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18 December 2019
American Airlines Mechanic Pleads Guilty to Attempted Aircraft Destruction ChargeRead the Press Release
MIAMI -Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office announced that Abdul-Majeed Marouf Ahmed Alani, 60, of Tracy, California pled guilty today before U.S. District Judge Marcia G. Cooke, to a single count indictment charging him with attempted destruction of an aircraft.
According to the court record, including the facts admitted at the change of plea hearing, on or about July 17, 2019, Alani, a mechanic then employed by American Airlines at Miami International Airport (MIA), tampered with the air data module (ADM) system of an aircraft that was scheduled to depart MIA for Nassau, Bahamas.
On or about July 17, 2019, approximately two hours after its arrival into MIA, the aircraft pulled out for its scheduled departure to the Bahamas. Passengers and crew members were aboard the aircraft. While number one for taking the departure runway, the flight crew increased power to the aircraft engines in preparation for take-off. This resulted in an error reading by the aircraft’s computer related to the ADM system and the take-off was aborted.
Prior to the aircraft’s scheduled take-off from MIA, Alani had inserted a foam substance into the ADM system and used super glue to hold the substance in place.
Alani is currently detained and is scheduled to be sentenced in March of 2020, before Judge Cooke. He faces a maximum statutory sentence of twenty years in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s South Florida Joint Terrorism Task Force (JTTF). She thanked the U.S. Federal Air Marshal Service, Miami-Dade Police Department’s Airport Division, U.S. Department of Homeland Security Transportation and Security Administration (TSA), U.S. Customs and Border Protection, Miami-Dade County Aviation Authority and Federal Aviation Administration (FAA) for their invaluable assistance. The case is being prosecuted by Assistant U.S. Attorneys Randy A. Hummel and Maria K. Medetis.
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.
Ada Woman Sentenced to 36 Months Probation for False Statement in Acquisition of A FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Reagan Sydney Clark, age 22, of Ada, Oklahoma, was sentenced to 3 years’ probation for False Statement In Acquisition Of A Firearm, in violation of Title 18, United States Code, Sections 922(a)(6) and 924(a)(1)(A). The charges arose from an investigation by the Ada Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on November 30, 2018, the defendant knowingly made a false and fictitious statement intended and likely to deceive Gunrunners, a licensed dealer of firearms within the meaning of Chapter 44, Title 18, United States Code, as to a fact material to the lawfulness of the sale of a Walther, Model CCP, 9x19mm caliber semi-automatic pistol, serial number WK066579, a firearm under Chapter 44 of Title 18, in that the defendant represented she was the actual transferee/buyer of the firearm.
Cases like this are sometimes referred to as “lie and buy” or “straw purchase” cases. Investigating and prosecuting these crimes is consistent with the principles 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. A key principle of Project Guardian is enhancing coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes to ensure that federal resources are directed at the criminals posing the greatest threat to our communities. For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced IVAN ARRELLANO-CRUZ, 39, of Mexico on December 13, 2019 for illegal re-entry of a previously deported alien into the United States. Arrellano-Cruz was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings and was ordered to pay a $100.00 special assessment. Arrellano-Cruz had previously been deported to Mexico in January of 2013. The U.S. Department of Homeland Security investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced JEFFREY WAYNE POWELL, 56, of Gillette, Wyoming on December 17, 2019 for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Powell was arrested in Gillette, Wyoming. He received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $400.00 and a $200.00 special assessment. The Campbell County Sheriff’s Office and the Wyoming Division of Criminal Investigation investigated this case.
10TH CBL-BFL Member Pleads Guilty to Racketeering Conspiracy and Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shawn Woods, a/k/a Pif, 28, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to racketeering conspiracy and possession with intent to distribute of 400 grams or more of fentanyl. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the defendant was a member of the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operates primarily in the City of Buffalo at the Towne Gardens Housing Complex. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang.
During his plea, defendant Woods admitted that he possessed and sold controlled substances at various times and that on February 1, 2017, he and a co-defendant possessed, at 974 Jefferson Avenue in Buffalo, three firearms, ammunition, metal spoons, digital scales, grinders, kilogram presses, and quantities of heroin and various types of fentanyl.
Woods is the 10th defendant charged in this case to be convicted. Charges remain pending against three other defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief David Zack; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing is scheduled for April 23, 2020, before Judge Vilardo.
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17 December 2019
Woman who Smuggled Meth across the Border Sentenced to Nine Years in PrisonRead the Press Release
Assistant U. S. Attorney Jaclyn Stahl (619) 546-8456
NEWS RELEASE SUMMARY – December 17, 2019
SAN DIEGO – Laura Casas, who was convicted by a federal jury of smuggling $128,000 worth of methamphetamine through the Otay Mesa Port of Entry with her three children in the car, was sentenced in federal court Monday to 108 months in prison.
Casas was convicted of importation of methamphetamine following a two-day jury trial that concluded on September 6, 2019.
“Methamphetamine is ravaging our community and is a lethal drug,” said U.S. Attorney Robert Brewer. “It is strong, pure, cheap, and – because of the actions of this defendant and others like her – plentiful. I commend trial attorney Jaclyn Stahl for her excellent work on this case.”
“Methamphetamine is a powerful drug that continues to devastate our communities,” said Cardell T. Morant, acting special agent in charge of HSI San Diego. “This sentencing should serve as a stark reminder that those who facilitate the movement of dangerous drugs for transnational criminal organizations will be held accountable for their actions.”
On November 15, 2018, at approximately 12:04 a.m., the defendant, a U.S. Citizen, presented a California driver’s license and applied for entry into the United States at the port of entry. A narcotic detection dog alerted to the vehicle. In the secondary inspection area, officers removed paneling from the dashboard and discovered fifty packages of methamphetamine in a secret compartment. The packages weighed approximately 69 pounds. The drugs were concealed in a sophisticated non-factory compartment that required significant modifications to the vehicle and would have taken hours to construct.
According to evidence presented at trial, messages from the defendant’s phone, when compared with her crossing history, paint a clear picture of her planning and preparation to commit this crime.
Prosecutors argued for a longer sentence because the defendant testified falsely at trial that she did not know there were drugs in the vehicle. She also testified that the damning text messages on her phone were about a scheme of smuggling pug puppies – not drugs - into the United States. Her testimony was directly contradicted by the evidence.
Further, the United States believes that the defendant intended to suborn false testimony from the defendant’s sister-in-law and mother-in-law at trial. Both women told the pug smuggling story to agents when they were interviewed in anticipation of trial. They were set to testify to the pug smuggling story but chose not to at the last moment.
Evidence collected in anticipation of their testimony shows that the in-laws crossed into the United States from Mexico three months after the defendant’s arrest with puppies that were too young to enter the country legally. This evidence suggests that the defendant and her family not only manufactured this defense after her arrest but went to significant lengths to do so.
DEFENDANTS Case Number 18-CR-5355-AJB
Laura Casas Age: 28 San Diego, CA
SUMMARY OF CHARGES
Importation of Methamphetamine, in violation of 21 U.S.C. §§ 952, 960
Maximum penalty: Life in prison and $10 million fine
AGENCY
Homeland Security Investigations
Customs and Border Protection
Wife of Lightfoot Drug Trafficking Organization Leader Pleads Guilty to Maintaining a Drug-Involved Location which was the Site of Large FBI SeizureRead the Press Release
PITTSBURGH - One former resident of Verona, PA, has plead guilty to federal narcotics charges, United States Attorney Scott W. Brady announced today.
Kaylin Lightfoot-Homa, age 26, pleaded guilty to one count of maintaining a drug involved premises before Chief United States District Court Judge Mark R. Hornak.
According to information presented to the court, from May 2017 to November 2017, Kaylin Lightfoot-Homa lived at a home on Harvest Drive in Verona, PA with her husband and co-defendant Jamie Lightfoot, Jr. and co-defendant Chace Johnson. Both of these individuals have previously pleaded guilty. During this time, Lightfoot-Homa facilitated the use of the house as a drug involved premises where large amounts of cocaine and money were stored and distributed from there. On November 5, 2017, Lightfoot-Homa was present when FBI executed multiple search warrants at the residence and recovered 51 kilograms of cocaine, 85 kilograms of marijuana, multiple firearms, and over $500,000 in US Currency.
The law provides for a maximum sentence of not more than 20 years in prison and/or a fine of not more than $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Timothy M. Lanni and Shaun Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Wichita Man Sentenced to Federal Prison for Firearms ViolationsRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to 70 months in federal prison for unlawful possession of firearms, U.S. Attorney Stephen McAllister said.
Jason E. Silcott, 30, Wichita, Kan., pleaded guilty to one count of unlawful possession of a sawed off shotgun and one count of unlawful possession of a firearm by a felon. In his plea, he admitted that on May 27, 2018, Wichita police stopped him with a short barreled shotgun in his vehicle. The shotgun was not registered as required by federal law. On Dec. 5, 2018, Wichita police stopped him and found a .380 caliber handgun in a glove compartment of his vehicle. Because of a prior felony conviction, Silcott was prohibited from having a firearm.
McAllister commended the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
West Virginia Medical Doctor Sentenced to Prison for Unlawfully Distributing OpioidsRead the Press Release
A medical doctor who practiced in West Virginia was sentenced to prison today for his role in unlawfully distributing opioids.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Mike Stuart of the Southern District of West Virginia and Acting Special Agent in Charge Daniel D. Dodds of the Drug Enforcement Administration’s (DEA) Louisville Division made the announcement.
U.S. District Judge John T. Copenhaver Jr. of the Southern District of West Virginia sentenced Jeffery Addison, M.D., 65, of Charleston, West Virginia, to 18 months in prison followed by three years of supervised release. Addison pleaded guilty in September 2019 to one count of distribution of oxycodone.
Pursuant to his guilty plea, Addison admitted that in December 2018 he surrendered his DEA license due to his failure to comply with the federal requirements pertaining to his controlled substance prescriptions. After surrendering his license, between January 2018 and March 2019, Addison continued to distribute oxycodone, a Schedule II controlled substance, to patients without a valid DEA license.
The DEA investigated the case. Assistant Chief Kilby Macfadden and Trial Attorney Andrew B. Barras of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Virginia Attorney Arrested for Engaging in Scheme to Extort a Public CompanyRead the Press Release
A licensed Virginia attorney was arrested today on federal extortion and interstate threat charges for allegedly trying to extort a public company by threatening to inflict substantial financial and reputational harm on the company if his demands for a $200 million payment disguised as a purported “consulting agreement” were not met, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Inspector in Charge Delany De Leon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group.
Timothy Litzenburg, 37, of Charlottesville, Virginia, was charged in a criminal complaint unsealed today with transmitting interstate communications with intent to extort, attempted extortion and conspiracy to commit extortion and transmit interstate communications with intent to extort.
Litzenburg was arrested this morning and appeared before U.S. Magistrate Judge Joel C. Hoppe of the Western District of Virginia. Litzenburg was released on bail.
According to the criminal complaint, in approximately October 2019, Litzenburg approached a company (Company 1) and threatened to make public statements alleging that Company 1 had significant civil liability for manufacturing a purportedly harmful chemical used in a common household product used to kill weeds. Litzenburg allegedly also said that after making these statements, he would use media and other means to find plaintiffs to sue Company 1. Litzenburg allegedly threatened that he would only refrain from any such public actions if Company 1 (and its parent company) paid Litzenburg and his associates $200 million in “consulting fees.” In exchange for the $200 million, Litzenburg allegedly indicated that he would not tell any existing or future clients about Company 1 or its purported role in manufacturing the product. Litzenburg also allegedly made clear that the $200 million would not be a settlement for any clients, but rather would be a payment for Litzenburg and his associates.
Litzenburg allegedly communicated his extortionate demands by telephone and email and during an in-person meeting. During the in-person meeting, Litzenburg allegedly threatened that he and his law associates would be Company 1’s “biggest problem” unless they received the $200 million payment, and that the public disclosure of the purportedly damaging information about Company 1 would cause a “40 percent stock loss,” and “public relations nightmare” for Company 1’s publicly traded parent company.
During other communications with Company 1, Litzenburg allegedly told Company 1 that if he received the $200 million in “consulting fees,” he was willing to “take a dive” during a civil deposition of a Company 1 toxicologist to prevent any of his purported current clients or prospective future plaintiffs from suing Company 1.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The USPIS is investigating the case. Assistant Chief L. Rush Atkinson and Principal Assistant Chief Henry P. Van Dyck of the Criminal Division’s Fraud Section are prosecuting the case.
Virgin Islands Department of Licensing and Consumer Affairs Officer Convicted of Bribery and Solicitation of a Bribe by a Public Employee Following Trial in Federal CourtRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Robert Defreitas, an officer with the Virgin Islands Department of Licensing and Consumer Affairs (DLCA), was convicted at trial of Travel Act Bribery and Solicitation of a Bribe by a Public Employee.
