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22 November 2019
Okmulgee Man Sentenced to 60 Months for Firearm Possession in Furtherance of Drug Trafficking CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Johnny Scott Sadler, age 48, of Okmulgee, Oklahoma, was sentenced to 60 months’ imprisonment and 5 years of supervised release for Possession Of A Firearm In Furtherance Of A Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
The Indictment alleged that on February 23, 2019, within the Eastern District of Oklahoma, the defendant knowingly possessed a Bushmaster Firearms Inc., Model BACR, Multi caliber semi-automatic rifle (.223 caliber barrel), a firearm, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
United States Attorney Brian J. Kuester said, “Firearms are tools of the trade for people involved in the business of drug dealing because violence is a characteristic of drug trafficking organizations. Every time we are able to investigate and prosecute a person who has used a weapon to further a drug trafficking crime, we have lessened the likelihood of violent crime in a community. That is one of DOJ’s top priorities.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.Nurse Pleads Guilty to Mail Fraud in Connection with Compound Pharmacy Fraud SchemeRead the Press Release
Jackson, Miss. – Fallon Deneem Page, 37, of Hattiesburg, pled guilty yesterday before Senior U.S. District Judge Keith Starrett to mail fraud in connection with a compound pharmacy fraud scheme, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
In October 2014, Page, a registered nurse, received $100 for each patient she referred to Medical Solutions of Ocean Springs, a company owned and operated by Dr. Shahajan Sultan. Each patient had to have health insurance benefits that would cover the cost of expensive compound medications manufactured and dispensed by a pharmacy located in Jackson County, Mississippi. If the patient was covered by health insurance, Page and others performed cursory medical examinations, sometimes in public locations such as parking lots, playgrounds, and gas stations. During the short assessments, the patients were prescribed expensive compound medications and their insurance companies were billed.
On October 23, 2014, Page provided a patient’s health insurance information to Medical Solutions of Ocean Springs and/or the pharmacy in Jackson County. The patient actually never had a consultation with the doctor. As a result of Page providing the information, the pharmacy shipped via Federal Express the compound medications. Page admitted to knowing there was no medical necessity for the expensive prescriptions, and she further admitted that she knew by submitting the claim, the health insurance company would pay. In total, the insurance company reimbursed the pharmacy for the October 23, 2014, prescriptions approximately $34,047.00.
Page will be sentenced by Judge Starrett on February 26, 2020, and faces a maximum penalty of 20 years in prison and a $250,000 fine.
The case was investigated by the FBI and the Department of Defense Criminal Investigative Service. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk prosecuted the case.
Northfield Woman Sentenced to 10 Years in Prison for Drug Trafficking and Firearms Conspiracy CrimesRead the Press Release
CONCORD – Kristina Blake, 29, of Northfield, was sentenced in federal court Thursday, to 10 years in prison for participating in a conspiracy to distribute methamphetamine and a conspiracy to possess firearms during a drug trafficking crime, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, on September 19, 2018, law enforcement officers encountered Blake and Daniel Irving in a vehicle near a convenience store in Concord, New Hampshire. Officers seized over 50 grams of methamphetamine and two firearms from the vehicle. In addition, drug paraphernalia, including a glass mirror, digital scale, a ledger, syringes and plastic baggies were seized.
Blake previously pleaded guilty on August 15, 2019. Irving was sentenced to 96 months on October 11, 2019.
“Methamphetamine is a dangerous drug and dealers should expect to spend years in a federal prison,” said U.S. Attorney Murray. “Sentences are increased where firearms are involved in the drug trafficking business. In order to protect the people of New Hampshire, will continue to seek lengthy prison terms for armed drug dealers.”
"Kristina Blake made the terrible choice to traffic in this highly addictive stimulant, the abuse of which is epidemic," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "The citizens of Concord can rest easy knowing Ms. Blake is off their streets for the decade to come, and that the FBI and our law enforcement partners remain committed to protecting their city from the scourge of pushers and pistols."
This matter was investigated by the Federal Bureau of Investigation and the Concord Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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New Orleans Man Sentenced to 102 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that defendant WAYNE BANKS, 33 years of age, of New Orleans, Louisiana, was sentenced on Thursday, November 21, 2019 by U.S. District Court Judge Mary Ann Vial Lemmon for charges relating to being a felon in possession of a firearm.
