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26 November 2019
Simsbury Woman Pleads Guilty to Defrauding Company of More Than $500,000Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that PAMELA HILL, 55, of Simsbury, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffery A. Meyer in New Haven to one count of wire fraud related to an embezzlement scheme.
According to court documents and statements made in court, between 2013 and 2018, Hill embezzled $518,161.48 from a company where she was employed as a controller. Hill wrote company checks to herself, applied signature stamps with the owner’s signature to the checks, and deposited the checks into her own bank account. She also issued electronic payments to her bank account and disguised the payments to make them appear to payments to vendors. When the company’s CFO questioned Hill about a vendor payment in December 2018, Hill provided the CFO with an altered bank statement that falsely reflected the payment had been credited back to the company’s account.
The investigation also revealed that Hill defrauded a separate individual for whom she provided bookkeeping services.
Judge Meyer scheduled sentencing for March 2, 2020, at which time Hill faces a maximum term of imprisonment of 20 years. Hill is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Second Guilty Plea in Mexican Timeshare Resale Fraud ProsecutionRead the Press Release
SACRAMENTO, Calif. — Wayne Arthur York II, 51, most recently of Albuquerque, New Mexico, pleaded guilty today to conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, York, while working in boiler rooms located in Puerto Vallarta, Mexico, would call timeshare owners to offer to arrange for the sale of Mexican timeshare vacation rentals. York would falsely claim that he and his coconspirators represented companies that had already secured or arranged for buyers who were ready to pay for the timeshares. In truth, no buyers had actually been arranged. Instead, York and others would convince the victims of the fraud to wire money from bank accounts in the United States and Canada to bank accounts in Mexico for alleged up-front payments including taxes, fees, and commissions to make the sale of the timeshare occur. The defendant and his coconspirators would assure victims that the non-existent buyers had already deposited money into trust accounts and that the sellers’ up-front fees would be fully reimbursed from those funds after the sale was complete. During York’s involvement, he was aware of or could have reasonably foreseen approximately $458,628.11 in inbound international wires being processed into bank accounts that he was aware of as part of his role in the conspiracy.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
York is the second defendant to plead guilty in this case:
Codefendant Marco Antonio Ramirez Zuno pleaded guilty in March 2017, and is scheduled for a status hearing regarding sentencing on December 10, 2019.
Codefendant Juan Carlos Montalbo is scheduled to go to trial on February 24, 2020. The charges against Montalbo are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
York is scheduled to be sentenced by Judge John A. Mendez on March 3, 2020. York faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Saratoga County Drug Dealer Pleads Guilty to Overdose DeathRead the Press Release
ALBANY, NEW YORK – Steven M. Boice, age 30, pled guilty today to distributing furanyl fentanyl that caused an overdose death in Saratoga County in February 2017, and further admitted to possessing 2 firearms in furtherance of his drug trafficking activities. He agreed to be sentenced to 20 years in prison.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Saratoga Springs Police Department Chief Shane Crooks.
United States Attorney Grant C. Jaquith stated: “Steven Boice showed total disregard for the lives of others. In selling furanyl fentanyl – a new, synthetic opioid many times more powerful than heroin and even fentanyl – he risked the lives of many, and caused the death of a young man whose family grieves every day. Boice also sold drugs while armed with a loaded rifle and loaded shotgun, demonstrating that he was prepared to use deadly force to safeguard his drug sales. I commend law enforcement for acting quickly to investigate and arrest Boice, which undoubtedly saved lives.”
DEA Special Agent in Charge Ray Donovan stated: “This investigation made it evidently clear that no town is immune from the deadly consequences of fentanyl. In order to save lives, law enforcement continues to warn the public about fentanyl’s potency and traffickers mixing fentanyl with more illicit drugs for sale like cocaine, heroin, and methamphetamine. I applaud the diligent work of the men and women at the DEA Albany District Office, Saratoga Springs Police Department, New York State Police, and the U.S. Attorney’s Office for the Northern District of New York.”
Saratoga Springs Police Chief Shane Crooks stated: “I commend our investigators for working with their federal and state counterparts to arrest Steven Boice within a month of his moving to Saratoga Springs. Boice was a scourge on our community, and by stopping him we prevented further tragedy. We extend our deepest sympathies to the family of the young man who died.”
Boice admitted that he sold controlled substances, including furanyl fentanyl, from his residence in Saratoga Springs. Early on February 3, 2017, he sold approximately 50 small envelopes, each containing furanyl fentanyl, to B.L., a Saratoga County man who overdosed and died that same day. Boice admitted that B.L. would not have died had B.L. not used the furanyl fentanyl that Boice sold to him. Furanyl fentanyl is a fentanyl analogue that the DEA Administrator listed as a Schedule I controlled substance, on an expedited basis, in November 2016.
On February 10, 2017, the DEA, Saratoga Springs Police and New York State Police executed a search warrant on Boice’s residence in downtown Saratoga Springs, and found furanyl fentanyl packaged for sale and 2 firearms. Boice admitted to possessing a total of 363 green-colored envelopes containing furanyl fentanyl.
He also admitted to possessing 2 firearms to protect his drugs and drug proceeds. When law enforcement entered his house on February 10, 2017, Boice had a loaded Mossberg Maverick shotgun, leaning against a wall of his bedroom and directly next to the door, and a loaded DPMS Panther Arms .223-5.56 mm semi-automatic rifle, under his bed.
In his plea agreement, Boice agreed to be sentenced to 240 months, or 20 years, in prison, to be followed by 3 years of supervised release. Senior United States District Judge Gary L. Sharpe will decide whether to accept or reject the recommended sentence on or before the March 25, 2020 sentencing date. If Judge Sharpe does not agree with a 20-year sentence, Boice would be allowed to withdraw his plea and the case would proceed to trial. Boice has been in custody since his arrest on February 10, 2017.
This case was investigated by the DEA and its Capital District Drug Enforcement Task Force; the Saratoga Springs Police Department; and the New York State Police. The Saratoga County District Attorney’s Office assisted in the investigation.
This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Rosebud Man Sentenced for Third Degree BurglaryRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Third Degree Burglary was sentenced on November 25, 2019, by U.S. District Judge Roberto A. Lange.
Tevin Lapointe, age 25, was sentenced to 6 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Restitution may also apply.
Lapointe was indicted by a federal grand jury on August 13, 2019. He pled guilty on September 10, 2019.
The conviction stemmed from an incident that occurred in the early morning hours of July 17, 2019, wherein Lapointe broke into and burglarized the Rosebud Sioux Tribe Employment and Contracting Rights Office (TECRO) in Rosebud, and stole multiple items of property belonging to TECRO, including a pickup truck.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Lapointe was immediately turned over to the custody of the U.S. Marshals Service.
Rockland Man Charged in Connection with Four Bank Robberies in New York and New JerseyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that YOSEF ZIEGLER was arrested in connection with four bank robberies in the counties of Rockland, Dutchess, and Bergen from January 24, 2019, through October 29, 2019. The defendant was arrested this morning in Airmont, New York, and presented in White Plains federal court this afternoon before United States Magistrate Judith C. McCarthy.
U.S. Attorney Geoffrey S. Berman said: “In quick succession, Yosef Ziegler allegedly committed a series of daring broad-daylight bank robberies in New York and New Jersey. Ziegler’s alleged conduct not only put bank employees, law enforcement, and the public at risk. Traumatic events such as this can also cause lasting undue emotional distress on victims and bystanders. Yosef Ziegler now stands accused of bank robbery charges which could potentially earn him 25 years in federal prison.”
According to the allegations in the Complaint[1]:
On January 24, 2019, at approximately 4:20 p.m., ZIEGLER entered a bank in Pomona, New York, announced that he had a bomb, displayed a cylindrical device attached to wires, and demanded that employees empty the bank’s vault. ZIEGLER collected approximately $76,000 in United States currency and then fled.
On April 17, 2019, at approximately 12:00 p.m., ZIEGLER entered a bank in Park Ridge, New Jersey, announced that he had a bomb, and demanded that employees empty the bank’s vault. ZIEGLER collected approximately $30,150 in United States currency and then fled.
On June 25, 2019, at approximately 11:50 a.m., ZIEGLER entered a bank in Wappingers Falls, New York, announced that he had bomb, with a device in his hand attached to wires that connected to his belt, and demanded that employees empty the vault and teller draws. ZIEGLER collected approximately $22,500 in United States currency and then fled.
On October 29, 2019, at approximately 12:00 p.m., ZIEGLER entered a bank in Fishkill, New York, wielding what appeared to be a firearm, which he pointed at employees while demanding that they empty the bank’s vault. ZIEGLER collected approximately $105,000 in United States currency and then fled.
Altogether, ZIEGLER allegedly stole over $233,000 from the four robberies.
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ZIEGLER, 29, of Airmont, New York, faces a maximum term of 25 years in prison for each of the three counts of bank robbery. The statutory maximum sentence is prescribed by Congress and is provided here for information purposes only, as any sentencing of the defendant would be determined by the respective judge.
Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, FBI Hudson Valley Safe Streets Task Force, FBI Newark Division, Bergen County Prosecutors Office, the Ramapo Police Department, the Fishkill Police Department, the New York State Police, and the Dutchess County District Attorney’s Office. Mr. Berman also thanked the Rockland County District Attorneys Office for their assistance.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Courtney L. Heavey is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Repeat Gun Offender Pleads Guilty to Selling Guns IllegallyRead 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 Kwesi Noble, 25, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to four counts of being a felon in possession of a firearm. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Katelyn Hartford, who is handling the case, stated that Noble illegally sold three firearms, two of which were loaded, to an individual in exchange for money in July 2019. The defendant was armed with a fourth gun, a loaded 9mm handgun, at the time of his arrest, which he threw over a fence as he fled from police.
Noble was previously convicted in March 2013 for Criminal Possession of a Weapon in the Second Degree, and as a result is legally prohibited from possessing firearms.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
Sentencing is scheduled for February 14, 2019, at 10:00 a.m. before Chief Judge Geraci.
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Project Guardian IndictmentsRead the Press Release
HAMMOND- Several individuals were indicted separately as part of the new U.S. Department of Justice Project Guardian initiative, announced U.S. Attorney Thomas L. Kirsch II and ATF Chicago Field Division Assistant Special Agent in Charge Brendan Iber.
The following individuals have been charged:
Caesar Gonzales, 23, of Hammond
Possession of an unregistered machine gun and distribution of cocaine
Sonny Richards, 26, of Hammond
Felon in possession of a firearm and distribution of cocaine
Jesus Gonzales, 28, of East Chicago
Felon in possession of a firearm
Dalyla Mares, 24, of East Chicago
Felon in possession of a firearm
Khalil Swader, 22, of Gary
Felon in possession of a firearm
Leonardo Verduzco, 25, of Crown Point
Distribution of methamphetamine, distribution of crack, drug user in possession of a firearm along with aiding and abetting the straw purchase of a firearm
Cesar Saldivar, 21, of Chicago, Illinois
Possession of an unregistered machine gun
Myles Graham, 22, of Cedar Lake
Straw purchasing of a firearm
Rahim Hill, 22, of Gary
Felon in possession of a firearm
U.S. Attorney Kirsch said, “We will not tolerate violent crime in the Northern District of Indiana. Together with our federal, state, and local law enforcement partners, we will continue to aggressively prosecute individuals involved in the illegal possession and acquisition of firearms. These investigations do not stop at the state line, and as evidenced by the charges announced today, neither do our prosecutions. My office will do everything we can to reduce violent crime in the District.”
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, any specific sentence to be imposed will be determined by the judge after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
These cases are the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Schererville, Merrillville, Munster, Hammond, Griffith and East Chicago Police Departments along with the Lake County Sheriff’s and Prosecutor’s Office. These cases are being prosecuted by Assistant U.S. Attorney Joseph Cooley, Thomas Mahoney, Nicholas Padilla and Kevin Wolff along with Special Assistant U.S. Attorney Michael J. Toth.
Premium Point Investments Founder and CEO Anilesh Ahuja Sentenced to 50 Months in Prison Following Conviction at Trial for Securities Mismarking SchemeRead the Press Release
Audrey Strauss, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that ANILESH AHUJA, a/k/a “Neil,” the founder, chief executive officer, and chief investment officer of Premium Point Investments L.P. (“PPI”), was sentenced to 50 months in prison in connection with his conviction following a jury trial for engaging in a securities mismarking scheme from 2014 to 2016. The jury convicted AHUJA and Jeremy Shor, a former trader at PPI, on securities fraud-related offenses relating to their participation in a scheme to inflate the net asset value (“NAV”) reported to investors for hedge funds managed by PPI by more than $100 million. AHUJA was sentenced by U.S. District Judge Katherine Polk Failla, who presided over the six-week jury trial.
Ms. Strauss said: “Anilesh Ahuja, founder of Premium Point Investments, was convicted of participating in a scheme to mismark securities and thereby mislead investors as to the true value of the funds that Premium Point managed. Ahuja conspired with others in his company and corrupt brokers to fraudulently inflate the value of the assets under their management, which in turn allowed them charge higher fees and avoid redemptions by investors who otherwise would have pulled their money from Premium Point. The substantial prison term imposed on Ahuja appropriately holds him accountable for his criminal acts.”
According to the Indictment, evidence presented at trial, and court filings:
Premium Point Investments
In or about 2008, AHUJA co-founded PPI, where he was the chief executive officer and chief investment officer. PPI managed hedge funds focused primarily on structured credit products, including residential mortgage backed securities (“RMBS”). PPI’s flagship mortgage credit fund (the “Hedge Fund”) was launched in or about October 2009. A segregated ERISA fund held the same positions as the Mortgage Credit Fund. In 2013, PPI launched a new fund (the “New Issue Fund”) that purchased and securitized pools of mortgages that were not issued or guaranteed by a government agency. At various relevant times between 2008 and 2016, PPI managed billions in assets. Shor was employed by PPI as a trader, where he focused on non-agency RMBS – i.e., RMBS securities that were not issued by a government agency.
