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Wednesday 30 October 2019
Shreveport Man Sentenced to 20 Years in Prison for Fraudulent Check Cashing Scheme Resulting in Theft of Nearly $400,000Read the Press Release
SHREVEPORT, La. – U.S. Attorney David C. Joseph announced that Carlos A. Spann, 42, of Shreveport, Louisiana, was sentenced October 29, 2019, to 20 years in federal prison for his role in a fraudulent check-cashing scheme resulting in the theft of nearly $400,000. Chief U.S. District Judge S. Maurice Hicks Jr. also ordered Spann to pay $399,723.04 in restitution to Tower Loan and Walmart Global Investigations. In addition to his term of imprisonment, Judge Hicks sentenced Spann to five years of supervised release following his release.
At the conclusion of a four-day trial, Carlos A. Spann was found guilty by a federal jury on February 7, 2019, of one count of conspiracy to commit bank and wire fraud and two counts of wire fraud. Evidence admitted at trial showed that Carlos A. Spann, Phelix K. Williams, 29, Anthony E. Johnson, 24, both of Shreveport, and others, conspired to cash counterfeit checks using fraudulent identities at banks and retail establishments throughout Louisiana. Spann provided his co-conspirators with altered overlays for identification cards along with counterfeit checks drawn on Tower Loan’s bank account, and counterfeit checks drawn on a United States Postal Service bank account. Each of them were captured by surveillance video cameras using altered identification cards to cash the counterfeit checks. During the conspiracy, they negotiated more than 100 counterfeit checks.
Spann has a two-decade long history of committing white collar fraud crimes, including nine prior convictions of offenses such as counterfeiting and credit card fraud. At sentencing, additional evidence was presented of Spann’s attempts to obstruct justice by procuring affidavits containing false statements, tampering with lawfully issued subpoenas, and discussing trial testimony with prospective witnesses.
“This offender made a career out of defrauding the people and businesses of Louisiana out of their hard-earned money,” said U.S. Attorney David C. Joseph. “The 20-year sentence handed down in this case should send a clear message to others that might consider engaging in this type of criminal activity. I want to thank the prosecutors from my office, the U.S. Secret Service, the Shreveport Police Department, and the Caddo Parish Sheriff’s Office for their hard work in uncovering this fraud and bringing this matter to justice.”
“This case exemplifies how important partnerships between Federal and local law enforcement successfully bring criminals like Spann, Williams and Johnson to justice,” said Tara McLeese, Resident Agent in Charge of the United States Secret Service’s Baton Rouge Office. “Special thanks to the talented prosecutors from the United States Attorney’s Office in the Western District of Louisiana whose tireless efforts have ensured the public is now protected from financial fraud perpetrated by these individuals.”
Williams pleaded guilty on February 4, 2019, the morning his trial was scheduled to begin, to one count of conspiracy to commit bank and wire fraud, 13 counts of bank fraud and two counts of wire fraud. Judge Hicks sentenced Williams on June 10, 2019, to 10 years in prison, followed by five years of supervised, and also ordered him to pay $399,723.04 in restitution. Johnson pleaded guilty on January 17, 2019, to one count of conspiracy and two counts of bank fraud. Johnson’s sentencing date of May 1, 2019 was upset and has yet to be rescheduled.
The U.S. Secret Service, Shreveport Police Department, and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields and First Assistant U.S. Attorney Alexander C. Van Hook prosecuted the case.
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Shelbyville Man Sentenced to 108 Months for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
FRANKFORT, Ky- A Shelbyville, Kentucky, man Todd G. Harris, 33, who previously admitted to drug possession with the intent to distribute and possession of a firearm in furtherance of drug trafficking, was sentenced Wednesday by U.S. District Court Judge Gregory VanTatenhove to 108 months in prison.
According to his plea agreement, Harris was found unconscious in a wrecked vehicle in July 2018 by officers with the Shelbyville Police Department. Upon search, officers also located a Glock 9 mm and a bag containing marijuana and Xanax tablets. Harris admitted to possession with intent to distribute alprazolam and possession of a firearm in furtherance of drug trafficking. Harris was previously convicted of trafficking marijuana in 2014.
Harris pleaded guilty in June 2019.
Under federal law, Harris must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Tommy Estevan, Acting Special Agent in Charge for ATF, and Chief Bruce Gentry, Shelbyville Police Department, jointly announced the sentence.
The investigation was conducted by ATF and Shelbyville Police Department. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.
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 PSN program was reinvigorated 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.
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Shelby County Man Sentenced for Failure to Register in the State of Alabama as a Sex OffenderRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Shelby County man on a charge of failure to register as a sex offender, announced Northern District of Alabama United States Attorney Jay E. Town and United States Marshal Martin Keely.
United States District Judge Abdul K. Kallon sentenced RICKY DION ODOM, 47, of Shelby County, to 24 months incarceration for failure to register as a sex offender to run consecutive to Odom’s probation revocation in Louisiana. Odom pled guilty in July 2019.
“Failure to register as a sex offender is not only a matter of public safety, but it is our primary mechanism by which every member of the community can learn of sex offenders living among us.,” Town said. “Sex offenders who flee to another state, and violate the law by not registering will be caught, will be prosecuted, and will face incarceration. My office will continue to put the safety of children at the forefront, now more than ever.”
According to court documents, Odom is required to register under the Sex Offender Registration and Notification Act (SORNA). On or about November 1, 2018 and continuing until on or about February 4, 2019, Odom traveled from the State of Louisiana to the State of Alabama and knowingly failed to register as required by SORNA.
In addition to the term of imprisonment imposed, Odom was ordered to serve five years of supervised release.
United States Marshal Service for the Northern District of Alabama, Middle District of Alabama, Eastern District of Louisiana, Northern District of Florida, and Gulf Coast Regional Fugitive Task Force investigated the case along with the assistance of St. Tammany Parish (LA) Sheriff’s Office, Okaloosa County (FL) Sheriff’s Office, Jackson County (AL) Sheriff’s Office, Shelby County (AL) Sheriff’s Office, and the Alabama Department of Conservation and Natural Resources, which Assistant United States Attorney R. Leann White prosecuted.
Sabattus Man Sentenced for Federal Firearm OffensesRead the Press Release
Portland, Maine: A Sabattus man was sentenced today in federal court in Portland for possessing a stolen firearm and possessing a firearm after being convicted of a felony, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge D. Brock Hornby sentenced Scott Estes, 39, to three years in prison and three years of supervised release. Estes pleaded guilty on June 17, 2019.
According to court records, on November 13, 2017, Lewiston dispatchers received a 911 call from Estes’ then-girlfriend, who was in a truck in which he had been a passenger. He was not in the truck at the time of the call. His girlfriend reported that he had a firearm and that he had pointed it at her. When he returned to the truck, his girlfriend remained on the call, pretending to be speaking to a credit card company. She conveyed their location and where they were going.
When the police arrived, Estes fled into a nearby apartment and a seven-hour standoff ensued. The Maine State Police Tactical Team negotiated a peaceful end to the standoff. Investigators recovered the firearm, a Smith & Wesson .380 caliber semi-automatic pistol, from the apartment into which he had fled. Further investigation revealed that it was stolen.
Estes was also prohibited from possessing the firearm because of multiple prior felony convictions, including ones for trafficking in prison contraband, robbery and aggravated operating after revocation.
The Maine State Police; the Lewiston Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Rochester Man Pleads Guilty to Fentanyl ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Felix Figueroa, 39, of Rochester, NY, pleaded guilty to possession with the intent to distribute 40 grams or more of fentanyl, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a minimum penalty of five years in prison, a maximum penalty of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that during the course of a lengthy investigation, the defendant sold cocaine and heroin on several occasions to an individual working with investigators. On January 29, 2018, investigators executed a search warrant at Figueroa’s home, and recovered a quantity of fentanyl and cocaine, 199 bags of heroin, 154 decks of heroin, 576 bags of cocaine, as well as items commonly used in the packaging and distribution of illegal drugs, such as a scale, baggies, cutting agent, and approximately $2,108 in cash.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crime Task Force, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Greece Police Department, under the direction of Chief Patrick Phelan; the Brighton Police Department, under the direction of Chief David Catholdi; and U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Luis R. Tafoya.
Sentencing is scheduled for January 17, 2020, at 3:00 p.m. before Judge Geraci.
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Rochester Man Going to Prison for His Role in Multi-Million Dollar Narcotics ConspiracyRead 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 Gerardo Ballardo, 27, of Riverbank, California, who was convicted of conspiring to possess with intent to distribute and distribute five kilograms or more of cocaine and conspiracy to commit money laundering, was sentenced to serve 84 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that the defendant conspired with co-defendants Jose Manuel Lua-Guizar, Enrique Munoz, Max Riestra, Pethrod Dunnigan, and others, to sell cocaine. Ballardo obtained multiple kilograms of cocaine to distribute in cities around the country including Buffalo, NY, and Chicago, IL. The defendant received Federal Express packages, containing multiple kilograms of cocaine, addressed to him or to a co-conspirator. The packages were shipped from California and would typically be addressed to a hotel in which Ballardo was staying. Ballardo would then deliver the kilograms of cocaine to co-conspirators, traveling to Buffalo, Chicago, and elsewhere.
In August 2014, Ballardo and Jose Manuel Lua-Guizar were detained in the Minneapolis Airport on their way to Chicago after the two had been in Buffalo just days prior. During that detention, a drug ledger was seized from the defendant along with over $12,000 in U.S. Currency, which was the proceeds of drug sales. During the course of the conspiracy, most of the drug proceeds were sent back to California by structured deposits under the $10,000 reporting requirement. Ballardo made over 30 structured deposits (mostly amounts of $9,900) in Buffalo alone. Ballardo and his co-conspirators accounted for over $1,000,000 in structured deposits in Buffalo, and over $10,000,000 in structured deposits nationwide during the conspiracy. A ledger for structured deposits was also recovered from a stash house in California.
A total of seven defendants were charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent- in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California, and Bank of America.
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Project Parkersburg Update: Parkersburg Woman Sentenced to Prison for Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Amy Rake, 39, of Parkersburg, was sentenced to 5 years in prison for conspiracy to distribute 50 grams or more of methamphetamine. Rake was prosecuted as part of Project Parkersburg – a major takedown and dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine and heroin. Stuart commended the investigative efforts of the FBI, the Parkersburg Police Department, the Dayton Ohio Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court, the seizure of 121 pounds of ICE methamphetamine, six kilograms of cocaine, 217 grams of heroin, and 290 grams of fentanyl.
“As a result of operations like Project Parkersburg, we have doubled the number of meth prosecutions by my office,” said United States Attorney Mike Stuart. “We’re taking down meth trafficking organizations and prosecuting meth dealers like Rake throughout the District.”
Rake pled guilty in February and admitted that she was a street level distributor who received methamphetamine in multiple ounce quantities from her co-defendant Michael Rhodes which she then distributed to smaller dealers and users in and around Parkersburg.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Poughkeepsie Man Sentenced to 144 Months for Robbing Hinsdale Credit UnionRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Joseph M. Crocco, 42, of Poughkeepsie, New York, was sentenced to 144 months in prison and ordered to pay $2709 in restitution for robbing a credit union.
Evidence presented at trial showed that on December 21, 2017, the defendant entered the Service Credit Union branch located in the Walmart on Brattleboro Road in Hinsdale, New Hampshire. He approached a teller and gave her two notes. He then told her that he had a bomb strapped to his body and she had 60 seconds to comply with his demands. The teller gave him approximately $2,700 and he fled the store. Investigation by the New Hampshire State Police and the Hinsdale Police Department ultimately traced the defendant to Poughkeepsie where detectives from the City of Poughkeepsie Police Department identified the defendant in images taken from the credit union’s security cameras.
