is an example of the coordinated effort of the federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force, which includes representatives from the U.S. Secret Service, the Internal Revenue Service, the Louisiana Attorney General’s Office, Louisiana State Police, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John the Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, U.S. Postal Inspection Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution, and Assistant United States Attorney Michael B. Redmann is handling forfeiture.
Members of cartel-connected drug trafficking ring sentenced to federal prisonRead the Press Release
WAYCROSS, GA: Two drug traffickers connected with a Mexican cartel that supplied a south Georgia methamphetamine conspiracy have been sentenced to federal prison.
Enio Camacho-Pineda, a/k/a “Tony,” a/k/a “Tony Montana,” 31, of Atlanta, was sentenced to 268 months in prison, and Donna Bazemore, a/k/a “Dirty D,” 45, of McRae, Ga., was sentenced to 216 months in prison by U.S. District Court Judge Lisa Godbey Wood, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Camacho-Pineda and Bazemore had each pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.
Each must serve a period of supervised release after their prison term. There is no parole in the federal system.
“These traffickers built a virtual pipeline for poison from illegal Mexican meth labs to drug users in Georgia, but good police work from the Telfair County Sheriff’s Office and many other agencies shut it down,” said U.S. Attorney Christine. “Our office is committed to taking the ball from our law enforcement partners and carrying it across the goal line, and in this case that effort secured guilty pleas from every one of these meth merchants.”
Camacho-Pineda and Bazemore were the final two defendants of 11 sentenced from an October 2018 indictment alleging they were involved in a drug trafficking organization that smuggled in kilograms of methamphetamine from the La Familia cartel in Mexico and delivered it by courier to south Georgia for distribution in Telfair County and beyond. According to testimony in court, Camacho-Pineda was a member of the cartel, while Bazemore admitted trafficking meth on behalf of the organization.
All 11 defendants in the operation have now pled guilty and been sentenced.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said of the sentencings, “Mexican drug cartels (in this case La Familia) are the source of so many dangerous drugs destined for the U.S. and are responsible for much of the violence in Mexico today. These sentencings illustrates how DEA, its law enforcement counterparts and the U.S. Attorney’s Office will not allow Mexico-based drug traffickers to wreak havoc on our society.”
“This case is the product of a concerted collaborative effort on the part of ATF and its law enforcement partners to target, investigate, and eliminate violent drug trafficking organizations,” said Beau Kolodka, Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “These sentences will ensure the incarceration of dangerous criminals and contribute to the restoration of order and peace.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations, and was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Georgia Bureau of Investigation (GBI), the U.S. Marshals Service, Telfair County Sheriff’s Office, Jeff Davis County Sheriff’s Office, the Douglas-Coffee Drug Unit, and other local law enforcement agencies. The case also falls under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer. The case is being prosecuted by Assistant U.S. Attorneys John Harper and E. Greg Gilluly, Jr.
Meds2Go Express Pharmacy, Inc. Pleads Guilty to Money Laundering in Connection with Drug Diversion SchemeRead the Press Release
Related Charleston Pharmacy Previously Shut Down
Pharmacy Agrees to Pay A Total of $250,000 in Community Restitution and Forfeiture
CHARLESTON, W.Va. – A pharmacy located in Alum Creek in Lincoln County pled guilty to money laundering, announced United States Attorney Mike Stuart. The money laundering charge arose out of a conspiracy between the pharmacy and a pain clinic operating as a pill mill to dispense compound opioids for no legitimate medical purpose and outside the bounds of professional medical practice.
“Meds2Go Express Pharmacy is being held accountable for its role in contributing to West Virginia’s opioid crisis,” said United States Attorney Mike Stuart. “This pharmacy put profits before all else and caused great harm to the communities it served. Prosecuting poison peddlers, whether they be a street dealer, drug kingpin, a medical professional or a corporation, has been and will continue to be, a priority for my office.”
In a plea agreement reached with the United States, Meds2Go Express Pharmacy, Inc. will shut down and pay community restitution for the costs associated with drug abuse treatment in West Virginia to redress the harm caused by illicit opioid usage stemming from the sale of prescription opioids.
Meds2Go Express Pharmacy, Inc. admitted that in 2014 and 2015, it filled prescriptions written by physicians employed by a pill mill despite its knowledge that there was no legitimate medical purpose for the prescriptions and that they were prescribed outside the usual course of medical practice. In order to maximize corporate profits, the pharmacy ignored numerous red flags that should have prevented them from dispensing the prescription medications written by the pill mill, such as: (1) an abnormally high amount of prescriptions for widely-abused, highly-addictive controlled substances such as oxycodone; (2) prescribed controlled substances to patients for long periods of time; (3) permitted refills before prior prescriptions should have run out; (4) ignored obvious signs that patients were drug addicts; (5) patients travelled long distances and from out of state; (6) multiple pill mill physicians issued prescriptions to the same patient; (7) numerous family members who were all patients of the pill mill, came to the pharmacy at the same time; (8) insurance companies refused to pay for prescriptions from the pill mill; and (9) cash-only transactions.
Meds2Go Express Pharmacy, Inc. admitted that it engaged in illegal manufacturing of its own supply of oxycodone and methadone due to supply and demand by “compounding” pills in mass quantities at its locations Alum Creek and Charleston. Due to the excessive amount of prescriptions for controlled substances written by the pill mill, the pharmacy could not obtain enough of a supply of oxycodone and methadone from its distributors. In order to keep up with the demand, the pharmacy bypassed purchase restrictions from the distributor by setting up and purchasing compounding equipment, training its employees to compound pills on a mass scale, purchasing powders and other raw materials, and manufacturing pills containing oxycodone and methadone. The compounded pills were then sold to cash-paying customers who had prescriptions written by the pill mill. The pharmacy used the proceeds from the illegal manufacturing and dispensing to carry on the operations of business.
As part of the plea agreement with the United States, Meds2Go Express Pharmacy, Inc. agreed that it will shut down and pay $250,000 toward community restitution and a forfeiture money judgment. The community restitution will be paid for the costs associated with drug abuse treatment in West Virginia to redress the harm caused by illicit opioid usage stemming from the sale of prescription opioids. The West Virginia Crime Victim's Compensation Fund will receive 65% of the community restitution amount, and 35% will be paid to West Virginia Department of Health and Human Resources, Bureau of Behavioral Health and Health Facilities.
United States District Judge Irene C. Berger presided over the hearing. The investigation was conducted by the U.S. Food and Drug Administration – Office of Inspector General (OIG) and the U.S. Department of Health and Human Services – Office of Inspector General (OIG). Assistant United States Attorneys Andrew Tessman and Steven I. Loew are handling the prosecution.
The plea agreement in this case can be found
here .Follow us on Twitter: SDWVNews and USAttyStuart
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Maryland Tax Preparer Pleads Guilty to Preparing False Returns and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – Maria Espinal, age 53, of Montgomery Village, Maryland, pleaded guilty today to aiding and assisting in filing false tax returns and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Maryland Comptroller Peter Franchot.