The Scheme to Mismark Securities
From at least in or about 2014 through at least in or about 2016, AHUJA and Shor participated in a scheme to defraud PPI’s investors and potential investors in the Hedge Fund, ERISA Fund, and the New Issue Fund by deceptively mismarking each month the value of certain securities held in these funds, and thus fraudulently inflating the NAV of those funds as reported to investors and potential investors.
PPI fraudulently obtained inflated quotes, including from corrupt brokers, and manipulated its valuation process to inflate the purported value of securities held by the funds. The effect of the mismarking scheme was to materially overstate the reported NAV – at times by more than $100 million across the funds managed by PPI. This benefited PPI in at least two ways. First, PPI was able to charge its investors higher management and performance fees. Second, PPI was able to forestall redemptions by investors who would have requested a return of their funds had they known PPI’s true performance and operating health.
The mismarking scheme evolved as a result of demands by AHUJA that PPI maintain its track record of success and keep pace with the performance of peer funds, regardless of market conditions or the actual performance of the funds. To achieve the goal of posting competitive returns, AHUJA, along with another partner, set an inflated “target” return for the Hedge Fund, ERISA Fund, and New Issue Fund at the end of each month, which was at times based in part on the performance of peer funds. The traders at PPI were then tasked with “reverse engineering” marks to meet the “targets.”
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In addition to the prison term imposed by Judge Failla, AHUJA, 51, of New York, New York and Miami, Florida, was further sentenced to three years of supervised release.
On November 18, 2019, Judge Failla sentenced Shor to 40 months’ imprisonment and three years of supervised release.
Ms. Strauss praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold, Joshua A. Naftalis, and Max Nicholas are in charge of the prosecution.
Pittsburgh-area Lab Owner Charged with Paying Kickbacks in Connection with Almost $130 Million in Medicare Claims for Genetic TestingRead the Press Release
PITTSBURGH, Pa. – A resident of Monroeville, Pennsylvania, was charged in federal court with three conspiracy counts and one substantive count related to the payment of unlawful kickbacks, United States Attorney Scott W. Brady announced today.
Ravitej Reddy, 52, was charged by criminal Information with two counts of conspiracy to pay and receive kickbacks, one count of conspiracy to pay kickbacks, and one count of offering and paying kickbacks.
"In less than a year, Ravitej Reddy and his partners in crime were responsible for more than $125 million in genetic testing claims submitted to Medicare as the result of a sophisticated, nationwide kickback scheme," said U.S. Attorney Brady. "Together with our law enforcement partners, we will stay vigilant in the fight against unscrupulous players in the health care market who pursue personal profit at the expense of critical public programs."
"We will not tolerate anyone who cheats the healthcare system and lines their own pocket," said FBI Pittsburgh Special Agent in Charge Robert Jones. "This kind of fraud takes critical resources from our health care system, and we'll work tirelessly to stop these types of programs from being exploited."
"Medical professionals who seek to enrich themselves through kickback schemes – as alleged in this case - undermine taxpayer-funded programs and drive up health care costs for everyone," said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General. "Today’s announcement demonstrates our commitment to working with our state and federal law enforcement partners to swiftly investigate such allegations of fraud."
According to the Information, the defendant owned two testing laboratories—Personalized Genetics, LLC, d/b/a Personalized Genomics (PGL), located in Pittsburgh, and Med Health Services Management, LP (MHS), located in Monroeville. Beginning as early as May 2018, and continuing through approximately April 12, 2019, the Information alleges that the defendant participated in three separate conspiracies related to Medicare billing for two types of genetic testing: cancer genomic testing (CGx) and pharmacogenetic testing (PGx). CGx testing used DNA sequencing to detect mutations in genes that could indicate a higher risk of developing certain types of cancers in the future. CGx testing, however, was not a method of diagnosing whether an individual presently had cancer. PGx testing detected specific genetic variations in genes that impacted the metabolism of certain medications. In other words, PGx testing helped determine, among other things, whether certain medications would be effective if used by a particular patient.
As alleged, the defendant and a group of co-conspirators comprising business consultants, marketers, and the operator of a telemedicine entity, among others, acquired thousands of testing samples from Medicare beneficiaries located throughout the United States, as well as the corresponding prescriptions that PGL and MHS needed to bill Medicare for CGx and PGx testing. For their part, the marketers used targeted campaigns to induce beneficiaries to submit CGx and PGx specimens by means of cheek swabs sent to their homes or provided to them at purported "health fairs" held throughout the United States. Marketers, in turn, were paid percentage-based kickbacks depending upon the Medicare reimbursements for beneficiaries whose samples they had obtained and submitted to PGL or MHS.
Likewise, the operator of a Florida-based telemedicine entity allegedly was paid kickbacks in connection with obtaining CGx and PGx prescriptions from physicians who were contracted by his company to review the beneficiaries’ personal and familial medical histories. As alleged, contract physicians authorized testing for greater than 95% of beneficiaries despite the fact that the doctors did not conduct a proper telemedicine visit, were not treating the Medicare beneficiaries for cancer or symptoms of cancer, did not use the test results in the treatment of the beneficiaries, and generally were not qualified to understand and interpret the test results.
According to the Information, the defendant and his co-conspirators took advantage of PGL’s and MHS’s physical locations within the Medicare coverage area that offered the highest reimbursement rates in the United States. As alleged, the co-conspirators used PGL and MHS as the billing laboratory despite the fact that the labs did not possess properly validated equipment to conduct any CGx testing on-site and, as such, were forced to send samples for proper testing by a so-called reference laboratory that was located outside of the lucrative coverage area.
The three charged conspiracies involve similar conduct related to the acquisition of CGx and PGx specimens. The first conspiracy, however, allegedly involved billings only through PGL, while the second and third conspiracies involved billings through MHS. According to the Information, the defendant engaged in the second and third conspiracies with some, but not all, of the same co-conspirators as the first conspiracy, and he pursued these alleged side deals, in part, as a means to increase his share of the profits relative to the PGL-based conspiracy. Finally, the Information charges one substantive kickback count, alleging that the defendant paid percentage-based kickbacks to another unrelated marketing entity in connection with the acquisition of PGx and other testing samples between October 2017 and April 2019.
According to the Information, the defendant caused PGL and MHS to submit Medicare claims for CGx and PGx testing that regularly exceeded $12,000 per beneficiary. In total, between May 2018 and April 12, 2019, the defendant’s laboratories billed Medicare more than $127 million for CGx and PGx testing, with reimbursements of approximately $60 million.
For each of the three conspiracy counts, the defendant faces a maximum sentence of five years in prison, a fine of $250,000, or both. For the substantive kickback charge, he faces a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation and U.S. Department of Health and Human Services – Office of Inspector General conducted the investigation of the defendant.
Pittsburgh Resident Pleads Guilty to Conspiracy and Health Care FraudRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to one count each of conspiracy to defraud the Pennsylvania Medicaid program and health care fraud, United States Attorney Scott W. Brady announced today.
Tionne Street, 48, pleaded guilty before United States District Judge Cathy Bissoon on November 22, 2019.
During her plea hearing, Street admitted that she was an employee of Moriarty Consultants, Inc. (MCI), one of four related entities operating in the home health care industry. The other three entities were Activity Daily Living Services, Inc. (ADL), Coordination Care, Inc. (CCI), and Everyday People Staffing, Inc. (EPS). MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients (“consumers”), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Between in and around January 2011 and in and around April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for these services, with PAS payments accounting for more than $80,000,000 of the total amount.
During that time, Street admitted that she participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims. As part of the conspiracy, Street admitted that she fabricated timesheets to reflect the provision of in-home PAS care that, in fact, she never provided to consumers. Some of the fabricated care occurred while Street was working for a different employer. In total, Street admitted causing the submission of false timesheets for more than a half dozen consumers, resulting in fraudulent Medicaid reimbursements of approximately $70,000.
Judge Bissoon scheduled Street’s sentencing for 10 a.m. on March 17, 2020.
The conspiracy and health care fraud charges each carry a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
To date, a total of sixteen defendants have been charged in connection with this investigation. Street is the seventh defendant to enter a guilty plea. The remaining defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorneys Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
Pierre Man Indicted on Meth and Gun ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Dustin Warnke, age 34, was indicted on November 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 26, 2019, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum 10 years, up to life in federal prison and/or a $10,000,000 fine, at least 5 years, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown but no later than on or about the 1st day of March, 2018, and continuing to on or about November 13, 2019, Warnke did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine, a Schedule II controlled substance. Further, on the 5th day of January 2019, Warnke, knowing he was an unlawful user of and addicted to a controlled substance, knowingly possessed a .40 Smith & Wesson caliber, semi-automatic pistol.
The charges are merely accusations and Warnke is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Highway Patrol, the South Dakota Division of Criminal Investigation, and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Warnke was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Physician Pleads Guilty to Acquiring Controlled Substances by Fraud and Using A Means of Identification of Another to Acquire Controlled Substances by FraudRead the Press Release
PENSACOLA, FLORIDA – Robert Patrick Jensen, 49, of Gulf Breeze, Florida, entered a guilty plea last
Friday to the charges of acquiring controlled substances by fraud, and using a means of identification of another person in connection to the offense of acquiring controlled substances by fraud. The guilty plea was announced by Lawrence Keefe, United States Attorney for the Northern
District of Florida.Documents introduced at the time of the guilty plea allege that between December 3, 2014, and July
7, 2016, on at least 35 separate occasions, Jensen presented fraudulent prescriptions to various pharmacies in the Santa Rosa County area to obtain tramadol and dextroamphetamine. During that time, Jensen worked as a physician at a medical facility in Gulf Breeze and shared office space with other physicians. Jensen forged another physician’s signature or used the physician’s pre-signed prescriptions without the physician’s authorization. On each occasion, Jensen used a means of identification of the physician without the physician’s authorization, namely, the physician’s specifically assigned Drug Enforcement Administration Registration number, to acquire tramadol and dextroamphetamine. In total, between the above-mentioned dates, Jensen used fraudulent prescriptions to acquire approximately 8,820 tramadol pills of varying strengths and approximately
180 dextroaphmetamine 30 mg pills.Jensen faces up to four years’ imprisonment for the charge of acquiring controlled substances by fraud, and up to twenty years’ imprisonment for the charge of using a means of identification of another person in connection to the offense of acquiring controlled substances by fraud. Jensen is scheduled to be sentenced on February 4, 2020.
“Society places a large measure of trust in the hands of licensed physicians, and it’s profoundly disturbing when a respected professional abuses that trust to illegally obtain controlled substances," U.S. Attorney Keefe said. “In addition, this doctor’s actions undermined the trust placed in him by his fellow physicians, pharmacists, and others in the medical profession.”
This case resulted from an investigation by the Drug Enforcement Administration, the Santa Rosa
County Sheriff’s Office, and the Gulf Breeze Police Department. Assistant United States Attorney J.
Ryan Love is prosecuting the case.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Pearl Man Sentenced to 15 Months in Prison for Attempting to Acquire a Firearm by FraudRead the Press Release
Jackson, Miss. – Michael Wayne Pearson, 49, of Pearl, was sentenced today by U.S. District Court Judge Henry T. Wingate to 15 months in federal prison, followed by 3 years of supervised release, for attempting to acquire a firearm by making fraudulent statements on a federal background check form and causing a federal firearms licensee to keep false information, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On July 24, 2018, Pearson attempted to purchase a firearm from a gun shop in Pearl, Mississippi. He completed and signed ATF Form 4473 while at the gun shop as part of the federally required background check process. The form requires the firearm purchaser to designate whether they have ever been committed to a mental institution. Pearson fraudulently checked "No" and signed the form, certifying that his false answer was truthful. Under federal law, it is unlawful for a person who has been judicially committed involuntarily to either possess or purchase a firearm.
Pearson had previously been judicially committed for mental treatment by the Chancery Court of Rankin County. The firearm purchase was denied after the National Instant Criminal Background Check System rejected his attempted purchase due to his previous commitment for mental treatment.
Pearson was charged in a federal indictment on December 11, 2018, with making a false statement in an attempt to acquire a firearm and giving false information to a federal firearm licensee. He was found guilty by a jury in U.S. District Court on April 24, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys S. Lynn Murray and Charles W. Kirkham.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please click here.
Passaic County Man Admits Role in Conspiracy to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted conspiring to distribute 400 grams or more of fentanyl, U.S. Attorney Craig Carpenito announced.
Felix Acevedo, 28, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden to one count of possession with intent to distribute 400 grams or more of fentanyl.
According to documents filed in this case and statements made in court:
From March 2018 through March 2019, Acevedo conspired with others to distribute 400 grams or more of fentanyl. On Feb. 20, 2019, he took possession of a parcel that had been shipped to him at an address in Clifton, New Jersey. Acevedo believed the parcel contained narcotics, which he planned to deliver to a conspirator. Unbeknownst to Acevedo, law enforcement had interdicted the parcel prior to its delivery and removed the 997 grams of fentanyl contained within.
The count to which Acevedo pleaded guilty carries a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for March 2, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and the inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s guilty plea.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Navarre, Ohio man charged for possessing with intent to distribute LSD, MDMA and THC vape cartridgesRead the Press Release
A federal grand jury sitting in Cleveland, Ohio, returned an indictment today charging James Hargis, Jr., age 19, of Navarre, Ohio, with three counts of possession with intent to distribute controlled substances, including LSD, MDMA and THC vape cartridges.