BANKS pled guilty on August 8, 2019, to being a felon in possession of a firearm, in violation of Title 18, United States Code, § 922(g)(1), possessing with the intent to distribute a quantity of heroin, in violation of Title 21, United States Code, § 841(a)(1), and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, § 924(c)(1)(A)(i).
Judge Mary Ann Vial Lemmon sentenced BANKS to 102 months in the Bureau of Prisons, as well as 3 years of supervised release following his term of imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the New Orleans Gang Task Force of the Federal Bureau of Investigation, Louisiana State Police and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Elizabeth Privitera was in charge of the prosecution.
New Jersey/Pennsylvania Doctor Pleads Guilty to Accepting Bribes and Kickbacks in Exchange for Prescribing Powerful Fentanyl DrugRead the Press Release
A doctor who practiced in New Jersey and Pennsylvania pleaded guilty today for his participation in a scheme to receive over $140,000 in bribes and kickbacks from a pharmaceutical company in exchange for prescribing large volumes of a powerful fentanyl narcotic.
Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field Office, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Office of Investigations – New York Region, Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s (DEA) New Jersey Division, Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service – Office of Inspector General (USPS-OIG) and Special Agent in Charge Michael C. Mikulka of the U.S. Department of Labor Office of Inspector General New York Region made the announcement.
Kenneth Sun, M.D., 58, of Easton, Pennsylvania, pleaded guilty to one count of conspiracy to defraud the United States and to pay and receive health care kickbacks before U.S. District Judge Anne E. Thompson of the District of New Jersey. Sentencing has been scheduled for Feb. 26, 2020, before Judge Thompson.
As part of his guilty plea, Sun admitted that from 2012 to 2016, he conspired with others to solicit and receive more than $140,000 in bribes and kickbacks from Insys Therapeutics, a pharmaceutical company based in Arizona in exchange for prescribing more than 28 million micrograms of Subsys, a powerful opioid narcotic designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue. Subsys contains fentanyl, a synthetic opioid pain reliever which is approximately 50 to 100 times more potent than morphine. The U.S. Food and Drug Administration approved Subsys solely for the “management of breakthrough pain in cancer patients who are already receiving and who are tolerant to around the clock therapy for their underlying persistent cancer pain.” Sun admitted that he prescribed Subsys to patients for whom Subsys was medically unnecessary, not eligible for insurance reimbursement and unsafe.
Sun also admitted that the bribes and kickbacks he received from Insys Therapeutics in exchange for prescribing Subsys were disguised as “honoraria” for educational presentations regarding Subsys that Sun purportedly provided to licensed practitioners. In reality, Sun admitted, these presentations were a sham: they lacked the appropriate audience of licensed practitioners seeking educational information regarding Subsys; there was no presentation about Subsys whatsoever; the same individuals attended over and over again; and Sun did not attend some of the presentations at all. Sun caused Medicare to pay more than $847,000 for Subsys prescriptions that were medically unnecessary, procured through the payment of kickbacks and bribes and not eligible for Medicare reimbursement, he admitted.
The FBI, HHS-OIG, the DEA, USPS-OIG and DOL-OIG investigated the case. Trial Attorney Rebecca Yuan of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
New Haven Man Sentenced to 46 Months for Illegally Possessing and Selling FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDRE JOHNSON, also known as “Cuzz Crip” and “Cuzzy Blue,” 31, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 46 months of imprisonment, followed by three years of supervised release, for illegally possessing and selling firearms.
According to court documents and statements made in court, law enforcement made three controlled purchases of firearms from Johnson. During the third purchase, on February 28, 2019, Johnson sold a Taurus model PT 24/7 Pro DS 9mm, a loaded extended magazine and a loaded standard magazine in exchange for $900.
Johnson’s criminal history includes state felony convictions for illegal possession of an assault weapon and possession with intent to distribute a controlled substance.
Johnson has been detained since his arrest on April 11, 2019. On July 31, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Haven Police Department and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Monongalia County man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Buzzo, of Granville, West Virginia, was sentenced today to three years’ probation, with the first six months on home detention, for his involvement in a drug distribution operation, U.S. Attorney Bill Powell announced.