Crocco was found guilty by a jury on September 25, 2018.
“Robberies of banks and credit unions are violent crimes that can jeopardize the safety of employees, customers, and the public,” said U.S. Attorney Murray. “In order to protect the safety of our citizens, we work closely with our law enforcement partners to prosecute and incarcerate those who commit violent crimes in the Granite State.”
"Imagine being confronted at your place of work by a stranger, who threatened that you have one minute to decide whether to live or possibly die. That was the ultimatum Joseph Crocco forced upon a credit union teller inside a popular Hinsdale superstore, when he claimed he was armed with a bomb he would detonate if she did not cooperate," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "The FBI is proud to work with our law enforcement partners, who were instrumental in bringing Crocco to justice, and who hopefully restored some peace of mind to the bank's employees."
This matter was investigated by the Federal Bureau of Investigation, the Hinsdale Police Department, the New Hampshire State Police, the Brattleboro, Vermont Police Department, and the City of Poughkeepsie, New York Police Department. The case was prosecuted by Assistant U.S. Attorneys Anna Dronzek and Charles Rombeau.
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Pilot Program in Wichita Will Permit Body-Worn Cameras by Federally Deputized Task Force OfficersRead the Press Release
WICHITA, KAN. – On Friday, Nov. 1, 2019, the U.S. Attorney’s Office for the District of Kansas will launch a pilot program with the Wichita Police Department allowing local and state officers who serve on federal task forces to use body-worn cameras while serving arrest warrants, or other planned arrest operations, and during the execution of search warrants.
The pilot program, which will also go into effect in Detroit, Houston, Phoenix, Salt Lake City and Oakland, Calif., was announced by the Attorney General on Oct. 28, 2019. It allows - for the first time - federally deputized task force officers to use body-worn cameras.
“Local and state officers are critical members of our federal task forces,” U.S. Attorney Stephen McAllister said. “This policy recognizes and supports their contributions by respecting their policies regarding body cameras.”
“I am pleased that this pilot program takes into account the interests and priorities of all the law enforcement agencies involved in federal task forces,” said Attorney General William P. Barr. “These are some of the most dangerous jobs in law enforcement, and I am grateful for the sacrifice of those who serve. The Department of Justice has no higher priority than ensuring the safety and security of the American people and this pilot program will continue to help us fulfill that mission.”
The Department of Justice, through its law enforcement agencies, partners with state, local and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics and arrest dangerous fugitives. Several of the department’s partner state and local agencies require their officers to wear body-worn cameras and have requested their officers wear these cameras on federal task forces when the use of force is possible.
The U.S. Attorney’s Office would like to thank its partners at ATF, DEA, FBI, USMS, as well as all of the state and local law enforcement leaders who play a critical role in implementing this important pilot program.
Pharmaceutical Sales Rep Sentenced for Defrauding Insurance Companies Out of Millions of DollarsRead 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 Scott Trapp, 50, of Clarence, NY, who was convicted of conspiracy to commit health care fraud, was sentenced to serve 36 months in prison by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay approximately $10,000,000 in restitution.
Assistant U.S. Attorney Maura K. O’Donnell, who handled the case, stated that in 1996 the defendant began working as a pharmaceutical sales representative for various pharmaceutical companies. In 2014, Trapp began marketing “compounded medications,” such as pain patches, pain creams, and scar creams. “Compounded medications” are medications created when a licensed pharmacist, a licensed physician, or a person working under the supervision of a licensed pharmacist, combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient.
The compounded medications marketed by the defendant, and his associates, were not tailored to the needs of individual patients. Instead, the medications were tailored to contain ingredients that carried high reimbursement rates from health insurers. Formulations of the medications were modified at times to permit reimbursement from health insurance companies and/or to maximize reimbursement rates. For example, a one month supply of one of the compounded pain creams marketed by Trapp carried a reimbursement rate of $22,000.
Unlike typical pharmaceutical sales representatives who market prescription drugs to physicians, the defendant, and his associates, identified patients whose health insurance covered the medications, and convinced the patients to agree to receive the medications.
In furtherance of the conspiracy, Trapp asked a friend, who was a physician, to sign blank, 12 month prescriptions for compounded medications, in the names of the defendant and his wife. Trapp then duplicated the prescriptions and substituted names of different patients for his own name, allowing for additional prescriptions for compounded medications to be filled without the physician knowledge.
Trapp also recruited, supervised, and compensated others to market the compounded pharmaceuticals. One of those individuals then recruited others to be part of the marketing scheme. The defendant received commission payments of approximately 20% of the reimbursement rate of each prescription he personally marketed which was approved and filled. Trapp also received commission payments of approximately 5% of each prescription marketed and filled by those he supervised, and by the individuals working for those people he supervised.
In total, between 2014 and December 2016, the health care benefit programs provided by Blue Cross Blue Shield (BCBS), the Verizon Medical Expense Plan for New York and New England Associates, National Grid USA, and Sunovion Pharma, paid approximately $5,821,331, for compounded prescriptions fraudulently filled, resulting in losses of: $7,352 to BCBS; $3,601,179 to the Verizon Medical Expense Plan for New York and New England Associates; $1,992,354 to National Grid USA; and $220,445 to Sunovion Pharma.
“Trapp defrauded health care benefit programs by putting his financial well-being above the physical well-being of the patients obtaining medications from him,” stated U.S. Attorney Kennedy. “Such conduct will not be tolerated in this District.”
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Michael C. Mikulka, Special Agent-in-Charge, New York Region; the U.S. Food and Drug Administration, Office of Criminal Investigations, under the direction of Jeffrey Ebersole, Special Agent-in-Charge New York Field Office; the New York State Financial Services Department, under the direction of Superintendent Linda A. Lacewell; and the Defense Criminal Investigative Service, under the direction of Special Agent-in-Charge Leigh-Alistar Barzey.
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Outcome Health Agrees to Pay $70 Million to Resolve Fraud InvestigationRead the Press Release
ContextMedia Health LLC, which operates under the trade name Outcome Health (Outcome), a digital provider of medical information and advertising in doctors’ offices, has agreed to a resolution with the Department of Justice by which it will pay $70 million to victims of a fraud scheme that targeted its clients, lenders and investors.
Outcome, a privately held company headquartered in Chicago, Illinois, admitted in resolution documents that from 2012 to 2017, former executives and employees of the company perpetrated a scheme to defraud its clients—most of which were pharmaceutical companies—by selling advertising inventory that it did not have.
“Outcome Health deceived its lenders and investors, and overbilled its clients, by fraudulently misrepresenting both the quality and quantity of its advertising services and concealing those misrepresentations from auditors,” said Principal Deputy Assistant Attorney General John P. Cronan. “Today’s resolution demonstrates the Criminal Division’s unyielding commitment to making whole victims of fraud.”
“Outcome’s payment of $70 million is an appropriate resolution for the corporate entity given the misconduct of executives and employees acting on its behalf,” said Assistant U.S. Attorney Brian Hayes, Chief of the Criminal Division for the Northern District of Illinois. “This resolution demonstrates that there are significant consequences for businesses whose executives and employees engage in fraud.”
“For five years, employees of Outcome Health purposely failed to deliver on advertising campaigns and engaged in a pattern of misrepresentations to conceal their fraud,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “This resolution demonstrates the FBI’s commitment to working with its prosecutorial and investigative partners to ensure that justice is done.”
“Today’s agreement holds a healthcare technology company accountable for systematically committing fraudulent business practices for financial gain over many years,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG). “The FDIC-OIG is committed to investigating such corporate corruption which harms lending institutions, investors, customers, and competitors. We remain dedicated to working with our law enforcement partners to investigate those who commit such misconduct.”
Outcome admitted that as a result of its practice of selling clients inventory it did not have, it under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. To conceal the under-deliveries, Outcome employees at the time falsified affidavits and proofs of performance to make it appear the company was delivering advertising content to the number of screens in its clients’ contracts. Outcome executives and employees during that time also inflated patient engagement metrics regarding how frequently patients engaged with Outcome’s devices. Furthermore, an executive at the time altered a number of studies presented to clients to make it appear that the campaigns were more effective than they actually were, Outcome admitted.
Outcome further admitted that its under-delivery on advertising campaigns resulted in a material overstatement of its revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because executives and employees at the time fabricated data to conceal the under-deliveries from the auditor. Outcome used the inflated revenue figures in its 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017, it admitted.
The Department and Outcome entered into a non-prosecution agreement (NPA) to resolve this matter. Outcome’s obligations under the agreement will have a term of three years, unless the term is modified by the government. Under the terms of the NPA, Outcome and its current parent company, Outcome Health LLC (Outcome Parent), committed to compensating the pharmaceutical client victims in the amount of $70 million, approximately $65.5 million of which has already been made through a combination of cash payments and in-kind services, and to set aside an additional $4.5 million to compensate any additional pharmaceutical clients who have not yet been made whole. The NPA does not require Outcome and Outcome Parent to provide compensation to lenders and investors who were victims of Outcome’s scheme, however, because many of those lenders and investors are now the companies’ new owners. Under the terms of the NPA, Outcome and Outcome Parent also agreed to cooperate with the government’s ongoing investigation of individuals, to report evidence or allegations of U.S. federal law to the Department, and to enhance their existing compliance program and internal controls, where necessary and appropriate, to ensure they are designed to detect and deter violations of U.S. federal law.
The Department reached this resolution based on a number of factors, including Outcome and Outcome Parent’s ongoing cooperation with the United States and for taking extensive remedial measures. For example, Outcome no longer employs the executives or employees who were involved in the wrongdoing, and Outcome and Outcome Parent made significant improvements to address and improve the reliability of reporting on advertising campaign delivery, including hiring third parties to audit all of their advertising campaigns.
The FBI and FDIC-OIG are investigating the case. Assistant Chief William E. Johnston and Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew F. Madden of the Northern District of Illinois are prosecuting the case.
Outcome Health Agrees to Pay $70 Million to Resolve Fraud InvestigationRead the Press Release
WASHINGTON – ContextMedia Health LLC, which operates under the trade name Outcome Health (Outcome), a digital provider of medical information and advertising in doctors’ offices, has agreed to a resolution with the Department of Justice by which it will pay $70 million to victims of a fraud scheme that targeted its clients, lenders and investors.
Outcome, a privately held company headquartered in Chicago, Illinois, admitted in resolution documents that from 2012 to 2017, former executives and employees of the company perpetrated a scheme to defraud clients — most of which were pharmaceutical companies — by selling advertising inventory that the company did not have.
“Outcome’s payment of $70 million is an appropriate resolution for the corporate entity given the misconduct of executives and employees acting on its behalf,” said Assistant U.S. Attorney Brian Hayes, Chief of the Criminal Division for the Northern District of Illinois. “This resolution demonstrates that there are significant consequences for businesses whose executives and employees engage in fraud.”
“Outcome Health deceived its lenders and investors, and overbilled its clients, by fraudulently misrepresenting both the quality and quantity of its advertising services and concealing those misrepresentations from auditors,” said Principal Deputy Assistant Attorney General John P. Cronan. “Today’s resolution demonstrates the Criminal Division’s unyielding commitment to making whole victims of fraud.”