On April 3, 2019, agents executed a search warrant at the Navarre, OH residence of James Hargis Jr. where they seized the following: 20 grams of MDMA; more than 100 THC vape cartridges; 346 tabs of LSD; drug paraphernalia; $8,514 in cash; a .223 caliber semi-automatic rifle with ammunition; and a loaded .22 caliber revolver.
The investigation was conducted by the FDA – Office of Criminal Investigations in conjunction with the Ohio Attorney General’s Organized Crime Commission Major Crimes Task Force which consists of the Cuyahoga County Sheriff’s Department, Cuyahoga County Prosecutor’s Office, U.S. Food and Drug Administration, and the U.S. Postal Inspection Service. The matter is being prosecuted by Assistant United States Attorney Aaron P. Howell.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Multi-Kilo Meth Trafficker Sentenced to PrisonRead the Press Release
MACON, Ga. – A Twiggs County woman found guilty of attempting to sell more than 300 grams of methamphetamine was sentenced to prison Wednesday, said U.S. Attorney Charles “Charlie” Peeler. Tiffany Sauls, 25, of Danville, Georgia, was convicted on July 16, 2019 of one count of Possession with Intent to Distribute Methamphetamine following a two-day trial before the Honorable Marc Treadwell. It took the jury only an hour and a half to return the guilty verdict. U.S. District Judge Treadwell sentenced Ms. Sauls to 97 months in prison and five years of supervised release on Wednesday, November 20, 2019. There is no parole in the federal system.
According to the facts presented at trial, Ms. Sauls was arrested on September 29, 2018 in Twiggs County along I-16 during a traffic stop. Officers smelled marijuana and, during a subsequent legal search, located 302.61 grams of methamphetamine with 99% purity. A digital scale as well as baggies were found during the search. A witness testified that Ms. Sauls bragged about hitting the “lottery” when she picked up the drugs from her Atlanta supplier.
“Ms. Saul won prison time when she made the choice to deal methamphetamine in Georgia,” said U.S. Attorney Charlie Peeler. “Methamphetamine trafficking and abuse harms every aspect of society, and the people who are involved in the distribution of this illicit, dangerous drug will be held accountable for their crimes. I want to thank the Twiggs County Sheriff’s Office, the GBI and the DEA for their assistance in this case.”
The case was investigated by the Twiggs County Sheriff’s Office, the U.S. Drug Enforcement Administration, and the Georgia Bureau of Investigation. Assistant U.S. Attorneys C. Shanelle Booker and Steven Ouzts are prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Minnesota Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Paul, Minnesota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 25, 2019, by U.S. District Judge Roberto A. Lange.
Frank Edward Adams, a/k/a Tank Adams, age 45, was sentenced to 360 months in federal prison, followed by 7 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Adams was indicted by a federal grand jury on November 14, 2018. He was found guilty by a jury on August 22, 2019.
The jury found that from December 1, 2015, until November 14, 2018, Adams had knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute and possess with the intent to distribute over 500 grams of methamphetamine, which is a Schedule II controlled substance, on the Crow Creek and Lower Brule reservations in South Dakota.
Evidence established that Adams was the nucleus of a large drug trafficking conspiracy that involved well over 4600 grams of methamphetamine. Adams supplied large quantities of methamphetamine several times a month, including the first of the month when tribal assistance funds were available, to the Crow Creek and Lower Brule reservations in South Dakota. Adams engaged several dealers on both reservations to distribute meth.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs, Crow Creek Agency, the Bureau of Indian Affairs, Lower Brule Agency, the South Dakota Highway Patrol, the Pierre Police Department, and the Minnesota State Patrol. Assistant U.S. Attorney Meghan N. Dilges and Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Adams was immediately turned over to the custody of the U.S. Marshals Service.
Mexican Woman Who Used a Fraudulent Social Security Card Convicted after Jury TrialRead the Press Release
A woman who used a false identification document and someone else’s social security number was convicted by a jury today after a one-day trial in federal court in Cedar Rapids.
Maria Morales-Martinez, age 38, a citizen of Mexico illegally present in the United States and residing in Postville, Iowa, was convicted of one count of unlawful use of an identification document and one count of misuse of a social security number. The verdict was returned this morning following about 40 minutes of jury deliberations.
The evidence at trial showed that Morales-Martinez used the name, date of birth and Social Security number of another person when completing employment paperwork in August 2016 at a business in Postville, Iowa. Specifically, Morales-Martinez presented the company with a fraudulent Minnesota ID card bearing her picture but the name and date of birth of another person. She also used a Social Security card bearing the name and social security number assigned to that other person when completing state and federal tax forms. Morales-Martinez admitted at trial that she used a second person’s name and social security number when employed at the company between 2010 and 2012, and the current alias name and social security number while employed at the company between August 2016 and December 2018. Morales-Martinez was fired after the company discovered that Morales-Martinez was working using fraudulent documents.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Morales-Martinez was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Morales-Martinez faces a possible maximum sentence of 15 years’ imprisonment, a $500,000 fine, and six years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1013.
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Methamphetamine Dealer Sentenced to 20 Years in PrisonRead the Press Release
A 32-year-old Tulsa man convicted of methamphetamine distribution and firearms violations has been sentenced today in U.S. District Court, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Veng Xiong to 20 years in prison followed by five years of supervised release.
On July 30, a jury found Xiong guilty of conspiring to possess with intent to distribute and to distributing 500 grams or more of methamphetamine, possession of a rifle and a short-barreled shotgun in furtherance of a drug trafficking crime, and being a felon in possession of firearms.
“Xiong has a lengthy history of trafficking drugs in northern Oklahoma. He actively pursued a criminal lifestyle and now will face 20 years in a federal prison for dealing meth in our communities,” said U.S. Attorney Trent Shores. “Because of the dedicated work performed by investigators and federal prosecutors in this case, Veng Xiong has been brought to justice and Oklahoma’s communities are safer.”
This just result is a direct reflection of excellent work of a multi-agency investigative team and two top-notch federal prosecutors, Ryan Roberts and Chris Nassar.”
During a methamphetamine trafficking investigation, Osage County Sheriff’s Deputies covertly set up a drug deal with an individual who agreed to sell thirty-three pounds of methamphetamine for $500,000. On April 9, 2018, the parties met at a predesignated location in rural Osage County in order to exchange the methamphetamine for cash. Xiong, along with three co-conspirators, arrived in two separate vehicles. At that time, the Osage County and Osage Nation Joint Tactical Response Team conducted a takedown and arrested the four suspects, including Xiong. Upon search of the vehicles, deputies found multiple firearms, including a Glock .40 caliber semi-automatic pistol, a Taurus .38 caliber special revolver, a Winchester 12 gauge shotgun with a sawed-off barrel, and a WASR-10, which is an AK-47 style 7.62x39mm semi-automatic rifle. Both the rifle and the shotgun were found in Xiong’s vehicle. Deputies discovered the handguns and more than five pounds of methamphetamine in the other car.
Xiong was also convicted on two previous occasions in Tulsa County District Court for trafficking in illegal drugs as well as convictions for possessing a firearm while in commission of a felony and for driving under the influence of alcohol.
The Osage County Sheriff’s Office; Osage Nation Tribal Police; FBI; Pawhuska Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Oklahoma Bureau of Narcotics investigated the case. Assistant U.S. Attorneys Christopher J. Nassar and Ryan M. Roberts prosecuted the case.
Members of Newark’s ‘Famous Boyz’ Street Gang Admit Drug and Firearms OffensesRead the Press Release
NEWARK, N.J. – Members of the “Famous Boyz” street gang have admitted to firearms and narcotics distribution offenses as part of a drug trafficking conspiracy, U.S. Attorney Craig Carpenito announced today.
Shaka McKinney, 25, of Newark, pleaded guilty today before U.S. District Judge Madeline Cox Arleo to an information charging him with being a felon in possession of a firearm. He faces a maximum term of imprisonment of 10 years and a maximum fine of $250,000.
Jahid Vauters,” a/k/a “k”, a/k/a “KO,” 31, of Newark, pleaded guilty Nov. 25, 2019, before Judge Arleo to an information charging him with one count each of: conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 28 grams or more of cocaine base; possession with intent to distribute 28 grams or more of cocaine base; possessing two firearms and ammunition as a convicted felon; and possessing two firearms in furtherance of a drug trafficking crime. As part of his plea agreement, the parties have agreed to a sentence of 10 years in prison.
Karen Armstrong, 29, of Newark, pleaded guilty before Judge Arleo on Nov. 7, 2019 to an information charging her with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and heroin.
Eugene Williams, a/k/a “Popa,” a/k/a “Papa,” 53, of Newark, pleaded guilty before Judge Arleo on Nov. 7, 2019, to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base and one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin.
Saeed Dawes, a/k/a “Nasty,” 22, of Newark, pleaded guilty before Judge Arleo on Nov. 6, 2019, to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and heroin.
In October 2018, McKinney, Vauters, Armstrong, Williams, and Dawes, and 12 other members of a violent drug trafficking conspiracy operating in Newark were charged by criminal complaint after a lengthy wiretap investigation with conspiracy to distribute crack cocaine and/or heroin. McKinney and Vauters were also charged with firearms offenses.
On Feb. 25, 2019, a grand jury returned a one-count indictment charging three of the defendants, Patricio Hernandez, Jonathan Hernandez, and Jonathan Garcia, a/k/a “Bebo,” with conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine for their alleged participation in supplying the “Famous Boyz” with cocaine.
On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment against the remaining defendants and Patricio Hernandez, Jonathan Hernandez, Garcia, Javon Holmes, a/k/a “J-Dot”, and John Mosley, a/k/a “Breezy,” a/k/a “Brazy.” The charges in the superseding indictment are pending against the remaining defendants.
According to the documents filed in this case and statements made in court:
The defendants are members and associates of the Famous Boyz – a subset of the Brick City Brims set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine, in the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8.”
Mosley was a primary source of narcotics for the Famous Boyz and often directed the gang’s drug operations. He and other members of the Famous Boyz shared narcotics, customers, and firearms with one another in furtherance of their narcotics trafficking activities, and they used juveniles to distribute narcotics and stash firearms. Patricio Hernandez and Jonathan Hernandez were among the main suppliers of crack cocaine to Mosley, while Vauters supplied Mosley with heroin. Heroin sold by Famous Boyz members, including Dawes, Armstrong and Williams, contained a fentanyl analogue, which is an extremely dangerous and highly addictive substance.
Members of the Famous Boyz used social media to promote the gang’s criminal activities, including by advertising their narcotics trafficking activities and proceeds and by threatening both rival gang members and any individuals who considered cooperating with law enforcement. Those members who sold narcotics also enriched themselves by committing other crimes, including robberies.
The heroin and crack cocaine conspiracy and heroin and crack cocaine distribution counts to which Vauters pleaded guilty each carry a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. In addition, the firearm possession count to which Vauters pleaded guilty carries a statutory mandatory minimum term of five years in prison, which must run consecutive to any other punishment.
The crack cocaine conspiracy count to which Williams pleaded guilty carries a maximum penalty of life imprisonment, and a maximum fine of $10 million. The heroin conspiracy to which Williams pleaded guilty carries a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million.
The heroin and crack cocaine conspiracy counts to which Dawes and Armstrong pleaded guilty each carry a maximum penalty of 20 years in prison, and a maximum fine of $1 million.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation.
He also thanked the special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Belleville Police Department, under the direction of Chief Mark Minichini; and the Livingston Police Department, under the direction of Chief Gary Marshuetz, for their assistance with the investigation.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Deputy Chief of the Criminal Division Mary E. Toscano and Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations against the remaining defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Maxton Man Sentenced for Possession with Intent to Distribute CocaineRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced BENDA RAY LOCKLEAR, 46, of Maxton, North Carolina to 84 months imprisonment, followed by 5 years of supervised release.
LOCKLEAR was named in a Criminal Information filed on July 25, 2019 charging him with possession with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine. On August 26, 2019, LOCKLEAR pled guilty to the charge.
In March 2018, investigators with the Drug Enforcement Administration and the Robeson County Sheriff’s Office in Lumberton, North Carolina, began investigating the suspected drug trafficking activities of a defendant in Robeson County. The investigation established that individual was working with LOCKLEAR to bring approximately 16 kilograms of cocaine to Robeson County.
Investigators determined, on March 21, 2018, that several of the kilograms of cocaine had been sold, and that LOCKLEAR was in possession of several thousand dollars of drug sale proceeds at his residence. Additionally, it was determined that LOCKLEAR still possessed eight of the kilograms of cocaine.
On March 22, 2018, investigators conducted a traffic stop of a vehicle being driven by LOCKLEAR, and then searched his residence. Agents recovered a vehicle battery that had been hollowed out, as well as heat-sealed bags. Investigators then searched another residence, and found $193,960. Finally, a search of a residence in Maxton, North Carolina resulted in the seizure of eight kilograms of cocaine.
Subsequently, LOCKLEAR admitted to investigators that on March 20, 2018, he had received four hollowed out batteries containing 16 a total of kilograms of cocaine.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Drug Enforcement Administration (DEA) and the Robeson County Sheriff’s Office investigated this case. Assistant United States Attorney Scott Lemmon represented the government.
Major Marijuana Distributor Sentenced for Money LaunderingRead the Press Release
St. Louis, MO –Cedric T. Davis, Jr., 21, of American Canyon, California, was sentenced to 46 months imprisonment for his role in a conspiracy to launder drug proceeds via Moneygrams. Davis appeared in federal court today before United States District Judge Henry E. Autrey.