According to the evidence presented at trial, in August 2018 Defreitas assisted with a DLCA inspection of a St. Thomas business, during which time he discovered that one of the company’s workers had not entered the country by legal means. Defrietas attempted to use this information against the victim. The victim later recorded a phone call in which Defreitas sought sexual favors in return for not reporting the victim’s immigration status. A recording of the phone call was played for the jury during the prosecution’s case-in-chief. Evidence at trial also showed numerous calls by Defreitas to the victim’s phone number and efforts by Defrietas to disguise the purpose for his phone calls.
Defreitas was remanded to custody following trial, and the court scheduled the defendant’s sentencing for April 15, 2020. This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
Ukrainian Man Sentenced in Manhattan Federal Court to 84 Months in Prison for Role in Check Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that MARKO STASIV was sentenced to seven years in prison today by U.S. District Judge P. Kevin Castel for his participation in a scheme to defraud banks and check-cashing stores by cashing hundreds of thousands of dollars in unfunded payroll checks. STASIV was convicted, after a seven-day jury trial in May 2019, of wire fraud, conspiracy to commit bank and wire fraud, and aggravated identity theft.
U.S. Attorney Geoffrey S. Berman said: “Marko Stasiv was sentenced today for his leading role in a choreographed scheme to defraud. He led a group of conspirators in bilking banks and check-cashing businesses in state after state, staying one step ahead of the law – until he was caught. Now he faces seven years in federal prison for his crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “There was nothing about Marko Stasiv’s payroll scheme that was on the up and up. As one would imagine, his initial success couldn’t be sustained for long. Today’s sentencing ensures a long, well-deserved stay in prison, and this time the government will make the room arrangements.”
According to a Superseding Indictment filed December 18, 2018, other court documents, and the evidence presented at trial:
From approximately September 2016 through February 2018, the defendant and his co-conspirators engaged in a coordinated scheme to defraud check-cashing businesses and federally insured banks (the “Check Scam”). The Check Scam’s primary objective was to generate illicit profit for its participants by deceiving check-cashing businesses and banks into honoring ostensible payroll checks for which insufficient funds were available to cover the face-value of the checks. The Check Scam involved building trust and confidence with check-cashing businesses and banks through a purportedly legitimate course of dealings before taking advantage of that trust and confidence to stage intentional, coordinated overdrafts. This included the use of fraudulently obtained identity documents, sham companies, and interstate wires.
As part of the scheme, the conspirators incorporated multiple sham companies (the “Sham Companies”) in multiple states, and then opened bank accounts in the names of those sham companies (the “Sham Bank Accounts”). The individuals opening the Sham Bank Accounts often did so by using legitimate state identification cards (“State IDs”), obtained under false pretenses. Upon opening the Sham Bank Accounts, members of the Scheme would obtain and print payroll checks, issued by a Sham Company and issued to a member of the Scheme (a “Check Casher”), who posed as an employee of the Sham Company. Over the course of several weeks, the Check Cashers cashed multiple payroll checks, of gradually increasing values, at multiple check-cashing stores in the state of the Sham Company’s incorporation. Members of the Scheme would then immediately redeposit these funds into the Sham Bank Account, so that the checks would clear. In doing so, the Check Cashers developed credibility with the check-cashing stores. In each state, the Check Scam would culminate during a final week (the “Bomb Week”). During the Bomb Week, the Check Cashers would cash high-value checks at as many check-cashing stores as possible. However, during the Bomb Week, the conspirators would not redeposit these funds into the Sham Bank Account, and would instead divide the proceeds among themselves. By the time the checks bounced, the conspirators had moved on to the next state, where they executed the Check Scam again, using a new Sham Company and Sham Bank Account.
The defendant was one of the Check Scam’s leaders. Among other things, he recruited Check Cashers; helped Check Cashers obtain State IDs and open Sham Bank Accounts under false pretenses; distributed payroll checks to the Check Cashers; drove the Check Cashers to various check-cashing stores; instructed Check Cashers on how to execute the Check Scam; and collected and redistributed the proceeds of the Check Scam. The defendant and his conspirators executed or planned to execute the Check Scam in various locations throughout the United States, including in and around New York City, Pennsylvania, Florida, Maryland, Georgia, Virginia, Texas, Illinois, and California.
As a way to keep overhead costs lower while executing the Check Scam in various states, the conspirators obtained hotel rooms, unlawfully and without authorization, by using the names and hotel loyalty program accounts of real persons who were neither part of nor aware of the Check Scam (the “Hotel Scam”). The defendant personally executed the Hotel Scam with the assistance of at least two associates in Ukraine, who helped arrange dozens of days-long hotel stays for the Check Scam’s participants at various locations by unlawfully accessing victims’ hotel rewards points, and using them to book hotel rooms listing the defendant and other conspirators as authorized guests.
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In addition to the prison term, Judge Castel sentenced STASIV to three years of supervised release and ordered him to pay restitution in the amount of $548,178.70, forfeiture in the amount of $122,424.92, and a $100 special assessment.
Mr. Berman praised the investigative work of the FBI and its Eurasian Organized Crime Squad. He also thanked the New York City Police Department and United States Customs and Border Protection for their assistance in the matter.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Jonathan Rebold is in charge of the prosecution.
U.S. Attorney’s Office for the Southern District of Florida Collects over $60 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
MIAMI, FL - U.S. Attorney Ariana Fajardo Orshan announced today that the U.S. Attorney’s Office for the Southern District of Florida collected $60,236,230.99 in criminal and civil actions in Fiscal Year 2019. Of this amount, $56,913,999.14 was collected in criminal actions and $3,322,231.85 was collected in civil actions.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $110,962,642.62 in cases pursued jointly by these offices. Of this amount, $17,511.44 was collected in criminal actions and $110,945,131.18 was collected in civil actions.
“The millions of dollars collected in civil, criminal and forfeiture actions by the U.S. Attorney’s Office is exponentially more than the Southern District of Florida’s operating budget,” stated U.S. Attorney Ariana Fajardo Orshan. “We work tirelessly to ensure that criminals do not profit from their illicit acts, crime victims receive restitution and our tax dollars fund federal programs and initiatives, not criminal enterprises.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Southern District of Florida, working with partner agencies and divisions, collected $106,739,543 in asset forfeiture actions in Fiscal Year 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Reaches ADA Settlement with Middlesex County Day Care Facility over Discrimination Against Child Perceived to Have HIV or HepatitisRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached a settlement with a Middlesex County, New Jersey, day care facility to ensure equal access for children with HIV or Hepatitis under the Americans with Disabilities Act (ADA), U.S. Attorney Craig Carpenito announced.
Following an investigation, the U.S. Attorney’s Office found that Children’s Choice Academy (CCA) of East Brunswick, New Jersey, violated the ADA by denying a child admission to its day care based on the parent’s disclosure that the child may have Hepatitis or HIV, without making an individualized assessment that the child posed a direct threat to the health or safety of others that could not be mitigated by reasonable modifications of CCA’s policies, practices, or procedures.
The ADA prohibits public accommodations, such as CCA, from discriminating against people with, or perceived to have, disabilities, including HIV or Hepatitis. Public accommodations also cannot deny access to goods and services to people associated with someone with a disability.
“The ADA prohibits day care centers from denying services on the basis of disability or perceived disability,” U.S. Attorney Craig Carpenito said. “Today’s settlement sends a clear message that denying access, or suggesting that a person should seek services elsewhere, is discrimination that this office will take action to address.”
Under the settlement agreement, CCA has agreed to implement policies and procedures to ensure that children with disabilities are afforded full and equal opportunities to participate in and benefit from its programs and services, to publish on its website a statement of its policy on the prohibition of disability discrimination, and to provide mandatory training on the ADA and its prohibition of disability discrimination to all CCA employees. CCA will also pay $5,000 in damages to the child and his parent.
For more information on the ADA and HIV discrimination, visit www.ada.gov/aids.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Daniel Meyler and Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Office Civil Rights Unit in Newark.
U.S. Attorney’s Office Collects Nearly $20 Million for U.S. Taxpayers in Fiscal Year 2019Read the Press Release
Portland, Maine: U.S. Attorney Halsey B. Frank announced today that the U.S. Attorney’s Office for the District of Maine collected over $19.8 million in civil, criminal and asset forfeiture actions in Fiscal Year (FY) 2019.
Working with partner agencies and divisions, the office collected $15,248,809 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Additionally, the office collected $4,410,030.33 in criminal and civil actions in FY 2019. Of this amount, $2,914,099.52 was collected in criminal actions and $1,495,930.81 was collected in civil actions.
The office also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $200,926.17 in cases pursued jointly by these offices. Collections in civil actions comprised $194,516.17 of this amount.
“I’m proud of my team’s efforts to collect funds on behalf of American taxpayers this past fiscal year,” said U.S. Attorney Frank. “We will keep working tirelessly to seek justice for crime victims and ensure that those who commit crimes do not profit from their illegal actions.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
U.S. Attorney's Office Reaches ADA Settlement with Newtown RestaurantRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached settlement agreements with the Market Place Kitchen & Bar (the “Market Place”) in Newtown and its landlord, Mesa Contractors, to resolve allegations that the restaurant facility and its premises did not comply with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreements resolve an ADA complaint filed by an individual with disabilities alleging that the Market Place was not fully accessible for individuals with physical disabilities. The Market Place and Mesa Contractors are in the process of making the changes required by the settlement agreements. As part of its settlement agreement with the government, the Market Place will provide accessible dining tables throughout its restaurant facility, ensure equivalent service for individuals in the restaurant’s bar area, ensure access to the restaurant’s patio area, post accessible signage, and ensure that the restaurant’s restrooms meet accessibility requirements. As part of its settlement agreement with the government, Mesa Contractors will increase accessible parking spaces in the parking lot at 32 Church Hill Road in Newtown.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants and bars, are prohibited from discriminating on the basis of disability. Federal law also bars the landlord of a place of public accommodation from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted that the owners of Market Place Kitchen & Bar and Mesa Contractors cooperated throughout this investigation and he thanked their commitment to make changes in order for their facilities to comply with the requirements of the ADA.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Two South Bay Residents Indicted for Securities Fraud Relating to Palo Alto Networks, Inc.Read the Press Release
SAN FRANCISCO – A federal grand jury indicted Janardhan Nellore and Sivannarayana Barama with one count of conspiracy to commit securities fraud and six counts of securities fraud, and Nellore with three counts of aggravated identity theft, announced United States Attorney David L. Anderson and Federal Bureau of Investigation, Special Agent in Charge John F. Bennett.
“As alleged in this indictment, Janardhan Nellore worked in an information technology department and repeatedly used his access to his employer’s confidential information to profit on option trades in his employer’s stock,” said U.S. Attorney Anderson. “Corporate insiders who abuse their access to inside information for personal gain will face the consequences for their actions, whether they sit in the executive suite or the IT department. The integrity of our financial markets requires everyone to follow the rules.”
“The defendants unlawfully made millions of dollars by concocting a complex trading scheme using valuable inside information to profit by trading ahead of authorized disclosures to the investing public,” said FBI Special Agent in Charge John F. Bennett. “By arresting these individuals, we set a clear example that we will not tolerate those who undermine the integrity of the markets and fair trade.”
According to the superseding indictment unsealed today, Nellore, 42, of Santa Clara, Calif., and Barama, 45, of Fremont, Calif., are alleged to have participated in an insider trading scheme in which Nellore traded on and provided Barama and others with confidential, non-public, material, inside information about the financial performance of Palo Alto Networks, Inc. (“PANW”), headquartered in Santa Clara, Calif. Nellore worked in PANW’s Operations and Support group, an information technology department. Using his position at PANW, Nellore accessed and obtained material nonpublic information regarding PANW’s quarterly financial performance, including PANW’s target and actual billings, bookings, revenue, and growth rate. With that inside information, Nellore acted as both a trader and a tipper. Nellore traded PANW securities using inside information before the company disclosed its financial results to the public. In a number of “straddle trades,” Nellore placed call and put options before earnings announcements and sold the options after the announcements.
As alleged in the superseding indictment, Nellore shared the inside information with Barama and others, who Nellore knew would trade PANW securities using the inside information he had provided. Nellore also sometimes tried to conceal this scheme to defraud by using the brokerage accounts of others.
According to the superseding indictment, from March 2015 through September 2018, Nellore, Barama, and others placed approximately 800 straddle trades of PANW securities, generating illegal profits in excess of $7 million as a result of the insider trading scheme. When making non-straddle trades of PANW securities or trading in other stocks, the conspirators lost money.
Barama was arrested this morning in Fremont and will make his initial appearance in federal court in San Jose today before U.S. Magistrate Judge Virginia K. DeMarchi, where Barama and Nellore will be arraigned on the superseding indictment.