According to court documents and statements made in court, Maria Espinal owned and operated a tax return preparation business located in Gaithersburg, Maryland. From 2011 through 2017, Maria Espinal prepared and filed fraudulent tax returns on behalf of her clients with the Internal Revenue Service (IRS) and the Comptroller of Maryland that claimed tax refunds to which the clients were not entitled. To generate a fraudulent refund, Espinal altered legitimate Forms W-2 in the names of third parties and replaced the third party’s name with her client’s name. As a result, her client claimed the third-party’s withholdings as his or her own, which generated fraudulent tax refunds.
In addition, Espinal displayed a sign on her office wall that read in Spanish “If you have lost your [identification] number or passport we have these people” and which listed the identifying information for several individuals. Espinal used the personal identifying information for one of those individuals to obtain a fraudulent refund on behalf of another client. Espinal also filed a tax return using another individual’s personal identifying information to generate a fraudulent refund that Espinal deposited into her own personal bank account.
Espinal faces a mandatory sentence of two years in prison for aggravated identity theft, and three years in prison for aiding in the preparation of a false tax return. She also faces a period of supervised release, restitution, and monetary penalties. U.S. District Judge Theodore D. Chuang set sentencing for April 2, 2020, at 9:30 a.m.
U.S. Attorney Hur and Principal Deputy Assistant Attorney General Zuckerman thanked IRS - Criminal Investigation and the Office of the Comptroller of Maryland for their work in the investigation, and commended Assistant United States Attorney Erin Pulice and Trial Attorney Carl Brooker of the Tax Division, who are prosecuting the case.
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Maryland Tax Preparer Pleads Guilty to Preparing False Returns and Aggravated Identity TheftRead the Press Release
A Maryland tax return preparer pleaded guilty yesterday to aiding and assisting in filing false tax returns and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur of the District of Maryland.
According to court documents and statements made in court, Maria Espinal owned and operated a tax return preparation business located in Gaithersburg, Maryland. From 2011 through 2017, Maria Espinal prepared and filed fraudulent tax returns on behalf of her clients with the Internal Revenue Service (IRS) and the Comptroller of Maryland that claimed tax refunds to which the clients were not entitled. To generate a fraudulent refund, Espinal altered legitimate Forms W-2 in the names of third parties and replaced the third party’s name with her client’s name. As a result, her client claimed the third-party’s withholdings as his or her own, which generated fraudulent tax refunds.
In addition, Espinal displayed a sign on her office wall that read in Spanish “If you have lost your [identification] number or passport we have these people” and which listed the identifying information for several individuals. Espinal used the personal identifying information for one of those individuals to obtain a fraudulent refund on behalf of another client. Espinal also filed a tax return using another individual’s personal identifying information to generate a fraudulent refund that Espinal deposited into her own personal bank account.
U.S. District Judge Theodore Chuang set sentencing for April 2, 2020. Espinal faces a mandatory sentence of two years in prison for aggravated identity theft, and three years in prison for aiding in the preparation of a false tax return. She also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked Special Agents of IRS - Criminal Investigation and Enforcement Agents of the Comptroller of Maryland who conducted the investigation, and Trial Attorney Carl Brooker of the Tax Division and Assistant United States Attorney Erin Pulice of the District or Maryland, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the Division’s website.
Marshall County Man Convicted of Federal Cyberstalking and Gun CrimeRead the Press Release
GREENVILLE, Miss. – A Marshall County man was convicted Thursday afternoon of cyberstalking as well as a federal gun violation following a four-day jury trial presided over by United States District Judge Debra M. Brown. Anthony Robinson, 54, of Byhalia, Mississippi, was found guilty of Possession of a Firearm by a Convicted Felon, and Cyberstalking, a new federal law which makes it a crime to use email or other facility of interstate commerce to intimidate or harass a person and put them in reasonable fear of serious bodily injury or death. The announcement regarding Robinson’s conviction was made by U.S. Marshal Daniel R. McKittrick and U.S. Attorney William C. Lamar.
Testimony presented during the trial revealed that following his layoff in Desoto County, Robinson began sending emails referencing mass shootings to his former employer and the attorneys representing his former employer. In the emails, sent from October of 2018 until July of 2019, Robinson self-identified with a number of mass shooters, including Dewayne Craddock and Omar Thornton. Three victims testified that the emails put them in reasonable fear of death or serious bodily injury. A search of Robinson’s residence revealed a number of firearms and ammunition.
Following the verdict, U.S. Attorney William C. Lamar noted the importance of this case and commended federal, state and local law enforcement partners for their dedication to helping make our communities safer. “This case marks the first prosecution in our District under the new federal law preventing cyberstalking and the new Project Guardian initiative, implemented by the Department of Justice in the Fall of 2019, remarked Lamar. “Utilizing the framework of Project Guardian alongside our existing efforts through Project Safe Neighborhoods, we will continue to work alongside our federal, state and local law enforcement partners to make our communities safer, one case at a time.”
The investigation and prosecution of Robinson was undertaken as part of Project Safe Neighborhoods, the Department of Justice’s longstanding gun violence reduction initiative, and Project Guardian, the Department of Justice’s new initiative to help reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The case was prosecuted by AUSA Clyde McGee and AUSA Parker Kline.
Marion County Man with 28 Felony Convictions Found Guilty of Federal Firearm ChargeRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II today found Charlie Lee Wright, Jr. (52, Summerfield) guilty of possession of a firearm affecting commerce by a convicted felon, following a bench trial. Because of his prior criminal record, Wright faces a penalty of at least 15 years, and up to life, in federal prison. A sentencing hearing is scheduled for March 20, 2020.
Wright was indicted by a federal grand jury on July 17, 2019.
According to the evidence presented at trial, Wright has 28 prior felony convictions in Florida. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
On January 16, 2019, the Marion County Sheriff’s Office executed a search warrant at Wright’s Summerfield residence pursuant to an investigation into missing jewelry. During the search, detectives located five firearms and hundreds of rounds of ammunition inside the home, and inside a car registered in Wright’s name. Wright subsequently admitted to federal investigators that he had handled two of the recovered firearms.
This case was investigated by the Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Man Sentenced to Prison for Illegal Straw Purchase of a FirearmRead the Press Release
ALEXANDRIA, Va. – A Manassas man was sentenced today to one year in prison for straw purchasing a firearm.
“Straw purchasing a firearm is a federal crime with serious consequences,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We are doubling down on our efforts across the DMV to prosecute any and all straw purchasing cases. It should send a strong message to those who would come into Virginia to illegally purchase firearms – Don’t lie and buy for the other guy. You will be prosecuted.”
According to court documents, in January 2017, Robert Marshall, 25, and another individual visited a Federal Firearm Licensee (FFL) in Woodbridge. The individual spent several minutes examining firearms, left the store, and then Marshall attempted to purchase one of the firearms examined by individual. Marshall paid for a semi-automatic pistol capable of accepting a large capacity magazine, and returned the next day to complete ATF paperwork and undergo a background check. After completing the sale, FFL staff members immediately reported the sale to law enforcement as a possible straw purchase. Law enforcement officers located Marshall the same day, and Marshall claimed that he was no longer in possession of the firearm. Marshall admitted to being paid by the individual and another person to purchase the firearm, and that he had not answered the questions on the ATF form truthfully.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr. Special Assistant U.S. Attorney Jennifer Harp 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-240.