According to court documents, from January 2016, and continuing through February 21, 2018, Cedric Davis’s co-defendants Jack Huck, Joey Hope, and others imported to the Eastern District of Missouri multi-pound amounts of marijuana from Davis, who acted as the source of the supply located in California. Upon receipt of the marijuana, Davis’s co-defendants and others distributed it within the Eastern District of Missouri and elsewhere.
Once distributed, the co-defendants and others at their behest collected the proceeds of the marijuana sales. Those individuals, including co-defendants Jack Huck, Joey Hope, and others, then wired or caused to be wired the proceeds to Cedric Davis in California via MoneyGrams purchased at various outlets, including Wal-Mart stores. The MoneyGrams were payment for previously shipped marijuana as well as for pending marijuana shipments. Davis, or others acting as his direction, then cashed the MoneyGrams in California. In some instances, Davis had other individuals cash the MoneyGrams on his behalf in order to conceal and disguise the nature, location, source, ownership, and control of the cash proceeds.
All other co-defendants charged as part of the conspiracy have pled guilty and have been sentenced or are pending sentencing.
This case was investigated by the Missouri Highway Patrol, Ste. Genevieve Police Department, Homeland Security Investigations, and the Warren County Sheriff’s Department. Assistant U.S. Attorney Stephen Casey is handling the case.
Local Rapper and Associate of Violent Drug Gang Indicted for Witness TamperingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Charles Salley, a/k/a “Dark Lo,” a/k/a “Ron Harvey,” 37, of Clayton, Delaware, was charged by Indictment with witness tampering.
The Indictment alleges that on November 6, 2019, during the trial United States vs. Abdul West, et al. involving members of a violent drug trafficking organization known as “Original Block Hustlaz” (or OBH), a cooperating witness received a threatening letter from Salley under the pen name “Ron Harvey,” a pseudonym Salley has used in various rap songs. The Indictment further alleges that Salley, who also goes by the stage name “Dark Lo,” threatened physical violence against the cooperating witness and others if the witness testified at trial against Salley’s OBH associates.
On November 13, 2019, United States Magistrate Judge Lynne A. Sitarski ordered Salley detained in federal custody pending trial in this matter.
“Witness intimidation has no place in the criminal justice system and will be dealt with swiftly and harshly,” said U.S. Attorney McSwain. “This is not a game. If you attempt to intimidate a federal witness, you can stand by for the consequences.”
If convicted, the defendant faces a maximum possible sentence of 20 years’ imprisonment and a fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leader and Courier of Multi-Kilogram Heroin Trafficking Organization SentencedRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that TERRENCE CORNEILUS CLYBURN, 45, of Clarkton, NC, and TARA FINIS SIMMONS, 48, of Raleigh, NC, were sentenced yesterday by United States District Judge Louise W. Flanagan. CLYBURN was sentenced to 147 months imprisonment and 5 years of supervised release. SIMMONS was sentenced to 28 months of imprisonment and 5 years of supervised release.
On October 19, 2018, CLYBURN pled guilty to conspiracy to distribute and possess with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin and a quantity of marijuana, Schedule I controlled substances; possession with intent to distribute one hundred (100) grams or more of a mixture and substance containing a detectable amount of heroin, and aiding and abetting; and, possession with intent to distribute one hundred (100) grams or more of a mixture and substance containing a detectable amount of heroin and a quantity of marijuana, and aiding and abetting.
On April 8, 2019, SIMMONS pled guilty to conspiracy to distribute and possess with intent to distribute one hundred (100) grams or more of heroin.
In March 2016, an investigation was initiated by the Tar River Regional Drug Task Force (TRRDTF), led by the Nash County Sheriff’s Office, into a drug trafficking organization (DTO) headed by TERRENCE CLYBURN, which was operating out of Scotland Neck, Tarboro, and Nash County, North Carolina. Law enforcement received information that members of the DTO had made several trips to Paterson, New Jersey, to acquire large quantities of heroin for distribution in Nash, Edgecombe, and Halifax Counties.
On March 13, 2017, as DTO members, Herbert Cherry and Tony Reams, returned from a trip to Paterson, New Jersey, an officer observed a vehicle driven by Cherry speeding and weaving between traffic lanes in Halifax County. A canine was utilized to conduct an exterior narcotics sniff of the vehicle, which resulted in an alert on the vehicle’s trunk. A search of the vehicle resulted in the seizure of 694 bricks of heroin (approximately 470 grams of heroin) which were packaged in 34,722 bindles and hidden in a false-bottom suitcase and a laundry bag located in the trunk.
On August 16, 2017, the North Carolina State Highway Patrol conducted a traffic stop of another vehicle operated by the DTO, which was occupied by TARA SIMMONS and Charles Lee Wright. The vehicle was stopped for a speeding violation in Halifax County. Investigators detected the odor of marijuana emanating from the vehicle and determined that SIMMONS was the driver of the vehicle. A canine was utilized to scan the vehicle, which alerted to the rear of the vehicle. Located near the spare tire in the rear of the vehicle, investigators recovered 13 grams of marijuana and approximately 102 bricks of heroin. Each “brick” contained 50 “bindles,” or dosage units, of heroin. The drugs seized totaled 110 grams of heroin.
The investigation revealed that from approximately 2012 to 2017, the DTO trafficked approximately 14.4 kilograms of heroin.
All defendants charged in this investigation have now been convicted:
- Terrence Corneilus Clyburn
- Tyshawn Rayvon Reams
- Tony Ray Reams
- Herbert Lamont Cherry
- Charles Lee Wright
- Tara Finis Simmons
- Patrick Direece Holiday
- Mario Marelle Scott
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Nash County Sheriff’s office, Edgecombe Sheriff’s Office, the Halifax County Sheriff’s Office, the Bladen County Sheriff’s Office, the Wake County Sheriff’s Office, the Spring Hope Police Department, and the Tarboro Police Department investigated this case. Assistant United States Attorney Scott Lemmon prosecuted this case for the government.
Laboratory to Pay $26.67 Million to Settle False Claims Act Allegations of Illegal Inducements to Referring PhysiciansRead the Press Release
Laboratory Boston Heart Diagnostics Corporation (Boston Heart), of Framingham, Massachusetts, has agreed to pay $26.67 million to resolve False Claims Act allegations involving payments for patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing, the Department of Justice announced today.
The settlement announced today resolves allegations that Boston Heart conspired with others to pay doctors kickbacks disguised as investment returns. From 2015 to 2017, Boston Heart allegedly agreed to provide laboratory testing services to small Texas hospitals in exchange for per-test payments. To generate more referrals for the hospitals and more money for itself, Boston Heart allegedly coordinated with the hospitals’ independent marketers, who set up companies known as management service organizations (MSOs), to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals. Boston Heart allegedly helped the MSOs identify physician targets, referred interested physicians to the MSOs to secure their business, and participated with the MSOs in sales pitches to offer physicians money in exchange for referrals. As a result, physicians allegedly referred patients to the Texas hospitals and Boston Heart for laboratory tests performed by Boston Heart, which were then billed to Medicare, Medicaid, and TRICARE.
“Paying kickbacks to doctors in exchange for referrals undermines the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those who enter into unlawful agreements that harm taxpayers, corrupt doctors’ medical judgment, and subject patients to expensive and unnecessary testing.”
“This company created lots of complex relationships to try to hide what it was doing, and that is illegally paying kickbacks for medical referrals,” said US Attorney Joseph D. Brown for the Eastern District of Texas. “The law requires that medical decisions be made based on what is best for the patient, not on what financially benefits the healthcare provider. Doctors and hospitals need to understand that these kinds of violations will be pursued.”
“This office will continue to take all appropriate action to help prevent improper inducements that can corrupt the integrity of physician decision-making,” said U.S. Attorney McGregor W. Scott for the Eastern District of California.
“When medical companies pursue profits by paying kickbacks to doctors, they undermine our health care system,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “This settlement represents our continued commitment to fight aggressively to protect patients and the integrity of federal health care programs.”
“Schemes designed to defraud federal healthcare programs undermine our healthcare system by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of the Office of Inspector General at the U.S. Department of Health and Human Services (OIG-HHS). “This settlement shows our unwavering commitment to working closely with our law enforcement partners to hold accountable those misusing healthcare funds, regardless of the complexity of the scheme used to circumvent laws and regulations.”
“The Defense Criminal Investigative Service (DCIS), in partnership with our federal law enforcement partners, will continue to aggressively investigate those who defraud the federal government, and ultimately the American taxpayers, in order to protect the integrity of federal healthcare programs,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “Fraud and abuse pose a significant threat to the viability of TRICARE, the Department of Defense’s healthcare program for service members, retirees, and their families.”
The settlement also resolves allegations that Boston Heart conspired with the Texas hospitals and others to submit claims for outpatient laboratory testing for patients who were not hospital outpatients, in order to receive higher reimbursements from federal healthcare programs.
In addition, the settlement resolves allegations that Boston Heart directly or indirectly paid processing and handling fees, waived patient copayments and deductibles, and provided physician practices with in-office dietitians in exchange for physician referrals for laboratory testing. Those allegations were originally made in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The whistleblowers will receive approximately $4.36 million of the settlement.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The civil settlement was the result of an investigation by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Texas, District of Columbia, and Eastern District of California, OIG-HHS, and DCIS. The two lawsuits are captioned United States ex rel. Riedel v. Boston Heart Diagnostics Corp., No. 1:12-cv-1423 (D.D.C.) and United States ex rel. FBH1 LLC v. Boston Heart Diagnostics Corp., No. 2:17-cv-2061 (E.D. Cal.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
Laboratory to Pay $26.67 Million to Settle False Claims Act Allegations of Illegal Inducements to Referring PhysiciansRead the Press Release
WASHINGTON – Laboratory Boston Heart Diagnostics Corporation (Boston Heart), of Framingham, Massachusetts, has agreed to pay $26.67 million to resolve False Claims Act allegations involving payments for patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing, the Department of Justice announced today.
The settlement announced today resolves allegations that Boston Heart conspired with others to pay doctors kickbacks disguised as investment returns. From 2015 to 2017, Boston Heart allegedly agreed to provide laboratory testing services to small Texas hospitals in exchange for per-test payments. To generate more referrals for the hospitals and more money for itself, Boston Heart allegedly coordinated with the hospitals’ independent marketers, who set up companies known as management service organizations (MSOs), to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals. Boston Heart allegedly helped the MSOs identify physician targets, referred interested physicians to the MSOs to secure their business, and participated with the MSOs in sales pitches to offer physicians money in exchange for referrals. As a result, physicians allegedly referred patients to the Texas hospitals and Boston Heart for laboratory tests performed by Boston Heart, which were then billed to Medicare, Medicaid, and TRICARE.
“Paying kickbacks to doctors in exchange for referrals undermines the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those who enter into unlawful agreements that harm taxpayers, corrupt doctors’ medical judgment, and subject patients to expensive and unnecessary testing.”
“This company created lots of complex relationships to try to hide what it was doing, and that is illegally paying kickbacks for medical referrals,” said US Attorney Joseph D. Brown for the Eastern District of Texas. “The law requires that medical decisions be made based on what is best for the patient, not on what financially benefits the healthcare provider. Doctors and hospitals need to understand that these kinds of violations will be pursued.”
“This office will continue to take all appropriate action to help prevent improper inducements that can corrupt the integrity of physician decision-making,” said U.S. Attorney McGregor W. Scott for the Eastern District of California.
“When medical companies pursue profits by paying kickbacks to doctors, they undermine our health care system,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “This settlement represents our continued commitment to fight aggressively to protect patients and the integrity of federal health care programs.”
“Schemes designed to defraud federal healthcare programs undermine our healthcare system by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of the Office of Inspector General at the U.S. Department of Health and Human Services (OIG-HHS). “This settlement shows our unwavering commitment to working closely with our law enforcement partners to hold accountable those misusing healthcare funds, regardless of the complexity of the scheme used to circumvent laws and regulations.”
“The Defense Criminal Investigative Service (DCIS), in partnership with our federal law enforcement partners, will continue to aggressively investigate those who defraud the federal government, and ultimately the American taxpayers, in order to protect the integrity of federal healthcare programs,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “Fraud and abuse pose a significant threat to the viability of TRICARE, the Department of Defense’s healthcare program for service members, retirees, and their families.”
The settlement also resolves allegations that Boston Heart conspired with the Texas hospitals and others to submit claims for outpatient laboratory testing for patients who were not hospital outpatients, in order to receive higher reimbursements from federal healthcare programs.
In addition, the settlement resolves allegations that Boston Heart directly or indirectly paid processing and handling fees, waived patient copayments and deductibles, and provided physician practices with in-office dietitians in exchange for physician referrals for laboratory testing. Those allegations were originally made in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The whistleblowers will receive approximately $4.36 million of the settlement.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The civil settlement was the result of an investigation by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Texas, District of Columbia, and Eastern District of California, OIG-HHS, and DCIS. The two lawsuits are captioned United States ex rel. Riedel v. Boston Heart Diagnostics Corp., No. 1:12-cv-1423 (D.D.C.) and United States ex rel. FBH1 LLC v. Boston Heart Diagnostics Corp., No. 2:17-cv-2061 (E.D. Cal.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
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Knoxville resident pleads guilty to wire fraud and money laundering schemeRead the Press Release
Knoxville, Tenn. – On November 25, 2019, Christina Erin Myers, 37, of Lenoir City, entered a guilty plea to one count of wire fraud and one count of money laundering in the United States District Court for the Eastern District of Tennessee.
Myers faces a term of 20 years in prison, potential fines of up to $750,000, and the obligation of paying more than $405,000 in restitution to her victims.