Nellore was previously detained as a flight risk by United States Magistrate Judge Nathanael M. Cousins, after Nellore was arrested at the San Francisco International Airport with a ticket to leave the United States and without any apparent intention to return. The FBI interviewed Nellore in connection with this investigation on May 7, 2019. After the interview, Nellore purchased one-way tickets to New Delhi, India, for himself and his family on an Air India flight departing the very next morning, May 8, 2019, at 11:30 a.m. FBI agents intercepted Nellore while he was trying to board the flight.
The indictment charges both Nellore and Barama with one count of conspiracy to commit securities fraud, in violation of 18 U.S.C. § 1349, and six counts of securities fraud and aiding and abetting, in violation of 18 U.S.C. §§ 1348 and 2. The indictment also charges Nellore with three counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the conspiracy to commit securities fraud charge, both Nellore and Barama face a maximum statutory sentence of 25 years in prison and a fine in the amount of $250,000. If convicted of the securities fraud charges, both Nellore and Barama face a maximum statutory sentence of 25 years in prison and a fine in the amount of $250,000. If convicted of the aggravated identity theft charges, Nellore faces a mandatory minimum statutory sentence of 2 years in prison and a fine in the amount of $250,000. The court also may order an additional term of supervised release, fines or other assessments, restitution, and forfeiture, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The United States Securities and Exchange Commission filed a separate civil action against Nellore, Barama, and three others today in the Northern District of California.
Assistant U.S. Attorneys Daniel Kaleba and Patrick R. Delahunty are prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the FBI, with the assistance of the San Francisco Regional Office of the Securities and Exchange Commission.
Two Illegal Aliens Plead Guilty to Unlawfully Returning to United States After RemovalRead the Press Release
Gulfport, Miss. –Mario Castellano Machado, 37, an illegal alien from Honduras, and Teodulio Ramos Ramos, 30, an illegal alien from Guatemala, recently pled guilty before U.S. District Judge Sul Ozerden to unlawfully returning to the United States after removal, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Chief Patrol Agent Gregory K. Bovino of the U.S. Border Patrol’s New Orleans Sector.
Both defendants will be sentenced by Judge Ozerden on April 2, 2020. They each face a maximum penalty of 2 years in prison followed by one year of supervised release and a $250,000 fine, as well as removal proceedings.
On November 11, 2019, a Harrison County Sheriff’s Office Interdiction Unit deputy conducted a traffic stop on a vehicle on I-10 east bound. The deputy encountered a Honduran driver, Mario Castellanos Machado, who provided a Honduran driver’s license with a false name. He told the agent that they were going from Texas to Georgia for work. A Border Patrol Agent arrived at the scene and spoke with the passengers in the vehicle. The agent recognized this as an alien smuggling event. All vehicle occupants were transported to the Border Patrol station for processing, and Homeland Security Investigation special agents responded to the Border Patrol office to assist. All eight occupants were found to be illegally present in the United States.
Mario Castellano Machado and Teodulio Ramos Ramos were positively identified by computer scans of their fingerprints into a Homeland Security Database that automatically accessed their official immigration records together with fingerprint cards, photographs and prior immigration removal documents. Both men were determined to have illegally returned to the United States after having been lawfully removed back to their home nations of Honduras and Guatemala.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Border Patrol, Homeland Security Investigations, and the Harrison County Sheriff’s Office. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Two Former Camp Lejeune Marines Sentenced to Federal Prison for Distributing Oxycodone and Fentanyl Linked to Fellow Marine’s DeathRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced ANTHONY P. TOGNIETTI, 27, of Paradise, California, and Marcos jamie villegas, 24, of St. Charles, Illinois, for distributing a quantity of a mixture and substance containing a detectable amount of oxycodone and fentanyl, and aiding and abetting. TOGNIETTI was sentenced to 3 years imprisonment and 3 years of supervised release and VILLEGAS was sentenced to 120 months imprisonment followed by 3 years of supervised release. Both TOGNIETTI and VILLEGAS were recently separated from the United States Marine Corps as a result of their federal prosecution.
According to the investigation, on April 14, 2017, a United States Marine Corporal and VILLEGAS were visiting at a local residence in Richlands, North Carolina. During the party, VILLEGAS provided the Corporal with pills that he and TOGNIETTI had purchased over the dark web. The pills had been advertised as oxycodone laced with fentanyl, a highly powerful opiate that can be lethal in even small doses. In the early hours of April 15, 2017, VILLEGAS discovered the Corporal unresponsive. The Corporal was taken to Onslow Memorial Hospital in Jacksonville, North Carolina, and died shortly after his arrival. The Corporal’s autopsy revealed his cause of death as fentanyl overdose and low alcohol content. The Corporal was just 20 years old at the time of his death.
Investigation by the Naval Criminal Investigative Service (NCIS) revealed that just a few weeks later, similar pills were seized from VILLEGAS’s barracks room. The pills were later sent off for testing and came back positive for fentanyl. Examination of VILLEGAS’s cellular phone revealed text messages discussing purchases of drugs. Further coordination by NCIS with the United States Postal Inspection Service and the Drug Enforcement Administration linked the pills purchased by VILLEGAS and TOGNIETTI to a manufacturer and dark web distributor in Texas. That man, Alaa Mohammed Allawi, 30, was later charged and pled guilty in the United States District Court for the Western District of Texas to conspiracy to possess with intent to distribute 400 grams or more of fentanyl resulting in death or serious bodily injury and using a gun during a drug crime. He also pleaded guilty to conspiracy to launder money. As part of the deal, Allawi agreed to be sentenced to 30 years in federal prison.
The Naval Criminal Investigative Service, the Drug Enforcement Administration, and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Laura S. Howard represented the government.
Trial Jury Finds Two New Orleans Residents Guilty of String of RobberiesRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that, on December 12, 2019, a federal jury returned a guilty verdict against JOHN WELDON and ERISTON WILSON relating to nine robberies of gas stations, convenience stores, and a bank.
According to the evidence presented at trial, between December 2018 and February 2019, WELDON and WILSON committed armed robberies of three gas stations on General de Gaulle Drive, multiple convenience stores on the West Bank and in the Seventh Ward, and a bank in Algiers. They carried firearms and wore blue gloves in each of the robberies.
At the conclusion of a three-day trial, the jury found WELDON and WILSON guilty on all counts each defendant faced. The defendants face a mandatory minimum sentence of 7 years in prison and a maximum life sentence. Sentencing is set for April 1, 2020 before U.S. District Judge Lance M. Africk.
U.S. Attorney Strasser praised the work of the FBI, which led this investigation and was assisted by the New Orleans Police Department and the Jefferson Parish Sheriff’s Office
Assistant United States Attorneys Kathryn McHugh, Greg Kennedy, and Michael Redmann are in charge of the prosecution.
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Three Defendants Arrested in Cellphone Account Takeover Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), announced charges against HENRY PEREZ, ASHLEY GOMEZ, and MISTY ALIZETTE INFANTE for participating in a multi-year cellphone account takeover fraud conspiracy that impersonated legitimate cellphone accountholders to fraudulently obtain smartphones and electronic devices that were charged to compromised accounts. The scheme also caused a number of individual victims across the United States to lose cellphone service for a period of time. PEREZ, GOMEZ, and INFANTE were all arrested today and were presented before Magistrate Judge Kevin N. Fox in Manhattan federal court. The case has been assigned to U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants participated in a sophisticated fraud that impersonated victims, changed victims’ account information so that victims would not receive fraud alerts, charged purchases to victims’ accounts, and deprived victims of cellphone service. Thanks to the dedicated work of our partners at HSI, these alleged cellphone fraudsters will now face the call of justice.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Regardless of the fraud or the methods employed by criminal elements, HSI and our partner law enforcement agencies will continue to unmask those responsible. The individuals arrested today allegedly used social engineering techniques to impersonate victim account holders which may have provided them with a false sense of anonymity, however, our special agents will continuously identify and bring those responsible to justice.”
According to the Indictment unsealed in Manhattan federal court:[1]
From June 2017 through December 2019, PEREZ, GOMEZ, and INFANTE were members of a criminal fraud ring that committed cellphone account takeover fraud and identity theft across the United States, including in the Southern District of New York. The scheme’s primary objective was to obtain new, valuable technological devices, including iPhones, and charge these purchases to someone else’s account, without the knowledge or consent of that victim accountholder. Over the course of the conspiracy, the scheme attempted to fraudulently obtain more than $1 million worth of devices and, in fact, fraudulently obtained more than $500,000 worth of devices, by charging purchases to victims’ accounts.
To conduct the scheme, members of the scheme, including HENRY PEREZ, used stolen identity information to impersonate a victim who had a cellphone account with a particular cellphone service provider (“Provider-1”). Members of the conspiracy then called customer service representatives of Provider-1 and used social engineering techniques to take over accounts by making various misrepresentations, including impersonating accountholders and indicating a purported need to regain access to their accounts. Through these misrepresentations, the conspiracy was able to gain unauthorized access to, and control of, accounts belonging to victim accountholders. Once they gained access, members of the conspiracy made various unauthorized changes to victim accounts, so that fraud alerts, and emails notifying an accountholder of account changes, were sent to them, rather than the legitimate accountholders. Members of the conspiracy then purchased new electronic devices – typically but not exclusively iPhones – which they charged to victim accounts, without the knowledge or consent of victims.
In many instances, the conspiracy arranged for the fraudulently ordered devices to be shipped to addresses under their control. In other instances, members of the scheme, including HENRY PEREZ, ASHLEY GOMEZ, and MISTY ALIZETTE INFANTE, personally entered stores operated by Provider-1 in order to pick up fraudulently obtained devices. In total, members of the conspiracy conducted in-store pickups of fraudulently obtained devices in at least 10 different states.
Once they had successfully exploited a particular victim’s account, members of the conspiracy typically relinquished control of that account, and moved on to exploiting other victim accounts. During the period in which the conspiracy compromised, and retained control of, a particular victim’s cellphone account, that victim typically lost cellphone service.
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The Indictment contains six counts. A chart containing the names, ages, residences, charges for each defendant, and maximum penalties, is set forth below. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised HSI’s El Dorado Task Force for its outstanding work on the investigation. He added that the investigation is continuing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant, Age, Hometown
Charges, Maximum Penalties
HENRY PEREZ, 32
Fort Lee, New Jersey
Wire fraud: 20 years’ imprisonment
Wire fraud conspiracy: 20 years’ imprisonment
Computer intrusion: 10 years’ imprisonment
Computer intrusion: 5 years’ imprisonment
Aggravated identity theft (2 counts): mandatory minimum term of 2 years’ imprisonment, consecutive to any other term of imprisonment
ASHLEY GOMEZ, 21
Bronx, New York
Wire fraud: 20 years’ imprisonment
Wire fraud conspiracy: 20 years’ imprisonment
Aggravated identity theft: mandatory minimum term of 2 years’ imprisonment, consecutive to any other term of imprisonment
MISTY ALIZETTE INFANTE, 23
Bronx, New York
Wire fraud: 20 years’ imprisonment
Wire fraud conspiracy: 20 years’ imprisonment
Aggravated identity theft: mandatory minimum term of 2 years’ imprisonment, consecutive to any other term of imprisonment
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Thompson Falls man charged with firearms crime after having been committed to mental institutionRead the Press Release
MISSOULA—A Thompson Falls man accused of possessing a firearm after having been found to suffer from a mental disorder appeared Dec. 16 on charges, U.S. Attorney Kurt Alme said.
Suede Jeffrey Shuttle, 25, appeared before U.S. Magistrate Judge Kathleen L. Desoto on a criminal complaint. The complaint charges Shuttle with person in possession of a firearm that has been previously adjudicated mentally defective or had been previously committed to a mental institution.
If convicted of the most serious crime, Shuttle faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
The complaint is merely an accusation, and Shuttle is presumed innocent until proven guilty.
Shuttle was detained pending further proceedings.
The complaint alleges that Shuttle, after having been advised by the Bureau of Alcohol, Tobacco, Firearms and Explosives that he was no longer allowed to possess firearms because he had been previously committed to a mental hospital, possessed a .308 caliber bolt action, military style rifle on Dec. 10.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the ATF and the Thompson Falls Police Department.
Pacer case reference. 19-73.
If the above cases is 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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Thirteen Members of Peoria Street Gang Convicted of Racketeering Conspiracy; Acts of Gang Violence, Murder, Attempted MurderRead the Press Release
PEORIA, Ill. – A jury today convicted 13 members of the Peoria street gang known as Bomb Squad for conspiracy to organize and operate the gang as a criminal enterprise that has plagued the Peoria community with gun violence for years. These violent acts included murder, attempted murder, arson, and drug trafficking. After presentation of seven weeks of evidence, the jury deliberated over a period of three days before returning the guilty verdicts this afternoon.
U.S. Attorney John C. Milhiser; ATF Special Agent in Charge Tim Jones, Chicago Field Division; and, Peoria Chief of Police Loren Marion III made the announcement.