Man Sentenced for Heroin Distribution Leading to Overdose DeathRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 20 years in prison for conspiring to distribute more than a kilogram of heroin, which led to the overdose death of at least one individual.
According to court documents, George Addae, 26, directed a heroin trafficking conspiracy from 2016 through September 2018. Addae obtained wholesale quantities of heroin and repackaged the drug into capsules. He arranged heroin sales with his customers through electronic communications and directed his co-conspirators to deliver the narcotics. On April 2, 2018, Addae personally distributed a mixture of heroin and fentanyl to a man in the Alexandria area of Fairfax County. That man ingested the drug and died from mixed drug intoxication.
In addition to the term of imprisonment, Addae was also ordered to forfeit $100,000.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Marc J. Birnbaum prosecuted the case.
This investigation was led by the Fairfax County Police and the FBI Washington Field Office’s Safe Streets/HIDTA Task Force. This task force is composed of FBI Agents and Task Force Officers from the Fairfax County Police, the Prince William County Police, the Loudon County Sheriff’s Office, the Fauquier County Sheriff’s Office, the Alexandria City Police, the Leesburg Police, the Herndon Police, the Vienna Police, and works in conjunction with the ATF, USMS, HSI and other local, state and federal agencies throughout Northern Virginia. The task force investigates the most egregious and violent criminal gangs and street crews operating in the Capital Region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-188.
Malden Woman Charged with Bank FraudRead the Press Release
BOSTON – A Malden woman was arrested and charged yesterday in connection with a scheme to embezzle more than $795,000 from her employer.
Kayla Figelski, 32, was charged with one count of bank fraud. Figelski was released on conditions following an initial appearance in federal court in Boston yesterday.
As alleged in the criminal complaint, between April 2017 and June 2019, Figelski stole at least $795,000 from her employer, a law firm in Malden. Figelski allegedly forged checks to herself from her employer’s checking accounts, including conservatorship and trust accounts her employer maintained for its elderly clients and their estates, and deposited the checks into her own account, from which she withdrew the funds, or directly cashed the checks. To hide her scheme, Figelski allegedly modified bank statements to make it appear that the checks were written out to legitimate vendors rather than to Figelski.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release, and a fine of up to $1 million. 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the Malden Police Department. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
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.
Madison Man Sentenced to 11 Years for Bank RobberyRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeffrey Parker, 40, Madison, Wisconsin, was sentenced yesterday by U.S. District Judge James Peterson to 11 years in prison for bank robbery. Parker pleaded guilty this charge on October 3, 2019.
On August 13, 2019, Parker robbed the Summit Credit Union, in Portage, Wisconsin, while brandishing a gun. During this robbery Parker zip-tied the employees’ hands together to restrain them. Parker then fled in a vehicle which was pursued down Highway 90 by two Wisconsin State Patrol troopers and a Columbia County sheriff’s deputy. Speeds during this chase were in excess of 100 miles per hour.
At Highway 151, Parker veered across several lanes of traffic toward Madison. Parker then sped down East Washington Avenue, going through several red lights, eventually crashing into a FedEx truck, knocking it onto its side. Parker was then taken into custody.
In sentencing Parker, Judge Peterson noted that for a lot of his life Parker had lived like a habitual criminal. Parker had a lengthy criminal history and in 2006 was sentenced to 10 years in federal prison on a drug charge. Because Parker then went on to commit this bank robbery, Judge Peterson said he was a ticking time bomb. Judge Peterson stated that Parker terrorized the victims and endangered many more people during the high speed chase. Judge Peterson said that the main goal of sentencing was to protect the community.
The charge against Parker was the result of an investigation conducted by the Federal Bureau of Investigation and Portage Police Department, with the assistance of the Columbia County Sheriff’s Office, Wisconsin State Patrol, and Madison and Maple Bluff Police Departments. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Luzerne County Man Sentenced to Six Years’ Imprisonment for Fentanyl and Firearms OffensesRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Banks, age 33, formerly of Sugar Notch, Pennsylvania, entered a guilty plea on December 18, 2019, before Senior U.S. District Court Judge A. Richard Caputo, to charges of possession with intent to distribute fentanyl and possession of a firearm in furtherance of drug trafficking. Banks was then immediately sentenced to six years’ imprisonment.
According to United States Attorney David J. Freed, Banks was indicted by a grand jury in February 2018, after an incident in which police were called to a Wilkes-Barre hotel and found Banks in possession of a firearm and several packets of heroin. In a separate incident, members of the Wilkes-Barre Police Department made a traffic stop of a vehicle in which Banks was an occupant and found Banks in possession of approximately 19 grams of fentanyl for further distribution. Nineteen grams of fentanyl is equivalent to approximately 9,500 individual doses.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Wilkes-Barre Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: [list partners here]. For more information about Project Guardian, please see https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
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Loveland Man Sentenced to Federal Prison for Obstructing the IRS and Ordered to Pay Nearly $500,000Read the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Adam M. Hausman, age 45, of Loveland, Colorado was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison following by 1 year of supervised release for obstructing and impeding the administration of the Internal Revenue Laws. Hausman, who was charged by Information on May 29, 2019 and pled guilty on September 12, 2019, was also ordered to pay $448,794 in restitution to the Internal Revenue Service. IRS-Criminal Investigation joined in making this announcement.
According to the filed information and the stipulated facts in the plea agreement, Hausman was a general contractor who specialized in concrete and framing work with a more recent focus on large commercial jobs, including hotels and apartment complexes. Since 1999, Hausman has filed only three U.S. Individual Income Tax Returns. For several years in which Hausman did not file tax returns, the IRS filed substitute returns for him, resulting in a tax due and owing to the federal government of $199,810.
In 2010, the IRS initiated collection activity for Hausman’s outstanding tax liabilities. When the IRS attempted to collect the taxes owed, the defendant began preventing and impeding the IRS from their tax collection and assessment efforts through various methods, including the submission of false statements to the IRS wherein he failed to disclose all of his assets, filing a false Form 1040 tax return failing to report all of his income, failing to file personal tax returns for multiple years in which he received taxable income, and failing to file corporate tax returns for his business Wyoming Framers Inc.
In addition to these acts taken by Hausman to thwart the IRS, Hausman purposefully kept his assets out of the reach of IRS by operating his business in cash. Hausman admitted to investigators that he did not want to leave his money in the bank because he knew that it would be taken by the IRS. From January 2013 through June 2018, Hausman made cash withdrawals totaling $6,605,586.
“Interfering with the administration of the IRS is a crime, and when you don’t pay, you face financial penalties and prison time,” said U.S. Attorney Jason Dunn. “We all must pay our part. That didn’t happen here, and the defendant will suffer as a result.”
“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “The true victims in tax fraud cases are the honest taxpayers who timely and accurately file their tax returns each year. This sentence shows IRS-Criminal Investigation is working hard to make sure all taxpayers file and pay their fair share of taxes.”