As part of the plea agreement filed with the court, the defendant admitted to engaging in a scheme to defraud elderly individuals by diverting funds that victims had provided to her for the purchase of real estate from Tennessee Baptist Adult Homes, through marketing non-existent senior communities, and promoting fictitious investments opportunities.
On October 16, 2018, a six-count indictment, that included the aforementioned charges, was returned against Myers by a federal grand jury in Knoxville. This indictment was the result of an ongoing investigation by the Internal Revenue Service – Criminal Investigation, Lenoir City Police Department and the Tennessee Highway Patrol (THP).
Sentencing has been set for March 25, 2020, at 11:00 a.m., in United States District Court in Knoxville.
"Protecting our seniors has been and will continue to be a top priority of our office. Working with our local, state, and federal law enforcement partners, we will investigate and build cases for successful prosecution of these individuals who choose to victimize some of our most vulnerable citizens. I encourage everyone to speak out and tell someone in authority if they have been a victim of elder abuse or financial fraud. Please do not remain silent,” added U.S. Attorney Overbey.
Frank M. Dale, Jr., Assistant United States Attorney, represented the United States.
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Kingston Woman Sentenced to 72 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 25, 2019, Shavonne Saxon, age 32, of Kingston, Pennsylvania, received a sentence of 72 months’ imprisonment and three years of supervised release, by United States District Court Judge Malachy E. Mannion, for distributing crack cocaine, and for possessing a firearm in furtherance of her drug trafficking.
According to United States Attorney David J. Freed, Saxon admitted to working as a drug dealer in 2016 and 2017, and to distributing and possessing with intent to distribute at least 60 grams of crack cocaine and at least 165 grams of cocaine. Saxon also admitted to possessing a firearm in furtherance of her trafficking activities, and the United States seized from her and forfeited a Ruger LCP .380.
Saxon was one of 16 individuals charged in 2017 with various drug trafficking and firearms offenses. All of the defendants have pleaded guilty, with 13 others having already been sentenced:
- Kassandra Martin of Wilkes-Barre, Pennsylvania, was sentenced to 60 months’ imprisonment;
- Joshua Lenchick of Luzerne, Pennsylvania, was sentenced to 60 months’ imprisonment;
- Kristyna Shotwell of Plymouth, Pennsylvania, was sentenced to 12 months and one day of imprisonment;
- Tanay Jones of Bronx, New York, was sentenced to a time served sentence of 19 days’ imprisonment;
- William Waring of Bronx, New York, was sentenced to 60 months’ imprisonment;
- John Maybank of Bronx, New York, was sentenced to 53 months’ imprisonment;
- Siobhan Daniels, of Wilkes-Barre, Pennsylvania, was sentenced to 30 months’ imprisonment;
- Luis Nevarez, of Bronx, New York, was sentenced to 60 months’ imprisonment;
- Adonis Smith, of New London, Connecticut, was sentenced to 60 months’ imprisonment;
- Cara Dubaskas, of Plymouth, Pennsylvania, was sentenced to a time served sentence of 7 months;
- Chad Eckrote, of Plymouth, Pennsylvania, was sentenced to 3 years of probation;
- Adam Gottstein, of Kingston, Pennsylvania, was sentenced to 78 months’ imprisonment; and
- Amanda Romano, of Wilkes-Barre, Pennsylvania, was sentenced to 84 months’ imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne County Drug Task Force, and by the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Kettering man sentenced to more than 5 years in prison for possessing child pornographyRead the Press Release
DAYTON – Stephen Lavery, 35, of Kettering, was sentenced in U.S. District Court to 66 months in prison and five years of supervised release for possessing child pornography.
According to court documents, law enforcement received a tip from the National Center for Missing and Exploited Children (NCMEC) that suspected child pornography files had been uploaded to Lavery’s Dropbox account. Likewise, Microsoft Corporation reported to NCMEC that Lavery’s IP address had been used to upload suspected child pornography files to the Bing Images search engine. Additionally, the video-sharing website Rabb.it reported Lavery, using the profile name “Jerkin Hard,” shared suspected child pornography on the website.
In May 2018, law enforcement officers executed a search warrant at Lavery’s home in Kettering. Officers discovered more than 600 images and videos of minors engaged in sexually explicit conduct, including visual depictions of prepubescent children.
Lavery pleaded guilty to in Dec. 2018.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Kettering Police Chief Christopher N. Protsman announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Andrew J. Hunt is representing the United States in this case.
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Jury Convicts St. Paul Police Officer of Excessive ForceRead the Press Release
Today, a federal jury convicted Brett Palkowitsch, 32, an officer with the St. Paul Police Department, of using excessive force against an unarmed civilian, announced Assistant Attorney General Eric Dreiband of the Civil Rights Division and FBI Minneapolis Special Agent in Charge Jill Sanborn.
“The behavior of the defendant will not be tolerated and the Department of Justice will seek to prosecute those who abuse their power,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We commend the officers who came forward and brought about the opening of the investigation. We also thank our law enforcement partners who assisted in this case.”
"Law enforcement officers receive certain powers from the government so they can protect the rights of the citizens they serve," said FBI Minneapolis Special Agent in Charge, Jill Sanborn. "When an individual officer’s actions violate that trust, he or she should be held accountable which the jury confirmed with today's verdict. We thank all those who assisted on this case," Sanborn added.
The evidence presented at trial established that the Defendant and other officers responded to a 911 call alleging that an unidentified black male with dreadlocks and a white t-shirt had been involved in a street fight and was carrying a gun. Upon their arrival on scene, officers found no evidence of any street fight, but they noticed one man who matched that general description, sitting in his car talking on a cellphone. One of the responding officers, along with his police K-9, approached the man’s car and, without identifying himself as a police officer, yelled at the man to get out. The man, later identified as Frank Baker, got out of the car, as the officer yelled commands and the police K-9 barked loudly at him. Seven seconds later, the officer released the K-9, which took Mr. Baker to the ground and began mauling his leg. While Mr. .Baker was on the ground, screaming in pain, the Defendant arrived and kicked Mr. Baker three times in the ribs. The defendant’s kicks broke seven of Mr. Baker’s ribs and caused both of his lungs to collapse, putting him in critical condition. Officers found no gun at the scene and no evidence that Mr. Baker, a 52-year-old grandfather who lived in the neighborhood, had been involved in any fight.
Two of the officers who witnessed the defendant’s actions that night, Officers Joseph Dick and Anthony Spencer, reported the Defendant to their supervisor. Mr. Dick and Mr. Spencer both testified for the government at trial, about the defendant’s use of force and about harassment and retaliation they suffered after stepping forward to report a fellow officer. Dick, Spencer, and a third officer from the scene told the jury that they saw no legitimate reason for the defendant’s kicks. Additionally, officers testified that the defendant boasted afterward about having kicked Mr. Baker.
Following more than two weeks of trial, the jury in the U.S. District Court in St. Paul, MN, deliberated for 11 hours before finding the Defendant guilty of using excessive force.
The Defendant faces a maximum sentence of 10 years in federal prison. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case was investigated by the Minneapolis Division of the FBI, and was prosecuted by Special Litigation Counsel Christopher J. Perras and Trial Attorney Zachary Dembo of the Justice Department’s Civil Rights Division.
Jury Convicts Georgia Attorney for Attempting to Entice A Minor to Engage in Sexual Activity and Transmitting Obscene Material to A MinorRead the Press Release
Tampa, Florida – A federal jury has found Richard Franklin Jensen, III (33, Atlanta) guilty of attempted enticement of a minor and attempted transfer of obscene material to a minor. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for March 4, 2020.
Jensen was indicted on February 20, 2019.
According to evidence presented at trial, between May 23 and June 1, 2015, Jensen communicated on a social media website, via email, and over text messages, with someone he believed to be a single mom looking for a man to sexually abuse her 12-year-old daughter. In reality, Jensen was talking to an undercover agent. During the conversations, Jensen told the “mom” that he was the guy that she had been looking for, who was interested in sexually abusing the child, and that he was willing to travel from Atlanta to the Tampa Bay area to teach the “child” about sex and the “art of pleasing a man.” In addition to providing graphic details about the sexual abuse he wanted to perform on the child, Jensen asked the “mom” to prepare the child for the sexual encounter by breaking the child’s hymen in advance of his visit to Tampa. Jensen planned to abuse the child over a period of time, stating that “it couldn’t be a one-time thing.” In his process of grooming the child, Jensen promised to buy “sexy big girl clothes and underwear,” complimented the child’s “sexy little body,” and wanted the “mom” to let the child watch pornography so the child could prepare for sex with Jensen.
Jensen also emailed and messaged the purported child, and graphically described the sexual abuse that he wished to engage in with the child. He sent multiple pictures of his genitalia to the “mom,” to share with the child.
This case was investigated by the Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Francis D. Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illegal Alien Sentenced for Unlawful Reentry by an Alien After RemovalRead the Press Release
Gulfport, Miss. – Benjamin Sanchez-Perez, 28, a citizen of Mexico, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr., to time served and one year of supervised release for unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of Immigration & Customs Enforcement, Homeland Security Investigations in New Orleans, and Gregory Bovino, Chief Patrol Agent of the Border Patrol, New Orleans Sector.
On September 12, 2019, a Harrison County Sheriff’s Department Interdiction Unit Agent stopped a Sport Utility Vehicle on Interstate 10 eastbound. Indicators of illegal alien smuggling were detected and a Border Patrol Agent arrived to assist. Agents made contact with the driver of the vehicle who did not have a valid driver’s license. Among the passengers were three men, including Sanchez-Perez, who were determined to be illegal aliens to the United States who had returned after being formally removed from the U.S. All vehicle occupants were transported to the Border Patrol Station in Gulfport, for further processing and investigation.
Sanchez-Perez was determined to have entered the United States through Nuevo Laredo, Mexico, about four days before his arrest in Mississippi. Further investigation revealed that Sanchez-Perez had been previously removed from the United States by Immigration and Customs Enforcement in March, 2019. At the time of his removal, Sanchez-Perez was prohibited from entering, attempting to enter, being in the United States, or applying for admission to the United States, for at least five years.
Sanchez-Perez pled guilty before Judge Guirola on October 28, 2019.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, Homeland Security Investigations, the U.S. Border Patrol, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Illegal Alien Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Yesenia Flores-Ortega, 27, an illegal alien from Mexico, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr., to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Flores-Ortega is scheduled to be sentenced on February 25, 2020. She faces a potential 2 years in prison, 1 year of supervised release, and a $250,000 fine, as well as Homeland Security removal proceedings.
On September 12, 2019, a Harrison County Sheriff’s Department Interdiction Unit Agent stopped a Sport Utility Vehicle on Interstate 10 eastbound. Agents made contact with Flores-Ortega, who was the driver of the vehicle. Flores-Ortega and her three passengers were determined to be illegal aliens to the United States who had returned after being removed.
Flores-Ortega had been removed pursuant to a lawful Removal Order signed on January 27, 2015. She was charged in a federal criminal indictment with unlawful return of an alien after removal. Each of the three passengers were also prosecuted and pled guilty to the same crime.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, Homeland Security Investigations, the U.S. Border Patrol, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
ICYMI: Attorney General William P. Barr Launches National Strategy to Address Missing and Murdered Indigenous PersonsRead the Press Release
WASHINGTON—Attorney General William P. Barr launched a national strategy last week to address missing and murdered Native Americans. The Missing and Murdered Indigenous Persons (MMIP) Initiative places MMIP coordinators in 11 U.S. Attorney’s offices including the District of Oregon who will develop protocols for a more coordinated law enforcement response to missing cases. The plan also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts.
“American Indian and Alaska Native people suffer from unacceptable and disproportionately high levels of violence, which can have lasting impacts on families and communities. Native American women face particularly high rates of violence, with at least half suffering sexual or intimate-partner violence in their lifetime. Too many of these families have experienced the loss of loved ones who went missing or were murdered,” said Attorney General William P. Barr. “This important initiative will further strengthen the federal, state, and tribal law enforcement response to these continuing problems.”
“The FBI recognizes the violence that tribal communities face and is fully committed to working with our federal, state, local, and tribal law enforcement partners to provide support to those impacted by these crimes,” said FBI Director Christopher Wray. “We are dedicated to delivering justice and to the FBI’s mission to protect all the people we serve. We reaffirm our focus on allocating resources to serve Native American needs.”
“I’m proud to join Attorney General Barr and Director Wray in announcing this new effort by the Justice Department to address the important and urgent issues attendant to missing and murdered indigenous people. These are real crime victims and their families who have been impacted by inadequate data collection and jurisdictional gaps,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Pursuing justice on behalf of tribal communities in Oregon is a top priority for the U.S. Attorney’s Office. We have always been deeply committed to reducing violent crime in tribal communities, especially crimes against tribal women and children. Our Indian Country team works tirelessly to be good partners with tribal law enforcement and victim services.”
The strategy has three parts.
Establish MMIP coordinators: The Department of Justice is investing an initial $1.5 million to hire 11 MMIP coordinators in 11 states to serve with all U.S. Attorney’s offices in those states, and others who request assistance. The states are Alaska, Arizona, Montana, Oklahoma, Michigan, Utah, Nevada, Minnesota, Oregon, New Mexico, and Washington state. MMIP coordinators will work closely with federal, tribal, state and local agencies to develop common protocols and procedure for responding to reports of missing or murdered indigenous people. The first MMIP coordinator is already on board in Montana.
Specialized FBI Rapid Deployment Teams: The strategy will bring needed tools and resources to law enforcement. Upon request by a tribal, state, or local law enforcement agency the FBI will provide expert assistance based upon the circumstances of a missing indigenous persons case. FBI resources and personnel which may be activated to assist with cases include: Child Abduction Rapid Deployment (CARD) teams, Cellular Analysis Support Teams, Evidence Response Teams, Cyber Agents for timely analysis of digital evidence/social media, Victim Services Division Response Teams, and others. MMIP coordinators will assist in developing protocols.