“These convictions represent the dedication and commitment of our law enforcement partners and serve to signal to others our pledge to continue to work together to investigate and prosecute those who commit violent acts in our community,” said U.S. Attorney Milhiser. “There is no higher priority than keeping our communities safe.” Milhiser also recognized U.S. Marshal Brendan Heffner and his team: “The Marshals Service has done tremendous work during this lengthy trial to manage 13 defendants in custody and maintain security throughout the trial.”
“These guilty verdicts and potentially long sentences these violent criminals face is reassuring to the communities they terrorized that law enforcement is on their side,” commented ATF Special Agent in Charge Tim Jones of the Chicago Field Division. “We will continue to relentlessly pursue these cases in collaboration with our local partners and appreciate the diligence the U.S. Attorney’s Office dedicated to bringing these criminals to justice.”
Peoria Police Chief Marion stated: “The Peoria Police Department recognizes the hard work and effort that went into this case. I would personally like to commend the officers and agencies involved in this investigation for the outstanding work that was done. Due to their hard work, several of Peoria’s most violent criminals have been taken off the street and they will no longer be able to inflict violence upon our community.”
The defendants were convicted of federal racketeering conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO). Under the RICO statute, the indictment alleged and the jury found, that from 2013 to the present, members and associates of Bomb Squad engaged in acts of violence, including murder, attempted murder, assault; and arson, to protect itself, its members, and associates from rival gangs and to protect the standing and reputation of Bomb Squad.
Those convicted of RICO conspiracy are: Eugene Haywood, 25; Raevaughn Rogers, 20; Kenwan Crowe, 21; Ezra Johnson, 24; Jahlin Wilson, 23; Andre Neal-Ford, 21; Lance Washington, 23; Torieuanno White, 25; Sherman Williams, 25; Lloyd Dotson, 29; Keith Gregory, 20; Mytrez Flora, 25; and Kentrevion Watkins, 21.
Sentencing of the defendants has been scheduled in mid-June. At sentencing, each defendant faces up to 20 years in prison with several facing more lengthy prison sentences including up to life.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department conducted the investigation with assistance from the Drug Enforcement Administration and Illinois State Police. Assistant U.S. Attorneys Ronald L. Hanna, Adam W. Ghrist, and Douglas F. McMeyer represented the government in the investigation and prosecution of the case in the Peoria Division, Central District of Illinois.
The charges are the result of an ongoing investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a partnership of federal, state and local law enforcement agencies working together to identify, disrupt and dismantle drug trafficking organizations and violent street gangs.
This case is prosecuted under Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The program was reinvigorated in 2017 as part of the Department of Justice’s renewed focus on targeting each community’s most violent criminals.
Third Conspirator Pleads Guilty to Participation in a Ponzi Scheme Involving $2.5B in Transactions and $1B in LossRead the Press Release
SACRAMENTO, Calif. — Robert A. Karmann, 53, of Clayton, pleaded guilty today to his participation in a massive fraud scheme involving a solar energy company in Benicia that defrauded investors of approximately $1 billion, U.S. Attorney McGregor W. Scott announced.
Those losses resulted from investment transactions in solar energy hardware valued at approximately $2.5 billion. Karmann is the third person to plead guilty to federal criminal charges relating to the fraud scheme since October.
According to court documents, between 2011 and 2018, the solar energy company manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the MSGs and claimed that they were used by cellphone companies to provide emergency power to cell towers in the case of a power failure. They were also claimed to be used to power lights at sporting and other events.
The company solicited investors by claiming that there were very favorable federal tax benefits associated with investments in alternative energy. The company structured the transactions in order to maximize the tax benefits to the investors. Investors would buy the MSGs without ever taking possession of them. They would pay a percentage of the sales price and finance the balance with the company. Then the investors would lease the MSGs back to the company, which in turn leased them to third parties. A portion of the lease revenue would be used to pay the investors’ debts to the company and to the investors. The third‑party leases, however, generated little income and the company paid early investors with funds contributed by later investors.
According to court documents, Karmann, a certified public accountant, joined the company in 2014 and became its Chief Financial Officer (CFO). Karmann and his co-conspirators used fraudulent financial statements and other false information to hide from investors the company’s use of later investor payments to pay financial obligations the company made to earlier investors—in a classic Ponzi scheme. In his role as CFO, Karmann managed and directed the periodic transfers of new investor money to pay the company’s obligations to existing investors. Karmann also disseminated false financial and other information to investors to mislead them about material aspects of the MSG investments. Karmann’s criminal conduct was intended to create the false impression for investors that the MSG investments were operating as promised, which helped lull existing investors, lured prospective investors, and caused investors to seek more than $1 billion in tax benefits from the Internal Revenue Service to which they were not entitled. Karmann also pleaded guilty to securities violations associated with the same investment fraud scheme.
On Oct. 22, Joseph W. Bayliss, 44, of Martinez, and Ronald J. Roach, of Walnut Creek, each pleaded guilty to related charges. The investigation into the fraud is ongoing.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS‑Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys André M. Espinosa and Kevin C. Khasigian are prosecuting the case.
Karmann is scheduled to be sentenced by U.S. District Judge John A. Mendez on March 31, 2020. Karmann faces a maximum statutory penalty of 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
South Florida Doctor Sentenced to 8 Years in Prison for Conspiring to Illegally Distribute OxycodoneRead the Press Release
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, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division announced that Dr. Rodolfo Gonzalez Garcia, 65, of Weston, Florida was sentenced yesterday by U.S. District Judge Roy K. Altman to 8 years in prison, after previously pleading guilty to conspiring to dispense a controlled substance, Oxycodone.
According to the court record, including the agreed upon factual proffers in support of the defendants’ guilty pleas, from November 2016, through and including September 2018, Dr. Rodolfo Gonzalez Garcia, his wife Arlene Gonzalez, 59, also of Weston, Annie Suarez- Gonzalez, 35, of Chicago, Illinois, and Fidel Marrero-Castellanos, 57, of Hialeah, Florida and others, used West Medical Office, Inc. located in Hialeah (later named West Pines Medical Office) for illicit purposes (Case No. 19cr20055). During this time period, the defendants agreed to prescribe purported patients that had been brought to the office by patient recruiters, prescriptions for Oxycodone. They also agreed that patient recruiters could merely bring lists containing the names of purported patients directly to West Medical Office, instead of requiring the patients’ presence. In either scenario, the defendants agreed that the patient or patient recruiters would pay West Medical Office a certain cash amount per patient present in the office or per patient name on a list, in exchange for an Oxycodone prescription. Sometimes, these agreements—money for prescriptions—were directly with the purported patient. The defendants knew that these patients were Medicare and Medicaid beneficiaries, and that filling those prescriptions at pharmacies would result in the submission of claims to Medicare and Medicaid for payment of those prescriptions.
The defendants played various roles in the conspiracy. Marrero-Castellanos acted as a patient recruiter, bringing lists and paying cash in exchange for a prescription for the names on his list. Marrero-Castellanos took the patients with their prescriptions to pharmacies, including Medicare Part D participating pharmacies, to fill the aforementioned prescriptions. When he got the prescriptions based on just a patient list, he provided the aforementioned prescriptions to pharmacies, including Medicare Part D participating pharmacies. Sometimes, the patients went to the pharmacies on their own. All of the recruited patients gave Marrero-Castellanos their Oxycodone pills. Marrero-Castellanos sold those pills to others. Suarez-Gonzalez and Arlene Gonzalez facilitated the exchange of cash for prescriptions and filled out prescriptions. At times, Arlene Gonzalez wore a white lab coat and patients referred to her as a doctor, which she was not. She would bring pre-signed prescriptions to the clinic, and later signed prescriptions for oxycodone in her husband’s name, along with other staff members. These activities occurred even when Dr. Gonzalez Garcia was not in the office.
To facilitate the conspiracy, Dr. Gonzalez Garcia provided prescriptions for Oxycodone, even though he did not provide patients with a meaningful consultation or examination commensurate with prescribing oxycodone according to national standards and norms, nor those of the State of Florida, for such prescriptions. Dr. Gonzalez Garcia referred to himself as “El Chapo of Oxycodone." As a result of the conspiracy, Dr. Gonzalez Garcia unlawfully distributed Oxycodone.
Co-defendants Arlene Gonzalez and Suarez-Gonzalez pled guilty to conspiracy to pay and receive health care kickbacks and were sentenced to 4 months in prison and 1 year of probation, respectively. Co-defendant Marrero-Castellanos pled guilty to conspiracy to pay and receive health care kickbacks and conspiracy to distribute controlled substances and was sentenced to 13 months in prison. The co-defendants were ordered to collectively pay $26,306 in restitution.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and DEA. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Lindsey Lazopoulos Friedman. Assistant U.S. Attorney Nicole Grosnoff 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.
Six Indicted for Claiming Benefits for Properties Destroyed in Paradise Camp Fire that Were Not Their True ResidencesRead the Press Release
SACRAMENTO, Calif. — On Thursday, Dec. 12, a federal jury returned indictments against six defendants who made false claims for benefits in connection with the 2018 Camp Fire and received funds from FEMA to compensate for their losses, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “In 2018, in the aftermath of the Carr Fire and Camp Fire, we encouraged the public to report any suspected fraudulent activity and promised to aggressively pursue and prosecute fraud and abuse. Today we are announcing federal charges against individuals who abused the goodwill of the taxpayers and claimed losses that they had not incurred. These investigations are ongoing, and we are not done holding people accountable for fraudulent claims.”
Amanda Thandi, Special Agent in Charge Department of Homeland Security, OIG, Office of Investigations, of the San Diego Field Office stated: “The Department of Homeland Security (DHS), Office of Inspector General (OIG) remains committed to eradicating these and other cases of disaster fraud. As a result of the recent indictments, these individuals will no longer benefit from illegally manipulating the programs designed for assessing the critical needs, home repairs, replacement of personal property, and shelter for persons displaced from their residences due to the California wildfires.”
“Disaster fraud re-victimizes communities devastated physically and emotionally by natural disaster by diverting federal funds from communities and stealing from the victims with significant needs. This is why the FBI is committed to working closely with our local, state, and federal partners to identify and investigate allegations of fraud related to disaster recovery and we want people to both protect themselves and report fraud as it is discovered,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Together, we continue to aggressively pursue those who prey upon innocent victims of natural disasters and the people who want to help them.”
On Nov. 8, 2018, the “Camp Fire” started in Butte County and burned for approximately 18 days. It burned approximately 153,336 acres, destroyed approximately 13,972 residential structures and caused approximately 85 deaths. The Camp Fire is known as the deadliest and most destructive wildfire in California history. On Nov. 12, 2018, the President declared that a major disaster existed in California, and as a result of this declaration, some residents of Butte County who were affected by the fire were eligible to apply for disaster assistance from FEMA.
FEMA provides Direct Housing Assistance to eligible applicants, such as a manufactured home or trailer for use as temporary housing. FEMA also may provide rental assistance to rent alternative housing accommodations. This assistance is available to eligible individuals whose primary residence was damaged or destroyed by the fire regardless of whether they own or rent the home. In certain circumstances, residents can also receive benefits to replace or repair personal property (including standard appliances, essential clothing, standard room furnishing, and essential tools) damaged or destroyed due to a disaster.
The following defendants have been charged with one count of fraud in connection with a major disaster or emergency benefit. According to the charges, they each falsely claimed that a residence in Paradise that had been destroyed in the fire was their primary residence.
Deborah Laughlin, 64, falsely claimed 7209 Skyway, Apt 18 in Paradise as her primary residence and received $9,674.70 in benefits and a FEMA trailer. According to court documents, on Nov. 3, 2018, Laughlin was arrested at her residence in Willows and remained in jail until Nov. 13, 2018, which was several days after the Camp Fire began.
Evan Palmer, 30, of Chico, falsely claimed 4440 Clark Road, #1 in Paradise as his primary residence and received $26,490.67 for his travel trailer that was destroyed in the fire. His primary residence, however, was in Chico.
Kristy Marie Tapp, 34, falsely claimed 5152 Pentz Road in Paradise as her primary residence and received $3,263.91 in benefits. She filed her application for assistance after the Butte County Sheriff had issued a public notification identifying a couple, aged 67 and 70, as deceased victims of the fire. Tapp falsely claimed they were her landlords.
Patrick Prigmore, 54, falsely claimed 1040 Pearson Road in Paradise as his primary residence and received $12,837.71 in benefits and a FEMA trailer.
Two indictments remain sealed.
These cases are the result of investigations by the Department of Homeland Security, Office of Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley Weger is prosecuting the cases.