This case was investigated by the Internal Revenue Service—Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Tim R. Neff.
Local Compounding Pharmacy and Owners Christopher and Marti Burgess, Agree to Pay over $1.9 Million to Resolve False Claims Act AllegationsRead the Press Release
United States Attorney Richard W. Moore, of the Southern District of Alabama (SDAL), announces that Heritage Compounding Pharmacy, LLC (Heritage), and its pharmacist owners, Christopher and Marti Burgess, of Fairhope, Alabama, have agreed to pay over $1.9 million to resolve allegations that they violated the False Claims Act (FCA) stemming from the payment of illegal kickbacks and the implementation of a refill scheme of medically unnecessary pain creams.
“The U.S. Attorney’s Office is committed to holding health care providers responsible who manipulate and abuse the TRICARE program in order to seek financial gain and who lack regard for TRICARE patients,” said U.S. Attorney Moore.
In a complaint filed on October 29, 2019, the United States alleged that between January 1, 2013 to May 1, 2015, Heritage and its owners submitted false claims to TRICARE, a federally funded health care program for military personnel and their families. The Government alleged that the Defendants, through their “sales representatives”, paid physicians in the form of extravagant dinners and other entertainment perks, to induce prescribing. Heritage employed a sales force to strategically market pre-printed and pre-formulated topical pain cream prescriptions to prescribers in military populated territories such as Kansas City, Southwest Missouri, and Topeka/Manhattan. Many of these creams contained the Schedule III controlled substance Ketamine. Per the complaint, taking advantage of TRICARE’s per ingredient reimbursement policy, without regard to patient need, Heritage implemented a high dose refill scheme costing TRICARE over $27,000.00 per claim for medically unnecessary pain creams prescribed without a valid physician-patient relationship. The local pharmacy shipped large quantities of pre-formulated medication to TRICARE beneficiaries. The U.S. Department of Veterans Affairs (CHAMPVA) also suffered losses from this fraud scheme.
“The Defense Criminal Investigation Service's will tirelessly pursue unscrupulous companies intent on defrauding and cheating TRICARE, the healthcare system serving our military and veterans. DCIS appreciates the U.S. Attorney's Office requiring the owners of Heritage Compounding Pharmacy to remunerate TRICARE for prescriptions that were not medically necessary or even utilized by many of the beneficiaries,” stated Special Agent in Charge Cynthia A. Bruce, DCIS, Southeast Field Office.
The investigation and litigation were conducted by the United States Attorney’s Office -SDAL, DCIS and CHAMPVA. The FCA claims settled are allegations only, and there has been no determination of liability. The case is captioned U.S. v. Heritage Compounding Pharmacy, LLC, et al., Civil Action No.19-870-B (S.D. Ala.).
Lincoln Man Sentenced for Multi-City Violent Crime SpreeRead the Press Release
United States Attorney Joe Kelly announced that Amir Muhammad, age 54, was sentenced in federal court today in Omaha, Nebraska, for two counts of brandishing a firearm and two counts of robbery. Chief United States District Court Judge John M. Gerrard sentenced Muhammad to 28 years of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Muhammad will begin a 5-year term of supervised release.
On September 21, 2018, Muhammad robbed the Max I. Walker at 9211 Maple Street, Omaha, Nebraska. He entered the store, claimed to have a knife, demanded money from the clerk and threatened to cut the clerk if he wasn’t provided money. He was given money and left the store.
Muhammad robbed P.L. Jewelers in Lincoln, Nebraska, on October 1, 2018, by entering the store, threatening to shoot the owner of the store, demanding money and striking him in the head with a hard object. He left the store after taking a number of pieces of jewelry. On October 5, some of the items taken were found in a residence at which Muhammad had been staying.
On October 3, 2018, Muhammad robbed the Juice Stop at 11910 Standing Stone Drive, Gretna, by entering the store, brandishing a firearm to the clerk, and demanding money. After obtaining less than $300, he ran out of the store.
On October 5, 2018, Muhammad brandished a firearm when he carjacked an employee leaving Bergan Mercy Hospital. As she was walking toward her car, Muhammad approached her from behind, pushed her over the center console and got into the driver’s seat. Throughout the encounter he was pointing a gun at her. They fought over the gun and she was able force him to drop it, after which she ran from the car back to the hospital. Muhammad took her keys and her bag, leaving the car in the parking lot.
A little more than an hour later, Muhammad cashed a check from the victim’s account, made out to him, at a local bank. His photo was obtained from the bank and his identity was discovered. Throughout the day, metro area law enforcement worked together tracking down leads to Muhammad’s whereabouts. He was ultimately found at a trailer park in Council Bluffs, Iowa and arrested. At the time of his arrest, he was carrying a bag. In the bag was the carjacking victim’s wallet.
U.S. Attorney Kelly praised the bravery of the victims during their ordeals, their willingness to cooperate with prosecution, and the tenacity of law enforcement in capturing Muhammad. “We aggressively prosecute violent offenders and for the next 28 years, this violent offender will not be able to scare, threaten and intimidate members of our communities.”
The FBI Great Plains Violent Crime Task Force, comprised of FBI Agents, Omaha Police Department Detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives, investigated the case and was assisted by Omaha Police robbery unit, Carter Lake Police Department, Pottawattamie County Sheriff’s Department.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Terrell B. Sullivan, 53, of Lincoln, Nebraska, was sentenced on December 19, 2019, to 21 years and 10 months (262 months) in prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine mixture. There is no parole in the federal system. Sullivan will serve five years on supervised release after the prison term.
Information obtained by law enforcement indicated that Sullivan was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area between January 1, 2017, and August 30, 2018. During a search of Sullivan’s residence in October of 2017, narcotics investigators and Nebraska Parole officers found a digital scale, packaging materials and a small amount of methamphetamine in Sullivan’s bedroom.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force, consisting of the Lincoln Police Department, Lancaster County Sheriff’s Department, University of Nebraska-Lincoln Police Department and Nebraska State Patrol.
Lawrence Man Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Lawrence man has been indicted by a federal grand jury in Boston in connection with drug trafficking activities involving fentanyl.
Cecilio Guzman, 27, was indicted on Dec. 18, 2019, on one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. Guzman was previously charged by complaint and arrested by state authorities on Nov.20, 2019. He is currently in federal custody.
According to court documents, it is alleged that Guzman arranged to sell 120 grams of fentanyl to a cooperating witness for the government. On Nov. 20, 2019, Guzman met with that witness in Lawrence, sold him the fentanyl, and was subsequently arrested.
The charge of distribution and possession with intent to distribute more than 40 grams of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. The investigation was conducted with the assistance of the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments. Special assistance was provided by the Essex District Attorney’s Office. Assistant U.S. Attorney Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kentucky Woman Sentenced to 180 Months in Prison for Sex Trafficking Two VictimsRead the Press Release
U.S. District Court Judge Rebecca Grady Jennings of the Western District of Kentucky sentenced Cleoretta Allen, 41, of Louisville, Kentucky, yesterday to serve 180 months in prison and 20 years of supervised release.