Comprehensive Data Analysis: The department will perform in-depth analysis of federally supported databases and analyze data collection practices to identify opportunities to improve missing persons data and share the results of this analysis with our partners in this effort.
More broadly, the MMIP Initiative will involve a coordinated effort by more than 50 U.S. Attorneys on the Attorney General’s Native American Issues Subcommittee (NAIS), the FBI, and the Office of Tribal Justice, with support from the Office of Justice Programs (OJP) and the Office on Violence Against Women (OVW).
Today’s announcement follows the August NAIS meeting in New Mexico and OVW listening session in Michigan, where Missing and Murdered Indigenous Persons and violence against women in Indian country were prevalent topics of discussion by U.S. Attorneys, OVW officials, and tribal representatives.
Grinnell Man Sentenced to 260 Months in Prison for Receipt of Child PornographyRead the Press Release
DES MOINES, Iowa – United States Attorney Marc Krickbaum announced on November 26, 2019, John Allen Urfer, age 43, of Grinnell Iowa, was sentenced by United States District Court Judge James E. Gritzner for Receipt of Child Pornography. Urfer was sentenced to 260 months in prison, to be followed by a term of supervised release of twenty years. Urfer was also order to pay $21,000 in restitution to identified victims depicted in the images and videos that Urfer received.
Urfer pleaded guilty to the offense on July 10, 2019, and admitted that he received child pornography, including prepubescent child pornography, from September 2017 to April 2018. Urfer was found to have over 1,300 images and over 2,900 videos of child pornography. Urfer further admitted to having prior convictions for assault with intent to commit sex abuse in Marion County in 2003, and sex abuse in the third degree in Polk County in 2005. In addition to the sex abuse convictions, Urfer has two convictions for failing to comply with Iowa sex offender registry requirements.
This matter was investigated by Homeland Security Investigations with the assistance of the United States Marshals Service Fugitive Task Force. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Greenville Man Sentenced to Prison for Drug and Gun OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced DEMETRIUS AUSHELLE SUGGS, 39, of Greenville, NC to a total of 102 months imprisonment, followed by 5 years of supervised release.
SUGGS was named in an Indictment filed on April 10, 2019, charging him with possession with intent to distribute a quantity of cocaine, possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm and ammunition by a felon. On August 22, 2019, SUGGS pled guilty to those charges.
According to the investigation, officers with the Greenville Police Department encountered SUGGS in his vehicle parked on the side of the road. As the officers were speaking with SUGGS, they observed a bag containing marijuana on the floorboard of the vehicle. When the officers attempted to detain SUGGS, he fled on foot. After a brief chase, SUGGS was detained and searched. A search of SUGGS and his vehicle led to the discovery of two bags containing 4.32 grams of cocaine and a loaded TEC-9 handgun with a high capacity magazine. At the time of his arrest, SUGGS had previously been convicted of several drug-related felonies in North Carolina.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Greenville Police Department conducted the investigation. Assistant United States Attorney John Parris represented the government.
Gary Woman Indicted for Attempting to Obstruct JusticeRead the Press Release
HAMMOND- Telisha French, 45, of Gary, Indiana, was indicted for attempting to obstruct justice, announced U.S. Attorney Kirsch.
The indictment alleges that on November 14, 2019, French attempted to obstruct the decision-making of the U.S. District Court for the Northern District of Indiana by causing an attorney to present a false document with a forged signature to the magistrate court in support of a defendant’s release from custody.
U.S. Attorney Thomas Kirsch II said, “My office will not hesitate to utilize all resources available to investigate and to prosecute individuals who engage in behavior designed to impede the administration of justice in federal criminal cases.”
The United States Attorney’s Office emphasizes that an indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team. This case is being prosecuted by Assistant United States Attorneys Thomas Mahoney and Alexandra McTague.
Gang Leader Sentenced for Firearms and Counterfeit Currency SchemeRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 40 months in prison for being a felon in possession of a firearm and uttering counterfeit obligations.
According to court documents, Amaud Brown, aka “Moe Gunz,” 24, is a convicted felon and self-admitted leader of the Gangster Disciples who used four co-conspirators, including the mother of his child, to straw-purchase at least seven firearms for him. Two days after directing an associate to straw-purchase one of those guns, Brown called that gun store to inquire about purchasing more guns while police officers were at the store investigating the conspiracy.
Police officers executed a search warrant of Brown’s home and recovered two guns, dozens of rounds of ammunition, marijuana, and materials used to manufacture counterfeit money. Police later discovered that Brown had been using counterfeit “motion picture notes” to rip off at least five victims, including a Navy serviceman and a student at Christopher Newport University, defrauding them out of their electronic devices after meeting them through the “Letgo” electronic marketplace app.
Fraudsters have found so much success with motion picture notes that the total volume passed in the United States rose from $3.2 million in 2018 to $4.9 million this year, surpassing the Peruvian Note as the most passed counterfeit obligation in the country. U.S. Secret Service Agents in Los Angeles recently seized nine pallets of motion picture notes that had been shipped from Turkey—a total of roughly $286 million in counterfeit money. And pallets of motion picture notes shipped from Russia have been seized in New York ports.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; George D. Purefoy, Resident Agent in Charge of the U.S. Secret Service’s Norfolk Resident Office; and Angela Greene, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-85.
Former police officer pleads guilty to attempted unlawful sexual enticement of a 13-year-old boyRead the Press Release
HONOLULU, Hawaii – James Dean Kalani Goeas, 63, of Waipahu, Hawaii, pleaded guilty today in federal court to one count of using a facility in interstate commerce to knowingly attempt to entice an individual who has not attained the age of 18 years to engage in unlawful sexual activity. Sentencing is scheduled for April 9, 2020 before Senior U.S. District Judge Helen Gillmor.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, on March 23, 2019 and March 24, 2019, Goeas engaged in a series of online chats and telephonic text sessions with an undercover agent acting in the role of a 13-year-old male. During their conversations, Goeas arranged to meet the underage male at Maukalani Park with the intent to engage in sexual activity. Upon arrival at the park on March 24, Goeas was arrested and agents located both condoms and lubricating gel in his vehicle. After law enforcement officers arrested him, Goeas admitted that, on multiple prior occasions, he had engaged in unlawful sexual conduct with young teenage minor males.
“These prosecutions demonstrate our continued commitment to holding those who attempt to sexually exploit our young people responsible for their egregious behavior. We will continue to seek justice in these cases to the fullest extent of the law,” stated U.S. Attorney Price.
The case was investigated by the Federal Bureau of Investigation and the State of Hawaii Attorney General’s Office. It was prosecuted by Assistant U.S. Attorney Ken Sorenson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former federal detention center employees indicted for bribery and sexual abuse of a wardRead the Press Release
McALLEN – Six former employees of the East Hidalgo Detention Center (EHDC) are now in custody themselves on federal charges, announced U.S. Attorney Ryan K. Patrick.
Brenda Fuentes, 47, Weslaco, and Jhaziel Loredo, 32, Progreso, are set for their arraignments and detention hearings today at 2 and 4 p.m., respectively, before U.S. Magistrate Judge Juan F. Alanis. Jason Catalan, 36, Mercedes; Erasmo Loya, 54, La Villa; and Veronica Ortega, 43, McAllen, will have their hearings tomorrow at 2 p.m.
Domingo Hernandez, 25, Mercedes, made his initial appearance in New Mexico and is expected to appear in McAllen in the near future.
A McAllen grand jury returned the indictments Nov. 19. Authorities took them all into custody Friday, Nov. 22.
Catalan, Hernandez, Loredo, Loya and Ortega are charged with bribery, while Fuentes faces one count of sexual abuse of a ward.
According to the indictments, authorities discovered various forms of contraband in EHDC, a correctional facility under contract with the U.S. Marshals Service (USMS). Catalan, Hernandez, Loredo, Loya and Ortega allegedly accepted things of value in exchange for bringing contraband into the detention center.
The investigation further revealed Fuentes engaged in a sexual act with a federal inmate, according to the charges.
If convicted, they each face up to 15 years in federal prison as well as a possible $250,000 maximum fine.
USMS, Department of Justice - Office of Inspector General and FBI conducted the joint investigation.
Assistant U.S. Attorneys Patricia Cook Profit and Amy L. Greenbaum are 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.Former Police Officer Pleads Guilty to Sexually Assaulting Two WomenRead the Press Release
The Department of Justice today announced former Ashley Borough Police Officer, Mark Icker, 30, pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to violating the civil rights of two females in his custody whom he sexually assaulted.
The criminal information alleges that Icker worked as a police officer for the Ashley Borough Police Department in December 2018. On Dec. 3, 2018 and Dec. 10, 2018, Icker, while acting under color of the laws of the Commonwealth of Pennsylvania, willfully deprived two women of their liberty without due process of law, which includes the right to bodily integrity, by coercing the women into engaging in unwanted sexual contact with him.
“The Department of Justice will continue to vigorously prosecute law enforcement officers who exploit their authority to sexually abuse individuals in their custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
“We count on law enforcement officers at all levels to uphold their oaths, and to serve and protect the public,” said U.S. Attorney David J. Freed for the Middle District of Pennsylvania. “When a line is crossed, and a protector becomes a predator, we must act – swiftly and with certainty. While I am extremely proud of the cooperative efforts of law enforcement in this case, especially my colleagues and partners in the Luzerne County District Attorney’s Office, we are only able to pursue this prosecution because of the bravery of the victims. In a case where one of us in law enforcement did something so very wrong, the innocent victims stood up for what is right. We are proud to seek justice on their behalf.”
“A police officer using his position of authority to sexually exploit women is utterly contemptible,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Mark Icker felt entitled enough to coerce his victims into sex acts. He clearly expected to get away with violating their bodies and their civil rights. The public corruption and civil rights squad at our Scranton Resident Agency was determined to seek justice for the women involved, and keep Icker from harming anyone else in this way.”
Icker was terminated from his position with the Ashley Borough Police Department in December 2018. Icker was also terminated from part-time positions he held with the Sugar Notch and Jessup Police Departments.
This case was investigated by the Scranton Office of the FBI - Philadelphia Division, and the Luzerne County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorneys Michelle Olshefski and Jeffery St. John of the Middle District of Pennsylvania and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty for civil rights violations is 20 years’ imprisonment. The charge also includes a fine and a term of supervised release following any period of incarceration. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant
Former Oklahoma Probation Officer Sentenced for Committing Sexual AssaultRead the Press Release
Steven Powers, 35, a former probation and parole officer with the Oklahoma Department of Corrections, was sentenced today in federal court in Tulsa to two years in prison for subjecting two female probationers to unwanted sexual contact.
“Steven Powers violated the public’s trust and the fundamental ethics which guide our justice system. He used his position to prey on women he was entrusted to supervise,” said U.S. Attorney Trent Shores. “The U.S. Attorney’s office will guard the constitutional protections afforded to all members of our community and aggressively prosecute corrupt individuals who violate those rights.”
According to court documents, during the course of supervising one victim, from on or about Nov. 3, 2015 through Jan. 19, 2017, Powers engaged in sexually inappropriate behavior, culminating in sexual assault. During the course of supervising the second victim, from on or about Nov. 2, 2015 through April 30, 2017, Powers likewise engaged in sexually inappropriate behavior, culminating in sexual contact against her will. In each of these instances, the defendant admitted he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate probation officers who exploit their authority to sexually assault the individuals they supervise, thinking their actions will go without consequence because of the power they wield,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
"As an Oklahoma probation and parole officer, Steven Powers abused the authority and trust bestowed upon him. Powers' actions not only violated the Constitutional rights of his victims, but also undermined the integrity of our judicial system. The FBI remains committed to addressing incidents in which an officer's actions betray the public's trust,” said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.
According to the plea agreement, in addition to the imposition of a prison sentence, Powers must forfeit his law enforcement certification.
This case is being investigated by the Oklahoma City Field Office of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Oklahoma Department of Corrections and the Tulsa County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jarrod Leaman of the Northern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Oklahoma Probation Officer Sentenced for Committing Sexual AssaultRead the Press Release
Steven Powers, 35, a former probation and parole officer with the Oklahoma Department of Corrections was sentenced today in federal court in Tulsa, Oklahoma, to two years in prison for subjecting two female probationers to unwanted sexual contact.
According to court documents, during the course of supervising one victim, from on or about Nov. 3, 2015 through Jan. 19, 2017, Powers engaged in sexually inappropriate behavior, culminating in sexual assault. During the course of supervising the second victim, from on or about Nov. 2, 2015 through April 30, 2017, Powers likewise engaged in sexually inappropriate behavior, culminating in sexual contact against her will. In each of these instances, the defendant admitted he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate probation officers who exploit their authority to sexually assault the individuals they supervise, thinking their actions will go without consequence because of the power they wield,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
“Steven Powers violated the public’s trust and the fundamental ethics which guide our justice system. He used his position to prey on women he was entrusted to supervise,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “The U.S. Attorney’s office will guard the constitutional protections afforded to all members of our community and aggressively prosecute corrupt individuals who violate those rights.”
"As an Oklahoma Probation and Parole Officer, Steven Powers abused the authority and trust bestowed upon him. Powers' actions not only violated the Constitutional rights of his victims, but also undermined the integrity of our judicial system. The FBI remains committed to addressing incidents in which an officer's actions betray the public's trust,” said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.
According to the plea agreement, in addition to the imposition of a prison sentence, Powers must forfeit his law enforcement certification.