If convicted, the defendants face up to 30 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
California residents are encouraged to watch for and report any suspicious activity or potential fraud from scam artists, identity thieves, and other criminals who may try to prey on vulnerable survivors of this disaster. Anyone with knowledge of fraud, waste, or abuse may call the Federal Emergency Management Agency’s (FEMA) Disaster Fraud Hotline at (866) 720-5721 or report it to the Federal Trade Commission at ftccomplaintassistant.gov. You may also send an email to [email protected].
School Owner Pleads Guilty to Defrauding Department of Veterans Affairs Program Dedicated to Rehabilitating Disabled Military VeteransRead the Press Release
WASHINGTON – The owner of a physical security school pleaded guilty today to defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with disabilities.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
Francis Engles, 63, of Bowie, Maryland, pleaded guilty to one count of wire fraud. The plea was entered before U.S. District Judge John D. Bates of the District of Columbia. Sentencing has been scheduled for April 2, 2020.
According to admissions made in connection with Engles’s guilty plea, Engles was the owner and operator of Engles Security Training School (Engles Security). In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment (VR&E) program, which provides disabled U.S. military veterans with services. Thereafter, Engles Security obtained over 80 percent of its total revenue from the VA in exchange for purporting to provide certain courses to disabled military veterans.
To further the scheme, Engles falsely represented to the VA that he was providing veterans with months-long courses for 40 hours per week and over 600 total hours. In fact, Engles Security offered veterans far less than what Engles represented to the VA. In some instances, he offered only a few hours of class per day for several weeks. Some veterans did not attend more than one day of class. Engles nevertheless sent to the VA “Certificates of Training” stating that veterans had completed courses that they had not completed or, in some instances, had not taken at all. Similarly, Engles submitted letters to the VA falsely stating that the veterans were employed by Engles’ private security business. Engles also instructed veterans to sign attendance sheets for classes that they did not in fact attend. In total, Engles obtained $337,960 from the VA for the purported education of veterans.
Engles also attempted to obstruct the investigation into his fraud. During an interview with federal agents, Engles lied about veteran students’ attendance at the school, among other things. Later, when Engles Security was served with a grand jury subpoena, Engles prevented his employee from producing responsive documents that she had gathered. Some of these documents were later discovered in the government’s search of Engles Security’s office.
In February 2019, four other individuals were sentenced in related cases following their guilty pleas. James King, a former VA employee, was sentenced to serve 11 years in prison for committing bribery, defrauding the VA, and obstructing justice. Albert Poawui, the owner of Atius Technology Institute, was sentenced to serve 84 months in prison for committing bribery. Sombo Kanneh, Poawui’s employee, was sentenced to serve 20 months in prison for conspiracy to commit bribery. Michelle Stevens, the owner of Eelon Training School, was sentenced to serve 30 months in prison for committing bribery.
The FBI’s Washington Field Office and the VA Office of Inspector General are investigating the case. Trial Attorneys Simon J. Cataldo and Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Peter Lallas of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
School Owner Pleads Guilty to Defrauding Department of Veterans Affairs Program Dedicated to Rehabilitating Disabled Military VeteransRead the Press Release
The owner of a physical security school pleaded guilty today to defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with disabilities.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
Francis Engles, 63, of Bowie, Maryland, pleaded guilty to one count of wire fraud. The plea was entered before U.S. District Judge John D. Bates of the District of Columbia. Sentencing has been scheduled for April 2, 2020.
According to admissions made in connection with Engles’s guilty plea, Engles was the owner and operator of Engles Security Training School (Engles Security). In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment (VR&E) program, which provides disabled U.S. military veterans with services. Thereafter, Engles Security obtained over 80 percent of its total revenue from the VA in exchange for purporting to provide certain courses to disabled military veterans.
To further the scheme, Engles falsely represented to the VA that he was providing veterans with months-long courses for 40 hours per week and over 600 total hours. In fact, Engles Security offered veterans far less than what Engles represented to the VA. In some instances, he offered only a few hours of class per day for several weeks. Some veterans did not attend more than one day of class. Engles nevertheless sent to the VA “Certificates of Training” stating that veterans had completed courses that they had not completed or, in some instances, had not taken at all. Similarly, Engles submitted letters to the VA falsely stating that the veterans were employed by Engles’s private security business. Engles also instructed veterans to sign attendance sheets for classes that they did not in fact attend. In total, Engles obtained $337,960 from the VA for the purported education of veterans.
Engles also attempted to obstruct the investigation into his fraud. During an interview with federal agents, Engles lied about veteran students’ attendance at the school, among other things. Later, when Engles Security was served with a grand jury subpoena, Engles prevented his employee from producing responsive documents that she had gathered. Some of these documents were later discovered in the government’s search of Engles Security’s office.
In February 2019, four other individuals were sentenced in related cases following their guilty pleas. James King, a former VA employee, was sentenced to serve 11 years in prison for committing bribery, defrauding the VA, and obstructing justice. Albert Poawui, the owner of Atius Technology Institute, was sentenced to serve 84 months in prison for committing bribery. Sombo Kanneh, Poawui’s employee, was sentenced to serve 20 months in prison for conspiracy to commit bribery. Michelle Stevens, the owner of Eelon Training School, was sentenced to serve 30 months in prison for committing bribery.
The FBI’s Washington Field Office and the VA Office of Inspector General are investigating the case. Trial Attorneys Simon J. Cataldo and Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Peter Lallas of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Rowan County Doctor Sentenced for Unlawful Distribution of Prescription OpioidsRead the Press Release
GREENSBORO, N.C. – A Salisbury medical doctor who unlawfully prescribed oxycodone was sentenced to prison, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
DR. OKECHUKWU DIMKPA, age 50, of Salisbury, North Carolina, was sentenced to a total of 46 months’ imprisonment by United States District Judge Catherine C. Eagles on December 16, 2019. DIMKPA was also ordered to serve 3 years of supervised release following his imprisonment, and to pay a $50,000 fine. DR. DIMKPA pleaded guilty on September 11, 2019, to six counts of knowingly causing to be distributed oxycodone, a schedule II controlled substance, while acting outside the course of professional practice and without a legitimate medical purpose.
Court records show DR. DIMKPA, an Internist and former owner and operator of Care Plus Urgent Care in Kannapolis, was over-prescribing prescription pain medication, specifically, oxycodone. In 2016, investigators learned that DR. DIMKPA was prescribing opioids to known “drug seekers” with little or no physical examination and for cash. One person who was prescribed oxycodone by DR. DIMPKA died in 2016 from Acute Combined Drug Toxicity.
As part of the plea agreement, DR. DIMKPA was required to surrender his DEA Registration numbers, effectively barring him from prescribing controlled substances.
“Our office is focused on stemming the tide of opioid abuse by prosecuting opioid dealers, whether they are on the street corner or wearing a white coat in a medical office. This investigation demonstrates the exceptional coordination between federal, state, and local authorities to address the over-prescription of opioids,” stated United States Attorney Matthew G.T. Martin.
The case was investigated by the Drug Enforcement Agency, Federal Bureau of Investigation, Department of Health and Human Services, the North Carolina State Bureau of Investigation, and the Cabarrus County Sheriff's Office. The case was prosecuted by Assistant United States Attorney Michael A. DeFranco. This case was brought by the Opioid Fraud and Abuse Detection Unit of the Middle District of North Carolina, which is focused on identifying and prosecuting medical professionals who are contributing to the opioid epidemic.
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Rockford Man Sentenced to 15 Months in Prison for Aiming Laser Pointer at AircraftRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court by U.S. District Judge Philip G. Reinhard to 15 months in prison for aiming the beam of a laser pointer at an aircraft.
BRENTON WELLS, 45, admitted in a written plea agreement that on Dec. 6, 2018, while standing in the backyard of a residence in Rockford, he knowingly aimed his laser pointer at an aircraft flying over the residence. Wells also admitted that he continued to aim his laser pointer at the aircraft for a period of time even as the aircraft moved through the sky over the residence. Wells pleaded guilty to the charge on Aug. 20, 2019.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; Dan O’Shea, Rockford Chief of Police; and on behalf of the Department of Homeland Security: Marc Sledge, Director of Air and Marine Operations, Great Lakes Air and Marine Branch, and James Gibbons, Special Agent-in-Charge of the Chicago Field Office of Homeland Security Investigations. The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Richmond Mail Carrier Sentenced for Accepting BribesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 13 months in prison for accepting bribes in exchange for packages believed to contain marijuana that had been sent through the United States mails.
According to court documents, Christopher Grant, 59, accepted multiple bribes over a nearly one-year period from several different individuals while working as a U.S. mail carrier. In exchange, Grant gave those individuals at least 20 suspected marijuana parcels, all of which had been shipped from other states to vacant addresses and false aliases along Grant’s route. One such parcel was intercepted, searched, and found to contain over 11 pounds of marijuana. To hide his crimes, Grant attempted to alter U.S. Postal Service tracking records to falsely show that he had delivered the packages as addressed. Grant was confronted after surveillance recordings showed him accepting five cash bribes from individuals receiving the suspected marijuana parcels.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Imari Niles, Special Agent in Charge, U.S. Postal Service, Office of Inspector General; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge David J. Novak. Assistant U.S. Attorney Kaitlin G. Cooke prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-125.
Repeat Crack Dealer Sentenced to More than Fifteen Years in Federal PrisonRead the Press Release
A Dubuque man who distributed crack cocaine near playgrounds was sentenced on December 16, 2019, to over fifteen years in federal prison.
Cory Dukes, age 33, from Dubuque, Iowa, received the prison term after a July 1, 2019 guilty plea to the distribution of cocaine base within 1000 feet of a protected location.
In a plea agreement, Dukes admitted to knowingly selling crack cocaine to a confidential informant near two playgrounds in Dubuque, Iowa. Dukes has three previous convictions for selling narcotics in Dubuque near protected locations.
Dukes was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dukes was sentenced to 188 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Dukes is being held by the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Elizabeth Dupuich and was investigated by the Dubuque Drug Task Force and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1014.
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Reno Man Sentenced to over Eight Years in Prison for Role in Conspiracy to Distribute MethamphetamineRead the Press Release
RENO, Nev. – A Reno resident was sentenced Monday to eight years and two months in federal prison for transporting 10 pounds of methamphetamine from California for sale in Nevada, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Leon DeJesus Munera, aka Looney, 29, pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
According to court documents, on April 24, 2018, co-defendant Jose Mora asked Munera to drive to Orange County, California, to pick up a load of methamphetamine for him. Munera and co-defendant Kelsea Riley drove to California to pick up the drugs. Upon arrival in California, Munera picked up six large bundles of methamphetamine, weighing ten pounds, in the parking lot of a restaurant near an amusement park. On their return drive to Reno, Munera and Riley were stopped by police and the methamphetamine was recovered. In addition to drug trafficking, Munera assisted Mora with transporting firearms to co-defendant Alberto Acosta.
These charges stem from an investigation by the FBI’s Safe Streets Task Force with assistance from federal, state, and local law enforcement partners, including the Reno Police Department and the Washoe County Sheriff’s Office. Assistant U.S. Attorneys James E. Keller and Andolyn Johnson prosecuted the case.
Munera and 16 co-defendants were charged for their alleged roles in the drug conspiracy. All 16 defendants have pleaded guilty. Two have been sentenced, and the remainder await sentencing.
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Reno Felon Sentenced for Dealing MethamphetamineRead the Press Release
RENO, Nev. – James “Jimmy” Evans Sr., 49, of Reno, was sentenced today to 12 ½ years in federal prison to be followed by five years of supervised release for possession with intent to distribute nearly one pound of methamphetamine, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill for the Drug Enforcement Administration (DEA).
According to court documents, investigators had received information about Evans selling drugs from the garage of his residence. On July 23, 2018, law enforcement had a warrant to search the residence where Evans lived with Bobby Jo Kissel (his wife and co-defendant), along with two of Evans’ cars, for drugs, firearms, and related evidence. Before the search warrant was executed, a detective with the Sparks Police Department learned that Evans had not updated his residential address, which was required as part of his ex-felon registration. The detective observed Evans drive a van to a suspected drug stash location and then to a gas station.
At the gas station, the detective approached Evans, who admitted that he failed to properly update his address. During the interaction, a Washoe County Sheriff’s Office K-9 handler deployed his police dog to the van Evans had been driving. The police dog smelled drug odors from the van. Inside, Evans had a backpack containing 925 grams of pure methamphetamine, 144 grams of heroin, 35 grams of marijuana, and a digital scale. Evans was immediately arrested.
Meanwhile, other law enforcement investigators executed the search warrant at Evans’ residence. Among other things, they recovered an unregistered assault rifle with no serial number, a loaded semi-automatic 9mm pistol that had been reported stolen from Lassen County, and 423 grams of methamphetamine. Kissel was present at the residence during the search warrant execution and, after waiving her Miranda rights, she admitted knowing that Evans was selling methamphetamine. Law enforcement then obtained a search warrant for the suspected drug stash location, where investigators recovered a stolen .357 revolver and pure methamphetamine.