According to court filings, Allen operated the “Playhouse of Domination” – a BDSM (bondage, discipline, sadism-submission, masochism) business from an apartment she rented in Louisville. The business provided non-sexual BDSM services to adult clients. When two of Allen’s top employees quit in 2017, her business revenues suffered, and so Allen expanded her business to involve illegal prostitution services. Over the next several months, Allen used violence, threats, and intimidation to coerce two young women to provide commercial sex acts for Allen’s clients in the Louisville area. Some of Allen’s violent conduct against one of the victims was so severe as to require medical treatment at a hospital. Allen posted commercial sex advertisements for the victims on the internet, and on one occasion transported the two women from Kentucky to Georgia to engage in prostitution.
“The Department of Justice is committed to holding sex traffickers responsible for their horrendous and immoral crimes as demonstrated by yesterday’s sentence,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to prosecute human trafficking in all its forms and seek justice on behalf of victims and survivors.”
“Those who commit crimes of this nature lose sight of the humanity of their victims; that they are someone’s daughter, a person with dignity and value, someone’s little girl,” said U.S. Attorney Russell Coleman for the Western District of Kentucky. “As evidenced by a sentence of a decade and a half in federal prison with no parole, this foul conduct will not be tolerated in the Western District of Kentucky.”
"As evidenced by yesterday’s sentencing, the FBI, along with our state and local partners, is committed to bringing to justice those that exploit our most vulnerable citizens. Investigating all forms of human trafficking is a priority of the FBI and we will continue to vehemently pursue investigations into sex trafficking on behalf of victims and survivors alike," said Special Agent in Charge Robert Brown of the FBI’s Louisville Field Office.
Restitution to human trafficking victims is mandatory under applicable federal law, and the district court will determine appropriate restitution at a future date.
The FBI in Louisville, Kentucky, the Louisville Metro Police Department, and the Jefferson County Sheriff’s Office investigated this case. It was prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the Western District of Kentucky, and Special Litigation Counsel William E. Nolan and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Justice Department Settles Immigration-Related Discrimination Claim Against Staffing CompanyRead the Press Release
The Department of Justice announced today that it reached a settlement agreement with Adecco USA Inc. (Adecco), one of the largest staffing companies in the United States. The settlement resolves a claim that Adecco’s Gardena, California office violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by discriminating against a lawful permanent resident and other work-authorized non-U.S. citizens when verifying their work authorization. The settlement also resolves allegations that when using employment eligibility verification (EEV) software, the company requested unnecessary work authorization documents from non-U.S. citizens because of their citizenship status.
“Employers must ensure that their onboarding software is compliant with relevant laws, and cannot make unnecessary demands for work authorization documents because of someone’s citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend Adecco and are pleased that shortly after learning of the Department’s investigation, the company re-hired an affected worker before he missed work, and took additional steps to avoid unlawful discrimination.”
The Department’s investigation began when a lawful permanent resident complained about discrimination that occurred at Adecco’s Gardena, California location. Upon being hired, the worker showed the company his valid foreign passport with a stamp denoting his permanent resident status. Although this documentation is sufficient under federal law to establish identity and permission to work in the United States, the Adecco employee responsible for hiring the worker was unfamiliar with it, rejected the documentation, and asked the worker to present his permanent resident card instead. The worker did not have a permanent resident card so he went home upset that he would not be able to get the job even though he had permission to work in the United States. After the Department opened its investigation, Adecco took immediate corrective action and, among other things, hired the permanent resident without delay for the position he originally sought.
The Department’s investigation also revealed that an employee in Adecco’s Gardena office routinely requested that non-U.S. citizen new hires produce specific documentation issued by the Department of Homeland Security to prove their work authorization, even when they had already provided sufficient proof of their identity and work authorization. The Department also concluded that Adecco unnecessarily reverified the work authorization of certain non-U.S. citizen employees because of their immigration status. The Department’s investigation determined that the commercial EEV software Adecco used prompted Adecco employees to initiate unnecessary employment eligibility reverification based exclusively on workers’ citizenship status.
Federal law allows all work-authorized individuals, regardless of citizenship or immigration status, to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. Moreover, under the anti-discrimination provision of the INA, employers cannot request more or different documents than necessary to prove work authorization because of employees’ citizenship, immigration status, or national origin.
Under the settlement, Adecco will pay $67,778 in civil penalties to the United States, ensure that its Form I-9 software complies with all relevant rules and regulations, and submit to departmental monitoring and reporting requirements. Additionally, Adecco will ensure that relevant employees attend a training the Civil Rights Division approves and take a knowledge assessment tool to demonstrate their understanding of relevant rules.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship, immigration status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
More information on how employers can avoid discrimination in the Form I-9 and E-Verify processes is available here. For information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Justice Department Examines Priority Needs of Forensic Laboratories and Medical Examiner and Coroner OfficesRead the Press Release
The Office of Justice Programs’ National Institute of Justice (NIJ) today published the findings of a two-year assessment that examined the personnel, workload and equipment needs of public crime laboratories and medical examiner and coroner offices.
“A strong network of crime labs, medical examiners and coroners is central to a well-functioning justice system,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “This report serves as a blueprint for federal, state, local and tribal officials as they work to build their forensic capabilities, staff their agencies and apply evidence-based practices to their most pressing public safety challenges.”
The Department of Justice’s Needs Assessment of Forensic Laboratories and Medical Examiner and Coroner Offices provides guidance and possible solutions through promising and evidence-based practices to address needs identified from stakeholders and experts from the field. It also addresses special topics such the opioid crisis, digital and multimedia evidence, sexual assault casework, forensics for tribal communities, and mass disaster and critical incident preparedness.
The report emphasizes the importance of systems-based approaches involving coordination and collaboration between forensic laboratories, law enforcement, legal professionals and other stakeholders. The report also identifies ways to address the challenges faced by forensics laboratories, such as sufficient and consistent funding; strategies and approaches to addressing staffing and personnel shortages; and activities to support the advancement of quality assurance programs.
To assess topics, NIJ held listening sessions with forensic science professionals and subject matter experts from forensic disciplines across the criminal justice system to inform and provide recommendations to the report. The feedback from the listening sessions, stakeholder comments and literature reviews were compiled into the assessment.
This assessment is a product of the Department’s ongoing mission to facilitate coordination and collaboration on forensic science within the Department, across the federal government, and with state, local and tribal entities.
To view the report, see https://www.justice.gov/olp/forensic-science#needs
More information on NIJ’s programs is located here: www.nij.ojp.gov.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Announces Addendum to Swiss Bank Program Category 2 Non-Prosecution Agreement with Coutts & Co Ltd.Read the Press Release
The Department of Justice announced today that it has signed an Addendum to a non-prosecution agreement with Coutts & Co Ltd. (Coutts), a private Swiss bank headquartered in Zurich. The original non-prosecution agreement was signed on Dec. 23, 2015. At that time, Coutts reported that it held and managed 1,337 U.S. related accounts, with assets under management exceeding $2 billion, and paid a penalty of $78,484,000. In reaching today’s agreement, Coutts acknowledges that it should have disclosed additional U.S.-related accounts to the Department at the time of the signing of the non-prosecution agreement.