This case is being investigated by the Oklahoma City Field Office of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Oklahoma Department of Corrections and the Tulsa County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jarrod Leaman of the Northern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Indiana Resident Pleads Guilty to Concealing Terrorism FinancingRead the Press Release
Samantha Marie Elhassani, aka Samantha Sally, 34, formerly of Elkhart, Indiana, pleaded guilty yesterday to a one-count Information charging her with concealment of terrorism financing in violation of Title 18, United States Code, Section 2339C. Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Northern District of Indiana Thomas L. Kirsch II, FBI Assistant Director of the Counterterrorism Division Mike McGarrity, and FBI Special Agent in Charge of the Indianapolis field office Grant Mendenhall made the announcement.
“Elhassani admitted that she traveled overseas and pre-positioned over $30,000 in cash and gold, knowing that the funds would be used by her husband and brother-in-law to join and support ISIS in Syria,” said Assistant Attorney General for National Security John C. Demers. “The National Security Division is committed to identifying and holding accountable those who support foreign terrorist organizations. I want to thank the agents, analysts, and prosecutors who are responsible for this result.”
“Samantha Elhassani pled guilty to providing financial support to individuals who desired to support ISIS, a terrorist organization that has committed acts of violence against Americans,” said U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana. “She traveled with her husband and brother-in-law to Syria, both of whom became ISIS fighters, putting the lives of her children at risk. Yesterday’s guilty plea to federal terrorism charges reflects the seriousness of her criminal conduct. My office is committed to prosecuting those who provide support to terrorist organizations. ”
"The charges that the defendant in this case has plead guilty to are a reminder the FBI will never relent in ensuring that Americans who abandon their country to further the heinous goals of a designated terrorist organization like ISIS see justice for their betrayal" said Assistant Director Mike McGarrity. "I am proud of the work of the FBI's Indianapolis Field Office on this case and grateful for the assistance of our many international and interagency partners."
“Ms Elhassani knowingly engaged in the concealment of resources which were intended to support future ISIS fighters whose intent is to harm her fellow Americans and others, and her plea should serve as a strong reminder that these actions have serious consequences and will not be tolerated,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “The defendant also exposed her young, impressionable children to an environment of hatred and violence with no regard to the harm she was causing them.”
In November 2014, Elhassani was informed by her husband that he and his brother wanted to travel to Syria to join ISIS, which she knew was a terrorist organization that engaged in terrorist activities. Between November 2014 and April 1015, Elhassani helped the two men join ISIS by making multiple trips to Hong Kong and transporting more than $30,000 in cash and gold from the United States and depositing it in a safe deposit box in Hong Kong. Elhassani melted down the gold to look like jewelry and did not disclose the cash and gold on customs declaration forms. At the time Elhassani transported the money and gold, she knew that her husband and brother-in-law had expressed an interest in joining ISIS and that they intended to use these resources to support ISIS.
In July of 2018, Elhassani was transferred from the custody of the Syrian Democratic Forces (SDF) to U.S. law enforcement custody.
U.S. District Judge Philip P. Simon presided over the plea hearing and set sentencing for March 5, 2020.
The case was investigated by the FBI’s Indianapolis Division and Joint Terrorism Task Force. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Indiana and the National Security Division’s Counterterrorism Section.
Former Indiana Resident Pleads Guilty to Concealing Terrorism FinancingRead the Press Release
WASHINGTON – Samantha Marie Elhassani, aka Samantha Sally, 34, formerly of Elkhart, Indiana, pleaded guilty yesterday to a one-count Information charging her with concealment of terrorism financing in violation of Title 18, United States Code, Section 2339C. Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Northern District of Indiana Thomas L. Kirsch II, FBI Assistant Director of the Counterterrorism Division Mike McGarrity, and FBI Special Agent in Charge of the Indianapolis field office Grant Mendenhall made the announcement.
“Elhassani admitted that she traveled overseas and pre-positioned over $30,000 in cash and gold, knowing that the funds would be used by her husband and brother-in-law to join and support ISIS in Syria,” said Assistant Attorney General for National Security John C. Demers. “The National Security Division is committed to identifying and holding accountable those who support foreign terrorist organizations. I want to thank the agents, analysts, and prosecutors who are responsible for this result.”
“Samantha Elhassani pled guilty to providing financial support to individuals who desired to support ISIS, a terrorist organization that has committed acts of violence against Americans,” said U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana. “She traveled with her husband and brother-in-law to Syria, both of whom became ISIS fighters, putting the lives of her children at risk. Yesterday’s guilty plea to federal terrorism charges reflects the seriousness of her criminal conduct. My office is committed to prosecuting those who provide support to terrorist organizations. ”
"The charges that the defendant in this case has plead guilty to are a reminder the FBI will never relent in ensuring that Americans who abandon their country to further the heinous goals of a designated terrorist organization like ISIS see justice for their betrayal" said Assistant Director Mike McGarrity. "I am proud of the work of the FBI's Indianapolis Field Office on this case and grateful for the assistance of our many international and interagency partners."
“Ms Elhassani knowingly engaged in the concealment of resources which were intended to support future ISIS fighters whose intent is to harm her fellow Americans and others, and her plea should serve as a strong reminder that these actions have serious consequences and will not be tolerated,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “The defendant also exposed her young, impressionable children to an environment of hatred and violence with no regard to the harm she was causing them.”
In November 2014, Elhassani was informed by her husband that he and his brother wanted to travel to Syria to join ISIS, which she knew was a terrorist organization that engaged in terrorist activities. Between November 2014 and April 1015, Elhassani helped the two men join ISIS by making multiple trips to Hong Kong and transporting more than $30,000 in cash and gold from the United States and depositing it in a safe deposit box in Hong Kong. Elhassani melted down the gold to look like jewelry and did not disclose the cash and gold on customs declaration forms. At the time Elhassani transported the money and gold, she knew that her husband and brother-in-law had expressed an interest in joining ISIS and that they intended to use these resources to support ISIS.
In July of 2018, Elhassani was transferred from the custody of the Syrian Democratic Forces (SDF) to U.S. law enforcement custody.
U.S. District Judge Philip P. Simon presided over the plea hearing and set sentencing for March 5, 2020.
The case was investigated by the FBI’s Indianapolis Division and Joint Terrorism Task Force. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Indiana and the National Security Division’s Counterterrorism Section.
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Former Construction Manager Pleads Guilty to Tax Evasion in Connection with Bribery SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL CAMPANA, a construction manager for a global financial firm, pled guilty today to charges of evading taxes on more than $350,000 in bribes he received from building sub-contractors. The bribes included payments of more than $75,000 to cover expenses associated with CAMPANA’s wedding. CAMPANA is scheduled to be sentenced on March 6, 2020, before United States District Judge Denise Cote. Thereafter, he also faces sentencing in New York State court on money laundering charges for his participation in the bribery scheme.
U.S. Attorney Geoffrey S. Berman said: “Bribery and tax evasion often go hand-in-hand, forcing both the bribery victims and the taxpaying public to unfairly bear the hidden costs of corruption. Today, Michael Campana admitted to federal tax evasion for failing to report his income from an illegal bribery scheme to which he already pled guilty.”
According to the criminal Information filed today, as well as other public documents and today’s court proceeding:
Between 2013 and 2017, CAMPANA was a construction manager for a global financial firm engaged in various building projects in New York City and elsewhere. He and others participated in a scheme to obtain bribes from construction sub-contractors, who paid bribes in exchange for being awarded various construction contracts and sub-contracts. In all, CAMPANA received bribes in excess of $350,000 between 2014 and 2017. Some of those bribes related to CAMPANA’s 2017 wedding, including payments of approximately $40,000 from sub-contractors directly to a catering hall in New Jersey, over $13,000 directly to a photography studio, and over $23,000 directly to a travel agent for airline tickets purchased in connection with CAMPANA’s honeymoon. Other payments, totaling more than $100,000, were made in cash, which CAMPANA stashed in a safe. CAMPANA evaded federal income tax on this bribery income, by failing to declare it on his income tax returns for the years 2014 through 2017.
In connection with the underlying bribery scheme, the Manhattan District Attorney’s Office charged CAMPANA and 13 others in December 2018 with numerous felonies, including charges of conspiracy, commercial bribery, and money laundering. Last week, on November 19, CAMPANA pled guilty in the state court case to money laundering in the third degree. (New York v. Guzzone, et al., case no. 04037-2018 (N.Y. Sup. Ct.), count 44). He is awaiting sentencing in that case as well.
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CAMPANA, 33, of Tuckahoe, New York, pled guilty today to a single count of tax evasion. That charge carries a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the excellent work of the Internal Revenue Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis and Stanley J. Okula, Assistant Chief of the Criminal Appeals & Tax Enforcement Policy Section of the Tax Division of the Department of Justice, are in charge of the prosecution.
Former Chief Executive Officer and Chief Operating Officer of Publicly Traded Biopharmaceutical Company Charged with Accounting FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment in Manhattan federal court charging PARKER H. “PETE” PETIT and WILLIAM TAYLOR, the respective former chief executive officer and chief operating officer of MiMedx Group, Inc. (“MiMedx”), a publicly traded biopharmaceutical company, with securities fraud offenses for engaging in a scheme to fraudulently inflate MiMedx’s revenue. The case is assigned to U.S. District Judge Jed S. Rakoff.
PETIT and TAYLOR are expected to be presented later today in Atlanta federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Parker Petit and William Taylor deceived the SEC, auditors, and the investing public by repeatedly misrepresenting the financial condition of a publicly traded company. They allegedly conspired, through secret agreements and financial inducements with four distributors, to misstate sales revenue. The alleged conduct resulted in serious criminal charges Petit and Taylor now face.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “As alleged, Petit and Taylor’s fraudulent scheme to falsely inflate revenue could not withstand the pressure of meeting their own aggressive goals. The investing public relied on Petit and Taylor’s misrepresentations. Investors should not have any doubts or concerns with information distributed by a publicly traded company. The U.S. Postal Inspection Service will not tolerate this criminal behavior and will seek out and bring to justice anyone who breaks the system of laws designed to protect the investing public.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
MiMedx was headquartered in Marietta, Georgia, and its securities traded under the symbol “MDXG” on the NASDAQ. MiMedx sold regenerative biologic products, such as skin grafts and amniotic fluid, both directly to end users, such as public and private hospitals, and to various stocking distributors, which, in turn, resold the product to end users.
One of the most critical financial metrics disclosed in MiMedx’s public filings with the Securities and Exchange Commission (“SEC”), and touted in MiMedx’s accompanying press releases, was MiMedx’s quarterly and annual sales revenue. Under Generally Accepted Accounting Principles (GAAP) and SEC guidance, a company like MiMedx that engages in the sale of products through a distributor may recognize revenue upon transfer of the product to a distributor if certain requirements are satisfied, including that delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable, and collectability of payment is reasonably assured. PETIT and TAYLOR repeatedly demonstrated and touted their understanding of these rules governing revenue recognition. They also publicly identified revenue as the principal metric reflecting MiMedx’s growth, and touted MiMedx’s consistent record of quarter-over-quarter revenue growth and meeting or exceeding revenue guidance in 17 consecutive quarters, from 2011 through year-end 2015. By 2015, however, it became increasingly difficult for MiMedx to reach its revenue guidance due to decreased demand from certain distributors and the increasingly aggressive revenue targets that MiMedx had publicly announced.
Confronted with the difficulties faced by MiMedx in meeting its quarterly and annual revenue guidance by legitimate means, PETIT and TAYLOR engaged in a fraudulent scheme to falsely recognize revenue upon the shipment of MiMedx product to four stocking distributors (“Distributor-1” through “Distributor-4”) in the second through fourth quarters of 2015. PETIT and TAYLOR caused MiMedx to report fraudulently inflated revenue figures to the investing public in order to ensure that the reported figures fell within MiMedx’s publicly announced revenue guidance, and to fraudulently convey to the investing public that MiMedx was accomplishing consistent growth quarter after quarter, as PETIT and TAYLOR had falsely touted to the investing public. The fraudulent scheme involved the following central features:
- As to Distributor-1, in the second quarter of 2015, PETIT and TAYLOR caused MiMedx fraudulently to recognize $1.4 million in revenue by (1) making a $200,000 sham “consulting” payment to Distributor-1’s owner to induce Distributor-1 to buy MiMedx product and (2) secretly agreeing to send Distributor-1 approximately $1.2 million of product it did not want and did not intend to sell, while promising that Distributor-1 could return the product to MiMedx and swap it for different product in a subsequent quarter. PETIT and TAYLOR entered into the sham “consulting” agreement to conceal that the payment was an inducement to purchase product, and Distributor-1’s owner performed no consulting work for the payment. Neither PETIT nor TAYLOR disclosed to MiMedx’s outside auditors the “consulting” payment or product swap.
- As to Distributor-2, in the third quarter of 2015, PETIT and TAYLOR caused MiMedx fraudulently to recognize $4.6 million in revenue by (1) reaching a secret agreement with Distributor-2’s owner to excuse Distributor-2’s contractual obligation to pay for the product Distributor-2 had purchased within 30 days of shipment and (2) booking the revenue despite understanding that Distributor-2 would not make a timely payment for the product, and certainly would not do so within contractual terms. To hide from MiMedx’s auditors that the collectability of payment from Distributor-2 was questionable, during the fourth quarter 2015, PETIT arranged for his adult children to use a shell company to loan money to Distributor-2 (money that came from a trust fund established by PETIT for their benefit), with the understanding that the loan proceeds would be used in substantial part to pay down Distributor-2’s debt to MiMedx. PETIT did not disclose the loan to MiMedx’s outside auditors and made false and misleading statements to the auditors about Distributor-2’s ability to pay MiMedx.