This case resulted from an investigation by the DEA, the Sparks Police Department, and the Washoe County Sheriff’s Office. Assistant U.S. Attorney Jim Keller prosecuted the case.
Evans pleaded guilty in September 2019 to possession with intent to distribute at least 500 grams of methamphetamine. Kissel pleaded guilty to misprision of felony, which means knowing that a felony was committed, taking affirmative steps to conceal the crime, and failing to notify the authorities. She faces up to three years in prison at a sentencing hearing set on January 22, 2020.
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Rapid City Man Sentenced to 75 Years in Federal Prison for Aggravated IncestRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of two counts of Sexual Exploitation of a Minor and one count of Aggravated Incest was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Henry Chase Alone, a/k/a Henry Black Elk, age 36, was sentenced on December 16, 2019, to 2 consecutive terms of 30 years in federal prison sentences, followed by a lifetime of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund as to the Sexual Exploitation of a Minor charges. Chase Alone was sentenced to an additional 15 years in federal prison, followed by a lifetime of supervised release, and another $100 special assessment to the Federal Crime Victims Fund for the Aggravated Incest charge, for a total of 75 years in federal prison. Chase Alone was also ordered to pay $6,000 in restitution to the victims of sexual exploitation.
Chase Alone was found guilty of the charges following a federal jury trial in Rapid City on January 10, 2019. Evidence at trial established that Chase Alone received custody of a young girl in November 2016 and almost immediately upon her arrival at his home, began sexually abusing her. Chase Alone used threats and fear of violence to physically and sexually abuse her for years. Through the ongoing investigation, child pornography was found on Chase Alone’s computer. Videos and still photos established Chase Alone recorded himself and the victim engaging in sexual intercourse.
This case was investigated by the Internet Crimes Against Children Taskforce, the Federal Bureau of Investigation, the Pennington County Sheriff’s Office, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Chase Alone was immediately turned over to the custody of the U.S. Marshals Service.
Randolph County man charged with drug and firearms crimesRead the Press Release
ELKINS, WEST VIRGINIA – Christopher Daniel Smith, of Elkins, West Virginia, was indicted today on drug and firearms charges, U.S. Attorney Bill Powell announced.
Smith, age 36, is charged with one count of “Possession with Intent to Distribute Methamphetamine,” one count of “Maintaining a Drug-Involved Premises,” one count of “Possession with Intent to Distribute Heroin,” and one count of “Unlawful Possession of a Firearm.” Smith, who was previously convicted of a felony and is prohibited from having a firearm, is accused of having methamphetamine, heroin, a .380 caliber pistol, a .45 caliber pistol, and a .22 caliber rifle in January 2018 in Randolph County.
Smith faces up to 20 years incarceration and a fine of up to $1,000,000 for each drug count and faces up to 10 years incarceration and a fine of up to $250,000 for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Mountain Region Drug & Violent Crimes Task Force; the Randolph County Sheriff’s Office; and the Elkins Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ponte Vedra Man Sentenced to 5 Years in Federal Prison and Ordered to Pay $8.9 Million in Restitution for Fraud and Money LaunderingRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Bryan L. Brewer (44, Ponte Vedra) to five years in federal prison for wire fraud, bank fraud, and money laundering. Brewer also was ordered to pay $8.9 million in restitution.
Brewer had pleaded guilty on August 1, 2019.
According to court documents, Brewer engaged in two fraud schemes that resulted in him receiving more than $8 million. In one scheme, Brewer solicited an individual to invest in a company that manufactured paddleboards by the name of USBoardco (also known as WatersEdge). As part of the scheme, Brewer sent the victim copies of bank statements, tax returns, and other financial documents that had been falsified to inflate the sales, profits, income, and bank account balance for the company. In reliance upon those and other misrepresentations, the victim invested over $1 million.
The second scheme related to some real estate located in Seminole County. In 2012, an investor loaned more than $4 million to assist Brewer in the purchase of the property. In return, the investor obtained a mortgage on the property. A couple of years later, Brewer defrauded a bank into lending his companies $7.75 million that involved Brewer forging documents and using a fake email account that he had created for his investor. This scheme consisted of two parts. First, Brewer forged a letter that transferred the mortgage from his investor to an entity that Brewer controlled. Second, Brewer forged an estoppel letter from his investor that falsely promised that the investor would release his mortgage for $3.5 million. Brewer used a fake email account that he had established for the investor to send the forged estoppel letter and to pretend to be the investor in communications with the bank. Relying upon the forged letters and his other misrepresentations, the bank loaned one of Brewer’s companies $7.75 million.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Piedmont Doctor Pays $52,500 to Settle Civil Penalty ClaimsRead the Press Release
OKLAHOMA CITY – MAURICE CORMAN, M.D., has agreed to pay $52,500 to settle civil penalty claims stemming from allegations that he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced United States Attorney Timothy J. Downing.
Dr. Corman practices family medicine in Piedmont, Oklahoma. The United States alleges that from June 29, 2016, to November 27, 2018, he acquired vials of testosterone from a pharmacy and failed to maintain any records of the acquisitions as required by law. Dr. Corman also failed to keep any records related to the dispensing of the testosterone he acquired.
To resolve these allegations, Dr. Corman agreed to pay $52,500 to the United States.
In reaching this settlement, Dr. Corman did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration, Office of Diversion Control. Assistant U.S. Attorneys Ronald R. Gallegos and Amanda R. Johnson prosecuted the case.
Philadelphia Man Pleads Guilty to Federal Attempted Robbery and Firearms Charges After Receiving Shockingly Lenient Plea Deal on State Charges from Philadelphia District Attorney’s OfficeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jovaun Patterson, 30, of Philadelphia, Pennsylvania entered a plea of guilty before United States District Court Judge Mitchell S. Goldberg on charges of one count of attempted robbery which interferes with interstate commerce (known as Hobbs Act robbery), and one count of using, carrying, and discharging a firearm during and in relation to a crime of violence. These charges stem from the defendant’s attempted armed robbery on May 5, 2018, of the KCJ, Inc. convenience store during which Patterson shot the store owner Li (“Mike”) Poeng with an assault rifle, leaving Mr. Poeng in a coma and eventually confined to a wheelchair.
Prior to federal prosecutors filing these charges by Indictment in February 2019, Patterson was arrested by Philadelphia police for the May 5, 2018 incident and charged with attempted murder, aggravated assault, robbery–threat of immediate serious injury, possession of a firearm by a prohibited person, possession of a firearm on a street in Philadelphia, possession of an instrument of crime, simple assault, and reckless endangerment of another person. On November 15, 2018, the Philadelphia District Attorney’s Office permitted Patterson to enter a negotiated guilty plea to charges of only aggravated assault, robbery–threat of immediate serious injury, and possession of an instrument of crime. The DA’s Office also agreed to a sentence of only 3½ to 10 years’ imprisonment. That plea deal was in line with the soft-on-crime priorities of Philadelphia District Attorney Larry Krasner. Thereafter, the U.S. Attorney’s Office stepped in to bring federal charges and ensure justice was done.
“Violent crime is a severe and growing problem in Philadelphia, and fighting that trend is a top priority of my Office,” said U.S. Attorney McSwain. “The Philadelphia District Attorney, Mr. Krasner, does not share that priority – preferring to look out for violent offenders like Mr. Patterson, who received a ridiculously lenient plea deal because of Mr. Krasner. I can assure the citizens of Philadelphia that my Office sees the problem and is working hard to do what we can to stem the rising tide by bringing federal charges when we are able, which is what occurred here. Now, this defendant will face a potential sentence that reflects the severity of his crime.”
“ATF’s top priority is combating violent crime; one of the ways we accomplish that mission is by keeping firearms out of the hands of violent offenders,” said Donald Robinson, Special Agent in Charge, ATF Philadelphia Field Division. “This case is a perfect example of the collaborative effort between ATF, our partners at the Philadelphia Police Department and the United States Attorney’s Office in targeting violent offenders and protecting our communities.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
Pennsylvania Doctor Pleads Guilty to Fraud and Drug Importation ChargesRead the Press Release
A Pennsylvania doctor pleaded guilty to fraud and drug importation charges for his role in a scheme to illegally import medications not approved by the U.S. Food and Drug Administration (FDA) and administer these medications to his patients, and unlawfully distributing oxycodone to his patients.
Thomas J. Whalen, D.O., 65, a Havertown, Pennsylvania, rheumatologist pleaded guilty to one count of health care fraud, one count of importation contrary to law and two counts of distribution of controlled substances before U.S. District Judge Timothy J. Savage of the Eastern District of Pennsylvania. Sentencing is scheduled for April 1, 2020, before Judge Savage.
“The defendant endangered his patients’ health and safety by importing and administering non-FDA approved medications,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This plea shows that medical professionals who prioritize profit over patient care will face the consequences for their crimes.”
“This guilty plea from Dr. Whalen is the latest example of my office’s commitment to stopping health care fraud and diversion,” said U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania. “We work closely with our partners in the Fraud Section’s Health Care Fraud Strike Force and will continue to root out fraud in the medical profession. Specifically, we are committed to stopping criminals in the medical profession from stealing from public programs, threatening the safety of patients, and pushing illegal pills onto the streets.”
“Dr. Whalen placed the health of countless patients at risk by administering non-FDA approved drugs,” said Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Philadelphia Office. “Such medications are not paid for by Medicare due to the risk they may pose to patient health. Our watchdog agency, along with our law enforcement partners, will continue to protect the public and root out dangerous and costly fraud schemes.”
“Dr. Whalen has pleaded guilty to the unlawful distribution of oxycodone, which is a powerful prescription painkiller,” said Special Agent in Charge Jonathan A. Wilson of the U.S. Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Of particular concern is that he knowingly prescribed oxycodone to patients who were abusing illegal street drugs such as cocaine and heroin. Doctors have a professional and moral obligation to treat patients who are struggling with substance use disorder – not enable it.”
“Dr. Whalen imported and used non-FDA approved drugs from Turkey and the United Kingdom, without any regard for the safety and health of his patients. In addition, he prescribed powerful pain killers to patients already struggling with addiction,” said Acting Special Agent in Charge William Walker of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Philadelphia. “Doctors take an oath to do no harm. This oath was clearly betrayed by not only committing healthcare fraud for his own financial gain, but by contributing to our nation’s opioid crisis. Thanks to our partnership with Customs and Border Protection, we have brought one more person to justice, and many more individuals out of harm’s way.”
“When health care professionals import unsafe, untested prescription drugs from outside the drug supply chain that the FDA oversees, the American public's health and trust are jeopardized,” said Special Agent in Charge Mark S. McCormack of the FDA’s Office of Criminal Investigations (FDA-OCI), Metro Washington Field Office. “The FDA is committed to pursuing and bringing to justice those who attempt to subvert the safeguards of our closed drug supply by distributing unapproved products.”
“Dr. Whalen falsely billed federal benefit programs, pocketing over a million dollars he wasn’t entitled to,” said Special Agent in Charge Michael T. Harpster of the FBI’s Philadelphia Field Office. “Between that and his unlawful diversion of prescription opioids, Whalen was doing damage on many levels. The FBI will continue to crack down on crooked medical professionals more interested in their profits than their patients.”
In pleading guilty, Whalen admitted that, from about January 2014 through March 2018, he illegally imported non-FDA-approved biologic medications, including Remicade, Synvisc, Synvisc-One, Orencia, Prolia/Xgeva and Boniva. Rather than purchase FDA-approved versions of these medicines from authorized distributors, Whalen devised a scheme to purchase much cheaper foreign, non-FDA-approved versions of these medications. Unbeknownst to his patients, Whalen injected or infused his patients with the non-FDA-approved medications and then falsely billed federal health care benefit programs approximately $2.3 million and was paid directly approximately $1.1 million, and pocketed the profits for himself, he admitted.
Whalen also admitted to unlawfully distributing oxycodone by prescribing oxycodone to patients outside the course of his professional practice and without a legitimate medical purpose. In particular, with two patients, Whalen prescribed oxycodone despite knowing from a review of patients’ urine drug screen tests that the patients were using illicit drugs, including heroin and cocaine, and/or that each was not taking the mediations that Whalen prescribed.
HHS-OIG, DEA, HSI, FDA-OCI and the FBI investigated the case with assistance from U.S. Customs and Border Protection. Trial Attorney Debra Jaroslawicz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Paul J. Koob of the Eastern District of Pennsylvania are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Owner of Purported U.K. Investment Firm and Two Richmond-Area Men Charged for Roles in Investment Fraud SchemeRead the Press Release
The owner of a purported investment company based in the United Kingdom and two alleged co-conspirators were charged in an indictment unsealed yesterday for their alleged participation in an investment fraud scheme by which they allegedly stole at least $6.2 million from victim investors.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Inspector in Charge Delany De Leon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group and Special Agent in Charge David Archey of the FBI’s Richmond Field Office made the announcement.