“For five years, employees of Outcome Health purposely failed to deliver on advertising campaigns and engaged in a pattern of misrepresentations to conceal their fraud,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “This resolution demonstrates the FBI’s commitment to working with its prosecutorial and investigative partners to ensure that justice is done.”
“Today’s agreement holds a healthcare technology company accountable for systematically committing fraudulent business practices for financial gain over many years,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG). “The FDIC-OIG is committed to investigating such corporate corruption which harms lending institutions, investors, customers, and competitors. We remain dedicated to working with our law enforcement partners to investigate those who commit such misconduct.”
Outcome admitted that as a result of its practice of selling clients inventory it did not have, it under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. To conceal the under-deliveries, Outcome employees at the time falsified affidavits and proofs of performance to make it appear the company was delivering advertising content to the number of screens in its clients’ contracts. Outcome executives and employees during that time also inflated patient engagement metrics regarding how frequently patients engaged with Outcome’s devices. Furthermore, an executive at the time altered a number of studies presented to clients to make it appear that the campaigns were more effective than they actually were, Outcome admitted.
Outcome further admitted that its under-delivery on advertising campaigns resulted in a material overstatement of revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because executives and employees at the time fabricated data to conceal the under-deliveries from the auditor. Outcome used the inflated revenue figures in its 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017, it admitted.
The Department and Outcome entered into a non-prosecution agreement (NPA) to resolve this matter. Outcome’s obligations under the agreement will have a term of three years, unless the term is modified by the government. Under the terms of the NPA, Outcome and its current parent company, Outcome Health LLC (Outcome Parent), committed to compensating the pharmaceutical client victims in the amount of $70 million, approximately $65.5 million of which has already been made through a combination of cash payments and in-kind services, and to set aside an additional $4.5 million to compensate any additional pharmaceutical clients who have not yet been made whole. The NPA does not require Outcome and Outcome Parent to provide compensation to lenders and investors who were victims of Outcome’s scheme, however, because many of those lenders and investors are now the companies’ new owners. Under the terms of the NPA, Outcome and Outcome Parent also agreed to cooperate with the government’s ongoing investigation of individuals, to report evidence or allegations of U.S. federal law to the Department, and to enhance their existing compliance program and internal controls, where necessary and appropriate, to ensure they are designed to detect and deter violations of U.S. federal law.
The Department reached this resolution based on a number of factors, including Outcome and Outcome Parent’s ongoing cooperation with the United States and for taking extensive remedial measures. For example, Outcome no longer employs the executives or employees who were involved in the wrongdoing, and Outcome and Outcome Parent made significant improvements to address and improve the reliability of reporting on advertising campaign delivery, including hiring third parties to audit all of their advertising campaigns.
The FBI and FDIC-OIG are investigating the case. Assistant U.S. Attorney Matthew F. Madden of the Northern District of Illinois and Assistant Chief William E. Johnston and Trial Attorney Kyle C. Hankey of the Department of Justice's Criminal Division’s Fraud Section are prosecuting the case.
Download the Non-Prosecution Agreement here.
Orange County Man Sentenced to 15 Years in Federal Prison for Traveling to China to Engage in Illicit Sexual Conduct with BoyRead the Press Release
LOS ANGELES – An Aliso Viejo man was sentenced today to 180 months in federal prison for traveling to China to engage in illegal sexual activity with a 16-year-old boy who was under his care and supervision at the time.
Ezequiel Christopher Barragan, 53, was sentenced by United States District Judge André Birotte Jr., who said that Barragan abused his positions of trust to gain access to victims.
Barragan pleaded guilty in October 2018 to one count of travel with intent to engage in illicit sexual conduct and one count of engaging in illicit sexual conduct in foreign places. He previously taught middle school and high school students, coached youth baseball, and at one-time was a court-appointed mentor and foster parent for abused or neglected children.
Barragan admitted in his plea agreement that in August 2009 he traveled from the United States to China with the intent to engage in illicit sexual conduct. While in China, Barragan engaged in illicit and sexually explicit conduct with the 16-year-old victim. Barragan admitted he produced child pornography with the victim during this time.
In his plea agreement, Barragan admitted that, on numerous occasions between 1998 and 2012, he traveled from the United States to foreign countries where he engaged in illicit sexual conduct with boys between the ages of 13 and 16 years old. He also admitted he often gave his victims food, cash and goods.
This matter was investigated by the United States Postal Inspection Service, which received substantial assistance from the Los Angeles Joint Regional Intelligence Center and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case was prosecuted by Assistant United States Attorney Damaris Diaz of the Violent and Organized Crime Section.
Opioid Treatment Practice Owner Sentenced for Illegal Distribution of Buprenorphine and Health Care FraudRead the Press Release
PITTSBURGH, Pa. - A resident of Washington, PA, was sentenced in federal court to three years of probation, with 90 days of home detention, 100 hours of community service, and ordered to pay a $10,000 fine and $80,000 in restitution on charges of aiding and abetting the unlawful distribution of controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
Jennifer Hess, 50, was sentenced by Senior or Chief United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Hess founded and owned Redirections Treatment Advocates LLC (RTA), an opioid treatment practice with offices in Washington and Bridgeville, PA and Morgantown, Weirton and Moundsville, West Virginia. Hess aided and abetted the illegal distribution of buprenorphine, also known as Subutex and Suboxone, by completing blank pre-signed prescriptions and/or forging doctors’ names on blank prescriptions. Hess also committed health care fraud for causing fraudulent claims to be submitted to Medicaid and Medicare for payments to cover the costs of the unlawfully prescribed buprenorphine.
Assistant United States Attorney Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Operation Snowplow nets more than 10 federal convictions and sentencesRead the Press Release
SAVANNAH, GA: An 11th defendant pled guilty and three additional defendants received federal prison sentences today as the prosecution of a major drug trafficking and money laundering organization continues.
Sentences this week in Operation Snowplow, which represents the largest single seizure of cocaine to date by the Chatham-Savannah Counter Narcotics Team (CNT), brings to nine the number of defendants sentenced, with two awaiting sentencing and three more defendants still being sought.
“The agencies who slammed the door on these merchants of misery include dedicated law enforcement professionals and prosecutors who team up to make our community safer,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “For once in their lives, these convicted felons will make our neighborhoods better by no longer being part of them.”
According to court documents and testimony, the drug-trafficking organization led by Omar Griffin and others acquired significant quantities of cocaine from Texas and Marijuana from California, along with other narcotics, from at least February 2014 through March 2018. The drugs were then packaged in children’s toys and DVD players, and concealed in cargo vans and truck trailers for shipment to Savannah, for distribution to mid-level dealers from several Savannah-area residences.
On March 5, 2018, law enforcement intercepted a shipment of 25 kilograms of cocaine that had been driven from Texas to a hotel in Richmond Hill, Ga., concealed inside a cargo trailer. Officers also seized more than $387,000 in cash that had been exchanged for the cocaine. After interdicting the drugs, law enforcement executed a number of search and arrest warrants. In total in this investigation, law enforcement seized more than 25 kilograms of cocaine, more than 30 pounds of marijuana, approximately $750,000 in cash, nearly two dozen firearms (including semi-automatic rifles), and other narcotics.
Defendants sentenced this week include:
- Herman Williams, 44, of Savannah, convicted of Conspiracy to Possess with Intent to Distribute Cocaine, sentenced to 132 months in prison;
- Vincent Hooper, 55, of Savannah, convicted of Possession of a Firearm by a Convicted Felon, sentenced to 30 months in prison;
- Emmett Ramsey, 36, of Savannah, convicted of Unlawful Use of a Communication Facility, sentenced to 42 months in prison;
Defendants awaiting sentencing include:
- Allen Grady, 42, of Port Wentworth, Ga., convicted of Conspiracy to Commit Money Laundering; and,
- Barron Robertson, 53, of Savannah, convicted of Possession with Intent to Distribute 5 Kilograms or more of Cocaine.
Defendants previously sentenced include:
- Barrington Miller, 48, of Savannah, convicted of Distribution of Cocaine, Maintaining a Drug-Involved Premises, and Unlawful Use of a Communication Facility, sentenced to 120 months in prison;
- Justin Swinton, 38: of Port Wentworth, convicted of Conspiracy to Possess with Intent to Distribute 50 kilograms or more of marihuana, sentenced to 37 months in prison;
- Rodrigo Rodriguez, 48: of Houston, Texas, convicted of Conspiracy to Possess with Intent to Distribute 5 kilograms or more of cocaine and 50 kilograms or more of marihuana, sentenced to 84 months in prison;
- Desmond Jones, 48, of Houston, convicted of Conspiracy to Possess with Intent to Distribute 5 kilograms or more of Cocaine, sentenced to 56 month in prison;
- Edgar Guadalupe-Marroquin, 36: of Houston, convicted of Interstate Travel to Carry on Unlawful Activities, sentenced to 60 months in prison; and,
- Christian Ramirez-Leyton, 44, of Houston, convicted of Interstate Travel to Carry on Unlawful Activities, sentenced to 60 months in prison.
Three defendants remain fugitives:
- Kia Hickman, 48, of Savannah;
- Omar Griffin, 40, of Pooler, Ga.; and,
- Jamaal Singleton, 41, of Savannah.
Individuals with information on the whereabouts of Griffin, Hickman, or Singleton can anonymously contact CNT at 912-652-3900, or Crime Stoppers at 912-234-2020. Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
“This was an outstanding operation that not only positively impacted our local community but the nation as a whole,” said Everett Ragan, Director of CNT. “It was deemed successful because local, state, and federal enforcement agencies came together to plow this organization right into the ground.”
“Operation Snowplow emphasizes the importance of collaborative efforts between the U.S. Postal Inspection Service and our federal partners, reinforcing the Postal Inspection Service’s mission of protecting the public and preventing criminal misuse of our mail,” said Lesley C. Allison, Acting Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service.
Operation Snowplow was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations, and conducted by the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Chatham-Savannah Counter Narcotics Team, Savannah Police Department, Chatham County Police Department, and the Chatham County Sheriff’s Office K9 Unit and the Chatham County Aviation Unit, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Oil Executives Plead Guilty for Roles in Bribery Scheme Involving Foreign OfficialsRead the Press Release
The former CEO and chief operations officer (COO) of a Monaco-based intermediary company have pleaded guilty for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. These included Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. The company’s former business development director also pleaded guilty for his role in paying bribes in Libya.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office, Inspector in Charge Adrian Gonzales of the U.S. Postal Inspection Service (USPIS) Houston Division and Special Agent in Charge D. Richard Goss of the IRS-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), each pleaded guilty March 25 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), for conspiring to facilitate bribes on behalf of companies in foreign countries in order to secure oil and gas contracts. UK resident Steven Hunter, 50, former business development director, pleaded guilty Aug. 2, 2018, to one count of conspiracy to violate the FCPA. Cyrus and Saman Ahsani are set for sentencing April 20, 2020, before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Hunter’s sentencing is scheduled for March 13, 2020, before U.S. District Judge David Hittner.
According to court documents, former U.S. resident and CEO Cyrus Ahsani and former COO Saman Ahsani managed a Monaco-based intermediary company that provided services for multinational companies operating in the energy sector. From approximately 1999 to 2016, the Ahsanis conspired with others, including multiple companies and individuals, to make millions of dollars in bribe payments to government officials in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria.
Additionally, court documents reflect Cyrus and Saman Ahsani laundered the proceeds of their bribery scheme in order to promote and conceal the schemes and to cause the destruction of evidence in order to obstruct investigations in the United States and elsewhere. Hunter participated in the conspiracy to violate the FCPA by, among other things, facilitating bribe payments to Libyan officials between about 2009 and 2015.