“This agreement reflects our commitment to ensuring that foreign banks that participated in the Swiss Bank Program fully comply with their obligations to disclose accounts in which U.S. taxpayers have direct or indirect interests,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “When any person or entity makes false, incomplete, or misleading disclosures to the Department, the Department will hold those persons or entities accountable.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provided a path for Swiss banks to resolve potential criminal liabilities in the United States relating to offshore banking services provided to United States taxpayers. Swiss banks eligible to enter the program were required to advise the Department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. As participants in the program, they were required to make a complete disclosure of their cross-border activities, provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers had a direct or indirect interest, cooperate in treaty requests for account information, and provide detailed information about the transfer of funds into and out of U.S.-related accounts, including undeclared accounts, that identifies the sending and receiving banks involved in the transactions.
The Department executed non-prosecution agreements with 80 banks between March 2015 and January 2016. The Department imposed a total of more than $1.36 billion in Swiss Bank Program penalties. Pursuant to today’s agreement, Coutts will pay an additional sum of $27,900,000 and will provide supplemental information regarding its U.S.-related account population, which now includes 311 additional accounts.
Every bank that signed a non-prosecution agreement in the Swiss Bank Program had represented that it had disclosed all known U.S.-related accounts that were open at each bank between Aug. 1, 2008, and Dec. 31, 2014. Each bank also represented that it would, during the term of the non-prosecution agreement, continue to disclose all material information relating to its U.S.-related accounts. In reaching today’s agreement, Coutts acknowledges that there were additional U.S.-related accounts that it knew about, or should have known about, but that were not disclosed to the Department at the time of the signing of the non-prosecution agreement. Coutts has fully cooperated with the Department with respect to the additional U.S.-related accounts.
Principal Deputy Assistant Attorney General Zuckerman thanked Thomas J. Sawyer, Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program, Senior Litigation Counsel Nanette L. Davis, and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jury convicts Missoula man on drug trafficking, firearms crimesRead the Press Release
MISSOULA – A jury on Wednesday convicted a Missoula man accused of trafficking methamphetamine in the community of multiple drug and firearms crimes, U.S. Attorney Kurt Alme said today.
After a three-day trial that began on Dec. 16, the jury found Allan Roy Goodman, 43, guilty on all counts, including conspiracy to distribute meth, possession with intent to distribute meth, distribution of a controlled substance, possession a firearm in furtherance of a drug trafficking crime, prohibited person in possession of a firearm and obstruction of justice.
Goodman faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on the conspiracy count and a minimum mandatory five years to life consecutive to any other sentence, a $250,000 fine and five years of supervised release on possessing a firearm in furtherance of drug trafficking.
U.S. District Judge Donald W. Molloy presided and set sentencing for April 2, 2020. Goodman was detained.
“Mr. Goodman was a major drug dealer in the community and posed a significant threat to public safety and to witnesses in the case. The community will be safer with him behind bars. I want to thank Assistant U.S. Attorney Tara Elliott, the FBI’s Montana Regional Violent Crime Task Force, the Missoula HIDTA Task Force and the Northwest Drug Task Force for their work on this case,” U.S. Attorney Alme said.
At trial, the prosecution presented evidence that Goodman was a prolific meth and heroin dealer. On three separate occasions, Goodman sold drugs to a confidential source who was working for the Missoula High Intensity Drug Trafficking Area Task Force. Two witnesses testified about selling Goodman a .380-caliber pistol for heroin.
Law enforcement served a federal search warrant on Sept. 12 for Goodman’s garage and recovered two firearms. Goodman had been convicted of felonies on two prior occasions.
The prosecution also said evidence showed that in early October, Goodman, along with another person, assaulted a cooperating witness while all were incarcerated in Shelby. Goodman indicated to the witness during the assault that he had reviewed discovery in his case that showed the witness had spoken to law enforcement about Goodman’s drug dealing.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, the Missoula HIDTA Task Force and the Northwest Drug Task Force.
The case is part of Project Safe Neighborhoods (PSN), which 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.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 20 was:
Dale Lee Musgrave, 50, of Pompeys Pillar, on charges of conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine. If convicted of the most serious crime, Musgrave faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Musgrave was released pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-159.
Appearing on Dec. 17 on a criminal complaint:
Tyler Fleming, 37, of Billings, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Fleming faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Fleming was detained pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-78.
Appearing on Dec. 16 was:
Ryan Edwin Hewitt, 35, of Wenatchee, WA, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Hewitt faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least five years of supervised release. Hewitt was detained pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-107.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Dec. 18 was:
Austin Kade Goings, 22, of Browning, on charges of sexual abuse of a minor and aggravated sexual abuse. If convicted of the most serious crime, Goings faces a maximum life in prison, a $250,000 fine and five years of restitution. Goings was detained pending further proceedings. The case was investigated by the Bureau of Indian Affairs and Blackfeet Law Enforcement Services. Pacer case reference. 19-83.
Appearing on a criminal complaint was:
Eric Shawn Roasting Stick, 37, of Box Elder, on charges of assault with a dangerous weapon; domestic assault resulting in substantial bodily injury and domestic assault by habitual offender. If convicted of the most serious crime, Roasting Stick faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Roasting Stick was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 19-97.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Indicted and Arrested for Smuggling Counterfeit and Misbranded Products from ChinaRead the Press Release
SAN JUAN, Puerto Rico – On December 12, 2019, a federal grand jury in the District of Puerto Rico returned an indictment against Sameer Bani, charging him with seven counts, including: smuggling, receipt in interstate commerce and proffered delivery of misbranded articles, possession with intent to distibute a controlled substance, trafficking in counterfeit goods, and international money laundering, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The U.S. Food and Drug Administration’s (FDA), Office of Criminal Investigations is in charge of the investigation with the collaboration of Homeland Security Investigations. Bani was arrested on Monday, December 16, and was granted bail while he awaits trial.
The indictment alleges that on April 2018, defendant Bani fraudulently and knowingly received, concealed, sold, and facilitated the transportation, concealment, and sale of merchandise contrary to law after importation, namely drugs imported from China that were misbranded in violation of Title 21, United States Code, Section 352(a), in that the drugs’ respective labeling was false or misleading for failure to properly declare active pharmaceutical ingredients, knowing that such merchandise had been imported and brought into the United States contrary to law.
The merchandise that the defendant illegally imported from China was: Fruta Planta weight loss product containing undeclared sibutramine and phenolphthalein APIs; Li Da DAI DAI HUA weight loss product containing undeclared sibutramine, phenolphthalein, and sildenafil APIs; SlimExtreme Gold weight loss product containing undeclared phenolphthalein API; Enhanced Vegetal Vigra, Horney Lion, Plant Vigra, Paradise Ultra Plus, Lang Yi Hao, ExtenZe, Shanghai Ultra X, Suerosexx, Lobo, and La Pepa Negra male enhancement products containing undeclared sildenafil API.