Brian Michael Bridge, 46, of London, England, the owner of Chimera Group Ltd.; James Michael Johnson, 68, of Richmond, Virginia; and James Leonard Smith, 54, of Midlothian, Virginia, were each charged in an indictment filed in the Eastern District of Virginia with one count of conspiracy to commit wire fraud and one count of wire fraud. Johnson and Smith made their initial appearances in Richmond today. Bridge remains at large.
The indictment alleges that Bridge – working with Johnson and Smith in the Richmond area – operated a worldwide scheme through Chimera Group Ltd. The scheme operated as an advance fee scheme which involved the defendants as promoters who promised to pay the victims a sum of money at a later date in exchange for an upfront advanced payment. Among other misrepresentations, Bridge, Johnson and Smith allegedly told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these letters were fabricated, the indictment alleges. The indictment also alleges that the defendants used escrow attorneys who were themselves part of the scheme in order to give the victims the appearance that their money would remain secure until the defendants’ promises had been kept. Upon receiving the victims’ funds, those attorneys immediately forwarded the money out of their escrow accounts to the defendants and affiliated individuals, the indictment alleges.
The indictment alleges that the defendants stole at least $6.2 million from their victims.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service’s Criminal Investigations Group and FBI’s Richmond Field Office investigated the case. Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia are prosecuting the case. The Criminal Division’s Office of International Affairs and the Securities Division of the Virginia State Corporation Commission also provided assistance.
Operation High Tide Results in 20 Convictions on Drug and Gun ChargesRead the Press Release
NORFOLK, Va. – Federal and local law enforcement officials today announced the results of Operation High Tide, a proactive, large-scale narcotics and firearms trafficking investigation that focused on high-impact targets driving crime in some of the hardest hit neighborhoods in Hampton Roads.
In early September, over 100 law enforcement agents, officers, and other personnel executed Operation High Tide, which resulted in the arrests of nearly two dozen individuals involved in selling drugs and guns in Norfolk, Chesapeake, and Portsmouth.
To date, Operation High Tide has resulted in 20 convictions and the recovery of approximately 78 firearms, over 7 kilograms of cocaine, nearly a kilogram of crack cocaine, over 625 grams of heroin, over 100 grams of fentanyl, 75 grams of acetyl fentanyl, 12 pounds of marijuana, 621 grams of hash oil, 24 grams of MDMA (commonly known as ecstasy), 120 grams of methamphetamine, and over $560,000 in cash. The narcotics seized have a street value of nearly $1 million.
“Armed criminals are the principal players involved in the deadly cycles of drug turf battles and gang conflicts that deprive our neighborhoods and families of the peace and security they deserve,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Operation High Tide is the latest highly-coordinated effort from federal, state, and local law enforcement to tackle violent crime in Hampton Roads. Further, this operation is emblematic of Attorney General Barr’s Project Guardian, which was announced last month and focuses on those who use firearms during narcotics trafficking and the trafficking of firearms. Through this operation, we are making our strong partnership known and felt in Hampton Roads, as we apprehend and remove from the streets those individuals who have committed serious offenses and put the safety of our communities in danger. This coordinated operation reflects the skilled and brave work of our federal, state and local law enforcement partners, and is part of a law enforcement surge in this priority enforcement area for EDVA.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) initiated Operation High Tide in collaboration with the Chesapeake and Norfolk Police Departments and the Virginia State Police. The operation identified individuals throughout Hampton Roads who were illegally selling firearms, fentanyl, heroin, cocaine, and other narcotics.
“This investigation focused on the most violent offenders in the Chesapeake, Norfolk, and Portsmouth communities,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “ATF’s priority is reducing violent crime. Criminals often utilize firearms as tools of their trade causing harm to our communities. This case illustrates ATF’s commitment to effective law enforcement partnerships and dedication to keeping our cities safe.”
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.
Below is a table which lists the name, age, hometown, and respective charge(s) to which each defendant pleaded guilty.
Name, Age
Hometown
Charges
Sentencing
Brian D. Best, 34
Virginia Beach
Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
Feb. 27, 2020
Antisha Carrington, 25
Virginia Beach
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana
Feb. 21, 2020
Kawanta D. Epps, 40
Norfolk
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana; Distribution of Heroin
Feb. 19, 2020
Anthony L. Green, 48
Chesapeake
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana; Distribution of Heroin
March 12, 2020
Corey L. Jones, 50
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
Feb. 19, 2020
Dominic D. Jones, 26
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
Feb. 11, 2020
Malcolm D. Jones, Sr., 45
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Distribution of Heroin, Fentanyl; Distribution of Acetyl Fentanyl
Feb. 5, 2020
Shon E. Melton, 30
Portsmouth
Distribution of Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime; Possession of an Unregistered National Firearms Act Firearm
March 26, 2020
Gary Norfleet, 52
Chesapeake
Possession with Intent to Distribute Cocaine; Felon in Possession of a Firearm
Feb. 11, 2020
Jermaine C. Parker, 35
Chesapeake
Distribution of Fentanyl; 2 counts of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
Feb. 3, 2020
Corey S. Reed, 38
Norfolk
Distribution of Heroin; Possession with Intent to Distribute Heroin
Jan. 9, 2020
Jameel M. Simmons, 37
Portsmouth
Possession with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
Jan. 23, 2020
Jelami M. Smith, 43
Portsmouth
Distribution of Heroin
Feb. 2, 2020
Robert B. Spruill, 39
Chesapeake
Conspiracy to Distribute and Possess Methamphetamine
Feb. 27, 2020
Hasheed Mills, 25
Portsmouth
Distribution of Heroin; Possession of a Firearm in Furtherance of a Drug-Trafficking Crime; Distribution of Cocaine
Feb. 28, 2020
Tajh Rodgers, 29
Portsmouth
Robbery Affecting Commerce; Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence; and 3 counts of Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
Jan. 9, 2020
Glenn Farris, 36
Norfolk
Using a Communication Facility to Commit, Cause, and Facilitate the Distribution of Controlled Substances
Feb. 12, 2020
Malcom Jones, Jr., 25
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin
Feb. 18, 2020
Raewkon A. Pierce, 24
Portsmouth
Distribution of Cocaine
March 16, 2020
Johnnie Ross, 29
Portsmouth
Distribution of Fentanyl
March 31, 2020
G. Zachery Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Larry D. Boone, Chief of Norfolk Police; Col. K.L. Wright, Chief of Chesapeake Police; Greg Underwood, Norfolk Commonwealth’s Attorney, and Nancy Parr, Chesapeake Commonwealth’s Attorney, made the announcement.
This case was investigated by the ATF’s Norfolk Field Office, the Chesapeake, Norfolk, and Portsmouth Police Departments, and the Virginia State Police, with the assistance of the FBI, DEA, NCIS, and the U.S. Marshals.
Attorneys from the Drug and Violent Crime Unit of the Norfolk Division of the U.S. Attorney’s Office, including Kristin G. Bird, Andrew C. Bosse, John F. Butler, Megan M. Cowles, Sherrie Capotosto, Kevin M. Comstock, Joseph E. DePadilla, William B. Jackson, Darryl Mitchell, and William D. Muhr are prosecuting the cases.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:19-CR-111; 2:19-CR-80, 141, 145, 146, 147, 148, 149, 150, 151, 154, 155; and 2:18-CR-138.
North Florida Man Sentenced to 30 Years Imprisonment After Conviction on Child Pornography ChargesRead the Press Release
GAINESVILLE, FLORIDA – Joseph Donald Roberts, 43, of Branford, Florida, was sentenced to 30 years imprisonment for possession, receipt, and production of child pornography, some involving prepubescent children. The sentence, imposed in federal court on Monday, was announced by Lawrence
Keefe, U.S. Attorney for the Northern District of Florida.“The more we hold offenders accountable and do our part to prevent sexual violence and support survivors, the further we will go in ending the blight of child sexual abuse,” Keefe said. “The
U.S. Attorney’s Office is wholly committed to this effort and will continue to do everything in its power to bring these vile offenders to justice.”On May 18, 2018, investigators identified a subject using the internet within Florida to distribute and receive images and videos of child pornography. Further investigation led to the seizure of numerous computers and electronic storage devices from Roberts’ residence in Branford. A forensic examination of the devices revealed that Roberts had hundreds of images and videos depicting the sexual exploitation of children, including prepubescent children. Further examination determined that Roberts had also used his cell phone in an attempt to create sexually explicit videos depicting a minor engaged in sexually explicit conduct.
“This strong sentencing represents the severity of this crime,” said Micah McCombs, Homeland
Security Investigations’ Tampa Assistant Special Agent in Charge. “Thanks to our HSI special agents, the Florida Department of Law Enforcement, and the Gilchrist County Sheriff’s Office, this child predator is off our streets and is being held accountable for the tremendous harm he has done.”Child pornography is a brutal crime because each image or movie represents an assault on an innocent child who has been sexually abused,” said FDLE Tallahassee Special Agent in Charge Mark
Perez. “We will continue to work with our law enforcement partners to address these heinous acts.”Roberts was indicted by a grand jury and later convicted in a two-day jury trial. The trial jury made a special finding that the images possessed by Roberts included children younger than 12.
The case was investigated by the Florida Department of Law Enforcement and Homeland Security
Investigations. The case was prosecuted by the Northern District of Florida’s Child Exploitation and Human Trafficking Coordinator, Assistant United States Attorney Frank Williams.The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
North Carolina Tax Return Preparer Sentenced to Prison for Tax FraudRead the Press Release
A Raleigh, North Carolina, man was sentenced to 45 months in prison today for conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney for the Eastern District of North Carolina, Robert J. Higdon Jr.
According to court documents and statements made in court, from 2011 through 2014, Garvey Imhotep conspired with others to file false tax returns for clients of several tax return preparation businesses, including Tax Kings, Two Brothers Tax Service, and Taxes Done Right. Imhotep and his co-conspirators filed returns claiming false education expenses and other fraudulent items in order to increase clients’ tax refunds. To conceal his involvement and evade Internal Revenue Service (IRS) detection, Imhotep used tax preparer identification numbers that are assigned to other individuals. Imhotep’s conduct caused a tax loss of more than $1.5 million to the United States.
In addition to the prison term, U.S. District Judge James C. Dever III, ordered Imhotep to serve three years of supervised release and to pay $2,144,888 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant United States Attorney Ethan Ontjes and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Admits Role in Defrauding Banks in $3.5 Million ‘Shotgun’ Loan SchemeRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to carry out a $3.5 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Craig Carpenito announced.
Saoud “Sam” Rihan, 59, pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of conspiracy to commit bank fraud.
According to documents filed in the case and statements made in court:
Rihan was a business partner of Simon Curanaj, 65, of Yonkers, New York. From 2012 through January 2014, Rihan, Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.
In 2013, Rihan and Curanaj executed a deed to transfer ownership of a Bronx property to people identified in the complaint as “Individual 1” and “Individual 2,” neither of whom lived at the property. Rihan offered Individuals 1 and 2 $10,000 cash payments for acting as straw borrowers but never paid them. Rihan and Curanaj then applied for three HELOCs valued at $750,000 from multiple banks in the name of Individual 2.
Rihan and Curanaj hid the fact that the same Bronx property was pledged as collateral in all three applications. The applications also fraudulently inflated Individual 2’s income. In addition, at the time the applications were made, the value of the Bronx property, which was encumbered by a mortgage, was far less than the amount of the HELOC loans that Rihan and the real estate broker applied for.
The victim banks eventually issued loans to Individual 2 in excess of $370,000. After the victim banks funded the HELOCs and deposited money into Individual 2’s bank accounts, Individual 2 disbursed almost all of the funds to Rihan, Curanaj, and others. In 2014, Individual 2 defaulted on all the HELOC loans.
The overall scheme resulted in over $3.5 million in losses to the victim banks.Rihan faces a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 25, 2020.
Curanaj previously pleaded guilty to his role in the scheme and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak in Newark; and special agents of the FBI, under the direction Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.Defense Counsel: Jeffrey Garrigan Esq., Jersey City, New Jersey
New Jersey man charged with sex offender registry violationRead the Press Release
ELKINS, WEST VIRGINIA – Jason Steven Kokinda, of Hammonton, New Jersey, was indicted today on a sex offender registry charge, U.S. Attorney Bill Powell announced.
Kokinda, age 41, is charged with one count of “Failure to Update Sex Offender Registration.” Kokinda is required to update his sex offender registration. He is accused of traveling from New Jersey, New York, Vermont, and Delaware to West Virginia without updating his registration in August 2019 in Randolph and Pendleton Counties.