The FBI, IRS-Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Trial Attorneys Dennis R. Kihm, Gerald M. Moody Jr., Jonathan P. Robell and Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The governments of Australia, Canada, France, Guernsey, Italy, Monaco, the Netherlands, Portugal, Switzerland and UK provided significant assistance in this matter as did the U.S. Securities and Exchange Commission and Eurojust.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Oil Executives Guilty for Roles in Bribery Scheme Involving Foreign OfficialsRead the Press Release
HOUSTON - The former CEO and chief operations officer (COO) of a Monaco-based intermediary company have pleaded guilty for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. These included Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. The company’s former business development director also pleaded guilty for his role in paying bribes in Libya.
Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), each pleaded guilty March 25 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), Conspiring to facilitate bribes on behalf of companies in foreign countries in order to secure oil and gas contracts. UK resident Steven Hunter, 50, former business development director, pleaded guilty Aug. 2, 2018, to one count of conspiracy to violate the FCPA. Cyrus and Saman Ahsani are set for sentencing April 20, 2020, before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Hunter’s sentencing is scheduled for March 13, 2020, before U.S. District Judge David Hittner.
According to court documents, former U.S. resident and CEO Cyrus Ahsani and former COO Saman Ahsani managed a Monaco-based intermediary company that provided services for multinational companies operating in the energy sector. From approximately 1999 to 2016, the Ahsanis conspired with others, including multiple companies and individuals, to make millions of dollars in bribe payments to government officials in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria.
Additionally, court documents reflect Cyrus and Saman Ahsani laundered the proceeds of their bribery scheme in order to promote and conceal the schemes and to cause the destruction of evidence in order to obstruct investigations in the United States and elsewhere. Hunter participated in the conspiracy to violate the FCPA by, among other things, facilitating bribe payments to Libyan officials between about 2009 and 2015.
The FBI, IRS-Criminal Investigation and U.S. Postal Inspection Service con ducted the investigation. Trial Attorneys Dennis R. Kihm, Gerald M. Moody Jr., Jonathan P. Robell and Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The governments of Australia, Canada, France, Guernsey, Italy, Monaco, the Netherlands, Portugal, Switzerland and UK provided significant assistance in this matter as did the U.S. Securities and Exchange Commission and Eurojust.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Odessa Man Sentenced to Federal Prison for Stealing Firearms from a Pawn Shop in OdessaRead the Press Release
In Midland today, U.S. District Judge David Counts sentenced 28-year-old Christopher Chase Mojica to 57 months in federal prison followed by three years of supervised release for stealing firearms from a pawn shop in Odessa and for being a convicted felon in possession of a firearm, stated U.S. Attorney John F. Bash; Special Agent in Charge Jeffrey C. Boshek, II, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Dallas Field Division; and, Odessa Police Chief Michael Gerke.
On July 23, 2019, Mojica pleaded guilty to one count of possession of a firearm by a prohibited person and one count of theft of a firearm from a Federal Firearms Licensee (FFL). By pleading guilty, Mojica admitted that on April 29, 2019, he walked inside Cash America in Odessa, fired a flare gun at employees, smashed a display case then walked out with five firearms. One of the stolen firearms was a Romarm/Cugir Draco 7.62x39mm caliber semi-automatic pistol manufactured outside the State of Texas. According to court records, Mojica’s criminal history reveals a 2019 conviction in Ector County for burglary and a 2017 conviction in Ector County for possession of a controlled substance.
“Mr. Mojica victimized a Federal Firearms Licensee during business hours, placing employees and patrons at risk,” stated ATF Special Agent in Charge Boshek. “Swift action by the Odessa Police Department prevented stolen firearms from entering the illegal firearms trade, and strong law enforcement partnerships resulted in the successful federal prosecution.”
ATF and the Odessa Police Department conducted this investigation. Assistant U.S. Attorney Glenn Harwood prosecuted this case on behalf of the government.
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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
North Dakota Man Charged with Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Selfridge, North Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender.
Vincent Carry Moccasin, Jr., age 52, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge William D. Gerdes on October 28, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 3, 2019, Carry Moccasin Jr. unlawfully committed a domestic assault when at the time, he had at least two separate prior final convictions for domestic assaults in Standing Rock Sioux Tribal Court.
The charge is merely an accusation and Carry Moccasin Jr. is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
The defendant was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Nevada Man Pleads Guilty to Role in Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
Fredrick Brown, 38, of Las Vegas, Nevada, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted yesterday to his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans.
Appearing before U.S. Magistrate Judge Richard Farrer, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to launder monetary instruments. By pleading guilty, Brown admitted that from July 2014 to September 2015, he stole personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information. Brown admitted to capturing the PII by taking digital photographs of his computer screen while he was logged into the Armed Forces Health Longitudinal Technology Application. Brown further admitted that he subsequently provided that stolen data to co-defendant, Robert Wayne Boling Jr., so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
Brown faces up to 20 years in federal prison for each conspiracy charge. He remains in federal custody awaiting sentencing scheduled for 10:30am on Feb. 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
As asserted in the indictment, Boling (U.S. citizen), together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information. Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. After the defendants had compromised military members’ bank accounts and veterans’ benefits payments, Boling allegedly worked with co-defendant Trorice Crawford to recruit individuals who would accept the deposit of stolen funds into their bank accounts and then send the funds through international wire remittance services to the defendants and others. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.
The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.
Boling, Crawford, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft. Crawford remains in federal custody pending resolution of this litigation. Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas.
It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. More information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice's Servicemember and Veterans Initiative is available at https://www.justice.gov/servicemembers.
Nearly Two Dozen Alleged Members of Rival Chester, PA Drug Gangs Arrested in Early Morning Takedown and Charged in Parallel IndictmentsRead the Press Release
CHESTER, PA – William M. McSwain, United States Attorney for the Eastern District of Pennsylvania; Michael Harpster, Special Agent in Charge of the Federal Bureau of Investigation-Philadelphia Office; Jonathan Wilson, Special Agent in Charge of the Drug Enforcement Administration-Philadelphia Field Division; and Katayoun Copeland, District Attorney of Delaware County, jointly announced today the unsealing of two parallel Indictments charging 22 individuals with drug trafficking and firearms offenses. The defendants are alleged to be members of rival drug trafficking groups (DTGs) operating next to each other in territories occupying the west side of Chester. The two rival groups are the “3rd Bone” (or “3BM”) DTG and the “William Penn” (“the Pen” or “Ject Boyz”) DTG.
The Indictments announced today arose out of a multi-year joint investigation involving the United States Attorney’s Office, FBI, DEA, Chester City Police, and the Delaware County District Attorney’s Office. In describing the facts in the Indictments during a press conference at the Chester Police Department, U.S. Attorney McSwain noted the havoc and terror allegedly caused by these groups on the streets of Chester.
The details of each Indictment, both unsealed this morning, are provided below.
United States v. Deshaun Davis et al., Criminal No. 19-636, is a 70-count Indictment involving the 3rd Bone DTG. The Indictment charges conspiracy to distribute crack, cocaine, fentanyl, and heroin (one count); distribution and possession with intent to distribute controlled substances (57 counts); unlawful use of a communications facility in furtherance of a drug felony (five counts); possession of a firearm in furtherance of a drug trafficking crime (three counts); felon in possession of a firearm (two counts); and aiding and abetting. The following 13 individuals, all allegedly part of the 3rd Bone DTG, are named in the Indictment:
- Deshaun Davis, 34, of Chester;
- Dwayne Butler, 25, of Chester;
- Tyleel Scott-Harper, 23, of Chester;
- Brandon Scott-Harper, 20, of Chester;
- Michael Wright, 20, of Chester;
- Isiah Jenifer, 22, of Chester;
- Frederick Rochester, 27, of Chester;
- Jamel Covington, 29, of Chester;
- Johvon Covington, 30, of Chester;
- Derrick Cooper, 25, of Upland;
- Frederick Donaldson, 25, of Chester;
- Perley Mack, Jr., 24, of Marcus Hook; and
- Shahaad Sterling, 21, of Chester.
United States v. Issac Barrett et al., Criminal No. 19-567, is a 19-count Superseding Indictment involving the William Penn DTG. The Superseding Indictment charges conspiracy to distribute crack, cocaine, and heroin (one count); distribution and possession with intent to distribute crack and cocaine (12 counts); possession with intent to distribute crack (two counts); possession of a firearm in furtherance of a drug trafficking crime (two counts); and felon in possession of a firearm (two counts). The following nine individuals, all allegedly part of the William Penn drug trafficking group, are named in the Superseding Indictment:
- Issac Barrett, 33, of Essington;
- Kaleaf Gilbert, 27, of Chester;
- Darnell Bell, 29, of Chester;
- Terrence Womack, 32, of Chester;
- Brennen Lane, 31, of Chester;
- Dion Kattes, 21, of Chester;
- Saequan Womack, 26, of Chester;
- Jamar Bright, 31, of Chester; and
- Kevin Nichols, 57, of Chester.
The dual Indictments allege that the 3rd Bone and William Penn DTGs controlled adjacent drug territories in the western part of Chester. The 3rd Bone DTG’s drug operations were centered in the area of 3rd and Lamokin Streets, while the William Penn DTG controlled the drug territory surrounding the Chester Housing Authority’s William Penn Homes.
As alleged in the Indictments, both groups distributed drugs—mainly crack cocaine—to customers in their respective territories, and both groups defended their respective drug territories with armed violence. This brought them into regular conflict with each other. The Indictments describe several shootings and other acts of violence carried out between members of the two groups. For example, the Barrett Superseding Indictment alleges that 3rd Bone and William Penn DTG members were involved in an exchange of gunfire on February 21, 2019, in the 700 block of 2nd Street in Chester. After the shooting, the Indictment alleges William Penn DTG members Issac Barrett and Kaleaf Gilbert discussed the incident on the telephone and the two men agreed that one of the victims injured in the shooting “deserve[d] it” for “tr[ying] to hit” Gilbert. Barrett also is accused of putting a $15,000 bounty on the head of one of the rival DTG members that he believed was involved in the shooting.
“As alleged in the Indictments, these two groups have terrorized the Chester community for years with their drug dealing and associated violence. Today, their reign of terror ends,” said U.S. Attorney McSwain. “Both of these Indictments represent the culmination of years of dedicated investigative work and collaboration among federal and local law enforcement agencies. We are strongest by working together and we are committed to improving and protecting the quality of life of the law-abiding residents of Chester, who deserve to live and work in peace.”
“Predatory violent drug gangs like 3rd Bone and the Ject Boyz prey on members of their own communities,” said FBI Special Agent in Charge Harpster. “Today’s Indictments resulted from a long term, multi-agency investigation, and the charges send a message to gang members that the FBI and its law enforcement partners will never stop working to make our communities safer and free from violent crime.”
“The individuals that were indicted and arrested today terrorized the residents of Chester through their alleged drug-trafficking activities and acts of violence, to include shootings, to further and expand their criminal activities,” said DEA Special Agent in Charge Wilson. “These are dangerous people that were arrested today. The DEA, working with partner federal, state, and local law enforcement agencies, will continue to work together to identify the drug-trafficking organizations that pose the greatest threat to our communities.”
“My Office is committed to making the streets of Chester safe from drug trafficking and related violence,” said District Attorney Copeland. “Every resident deserves the right to walk their children to school or commute to work without fear. I am grateful to continue my Office’s good work and collaboration with U.S. Attorney McSwain, the FBI, the DEA, and all of our federal, state, and local partners to assure the safety of everyone in our community.”