The indictment further alleges that defendant Bani, aided and abetted by others known and unknown to the Grand Jury, did intentionally traffic in goods and knowingly used a counterfeit mark on and in connection with such goods, namely counterfeit Durex® condom foil wrappers.
Bani made three payments for the misbranded products via electronic transmissions of funds, each payment constituting a separate and distinct international money laundering violation.
“This defendant sold counterfeit and misbranded weight loss pills and misbranded male-enhancement pills. Some of these medications contained drugs that the consumers were not aware of and could endanger their health,” said United States Attorney, W. Stephen Muldrow. “The U.S. Attorney’s Office will continue to work with the FDA to protect the public from adulterated and misbranded products, and to ensure that dietary supplement sellers provide accurate information about their products.”
“American consumers must have confidence that the FDA-regulated products they are receiving are authentic and properly labeled with truthful information,” said Justin D. Green, Special Agent in Charge, FDA Office of Criminal Investigations Miami Field Office. “Today’s announcement serves as a reminder of the FDA’s continued focus on those who put profits ahead of the public health by distributing misbranded drugs and counterfeit devices.”
Assistant United States Attorney Edward Veronda is in charge of the prosecution of the case. If convicted the defendant faces a maximum sentence of up to 20 years in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Idaho Man Arrested and Charged with Soliciting Child Sex Abuse Images over the InternetRead the Press Release
Jacksonville, Florida – Aaron Kirk Woolman (58, Hagerman, ID) has been arrested and charged with soliciting child sex abuse images over the internet and via text message. He faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison. Woolman made his initial appearance in Boise, Idaho on December 13, 2019, and currently remains in custody pending further proceedings in Jacksonville.
According to court documents, on August 7, 2019, an undercover FBI agent in Jacksonville, who was posing as a parent of a 9-year-old “child,” made online contact with Woolman, who was using the user name “AWOOL61,” in an online chat application. During an online chat session, Woolman repeatedly asked for photos of the purported “child.” Between August 14 and August 21, 2019, Woolman and the undercover agent engaged in online conversation during which Woolman solicited the undercover agent to send pornographic images of the “child.”
Additionally, Woolman engaged in text message conversations with a second undercover FBI agent who was posing as the 9-year-old child. During these conversations, Woolman solicited the “child” to engage in sexually explicit conduct, produce pornographic images of this conduct, and send these images to him. Woolman tried to convince the “child” to comply with his requests by sending the “child” explicit images of himself along with a video of a female engaged in sexual acts.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and Boise, Idaho, as well as the Gooding County (ID) Sheriff’s Office and the Twin Falls (ID) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case 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.justice.gov/psc.
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.
Husband and Wife Sentenced to Prison for Roles in $38 Million Health Care Fraud and Wire Fraud SchemeRead the Press Release
Rodolfo Pichardo, 71, of Hialeah, Florida was sentenced to more than 15 years in prison for masterminding a $38 million health care fraud and wire fraud scheme. His wife Marta Pichardo, 66, was sentenced to 8 years in prison for her role in the scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Omar Pérez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office made the announcement.
Rodolfo Pichardo and Marta Pichardo previously pled guilty to conspiracy to commit health care fraud and wire fraud. On December 4, 2019, Rodolfo Pichardo, was sentenced by U.S. District Judge Rodolfo A. Ruiz to 188 months in prison, to be followed by 3 years of supervised release. He was ordered to pay $33,841,576 in restitution. Today, Marta Pichardo was sentenced by Judge Ruiz to 96 months in prison, to be followed by 3 years of supervised release. She was ordered to pay $10,482,178 in restitution.
According to court documents, after arriving in the United States from Cuba on a raft seeking refuge and a better life, the Rodolfo Pichardo and his wife Marta Pichardo settled in Miami-Dade County, Florida where they proceeded to build a vast empire of fraud, consisting of at least six fraudulent home health agencies, three fraudulent therapy staffing companies, and two fraudulent pharmacies. Each of these entities purportedly provided home health services, therapy services, and prescription drugs, respectively, to qualified Medicare beneficiaries, though in fact and as both Rodolfo and Marta Pichardo knew, they did not.
From May 2010 through September 2016, the Pichardos and their co-conspirators used this empire to submit more than $38 million in false and fraudulent claims to Medicare, for which the trust-based program then paid out more than $33 million. The Pichardos then used this money to purchase multiple properties, high-end vehicles, expensive jewelry, plane tickets, vacations, cosmetic procedures, and more, both for themselves and their family members.
As part of the scheme, Rodolfo Pichardo offered and paid kickbacks, both by cash and by check, to numerous patient recruiters, in exchange for the referral of Medicare beneficiaries to home health agencies that he owned. The conspirators also offered and paid cash kickbacks to owners and operators of multiple Miami-Dade medical clinics, in return for acquiring medically unnecessary home health prescriptions for the recruited Medicare beneficiaries. These prescriptions were then used by the Pichardos’ various home health agencies and pharmacies to bill Medicare for purported services and pharmaceutical drugs that were provided to allegedly qualified Medicare beneficiaries
During the long-running scheme, the Pichardos took several calculated steps to conceal the fraud and avoid detection, including using nominee owners, changing names and locations of their fraudulent entities, and creating shell companies to conceal the receipt of the fraud proceeds, hide assets and transactions, and divert proceeds for both personal use and to further the fraud.
Additional co-conspirators previously pleaded guilty and were sentenced in connection with the scheme, including family member Jesus Fonseca, who was sentenced earlier this year by Judge Ruiz to 63 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI and HHS-OIG. This case was prosecuted by Assistant U.S. Attorney Anne P. McNamara. Assistant U.S. Attorney Adrienne Rosen is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
High Ranking Gang Member Receives 23 Years in Federal Prison and Armed Gang Member Receives More Than 12 Years in Federal PrisonRead the Press Release
WILMINGTON – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge James C. Dever III sentenced GARRY “RATCHET” HINES, age 25, of New Hanover County to 276 months imprisonment, followed by 3 years of supervised release. He also sentenced SAVON HARDAWAY, 23, of New Hanover County to 151 months imprisonment followed by 3 years of supervised release.
On November 14, 2018, HINES pled guilty to three counts of distribution of a quantity of heroin. On August 5, 2019, HARDAWAY pled guilty to three counts of distribution of heroin and possession of a firearm by a convicted felon.
The Federal Bureau of Investigation’s Safe Streets Task Force, which is made up of FBI Special Agents, Wilmington Police Department investigators and New Hanover County Sheriff's Office detectives began this investigation in March 2018. The task force uncovered an enormous amount of evidence that HINES and HARDAWAY were part of the Nine Trey sect of the United Blood Nation responsible not only for the sale of narcotics in Wilmington, but also multiple violent acts.
Between March 29 and July 21, 2018, the task force made several controlled purchases of heroin and/or a heroin/fentanyl mixture from HINES or someone sent by HINES from several locations in Wilmington, North Carolina.