Kokinda faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The United States Marshal Service, the West Virginia State Police, and the Elkins Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Convicted of Promoting Tax Fraud SchemeRead the Press Release
A federal jury sitting in Camden, New Jersey, convicted an Atlantic City man of conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to evidence presented at trial, between 2015 and 2016, Kenneth Crawford Jr., and his co-conspirators promoted and sold a “mortgage recovery” tax fraud scheme in which they obtained for their clients fraudulent refunds from the Internal Revenue Service (IRS). Crawford promoted the scheme to individuals who were facing foreclosure or behind on their mortgage payments, and represented to them that they could extinguish their outstanding mortgage debts by filing tax forms with the IRS. As part of the scheme, Crawford and his co-conspirators caused clients to file forms that fraudulently claimed that a substantial amount of taxes had already been withheld from them. These false withholding claims caused the IRS to authorize significant refunds to which the clients were not entitled. As a result of Crawford’s scheme, more than $2.5 million in fraudulent refunds were sought from the IRS, of which the IRS paid out more than $1.3 million. Crawford charged his clients a fee of roughly 25 percent of the refund obtained.
When the IRS discovered the fraud and attempted to recover the previously issued refunds, Crawford provided clients with false and fraudulent documents to send to the IRS, directed clients to conceal from the IRS his role in filing the false returns, and advised clients to remove funds from bank accounts in their names in order to thwart IRS collection efforts.
U.S. District Judge Robert B. Kugler scheduled sentencing for March 20, 2020. As a result of his conviction, Crawford faces a statutory maximum sentence of five years in prison for the conspiracy charge, five years in prison for each false claim count, and three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution, and monetary penalties.
Crawford is currently detained pending sentencing as a result of his conviction, and for previously violating his conditions of pretrial release.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Sean Green and Assistant Chief John Kane, who are prosecuting the case. He also thanked the United States Attorney’s Office for the District of New Jersey for its assistance and support during the investigation and prosecution of this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
NDTX Round-Up December 17Read the Press Release
SENTENCING – NELSON PABON
On December 6, Nelson Pabon, 48, was sentenced to 16 years and 8 months in federal custody for conspiracy to possess with intent to distribute methamphetamine. Pabon had informed undercover officers that because of his advance knowledge of canine sweeps of luggage, he was well-positioned to sneak drugs onto commercial flights for cash. Pabon is the lead defendant of 10 coconspirators in this case. If you would like to read more about this case, please click here. This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division. This case is prosecuted by AUSA George Leal, John de la Garza, and John Kull.
GUILTY PLEA – DARYL HENRY
On December 12, Daryl Henry, 24, pled guilty to a hate crime act, conspiracy to commit hate crimes, kidnapping, and carjacking. Henry faces up to life in federal custody for his crimes. Henry admitted Grindr, a social media dating platform primarily used by gay men, was used to lure gay men to a vacant apartment, where they were beaten, taunted, and held against their will. This case was investigated by the Federal Bureau of Investigation, and the Dallas Police Department and is prosecuted by AUSA Nicole Dana. Click here to read more about this case.
GUILTY PLEA – RICARDO MONTES-GARCIA
On December 10, Ricardo Montes-Garcia, 53, pled guilty to possession with the intent to distribute methamphetamine. Montes-Garcia was spotted by police officers as he was leaving his residence and entering his vehicle with a black rectangular object and a white plastic bag. When officers observed a traffic violation, Montes-Garcia gave consent for a search. Officers found the rectangular object to contain 1,972 grams of methamphetamine. In a later search of his home, officers found 8,885 grams of methamphetamine, $36,833 in drug proceeds, and a methamphetamine conversion laboratory. He faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Adminstration and prosecuted by AUSA John Kull.
SENTENCING – JONATHAN ALEXANDER BAIRES
On December 12, Jonathan Alexander Baires, 20, was sentenced to 10 years in federal custody for attempted murder in aid of racketeering. Baires, a member of the MS-13 gang and the Irving Loco Salvatruchas clique, attempted to murder a man who Baires and his coconspirators assumed were a member of the rival 18th Street gang. The victim was ambushed by the gang members in a park, along with three other victims. Fortunately, the fatal attack was unsuccessful. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, the Irving Police Department, and the Dallas Police Department and prosecuted by AUSA Gary Tromblay.
SENTENCING – JOSE ARMANDO SARAVIA-ROMERO
On December 12, Jose Armando Saravia-Romero, 20, was sentenced to 4 years and 9 months in federal custody for assault with a dangerous weapon in aid of racketeering. Saravia-Romero, a member of the MS-13 gang and the Irving Loco Salvatruchas, attacked and robbed a victim at a gas station. Saravia-Romero and his associates offered the victim cocaine and beer, and when the victim refused to pay, they attacked him with a metal bat and stole his wallet. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, the Irving Police Department, and the Dallas Police Department and prosecuted by AUSA Gary Tromblay.
Montgomery County Man Pleads Guilty to Sexually Exploiting MinorsRead the Press Release
WICHITA, KAN. - A Cherryvale, Kan., man pleaded guilty today to federal charges of sexually exploiting minors, U.S. Attorney Stephen McAllister said.
Austin Ballew, 21, Cherryvale, Kan., pleaded guilty to five counts of sexually exploiting a child and three counts of sex trafficking of a minor. In his plea, Ballew admitted he used Facebook to pose as an African-American teenager or young man to communicate with minor females in southeast Kansas towns. An investigation began when a victim’s parents contacted the Independence (Kansas) Police Department. Investigators learned that Ballew, calling himself Deandre Johnson, was soliciting other minor females for sex acts and child pornography.
Ballew offered victims money and marijuana to send him sexually explicit videos of themselves. He also threatened victims that he would make their videos public unless they kept cooperating with him.
Sentencing is set for March 23. The parties have agreed to ask the court for a sentence somewhere in a range of 15 years to 25 years in federal prison. McAllister commended the Independence Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Member of Lightfoot Drug Trafficking Organization Pleads Guilty to Distributing Large Quantities of CocaineRead the Press Release
PITTSBURGH – A former resident of Donora, PA, has pleaded guilty to federal narcotics charges, United States Attorney Scott W. Brady announced today.
Brett Fincik, age 45, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 500 grams or more of cocaine in front of United States District Court Judge Mark R. Hornak.
According to information presented to the court, from January 2015 to November 2017, Fincik conspired with others to import large quantities of cocaine and marijuana into Western Pennsylvania. Once the narcotics were in Western Pennsylvania, Fincik would then resell large quantities of cocaine to customers in Allegheny, Westmoreland, and Washington Counties.
The law provides for a mandatory minimum sentence of not less than 10 years in prison and a maximum of life and/or a fine of not more than $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Timothy M. Lanni and Shaun Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Manhattan U.S. Attorney Files Lawsuit Against Omnicare, Country’s Largest Long-Term Care Pharmacy, and Parent Company CVS for Fraudulently Billing for Drugs Dispensed to Elderly and Disabled Individuals Without Valid PrescriptionsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), announced today that the United States has filed a civil healthcare fraud lawsuit against OMNICARE, INC., and its parent company, CVS HEALTH CORPORATION. The Government’s Complaint seeks damages and civil penalties under the False Claims Act for fraudulently billing federal healthcare programs for hundreds of thousands of non-controlled prescription drugs dispensed based on stale, invalid prescriptions to elderly and disabled individuals. These individuals lived in assisted living facilities, group homes, independent living communities, and other non-skilled residential long-term care facilities. The illegally dispensed drugs include antipsychotics, anticonvulsants, and antidepressants.
The lawsuit alleges that OMNICARE failed to obtain new prescriptions from patients’ doctors after the old ones had expired or run out of refills. Instead, OMNCIARE just assigned a new number to the old prescription and kept on dispensing drugs for months, and sometimes years, after the prescriptions had expired. OMNICARE internally referred to these as “rollover” prescriptions. As set forth in the Complaint, OMNICARE submitted, or caused to be submitted, false claims for payment for these illegally dispensed drugs to Medicare, Medicaid, and TRICARE.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Omnicare put at risk the health of tens of thousands of elderly and disabled individuals living in assisted living and other residential long-term care facilities by dispensing drugs for months, and sometimes years, without obtaining current, valid prescriptions from doctors. A pharmacy’s fundamental obligation is to ensure that drugs are dispensed only under the supervision of treating doctors who monitor patients’ drug therapies. Omnicare blatantly ignored this obligation in favor of pushing drugs out the door as quickly as possible to make more money. This Office will continue to hold accountable those who put at risk people’s health and safety just to turn a profit.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Failing to consult doctors as to whether prescriptions should be refilled places patients’ health and medical care at serious risk. These automatic rollover refills could have significant consequences for vulnerable people in long term-care facilities. We will continue working with law enforcement partners to protect people depending on these taxpayer-funded government health programs.”
The following allegations are based on the Complaint that was filed in Manhattan federal court today:
OMNICARE is the country’s largest provider of pharmacy services to long-term care facilities, operating approximately 160 pharmacies in 47 states across the United States. Every year, OMNICARE dispenses tens of millions of prescription drugs to long-term care facilities, including assisted living and other non-skilled residential facilities that serve elderly and disabled individuals. CVS acquired Omnicare in May 2015, and shortly thereafter assumed an active role in overseeing OMNICARE’s operations, including pharmacy dispensing practices and systems.
From 2010 until 2018, OMNICARE and CVS allowed OMNICARE pharmacies to dispense non-controlled prescription drugs to tens of thousands of elderly and disabled individuals living in assisted living and other residential long-term care facilities across the country based on prescriptions that had expired, were out of refills, or were otherwise invalid. OMNICARE repeatedly disregarded prescription refill limitations and expiration dates that would have triggered doctor visits to evaluate whether the drug should be renewed, choosing instead to push drugs out the door as fast as possible based on stale, invalid prescriptions. OMNICARE managers exerted pressure on overwhelmed pharmacy staff to fill prescriptions quickly so that OMNICARE could submit claims and collect payments. Many pharmacies had to process and dispense thousands of orders each day.
Instead of requesting new prescriptions when old ones expired, OMNICARE allowed prescriptions to “roll over.” At OMNICARE, “rolling over” a prescription meant that when a prescription expired, OMNCIARE’s computer systems would assign the old prescription a new number and the pharmacy would continue to dispense the drug indefinitely without the need for a prescription renewal. Depending on the computer system used, OMNICARE also sometimes assigned a fake number of authorized refills to a prescription – usually 99 allowable refills for Medicare patients – to allow for continuous refilling. OMNICARE pharmacies “rolled over” prescriptions for elderly and disabled individuals living in more than 3,000 residential long-term care facilities, including assisted living facilities operated by the largest long-term care providers in the country, such as Brookdale Senior Living, Atria Senior Living, Sunrise Senior Living Services, and Five Star Senior Living.
Senior OMNICARE and CVS management knew that pharmacies were routinely dispensing drugs without valid prescriptions, but they failed to begin to address the problem until after they found out about this Office’s investigation. Indeed, OMNICARE’s Compliance Department succinctly acknowledged the problem in an internal April 2015 email in which one Regional Compliance Officer stated: “An issue that I am running into more and more in multiple states concerns the ability of our systems to allow prescriptions to continue to roll after a year to a new prescription number without any documentation or pharmacist intervention.” A compliance officer then forwarded the email to the head of OMNICARE’s Third Party Audit group, who responded that she had a “potential solution (programmed last year) but no one is rolling it out now.”
OMNICARE’s practice of illegally dispensing drugs to elderly and disabled individuals living in residential facilities exposed these vulnerable individuals to a significant risk of harm. In contrast to traditional skilled nursing homes, where residents have access to 24-hour medical care supervised by doctors, assisted living and other non-skilled residential facilities offer more limited medical care, or none at all. In particular, these facilities generally do not have doctors on staff to oversee and monitor residents’ drug therapy.
Many of the prescription drugs dispensed by OMNICARE without valid prescriptions treat serious, chronic conditions, such as dementia, depression, and heart disease. They include antipsychotics, anticonvulsants, cardiovascular medications, anti-depressants, and other drugs that can have dangerous side effects and need to be closely monitored by doctors, particularly when taken in combination with other drugs by elderly patients. By repeatedly dispensing potent drugs without current and valid prescriptions, OMNICARE jeopardized the health and safety of tens of thousands of individuals who continued to take the same drugs for months, and sometimes years, without consulting their doctors to determine whether the medications were still clinically appropriate.
A large percentage of the long-term care residents served by OMNICARE are beneficiaries of federal healthcare programs. By dispensing drugs without valid prescriptions, OMNICARE presented, or caused to be presented, hundreds of thousands of false claims to Medicare, Medicaid, and TRICARE. These claims were ineligible for payment. In addition, OMNICARE knowingly transmitted false information to these federal healthcare programs that made it appear that drug dispensations were supported by current, valid prescriptions from physicians when in fact they were not.
The Government intervened in two private whistleblower lawsuits before Chief Judge Colleen McMahon that had previously been filed under seal pursuant to the False Claims Act.
Mr. Berman thanked HHS-OIG for its assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Mónica P. Folch are in charge of the case.