If convicted, each of the defendants faces at least 20 years of potential imprisonment. Several of the senior members of the two groups, including Davis, Butler, Barrett, and Gilbert, face potential life sentences.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Chester Police Department Narcotics Unit, with assistance from the Delaware County District Attorney’s Office, the Delaware County Drug Task Force, the U.S. Marshals Task Force, the Pennsylvania State Police, the Delaware County Sheriff’s Office, the Chester Township Police Department, the Ridley Township Police Department, and the Sharon Hill Police Department. It is being prosecuted by Assistant United States Attorney Sean McDonnell.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
More charged in RGV auto loan scamRead the Press Release
McALLEN, Texas – Three more individuals have been charged in connection with a long-running scheme to defraud a financial institution in a scheme to obtain car loans in the Rio Grande Valley, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the superseding indictment under seal Oct. 22 against Jorge Garza, 46, San Antonio; Samuel Sanchez, 55, McAllen; and Soundra Lopez, 52, Weslaco. It was unsealed in its entirety today as authorities arrested Sanchez. He is expected to make his initial appearances before U.S. Magistrate Judge Juan Alanis this morning. Garza and Lopez appeared in federal court last week following their arrests and were permitted release upon posting bond pending further criminal proceedings.
The three are charged with conspiracy to commit bank fraud.
Sanchez and Lopez allegedly provided materially false information to County and Municipal Employee’s Credit Union (CMECU) regarding borrower creditworthiness in order to fund motor vehicle purchases. Garza, Sanchez and Lopez caused CMECU to fund approximately $2,287,720 in fraudulent loans, according to the superseding indictment.
Three car dealership employees were previously charged in relation to this scheme - Ronnie Joe Gomez, 44, Pharr; David Salinas, 45, McAllen; and Jorge Villanueva 51, San Antonio.
Gomez and Salinas are charged with wire fraud, while Villanueva is charged with wire fraud against a financial institution. Garza, Sanchez and Lopez are all charged with conspiracy to commit bank fraud. Gomez and Salinas face up to 20 years in prison and a possible $250,000 maximum fine, while the remaining defendants could receive a maximum 30-year prison term and up to a $1 million potential fine, upon conviction.
The FBI conducted the investigation. Assistant U.S. Attorney Frances E. Blake is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Montgomery Man Sentenced to Ten Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – On Monday, October 28, 2019, Labarry Darell Aaron, 26, of Montgomery, Alabama, was sentenced to 120 months in prison for being a felon in possession of a firearm, announced United States Attorney Louis V. Franklin, Sr. The judge sentenced Aaron to the maximum time allowed in this case due to his significant criminal history and evidence of other relevant conduct collected after his arrest. There is no parole in the federal system.
On July 31, 2018, law enforcement was executing an arrest warrant for Aaron at a Gilmer Avenue residence in Montgomery. They found him at the house along with numerous guns. As a convicted felon, Aaron is prohibited by federal law from possessing firearms of any kind. There was also video evidence discovered that showed Aaron at the Gilmer Avenue residence in possession of a firearm while preparing to conduct a retaliatory drive-by shooting at an apartment complex. Ballistic evidence collected by law enforcement at the apartment links Aaron to that shooting. The apartment drive-by is likely the result of an ongoing dispute between Aaron and others.
The Montgomery Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and investigated the case, with assistance from the United States Marshals Service and the Alabama Department of Forensic Sciences. Assistant United States Attorney Joshua J. Wendell prosecuted the case.
Michigan Man Sentenced for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Harper Woods, Michigan man was sentenced to federal prison for a drug crime announced United States Attorney Mike Stuart. Nekko Daniel was sentenced to 21 months in prison for possession with intent to distribute oxycodone. Daniel was also sentenced to three years of supervised release.
“Pill pushers like Daniel feed the flames of the opioid epidemic. It is tragic,” said United States Attorney Mike Stuart. “We are holding them accountable.”
Daniel admitted that in December 2016, a car he was traveling in on Interstate 77 was stopped by police for a traffic violation. Upon smelling marijuana, police officers searched the car and found 10 grams of marijuana and approximately 540 oxycodone pills. Daniel admitted that he intended to distribute the oxycodone pills.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Negar M. Kordestani handled the prosecution.
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Mexican national sent to prison for cocaine conspiracyRead the Press Release
LAREDO, Texas – A 21-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has been ordered to federal prison following his conviction for conspiring to import approximately 15 kilograms of cocaine into the United States from Mexico, announced U.S. Attorney Ryan K. Patrick.
Emmanuel Enrique Martinez-Garcia pleaded guilty Sept. 4.
Today, U.S. District Judge Marina Garcia Marmolejo imposed a sentence of 48 months and one day in prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional information that detailed how he coordinated the drug smuggling event with traffickers through text messages. In handing down the sentence, the court noted Martinez-Garcia knew what he was doing when he agreed to join the conspiracy and that there was no excuse for importing cocaine into the United States.
On Dec. 10, 2018, Martinez-Garcia applied for admission into the United States via the Gateway to the Americas Bridge Port of Entry in Laredo. During secondary inspection, a K-9 inspected the vehicle and gave a positive alert to the possible presence of concealed narcotics or humans.
Authorities then conducted a non-intrusive X-ray scan of the white F-150, revealing anomalies around the rear gas tank area of the vehicle. They inspected the area and discovered multiple sealed packages wrapped in tape. They probed one of the packages and found a white powdery substance which tested positive for cocaine. Law enforcement ultimately discovered a total of 15 packages of cocaine with an approximate value of $372,000.
Martinez-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Mexican National Charged with Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ARMANDO ENRIQUEZ-MORA, age 38, a citizen of Mexico, was charged October 29, 2019 in a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326.
According to the bill of information, ARMANDO ENRIQUEZ-MORA was encountered in the United States on or about October 8, 2019, after having been previously removed therefrom on or about October 30, 2012.
If convicted, ARMANDO ENRIQUEZ-MORA faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Metro-Atlanta chiropractors sentenced for healthcare and tax fraudRead the Press Release
ATLANTA –Two metro-Atlanta chiropractors, Allan Spagnardi and Stacy Spagnardi, have been sentenced to federal prison for using their chiropractic clinic to commit healthcare fraud and for defrauding the Internal Revenue Service.
“These chiropractors used their patients’ personal information to obtain over a million dollars from a private insurance company,” said U. S. Attorney Byung J. (“BJay”) Pak. “Then they went further by engaging in a lengthy scheme to hide their income from the IRS. Healthcare professionals who defraud insurance companies do not just abuse the trust afforded to them by their patients, they also drive up healthcare prices for honest citizens throughout the country.”
“The community has a right to expect that when seeking healthcare services, their healthcare provider will not abuse their private information for personal gain," said Thomas J. Holloman, III, Special Agent in Charge, IRS-Criminal Investigations. “Professionals, including chiropractors, who abuse the public’s trust, will be held accountable and face severe consequences including imprisonment and substantial fines. The American public deserves our vigilance in the investigation and prosecution of allegations of fraud by unscrupulous healthcare professionals who hide income and evade the payment of their fair share of taxes.”
“The Spagnardis chose to take advantage of patients and the entire health care industry by billing for services that were never provided and defrauding the IRS,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence will serve as a reminder to others that the FBI will not tolerate healthcare providers who engage in schemes to steal from taxpayers and defraud the industry.”
“Here in Georgia, we are committed to protecting consumers and taxpayers from bad actors like the Spagnardis, whose actions erode trust in our healthcare system and lead to higher premiums across the state,” said Georgia Insurance and Safety Fire Commissioner John F. King. “I’m thankful for the work of U.S. Attorney Pak and his team to bring these individuals to justice and send a clear message that these types of activities will not be tolerated in Georgia.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Dr. Allan Spagnardi and Dr. Stacy Spagnardi operated a chiropractic clinic located in Marietta, Georgia. Over a multi-year period, the Spagnardis used their patients’ personal information to bill a private insurance company for services that were never actually rendered. At times, the Spagnardis submitted claims for reimbursement for services occurring when they were not even in the country. For instance, the Spagnardis claimed that their clinic had 296 patient visits during a week that they were actually on a cruise vacation out of the country.
Despite earning well over $1 million in personal income in 2014 and 2015, the Spagnardis failed to file federal income tax returns or pay federal income taxes for those tax years and instead took steps to hide their true income from the Internal Revenue Service (“IRS”). After the Spagnardis were indicted, they continued to take steps to hide their income from the IRS, including by filing a false federal income tax return in early 2018.
Allan Spagnardi, 41, and Stacy Spagnardi, 52, both of Atlanta, Georgia, were each sentenced to four years, three months of incarceration, and three years of supervised release. Both defendants were also ordered to pay full restitution to the victim of the offense.
The Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the Georgia Office of Commissioner of Insurance investigated the case.
Assistant U.S. Attorneys Thomas J. Krepp and Leanne M. Marek prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Methamphetamine Dealer Sentenced to 15 Years in Federal Prison for Two Drive-By Shootings and Distributing DrugsRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Josue Balbino Ruiz-Reyes, age 25, of Adelphi, Maryland, to 15 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute methamphetamines and for using, carrying, brandishing, and discharging a firearm in connection with a drug trafficking offense.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Acting Chief Marcus Jones of the Montgomery County Police Department.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers. As today’s sentence demonstrates, we are committed to getting both off of our streets and to reducing violent crime in our neighborhoods. Josue Ruiz-Reyes will now serve 15 years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea, from about 2016 through November 21, 2018, Ruiz-Reyes conspired with others, including Individual 1, to distribute methamphetamine. During that time, Ruiz-Reyes distributed crystal methamphetamine to individuals in and around Maryland in exchange for cash, services, or items of value, such as hotel stays. In October or November 2018, Ruiz-Reyes paid Individual 1 approximately $500 in cash for a future delivery of methamphetamine. Despite repeated requests from Ruiz-Reyes, Individual 1 failed to deliver the methamphetamine or repay the money.
As detailed in his plea agreement, late on November 15 or early November 16, 2018, Ruiz-Reyes drove a silver-colored vehicle to a house on Twig Road in Silver Spring, Maryland, where he knew Individual 1 often stayed with Individual 2. Ruiz-Reyes repeatedly fired a 9mm semi-automatic pistol at the Twig Road House in retaliation for Individual 1’s failure to pay the drug debt, and to induce Individuals 1 and 2 to repay the drug debt. In the evening of November 16, 2018, Ruiz-Reyes returned to the house in his silver vehicle and again discharged his weapon at the house over the drug debt owed to him by Individual 1. Ruiz-Reyes also sent threatening messages over social media to Individual 2 regarding the drug debt.
On November 21, 2018, Ruiz-Reyes was arrested in Hanover, Maryland, as he returned to his car in the parking lot of a casino/hotel. Officers executed a search warrant on the vehicle and recovered: the 9mm semi-automatic pistol used in the shooting, as well as spent shell casings from the exterior windshield and floorboard of the car; 20 small bags of crystal methamphetamine, weighing a total of 19.02 grams; a digital scale; empty clear plastic bags; two glass pipes; a knife; and a ski mask.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Catherine K. Dick and Leah B. Grossi, who prosecuted the case.
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Member of Violent New Haven Gang Sentenced to More Than 7 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MICHAEL BELLE, also known as “MB,” 21, of New Haven, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 87 months of imprisonment, followed by three years of supervised release, for his role in a violent street gang.