- As to Distributor-3, in the third and fourth quarters of 2015, PETIT and TAYLOR caused MiMedx improperly to recognize $2.6 million of revenue, where they (1) failed to agree with Distributor-3 on the essential terms of the deal, including when payment was due; (2) reached a secret understanding that Distributor-3 could swap or return unwanted product in subsequent quarters; and (3) understood that Distributor-3 could not pay for the product in a timely fashion. In fact, PETIT granted the right of return to Distributor-3 in a back-dated letter he hid from MiMedx’s internal accountants and outside auditors. Ultimately, Distributor-3 paid MiMedx less than 10 percent of the value of product it had purchased.
- As to Distributor-4, in the fourth quarter of 2015, TAYLOR caused MiMedx improperly to recognize $2.2 million in revenue by making an undisclosed promise to Distributor-4 that it could return any product that it could not sell and that MiMedx would not leave Distributor-4 with any losses. To carry out the scheme, TAYLOR sent two emails four seconds apart to Distributor-4. The first was a “cover story” that purported to require payment within a fixed period, as required by MiMedx’s accountants. TAYLOR forwarded the first email to MiMedx’s accounting department. The second email, sent only four seconds after the first, memorialized the true terms of deal, which involved an agreement to defer payment and take back product if it could not be sold. TAYLOR hid the second email from MiMedx’s internal accountants and outside auditors. TAYLOR also arranged for a false audit “confirmation,” which falsely represented that Distributor-4 was required to pay within a fixed period and omitted the true terms of the deal, to be provided to MiMedx’s outside auditors.
PETIT’s and TAYLOR’s fraudulent manipulation of MiMedx’s revenue caused MiMedx to report materially inflated revenue in the second, third, and fourth quarters of 2015, and for the full year 2015. In its 2015 10-K, MiMedx reported annual revenue that was fraudulently inflated by approximately $9.5 million, or approximately five percent. Absent this fraudulent inflation of revenue, MiMedx would have missed both (1) its quarterly revenue guidance in the third and fourth quarters of 2015 and annual revenue guidance for 2015 and (2) analyst revenue consensus for the second through fourth quarters of 2015 and the full year 2015.
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PARKER H. “PETE” PETIT, 80, and WILLIAM TAYLOR, 51, both of Roswell, Georgia, were charged in the Indictment with one count of conspiracy to commit securities fraud, make false filings with the SEC, and improperly influence the conduct of audits, and one count of securities fraud. The conspiracy charge carries a maximum prison term of five years. The securities fraud charge carries a maximum prison term of 20 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the work of the investigative work of USPIS. Mr. Berman also thanked the SEC, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore, Scott A. Hartman, and Daniel M. Tracer are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Former Ashley Borough Police Officer Pleads Guilty to Sexually Assaulting Two WomenRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that former Ashley Borough Police Officer, Mark Icker, age 30, pleaded guilty today before United States District Court Judge Malachy E. Mannion to violating the civil rights of two females in his custody whom he sexually assaulted.
According U.S. Attorney David J. Freed, the criminal information alleges that Icker worked as a police officer for the Ashley Borough Police Department in December 2018. On December 3, 2018 and December 10, 2018, Icker, while acting under color of the laws of the Commonwealth of Pennsylvania, willfully deprived two women of their liberty without due process of law, which includes the right to bodily integrity, by coercing the women into engaging in unwanted sexual contact with him.
In a plea agreement filed with the Court, the Government and Icker agreed to jointly recommend a twelve year sentence of imprisonment. Sentencing was deferred pending the preparation of a pre-sentence report.
“The Department of Justice will continue to vigorously prosecute law enforcement officers who exploit their authority to sexually abuse individuals in their custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
“We count on law enforcement officers at all levels to uphold their oaths, and to serve and protect the public,” said U.S. Attorney David J. Freed. “When a line is crossed, and a protector becomes a predator, we must act – swiftly and with certainty. While I am extremely proud of the cooperative efforts of law enforcement in this case, especially my colleagues and partners in the Luzerne County District Attorney’s Office, we are only able to pursue this prosecution because of the bravery of the victims. In a case where one of us in law enforcement did something so very wrong, the innocent victims stood up for what is right. We are proud to seek justice on their behalf.”
"A police officer using his position of authority to sexually exploit women is utterly contemptible,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Mark Icker felt entitled enough to coerce his victims into sex acts. He clearly expected to get away with violating their bodies and their civil rights. The public corruption and civil rights squad at our Scranton Resident Agency was determined to seek justice for the women involved, and keep Icker from harming anyone else in this way.”
“The actions of this former officer are in no way indicative of law enforcement of Luzerne County,” said District Attorney Stefanie Salavantis. “Many great men and women have died doing what is right while wearing the badge Mr. Icker has tarnished. As adamant as this office is about standing by police when they pursue justice, we are as determined to defend the Constitution when a sworn officer violates the God-given rights that make this country so great.
On behalf of our office and the people of Luzerne County, we would like to thank U.S. Attorney David Freed, Assistant U.S. Attorneys Olshefski, St. John and Patel, along with the FBI agents whom not only agreed with our assessment of the egregious nature of these offenses, but also worked so closely with us to bring this matter to a swift and just resolution.”
Icker was terminated from his position with the Ashley Borough P.D. in December 2018. Icker was also terminated from part-time positions he held with the Sugar Notch and Jessup Police Departments.
This case was investigated by the Scranton Office of the FBI - Philadelphia Division, and the Luzerne County District Attorney’s Office. Assistant United States Attorneys Michelle Olshefski and Jeffery St. John of the Middle District of Pennsylvania and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty for civil rights violations is 20 years’ imprisonment. The charge also includes a fine and a term of supervised release following any period of incarceration. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Florida Man Pleads Guilty to Violating Kingpin Act Sanctions Against Venezuelan Minister and Former Vice PresidentRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced that VICTOR MONES CORO (“MONES CORO”) pled guilty today to participating in a conspiracy with former Venezuelan vice president Tareck Zaidan El Aissami Maddah (“El Aissami”) and Venezuelan businessman Samark Jose Lopez Bello (“Lopez Bello”), among others, to violate and evade sanctions imposed by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) pursuant to the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”). MONES CORO pled guilty today before U.S. Magistrate Judge Robert W. Lehrburger, and he will be sentenced by U.S. District Judge Alvin K. Hellerstein on February 26, 2020, at 10:30 a.m.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Victor Mones Coro has now admitted that he conspired to circumvent U.S. sanctions to help former Venezuelan vice president Tareck El Aissami, Samark Lopez Bello, and others obtain international transport via private jet. Together with HSI, OFAC, and all of our law enforcement partners, we will continue to vigorously enforce sanctions to protect our national security.”
Special Agent in Charge Peter C. Fitzhugh said: “We take a great deal of pride in working alongside the US Attorney’s Office and the Department of the Treasury to ensure that the integrity and intent of U.S. sanctions is preserved both at home and abroad. HSI, through myriad authorities, conducts criminal investigations to maintain the viability of the American financial system and prevent its misuse by foreign corrupt officials and narcotics traffickers. Today, we are reminded of our steadfast commitment to holding those willing to violate such sanctions accountable. And to those who intend to circumvent our laws to gain power and further their corrupt practices through international crime, know you will be brought to justice.”
According to the allegations contained in the Indictment and statements made at MONES CORO’s guilty plea[1]:
Between in or about February 2017 and March 2019, MONES CORO conspired to violate and evade OFAC’s sanctions by providing travel services, including private jet charters, to El Aissami and Lopez Bello, as well as their relatives and associates. El Aissami and Lopez Bello paid for these services at times through intermediaries who delivered bulk cash in Venezuela.
El Aissami became the Vice President of Venezuela in approximately January 2017 and is currently Venezuela’s Minister of Industry and National Production. In February 2017, OFAC designated El Aissami and Lopez Bello as Specially Designated Narcotics Traffickers pursuant to the Kingpin Act and related regulations. As a result of OFAC’s designations, U.S. persons are generally prohibited from, among other things, engaging in transactions with or providing services to El Aissami and Lopez Bello absent authorization from OFAC.
MONES CORO and others used American Charter Services LLC and its affiliates, all U.S. companies, to evade OFAC’s Kingpin Act sanctions in connection with transportation services provided to El Aissami and Lopez Bello. For example, in September 2018, MONES CORO used an American Charter Services account in the United States to pay expenses for an upcoming private flight for Lopez Bello. Similarly, MONES CORO, El Aissami, Lopez Bello, and Alejandro Miguel Leon Maal used SVMI Solution, LLC, another U.S. company, to receive payments for transportation services provided to El Aissami and Lopez Bello in violation of the Kingpin Act and the OFAC sanctions, such as a July 2018 funds transfer sent from Manhattan, New York to an SVMI Solution account in Florida.
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MONES CORO, 51, of Florida, pled guilty to one count of conspiracy to violate and evade the Foreign Narcotics Kingpin Designation Act and the Kingpin Act regulations, as an officer of an entity that participated in the violations, which carries a maximum sentence of 30 years in prison.
Alejandro Antonio Leon Maal and Michols Orsini Quintero are currently detained while El Aissami, Lopez Bello, and Alejandro Antonio Quintavalle Yrady remain at liberty.
Mr. Berman praised the outstanding efforts of U.S. Customs and Border Protection, and the DEA’s Special Operations Division Bilateral Investigations Unit. Mr. Berman also thanked the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division, and OFAC.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle and Sam Adelsberg are in charge of the prosecution.
The charges contained in the Indictment against El Aissami, Lopez Bello, Alejandro Antonio Leon Maal, Michols Orsini Quintero, and Alejandro Antonio Quintavalle Yrady are merely accusations, and El Aissami, Lopez Bello, Leon Maal, Orsini Quintero, and Quintavalle Yrady are presumed innocent unless and until proven guilty.
[1] The descriptions set forth below of conduct by co-defendants Tareck Zaidan El Aissami Maddah, Samark Jose Lopez Bello, Alejandro Miguel Leon Maal, Michols Orsini Quintero, and Alejandro Antonio Quintavalle Yrady constitute only allegations, and every fact described should be treated as an allegation with respect to these defendants.
Five Charged in Online Romance Scams Targeting SeniorsRead the Press Release
PROVIDENCE – Two individuals from Houston and three from the Atlanta area have been charged in U.S. District Court in Providence, R.I., with allegedly participating in online romance scams that bilked more than two dozen people, most of them elderly, out of more than two million dollars.
It is alleged in Court documents that beginning in May 2015, victims were contacted by scammers via online dating sites such as Plenty of Fish, Christian Mingle, and Our Time, and through social media platforms such as Words with Friends, often times feigning romantic intentions. The perpetrators of the scams gained the trust of their victims through any number of fraudulent representations, eventually convincing them to send money to bank accounts controlled by members of the conspiracy.
To date, 28 individuals in more than a dozen states have been identified as falling victim to the scams allegedly employed by the five individuals named in the charged conspiracy.
United States Attorney Aaron L. Weisman commented, “It is unconscionable to prey on seniors. Scammers will confuse, lie to, and steal from their victims with total disregard for the financial and emotional ruins they leave behind. Elder abuse is a serious crime that impacts 10% of elder Americans each year. The Department of Justice and federal, state, and local law enforcement have made it a priority to root out such scammers and hold them accountable.”
“When scammers pose online as legitimate romantic partners only to manipulate victims into giving away their life savings, it creates devastating financial impacts to victims, especially our older Americans,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “The U.S. Postal Inspection Service is committed to protecting our citizens and working hard to seek prosecution of scammers who take advantage of our elders.”
According to court documents, among the victims is a 76-year-old widow from Rhode Island who refinanced her home, sold property she owned in Massachusetts, and withdrew funds from bank accounts, over time sending more than $660,000 to bank accounts allegedly controlled by members of the conspiracy. The woman told investigators she reluctantly made the transfers at the direction of “General Mathew Weyer,” who claimed to be stationed with the U.S. Army in Afghanistan, and whom she met online on Words with Friends.
An investigation by the United States Attorney’s Office and United States Postal Inspection Service determined that “General Mathew Weyer” is a fictitious person and name allegedly used by members of the conspiracy when communicating with the victim.
On Monday, Rhode Island U.S. District Court Magistrate Judge Lincoln D. Almond ordered the alleged leader of the conspiracy, Wisdom Onyobeno, 39, of Sandy Springs, GA, to remain in federal custody and be returned to Rhode Island. Onyobeno was arrested at his Georgia home on November 19, 2019, on a criminal complaint filed by the U.S. Attorney’s Office in the District of Rhode charging him with conspiracy to commit wire fraud and mail fraud; conspiracy to commit money laundering; mail fraud; and wire fraud.
Also charged by way of criminal complaints with conspiracy to commit wire fraud and mail fraud; conspiracy to commit money laundering; mail fraud; and wire fraud are Dominique Golden 28, and Sadae Mills, 24, of Houston, Breauna Williams, 25, of Atlanta, and Syretta Scherer, of Sandy Springs, GA.
Mills and Golden were charged by way of an indictment returned by a federal grand jury in Providence on October 3, 2019, with conspiracy to commit mail fraud, nine counts of mail fraud, and six counts of wire fraud. They were arraigned in U.S. District Court in Providence on October 30, 2019, and released on bond.
Syretta Scherer was arrested on November 19, 2019, and made an initial appearance in the U.S. District Court for the Northern District of Georgia. She was released on bond.
An arrest warrant has been issued for Breauna Williams.
An information and indictment are merely accusations. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton, Elder Justice Coordinator for the United States Attorney’s Office for the District of Rhode Island.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
United States Attorney Aaron L. Weisman and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, thank the FBI, U.S. Department of Labor, and U.S. Treasury Inspector General for Tax Administration in Atlanta for their assistance related to this investigation.
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