On August 21, 2018, law enforcement developed information, which led them to believe that HINES and others were gathering up guns in order to take part in a retaliatory shooting of another group. After receiving this information, law enforcement conducted surveillance on the residence on North 5th Street. They observed HARDAWAY and another male exit the residence and get into a car. A traffic stop was conducted. HARDAWAY fled and attempted to hide a stolen .380 handgun and a .45 caliber handgun. Law enforcement recovered both handguns. Ballistics showed the .45 caliber handgun had previously been used in prior shootings. The other person had a stolen 9mm handgun on his person. This person has a pending federal indictment on another firearms charge.
On August 31, 2019, a federal search warrant was served on North 5th Street in Wilmington. HINES and Antwine “Big World” Lucas were arrested. Law enforcement found a handgun underneath the couch where HINES was seated when the search warrant was served. HINES was also in possession of baggies that contained a mixture of fentanyl and methamphetamine. Previously, Lucas was sentenced in federal court for his criminal conduct in this organization and received a sentence of 188 months in federal prison.
Mr. Higdon commented: “Our effort to Take Back North Carolina was born out of the violence and drug trafficking issues in Wilmington and across our District. And this case is just an example of why we are committed to the defeat of criminal gang activity. Those who terrorize our communities and who fill them with illegal drugs can expect the same treatment as these defendants. We will take our communities back.”
"The FBI has a message for gang members involved in violent criminal activities; we will use every lawful tool available to hold you accountable for your crimes. No matter how powerful you believe you are, you cannot win when the FBI and our law enforcement partners join forces to fight crime in North Carolina," said John Strong, FBI Special Agent in Charge.
This case is part of an FBI lead OCDETF operation “DodgeBall”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This investigation focused on members of the Nine Trey sect of the United Blood Nation in Wilmington who were involved in the distribution of heroin, possession of firearm and associated violence.
This case is a classic example of the combining of an OCDETF operation with our Take Back North Carolina Initiative. Wilmington Police Task Force Officers were able to identify members and associates of this violent drug gang and then partner with the FBI and the United States Attorney’s Office to develop a strategy to dismantle this organization. After being armed with this local intelligence, law enforcement was able to utilize the substantial resources and tools of the federal government to help break the back of this group which had been terrorizing Wilmington. The success of this case would not have been possible without these partnerships.
The Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina emphasizes a regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Federal Bureau of Investigation Safe Street Task Force, the Wilmington Police Department and the New Hanover County Sheriff’s Office conducted the investigation of this case. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Hialeah Check Casher Sentenced to 13 Years in Prison for Laundering over $100 million in Healthcare, Mortgage and Identity Theft Tax Refund Fraud ProceedsRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office announced that Evelio Suarez, a Hialeah check casher, was sentenced to prison today for laundering over $100 million in proceeds of healthcare, mortgage and identity theft tax refund fraud.
Suarez, 53, of Miramar, Florida, previously pled guilty to one count of money laundering (Case No. 18cr20669). He was sentenced by U.S. District Judge Robert N. Scola, Jr. to 156 months of prison, to be followed by 3 years of supervised release. He was also ordered to forfeit $149,048,366.
According to the agreed upon factual proffer and court documents, from 2013 through 2015, Suarez controlled a number of check-cashing stores located in Hialeah, Florida (the “Suarez Stores”). During this period, the defendant caused the cashing of checks at the Suarez Stores that were the proceeds of fraudulent activity, including identity-theft tax refund fraud, health care fraud, and mortgage fraud. On numerous occasions, Suarez cashed individual fraudulent Medicare checks exceeding $200,000 and individual U.S. Treasury tax refund checks exceeding $150,000. Suarez knew that the checks had been obtained from fraudulent activity and, on occasion, knowingly accepted fake identification documents.
According to the factual proffer, because Suarez knew the funds came from illegal sources, the defendant charged an additional fee on top of the standard fee charged by the check-cashing stores. Suarez charged this as a personal fee that he took in cash from the stores. Suarez also often withheld money from the checks and falsely claimed to the scammers that the money from their checks had been frozen by the banks or the authorities.
According to the factual proffer, Suarez knowingly cashed at least $100 million in checks that came from either identity-theft tax refund fraud, healthcare fraud or mortgage fraud.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI and FBI in this matter. The case was prosecuted by Assistant U.S. Attorneys Michael N. Berger and Yisel Valdes. Assistant U.S. Attorneys Annika M. Miranda and Adrienne Rosen are handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Heroin Stash House Operator Pleads GuiltyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and a quantity of fentanyl.
According to court documents, Dujuan Walters, 34, maintained a stash house at his residence in Newport News, at the direction of co-conspirators. Walters and his co-conspirators used his residence to store heroin, fentanyl, a hydraulic press, and other equipment used in the preparation and distribution of controlled substances. In December 2018, law enforcement executed a search warrant at Walters’s residence, where they recovered the aforementioned items, as well as a kilogram of heroin, additional black tar heroin, and liquid fentanyl.
Walters pleaded guilty to conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and a quantity of fentanyl and faces a mandatory minimum term of 10 years imprisonment and a maximum of life imprisonment when sentenced on April 17, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jim Stitzel, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after Magistrate U.S. District Judge Robert J. Krask accepted the plea. Assistant U.S. Attorneys Amy E. Cross, Peter G. Osyf, and Kevin P. Hudson are prosecuting the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Cookout. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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. 4:19-cr-47.
Hedge Fund Manager Sentenced to More Than 7 Years in Federal Prison in Connection with Multi-Million Dollar SwindleRead the Press Release
CHICAGO — A Connecticut investment manager has been sentenced to more than seven years in federal prison for operating a multi-million dollar fraud scheme that swindled his friends and family members, including victims in the Chicago area.
ALVIN WILKINSON, the founder of Chicago Index Partners LP and Wilkinson Financial Opportunity Fund LP, both based in Sharon, Conn., persuaded at least 30 individuals, many of whom were his friends, family members and colleagues, to invest approximately $13.5 million in his funds. Wilkinson, who previously served as a director at the Chicago Board Options Exchange, claimed he would trade a portfolio of financial instruments on their behalf, including options and futures, and that his trading strategy made money regardless of market conditions.
In reality, Wilkinson did not maintain trading accounts for the funds, and he did not use investor funds to trade in options and futures. Wilkinson often used investor funds to cover personal expenses, and he later used the money to pay earlier investors through Ponzi-type payments. His fraud scheme began no later than 1999 and continued until 2016.
Wilkinson, 61, of Sharon, Conn., pleaded guilty earlier this year to one count of wire fraud. U.S. District Judge Sharon Johnson Coleman on Thursday sentenced Wilkinson to seven years and four months in prison and ordered him to pay $8.032 million in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The Commodity Futures Trading Commission, which filed a civil enforcement lawsuit against Wilkinson, provided valuable assistance.
“Defendant was a fiduciary who was supposed to act in investors’ best interest at all times,” Assistant U.S. Attorney Nicholas J. Eichenseer argued in the government’s sentencing memorandum. “While defendant reassured investors with lie after lie, he was living lavishly courtesy of the millions he was secretly diverting to himself.”