According to court documents and statements made in court, in 2016, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating numerous unsolved shootings that had occurred in New Haven and Hamden. Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016. The investigation revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.
On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging Belle and five other GSB members with racketeering, attempted murder, firearm and narcotics trafficking offenses. The indictment alleged that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals.
Belle previously pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and admitted that he and other GSB members conspired to kill an individual who they believed had been disrespectful to a GSB member. On May 27, 2016, GSB members ambushed the individual and his friend as the pair were walking on a busy street in New Haven. The individual, who survived the attack, identified GSB member Milton Westley as an assailant. Westley, also known as “Reese,” shot the victim in the stomach. After the victim collapsed to the ground, Westley stood over him and shot him in the head. Another GSB member shot the second victim in the hand as he attempted to shield his face.
The victim who was shot in the stomach and head continues to recover from his injuries. He was in coma for several weeks and had to learn to walk and talk again.
This victim had been shot at by GSB members twice prior to May 27, 2016, including once by Belle in January 2016.
Belle was also present at the attempted murder of a rival gang member on January 23, 2016. On that date, a GSB member recorded cell phone video of nine shots being fired at the rival gang member’s house.
GSB members also shot at rival gang members on February 6, 2016, in a densely populated residential area; March 13, 2016, during a heavily attended St. Patrick’s Day parade in downtown New Haven; and June 21, 2016, during which an innocent bystander was shot in the stomach through her bedroom window.
GSB members also used social media to post pictures and videos of themselves with firearms, and used social media to threaten rivals, including individuals who might cooperate with law enforcement.
The investigation further revealed that Belle and other GSB members were involved in the acquisition and distribution of heroin, cocaine and marijuana.
Belle has been detained since his arrest on August 9, 2017.
Westley and the four other defendants pleaded guilty to various charges. Westley awaits sentencing.
U.S. Attorney Durham noted that federal law prohibits any retaliation against a federal witness. If persons retaliate against a federal witness “because of attendance at or testimony in a criminal case, the maximum term of imprisonment which may be imposed for the offense under this section shall be the higher of that otherwise provided by law or the maximum term that could have been imposed for any offense charged in that case.” Because the maximum term charged in the case was life imprisonment, anyone who tampers with a federal witness in this case faces life imprisonment.
U.S. Attorney Durham further noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
This investigation is being conducted by ATF and the New Haven Police Department. The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.
An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter D. Markle, Rahul Kale and Jocelyn Courtney Kaoutzanis.
Man Found Guilty After 2-Day Jury TrialRead the Press Release
FORT WAYNE – Odonis Parker, age 29, was found guilty of being a felon in possession of a firearm in a 2-day jury trial before U.S. District Court Judge Damon Leichty, announced U.S. Attorney Kirsch.
According to documents in this case, Mr. Parker was in possession of a firearm on May 26, 2019 after being a twice convicted felon in Allen County Superior Court. His prior felonies were for Robbery and Theft on separate occasions.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Magoffin County Nurse Sentenced to 24 Months for Tampering with Hospital MedicationRead the Press Release
PIKEVILLE, Ky. - A Salyersville, Kentucky, woman, Kelsie Spencer, 25, was sentenced to 24 months in federal prison by United States District Judge Robert Wier on Tuesday, following her conviction for tampering with a controlled substance.
According to Spencer’s plea agreement, while working as a nurse at Paul B. Hall Regional Medical Center, she removed vials of butorphanol tartrate (Stadol) from the drug supply area of the hospital, for her own personal use. Spencer then injected a saline solution back into the vials, in order to conceal her criminal activity. In her plea agreement, Spencer acknowledged that she acted with reckless disregard for the risk that another person would be placed in danger of death or bodily injury, if health care personnel had attempted to utilize these altered drugs on a patient that actually needed them.
Spencer pleaded guilty in July 2019.
Under federal law, Spencer must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Mark S. McCormack, Special Agent in Charge for the Food and Drug Administration – Office of Criminal Investigations; and Commissioner Richard Sanders, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Kentucky State Police. The United States was represented by Assistant U.S. Attorneys William S. Dotson and Andrew Trimble.
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Local man pleads guilty to sexually abusing toddlers while registered as sex offenderRead the Press Release
DAYTON – A Dayton registered sex offender has pleaded guilty to producing child pornography through the sexual abuse of two toddlers.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Dayton Police Chief Richard S. Biehl and Montgomery County Prosecutor Mathias H. Heck, Jr. announced the plea entered into on Oct. 28 before U.S. District Judge Walter H. Rice.
According to court documents, Tyler Ulm, 24, created child pornography by sexually abusing a two-year-old boy and a three-year-old boy over the course of a year. He abused the two-year-old on at least five occasions at various locations in the Dayton area and the three-year-old at least twice at Ulm’s Dayton residence.
Ulm produced at least seven videos and 58 pictures of the sexual abuse.
The plea agreement contemplates a sentence of 50 years to life in prison. The plea is a global resolution that also involves state charges arising out of the Montgomery County Court of Common Pleas.
Ulm pleaded guilty to two counts of producing and one count of distributing child pornography, as well as committing a felony offense involving a minor while being required to register as a sex offender. He also accepted responsibility of his state charges, including two counts of rape of a person under 10 years of age, two counts of rape of a person under 10 years of age by force and two counts of gross sexual imposition of a person under 13 years of age.
Ulm was indicted by a federal grand jury in March 2018.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Dayton Police Department. Assistant United States Attorney SaMee Harden is prosecuting the federal case and Montgomery County Assistant Prosecuting Attorneys Kelly D. Madzey and Jonathan W. Sauline are handling the state charges.
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Lexington Man Pleads Guilty to Trafficking Crack CocaineRead the Press Release
FRANKORT, Ky.- A Lexington, Kentucky, man admitted in federal court Wednesday that he trafficked 28 grams or more of crack cocaine.
Devaun Laquis Robertson, 27, pleaded guilty today to possession with intent to distribute cocaine base (crack cocaine) before U.S. District Court Judge Gregory VanTatenhove.
According to Robertson’s plea agreement, in March 2019, Lexington Police searched his residence and found a digital scale with residue. In the plea agreement, he admitted also the officers then searched Robertson’s vehicle and found 39.446 grams of crack cocaine. Robertson admitted that he knowingly and intentionally possessed with intent to distribute the crack cocaine found in his vehicle.
Robertson was indicted in August 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Chief Lawrence Weathers of the Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by Lexington Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Cynthia T. Rieker.
Robertson is scheduled to be sentenced on March 4, 2020. He faces up to 40 years in prison and a maximum fine of $5 million. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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 PSN program was reinvigorated 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.
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Leader of drug trafficking organization sentenced to 30 years in prisonRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Ricardo Ochoa-Beltran, 30, of San Mateo, California was sentenced to 30 years in federal prison by U.S. District Judge Tanya Walton Pratt. Ochoa-Beltran was the leader of a drug trafficking and money laundering organization that operated out of California and Indiana to distribute methamphetamine, heroin, and cocaine in the Indianapolis area from early 2016 to Ochoa-Beltran’s arrest on July 17, 2017. Ochoa-Beltran previously pleaded guilty to charges of drug trafficking and money laundering.
“Members of drug trafficking organizations, such as the one led by Ochoa-Beltran, who choose to peddle drugs into Indianapolis neighborhoods will be identified and prosecuted to the full extent of the law,” said Minkler. “The U.S. Attorney’s Office is committed to prosecuting those individuals involved in drug trafficking organizations and dismantling those organizations in an effort to keep our communities safe.”
Ochoa-Beltran’s drug trafficking organization obtained drugs in various ways, including via packages shipped from California to Indiana. Law enforcement intercepted hundreds of thousands of dollars’ worth of controlled substances over the course of their two-year investigation. Ochoa-Beltran laundered the funds generated by the drug trafficking organization by funneling drug proceeds through 30 different individual bank accounts, sending international wire transfers to Mexico (primarily, Sinaloa) using false sender names through InterCambio Express wire transfers, and by smuggling cash in bulk across the country.
This case was the result of an investigation by the Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS), and the Metro Drug Task Force.
“The sentencing of Ochoa-Beltran to 30 years in federal prison puts all violent drug trafficking organizations on notice that they will be held accountable for their disgraceful conduct and illegal activities,” said DEA Assistant Special Agent in Charge Michael Gannon. “Throughout the course of this investigation, agents seized over 20 firearms and multiple pounds of methamphetamine from Ochoa-Beltran and his associates. DEA remains committed to protecting fellow Hoosiers by relentlessly pursuing drug dealers who prey on our communities. DEA would like to thank their state, local, and federal partners for dismantling this highly sophisticated organization. Today, Mr. Ochoa-Beltran paid a debt no drug dealer ever wants to pay; he lost his freedom!”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Kathy A. Enstrom, IRS-CI Special Agent in Charge, Chicago Field Office. “Without these ill-gotten gains, the traffickers could not finance their organizations. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
According to Assistant United States Attorneys M. Kendra Klump and Lawrence D. Hilton, who prosecuted this case for the government, Ochoa-Beltran will serve five years of supervised release following his imprisonment.
The remaining defendants were sentenced as follows: Joel Alvarado-Santiago, 90 months; Miguel Lara-Leon, 260 months; Angelica Guzman-Cordoba, 240 months; Cesar Salgado, 140 months; Megan Castleton, 90 months; Bryan Stocker, 60 months; Lissa Garcia, 46 months; and Roberto Martinez-Hernandez, 18 months’ imprisonment.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting transnational drug-trafficking organizations that threaten the Southern District of Indiana. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 3.1.
Las Vegas, Nevada Man Pleads Guilty to Role in Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
In San Antonio, 38-year-old Fredrick Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans, announced U.S. Attorney John F. Bash, Deputy Assistant Attorney General David Morrell, and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.
Appearing before U.S. Magistrate Judge Richard Farrer yesterday, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to launder monetary instruments. By pleading guilty, Brown admitted that from July 2014 to September 2015, he stole personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information. Brown admitted to capturing the PII by taking digital photographs of his computer screen while he was logged into the Armed Forces Health Longitudinal Technology Application. Brown further admitted that he subsequently provided that stolen data to co-defendant Robert Wayne Boling, Jr. so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
Brown faces up to 20 years in federal prison for each conspiracy charge. He remains in federal custody awaiting sentencing scheduled for 10:30am on February 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
As asserted in the indictment, Boling (U.S. citizen), together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information. Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. After the defendants had compromised military members’ bank accounts and veterans’ benefits payments, Boling allegedly worked with co-defendant Trorice Crawford to recruit individuals who would accept the deposit of stolen funds into their bank accounts and then send the funds through international wire remittance services to the defendants and others. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.
The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.
Boling, Crawford, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft. Crawford remains in federal custody pending resolution of this litigation. Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas.
It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.
Kittery Man Pleads Guilty to Child Sexual Exploitation OffenseRead the Press Release
Portland, Maine: A Kittery man pleaded guilty today in federal court in Portland to transporting images of child exploitation, U.S. Attorney Halsey B. Frank announced.
According to court records, in September 2018, Thomas Stewart, 31, uploaded numerous images of minors engaged in sexually explicit conduct to a Dropbox cloud storage account he controlled. After Dropbox reported the uploading of child exploitation images using its service, investigators determined that the IP address used to log into the Dropbox account was assigned to Stewart’s residence in Kittery.
In December of last year, investigators executed a search warrant at Stewart’s residence and seized several electronic devices, including a Samsung tablet. In an interview with investigators, Stewart admitted using the tablet to access child pornography. He also admitted storing hundreds of child pornography files in his Dropbox account.
Stewart faces a sentence of no less than five years and up to 20 years in prison. He also faces a $250,000 fine and from five years to a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Maine State Police Computer Crimes Unit, the U.S. Secret Service and the Naval Criminal Investigative Service investigated this case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kansas Woman Sentenced for Scamming Homeowners Facing ForeclosureRead the Press Release
KANSAS CITY, KAN. – A Kansas woman was sentenced today to a year and a day in prison for swindling homeowners facing foreclosure with false promises to help them save their homes, U.S. Attorney Stephen McAllister said.
Ruby Price, 74, Bonner Springs, Kan., pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud. Price was a managing partner of Arize Group, a company based in Overland Park, Kan. She and co-defendants took money from distressed homeowners by fraudulently promising to:
- Lower their interest rates.
- Lower their monthly payments
- Help them obtain loan modifications.
McAllister commended the U.S. Department of Housing and Urban Development - Office of Inspector General, the Federal Housing Finance Agency – Office of Inspector General, the Johnson County District Attorney’s Office, Special Assistant U.S. Attorney Emilie Burdette and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Justice Department Requires Divestiture to Resolve Antitrust Concerns in Symrise's Acquisition of IDF and ADFRead the Press Release
The Department of Justice announced today that it will require Symrise AG to divest its chicken-based food ingredient manufacturing facility in Banks County, Georgia, in order to proceed with its proposed $900 million acquisition of International Dehydrated Foods LLC (IDF) and American Dehydrated Foods LLC (ADF) from IDF Holdco Inc. and ADF Holdco Inc.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.
“This structural solution ensures that American consumers will continue to benefit from vigorous competition for a critical input used in everyday consumer staples like chicken soup, chicken broth and pet food,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement fully preserves competition in the sale of chicken-based food ingredients.”
According to the complaint, without the divestiture, the combined company would control over 75 percent of the domestic market for the manufacture and sale of chicken-based food ingredients. These ingredients are derived from chicken and sold to food manufacturers for use in a variety of human and pet food products. Without the required divestiture, the combined company likely would have been able to increase prices, reduce service and quality, and diminish innovation in the market for chicken-based food ingredients.
The divestiture required under the settlement would, if approved by the court, require Symrise to sell its brand-new facility in Banks County, Georgia, to Kerry Inc. or an alternate acquirer approved by the United States. Kerry is a global manufacturer of ingredients and recipe solutions for the food and beverage industry. This divestiture ensures that the buyer of the Banks County facility will be well positioned to compete vigorously with the merged company in the manufacture and sale of chicken-based food ingredients in the United States.
Symrise AG is a publicly listed company headquartered in Holzminden, Germany, with diversified operations in multiple lines of business. It manufactures and sells chicken-based food ingredients through its Diana Food and Diana Pet Food subsidiaries. In 2018, Symrise reported total revenue of approximately $3.5 billion.
IDF and ADF are privately held companies headquartered in Springfield, Missouri, whose operations include two chicken-based food ingredient plants in Alabama and Missouri. The companies’ combined 2018 revenue for chicken-based food ingredients used in human and pet food manufacturing was approximately $177 million.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments by mail concerning the proposed settlement within 60 days of its publication to Robert Lepore, Acting Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth St. N.W., Suite 8000, Washington DC 20530, telephone: 202-307-6349. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Justice Department Files Suit Against Walmart Inc. to Enforce Employment Rights of Naval ReservistRead the Press Release
The Department of Justice filed a complaint today in the United States District Court for the District of Colorado on behalf of Naval Petty Officer Third Class Lindsey Hunger against Walmart Inc. The complaint alleges that Walmart violated the law when it declined to hire Hunger due to her upcoming naval reserve duties.
“Servicemembers risk their lives to protect all of us. They deserve our full support, and the law does not permit employers to use military service as a reason to deny servicemembers jobs and other employment opportunities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Defending servicemembers is very important, and the U.S. Department of Justice will continue aggressively to enforce the Uniformed Services Employment and Reemployment Rights Act and other federal laws that protect servicemembers.”
“The members of our Armed Forces routinely make personal sacrifices to protect our nation. The least we can do as a nation is ensure they aren’t discriminated against for making these sacrifices,” said U.S. Attorney Jason R. Dunn of the District of Colorado. “When such discrimination does occur, this office and the Department of Justice will step in to right that wrong.”
Hunger alleges that in May 2016 she applied for a summer job at Walmart while she was a member of the United States Naval Reserve. After applying online, she received a call from Walmart’s personnel coordinator for the Walmart located at 2545 Rimrock Avenue in Grand Junction, Colorado. At the end of the call, Hunger mentioned that she was required to complete a mandatory two-week annual training for her Navy Reserve duty during the summer. The Personnel Coordinator responded by telling Hunger that Walmart could not support that time off, and ended the call. Walmart never called Hunger again about her application for employment. Hunger, who was supporting two young children at the time, could not find other employment in Grand Junction during the summer and fall of 2016.
The lawsuit alleges that Walmart’s conduct violated the Uniformed Services Employment and Reemployment Rights Act of 1994, which was passed 25 years ago to protect the rights of servicemembers. The law, known as USERRA, protects servicemembers from discrimination in employment because of their service to their country in any branch of the military. This lawsuit stems from a referral to the United States Department of Justice from the United States Department of Labor, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado.
Jefferson County woman admits to role in drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sandra Aramburo, of Ranson, West Virginia, has admitted to her role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Aramburo, age 37, pled guilty to one count of “Unlawful Use of Communication Facility.” Aramburo admitted to using a phone to arrange and collect money for the sale of cocaine hydrochloride in November 2018 in Jefferson County.
Aramburo faces up to four 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.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
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.
U.S. Magistrate Judge Robert W. Trumble presided.
Jamaican National Pleads Guilty to Re-entering the County Illegally After Deportation and Fraudulently Applying for U.S. PassportRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Rohan Maxwell, 45, of Allentown, Pennsylvania today entered a plea of guilty to one count of illegally re-entering the United States after deportation and one count of passport fraud before United States District Judge J. Curtis Joyner.
Maxwell was charged in August 2019 by Superseding Indictment with illegal re-entry after deportation and passport fraud, whereby having been deported to his native Jamaica on three separate occasions in 1997, 1999, and 2004, he submitted an application for a United States passport in 2011 using the identity of another person. The defendant was found in the United States in Lehigh County in July 2019.
“To state the obvious, those who enter our country illegally are not above the law – nobody is,” said U.S. Attorney McSwain. “By his actions, Maxwell has demonstrated a blatant disrespect for our nation’s laws. Not only did he flout our immigration laws, but also he committed an additional fraud to obtain a U.S. passport. We will continue to work with our law enforcement partners to uphold the rule of law and ensure our nation’s immigration laws are enforced.”
The case was investigated by the Diplomatic Security Service and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Inmate pleads guilty to mailing threats to former Ohio attorney general & prisons director, judges, newspapersRead the Press Release
COLUMBUS, Ohio – An Ohio inmate offered a guilty plea in federal court today to writing at least 15 threatening letters containing powder. In some of the letters, he claimed the powder was anthrax or fentanyl or threatened the use of explosive devices.
Sean Heisa, 36, was indicted by a grand jury in May 2019. He pleaded guilty today to making false information or hoaxes and mailing threatening communications.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered before U.S. Magistrate Judge Norah McCann King.
According to court documents, from July 2017 to July 2018, Heisa mailed threatening letters while incarcerated to various officials throughout the state of Ohio.
Heisa mailed a letter to the city manager of Painesville in August 2017 and claimed powder contained within the envelope was anthrax.
In the letter, Heisa described several things that were going to happen: “#1 – You are going to have trouble breathing; #2- You are going to die; #3 – You are going to become a martyr for a cause and an organization far bigger than yourself.”
Likewise, Heisa mailed a second letter that month to a magistrate judge in Whitehall, again claiming the powder contained within the letter was anthrax.
Heisa also threatened via letter officials within the Coshocton Municipal Courthouse, Franklin County Common Pleas Court and then-Ohio Attorney General Mike DeWine through threatened exposure to anthrax and the use of explosive devices.
Other letters threatened to injure recipients – including the former Ohio prisons director, the Columbus Dispatch, the Circleville Herald and The Ohio State University – by exposure to purported fentanyl.
For example, one letter to a Fairfield County Common Pleas Court judge who had presided over several hearings involving Heisa (involving robbery charges for which Heisa is now serving a combined 37-year sentence) stated: “This is enough Fentanyl to kill you and multiple coworker [sic]. You deserve a more painful death but this will do”
Heisa had access to what he believed to be fentanyl in prison and knew that if he could send enough fentanyl that it could kill someone, which is why he referenced it in many of his letters. Heisa chose to get high on the substance instead.
Heisa was charged by criminal complaint in December 2018 and arrested in January 2019.
Creating false information/hoaxes and mailing threatening communications are each federal crimes punishable by up to five years in prison
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica W. Knight, who is prosecuting the case.
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Illinois Woman Sentenced for Distribution of a Controlled Substance Resulting in DeathRead the Press Release
United States Attorney Ron Parsons announced that a Chicago, Illinois, woman convicted of Distribution of a Controlled Substance Resulting in Death was sentenced on October 28, 2019, by U.S. District Judge Karen E. Schreier.
Stephanie Broecker, age 27, was sentenced to 240 months in federal prison, followed by 3 years of supervised release, $3,655 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Broecker was indicted by a federal grand jury on April 4, 2018. She pled guilty on December 10, 2018.
The conviction stemmed from an incident on or about November 16, 2017, when Broecker mailed heroin from Rockford, Illinois, to a drug customer of hers in Fedora, South Dakota, utilizing the U.S. Postal Service. The drug customer received the U.S. Postal parcel that contained the heroin on November 18, 2017, in South Dakota. Witnesses reported that he ingested the heroin from the mail parcel that day and into the early morning hours of November 19, 2017, before dying of a drug overdose on November 19th. The Minnehaha County Coroner determined that man’s death was caused by heroin toxicity.
This case was investigated by the U.S. Postal Service, the Miner County Sheriff’s Office, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Broecker was immediately turned over to the custody of the U.S. Marshals Service.
Healthcare Provider for Children with Autism Agrees to Pay $300,000 to Settle False Claims AllegationRead the Press Release
WICHITA, KAN. – Autism Concepts, Inc., an Overland Park-based provider of therapy services for children with autism, has agreed to pay $300,000 to resolve False Claims Act allegations that it submitted false claims to the TRICARE program, U.S. Attorney Stephen McAllister announced today.
TRICARE is a federal health insurance program for active and retired military service members and their families.
The United States alleged that Autism Concepts, Inc. and its director Nancy Champlin represented in claims to TRICARE that the company provided individual applied behavioral analysis services to children with autism spectrum disorders when the company actually provided the services to groups of children at the same time. TRICARE does not cover the services in a group setting.
Autism Concepts and Champlin agreed to pay $300,000 to resolve the allegations.
“TRICARE providers must comply with program requirements that are designed for effective treatment for children with special and particular needs,” McAllister said. “This office is committed to making sure federal funds are spent as intended, while protecting federally funded programs that make it possible for military families to receive vital services.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold health care providers accountable to the American taxpayer,” said Army Lt. Gen. Ronald Place, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“As the investigative arm of the Department of Defense - Office of Inspector General (DoDIG), one of the primary missions of the Defense Criminal Investigative Service (DCIS) is the detection of fraud, particularly fraud that targets critical DoD health care funding,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “Today’s resolution demonstrates our commitment to working with DoDIG’s Deputy Inspector General for Audit as well as the Department of Labor Office of Inspector General and the Employee Benefits Security Administration to ensure federal health care programs, such as TRICARE, are protected from companies and/or individuals who attempt to take advantage of them.”
McAllister commended the Defense Criminal Investigative Service, the U.S. Department of Labor Employee Benefits Security Administration and Assistant United States Attorney Jon Fleenor for their work on the case.
Hamilton Resident Charged with Failure to Register as a Sex Offender, Failure to Appear, Identity Theft, and Bank FraudRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted a Hamilton resident for failure to register as a sex offender, failure to appear, aggravated identity theft, and bank fraud, all while on release from federal custody, announced U.S. Attorney Jay E. Town and the U.S. Marshal Martin Keely.
A five-count indictment filed in U.S. District Court charges SHANNON LESTER SORRELLS, 40, of Hamilton, with multiple felony offenses committed from June 6, 2019 until September 5, 2019. According to the indictment, Sorrells was convicted on March 14, 2001 of unlawful sexual intercourse with a minor and employment or use of a minor in production of pornography, both under the California Penal Code. From June 12, 2019 to September 5, 2019, while he was on release from federal custody, Sorrells allegedly failed to register and to update his a sex offender registration as required by the Sexual Offender Registration and Notification Act (SORNA). During that time, according to the indictment, Sorrells also failed to surrender for service of a sentence ordered by U.S. District Judge L. Scott Coogler and committed aggravated identity theft and bank fraud.
“Sexual assault of an innocent child is despicable,” Town said. “Every community deserves to know who has harmed a child. And committing a federal offense while on bond can add 10 years to your prison sentence.”
The maximum penalty for failure to register as a sex offender while on release is 20 years in prison, a $250,000 fine, and no less than five years of supervised release. The maximum penalty for failure to appear while on release is 20 years in prison, a $250,000 fine, and no more than three years of supervised release. The maximum penalty for aggravated identity theft while on release is 12 years in prison, a $250,000 fine, and no more than three years of supervised release. The maximum penalty for bank fraud while on release is 40 years in prison, a $1,000,000 fine, and supervised release of no more than five years.
The U.S. Marshals Service investigated the case, which Assistant U.S. Attorney Jonathan S. Keim is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Getaway Driver Found Guilty of Two Armed Robberies in TuscaloosaRead the Press Release
TUSCALOOSA, Ala. – A federal jury today convicted the getaway driver of aiding and abetting in two armed robberies in Tuscaloosa, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
The jury returned its guilty verdict against JEMARKUS VONSHA THOMPSON, 25, of York, Ala., after three days of testimony before U.S. District Judge L. Scott Coogler. The jury found Thompson guilty of two counts of Hobbs Act Robbery and two counts of carrying and brandishing a firearm during and in relation to a violent crime.
“Thompson has been brought to justice and potentially faces decades in a federal prison,” Town said. “These crimes are far too prevalent in the Northern District and thus our local, state and federal law enforcement agencies will remain the phalanx to not only police violent crime, but defeat it.”
“Reducing the potential for violent crime in this case was critical due to ATF partnering with our state, local and federal partners,” Watson said. “ATF’s Crime Gun Intelligence leverages technology to reduce violent firearms related crimes.”
“The Tuscaloosa Police Department has a good working relationship with the ATF and the US Attorney’s Office in cases such as these involving violent gun crimes, and we are glad to partner with them,” said Captain Brad Mason, Tuscaloosa Police Department. “We appreciate the work the ATF and the US Attorney’s Office put into this case, and we know that convicting criminals who perpetrate violent gun crimes will help make our streets safer.”
Evidence at trial proved that on November 26, 2017, Thompson was the driver of the suspect vehicle used to rob the Quick Stop Tobacco and Snack, and Subway in Tuscaloosa, on Old Greensboro Road. Testimony showed that the two co-defendants robbed the two stores at gun point using an assault style rifle, while Thompson remained in the vehicle. Cell phone tower information placed Thompson at the scene of both crimes. Thompson and the two co-defendants were stopped by Tuscaloosa police minutes after the robberies, where evidence of both crimes were found in their possession, including money, receipts, and the firearms.
The maximum penalty for Hobbs Act Robbery is 20 years in prison. Carrying and brandishing a firearm during a crime of violence carries a mandatory sentence of 7 years in prison per count, to be served consecutively to any other sentence imposed for the crime.
ATF investigated the case along with the Tuscaloosa Police Department, which Assistant U.S Attorney Brad Felton and Allison Garnett are prosecuting.
Georgia prison guard convicted of possession of drugs with intent to distributeRead the Press Release
DUBLIN, GA: A Georgia Department of Corrections officer was convicted on federal drug charges after a two-day trial in U.S. District Court.
Lekesia Lashea Harden, 23, of Dublin, was convicted on one count of Possession with Intent to Distribute Marijuana and Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a minimum sentence of 10 years to life in prison, and includes a period of supervised release after completion of the prison sentence. There is no parole in the federal system.
Harden, who worked as a corrections officer at Wheeler Correctional Facility, a medium-security, privately owned state prison in Alamo, Ga., was indicted along with her boyfriend, Tremayne O. Linder, 30, of Dublin, who recently pled guilty to the same charge.
“A corrections officer undoubtedly understood the potential risk of associating with a convicted felon and engaging in drug trafficking,” said U.S. Attorney Christine. “She now faces substantial time inside a prison cell as the price for her inexcusable violation of the law.”
Officers from the Dublin Police Department and Georgia Department of Community Supervision visited Harden and Linder’s residence April 9, 2018, to serve Linder with an arrest warrant for failing to complete requirements of probation. During a subsequent search of the residence, officers found 12 small packages, two containing methamphetamine and 10 containing marijuana. As noted in court documents and testimony, the marijuana was wrapped in electrical tape with some of the packages containing rolling papers, a sign that the material was packaged for contraband delivery to prison.
“Harden decided that her relationship with a convicted felon was more important than the oath she swore as a corrections officer,” said Special Agent in Charge of FBI Atlanta Chris Hacker. “Unfortunately, her decision taints every law enforcement officer who upholds their oath daily. But they can rest assured that she is being held accountable.”
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dublin Police Department, and prosecuted for the United States by Special Assistant U.S. Attorney Michael Marchman and Assistant U.S. Attorney Hank Syms.
Georgia pharmacist admits lying about filling prescriptions for high-volume opioid doctorsRead the Press Release
BRUNSWICK, GA: A Darien pharmacist is facing up to five years in prison after admitting that she lied about filling prescriptions for prescribers of high volumes of opioids and other controlled substances.
Janice Ann Colter, 62, of Darien, Ga., entered a guilty plea to one count of False Statements Relating to Health Care Matters, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Colter faces up to five years in prison and substantial fines and restitution, along with three years of supervised release upon completion of any prison sentence. There is no parole in the federal system.
“As the opioid crisis has burned across our nation, unethical medical professionals have poured fuel on the raging fire of addiction,” said U.S. Attorney Christine. “Our office will continue to vigorously prosecute drug dealers who hide behind white coats while profiteering from their greed.”
As part of her guilty plea, Colter, who formerly was the pharmacist-in-charge of Darien Pharmacy, admitted lying about filling prescriptions written by high-volume prescribers of opioids and other controlled substances. According to court documents and testimony, those prescribers included Dr. Frank H. Bynes Jr. of Savannah, recently convicted in U.S. District Court on multiple counts of Unlawful Dispensation of Controlled Substances and Health Care Fraud, and other physicians located as far away as Florida. From 2015 to 2017, Darien Pharmacy received more than one million dosage units of highly addictive opioids from its suppliers.
Colter, along with Darien Pharmacy, also is a defendant in a federal suit filed in August, seeking civil penalties for filling prescriptions for controlled substances that she “knew or should have known were not issued for legitimate medical reasons and by a provider not acting within the regular course of professional practice,” according to the suit.
Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division of the DEA said, “This pharmacist misled her suppliers to keep open a pipeline to prescribers who were doling out massive amounts of addicting controlled substances. Ms. Colter was not only reckless with regard to the many patients she served, but she also violated the trust of the community she served.”
“Pharmacist Colter placed profit and greed over the health and welfare of her community,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to ensure that tax payer funds are not used to line the pockets of criminals who fuel the opioid crisis.”
The Drug Enforcement Administration and the Health and the Human Services Office of Inspector General investigated the case, and Assistant U.S. Attorney J. Thomas Clarkson prosecuted the case on behalf of the United States.
Ft. Pierre Woman Indicted for Theft of Federal FundsRead the Press Release
United States Attorney Ron Parsons announced today a Ft. Pierre, South Dakota, woman has been indicted by a federal grand jury for Theft from a Program Receiving Federal Funds.
Pamela Duncan, age 52, was indicted on October 16, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on October 28, 2019, and pled not guilty to the Indictment. The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 2017 and August 2018, while she was employed as an agent of the United Sioux Tribes of South Dakota Development Corporation (USTDC), Duncan did embezzle, steal, obtain by fraud, and intentionally misapply property of USTDC, an organization receiving Federal funds.
The charge is merely an accusation and Duncan is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
The case was brought as part of The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former employee offers guilty plea for defrauding HondaRead the Press Release
COLUMBUS, Ohio – Charles Michael Stratton, 62, of Fairborn, offered a guilty plea in U.S. District Court today to wire fraud and money laundering. Stratton defrauded his former employer, Honda, out of more than $750,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered before U.S. Magistrate Judge Norah McCann King.
Stratton served as the Facilities Manager for Honda of America Manufacturing, Inc. in Marysville, from 2008 until March 2015. In his role, he oversaw various vendor contracts, including those for security services, janitorial services, food service and uniform/laundry on behalf of Honda.
Acrux Investigation Agency, located in Lakeview, provided physical and personal security services for Honda. Surmount, also located in Lakeview, was a subsidiary of Acrux and provided monitoring services to Honda.
Stratton executed a scheme to defraud Honda using Acrux and Surmount by creating multiple purchase orders for payments in amounts just under $100,000, a threshold in which additional oversight and approval is required.
Using these purchase orders, as well as the main labor contract, Stratton caused Acrux and Surmount to submit false invoices to Honda and instructed them to keep the money in a “future fund.” Money allocated to the future fund was then used, in part, to pay Stratton directly or through his organization, SAFE. Springfield Area Fastball Elites, Inc. (SAFE) was an Ohio non-profit created by Stratton to support local baseball teams; however, SAFE lost its classification as a 501(c)(3) in 2010.
Stratton also defrauded at least three other Honda vendors through the solicitation of donations for SAFE between 2012 and 2014, when it no longer held its tax-exempt status. Stratton received multiple donation checks, which he would either deposit in part to the SAFE bank account, while keeping a portion of the donation in cash for himself, or deposit the donation check entirely into his personal account. Only a fraction of the funds received through donations were actually spent in furtherance of SAFE’s mission.
Stratton was indicted by a grand jury in May 2018. Wire fraud is punishable by up to 20 years in prison and money laundering carries a potential maximum sentence of 10 years in prison.
As part of his plea, Stratton agrees to pay $750,635.95 in restitution to Honda and $10,000 in restitution to Scioto Industrial Services.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorneys Jessica W. Knight and Peter K. Glenn-Applegate, who are prosecuting the case.
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