Buzzo, age 58, pled guilty to one count of “Aiding and Abetting Distribution of Cocaine Base” in April 2019. Buzzo, age 58, admitted to selling cocaine base in Monongalia County in June 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Mexican National Sentenced to 111 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Raul Alexis Gamez-Garcia, age 26, of Hermosillo, Senora, Mexico, was sentenced to 111 months’ imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2. The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration (“DEA”).
The Indictment alleged that on or about January 7, 2019 within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “This defendant chose to participate in the distribution of an illegal drug – methamphetamine – that has taken many lives. He will now be held accountable for the role he played for a drug trafficking organization. I am thankful for the continued diligence of the Oklahoma Highway Patrol and the DEA in their fight against drug trafficking.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.
Mexican National Previously Released Under Philadelphia’s Sanctuary City Policy Is Recaptured and Indicted for Illegal ReentryRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Alan Eder Torres-Gomez, 30, was charged today by Indictment with illegal reentry after deportation.
As has been previously reported publicly, Torres-Gomez was charged with state offenses in Philadelphia on September 14, 2018, and on that same day, he was charged federally by criminal complaint with illegal reentry after deportation. A United States Magistrate Judge then issued a federal warrant for his arrest. That federal arrest warrant was lodged at the Curran-Fromhold Correctional Facility in Philadelphia where Torres-Gomez was being held on his state charges. His state charges were dismissed on November 26, 2018, but Torres-Gomez did not appear on his federal charges because the City of Philadelphia released him from custody on November 28, 2018 without first notifying Immigration and Customs Enforcement (ICE) or the United States Marshals Service, despite the existence of the federal warrant.
As a result, Torres-Gomez has been on the loose for months, but he is now thankfully back in federal custody, no longer able to pose a threat to the community. And now he will have to answer the federal charges of illegal reentry after deportation.
The Indictment alleges that Torres-Gomez, an alien, and native and citizen of Mexico, was previously deported from the United States on or about August 11, 2009 and December 12, 2016. Following the latest of his deportations, Torres-Gomez allegedly reentered the United States illegally. If convicted of this current illegal reentry offense, the defendant faces a maximum possible sentence of 2 years’ imprisonment.
“Philadelphia’s sanctuary city policy politicizes law enforcement by playing favorites in which one group of people (illegal aliens) is singled out as not having to follow the law. This creates a double-standard that is un-American, morally wrong and makes a mockery of the rule of law," said U.S. Attorney McSwain. "It also threatens public safety when, as here, the City ignores lawful federal arrest warrants and detainers. Nobody who cares about equal treatment under the law – or about public safety – can support the City’s policy. We at the U.S. Attorney’s Office will continue to enforce the rule of law in a neutral, non-partisan manner, rather than playing favorites.”
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Timothy M. Stengel
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Memphis Man Sentenced to 20 Years in Federal Prison for Attempted Business Robbery and Discharging a Firearm During a Crime of ViolenceRead the Press Release
Memphis, TN – Lamar Clancy, 26, has been sentenced to 243 months in federal prison for the attempted armed robbery of the Boost Mobile Store at 4684 Millbranch in Memphis. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented at trial, Clancy and another man entered the store wearing masks and pointing handguns at store employees. Two of the store employees drew their firearms to defend against the shots fired by Clancy and his accomplice. After one of the unarmed employees was shot, Clancy, who himself was also shot, retreated from the store with the other robber. Clancy was dropped off at the Methodist South Hospital emergency room minutes after the attempted robbery, and was apprehended by the Memphis Police.
On May 9, 2019, after a four-day federal jury trial, Clancy was found guilty on a two-count indictment for attempted business robbery and discharging a firearm during a crime of violence.
Today, U. S. District Court Judge John T. Fowlkes Jr., sentenced Clancy to 243 months in federal prison followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Violent crimes must be met with significant consequences in order to incapacitate dangerous offenders, deter future violence, achieve justice for victims and the community, and uphold the rule of law. This sentence demonstrates our commitment and resolve to protect the public by making violent trigger-pullers pay for their crimes."
This case was investigated by FBI Safe Streets Task Force Agents.
The United States Attorney’s Office, Western District of Tennessee prosecuted this case on behalf of the government.
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Maryland man offers guilty plea for cyberstalking Ohio victimsRead the Press Release
COLUMBUS, Ohio – A Maryland man offered a guilty plea today in U.S. District Court to cyberstalking victims in the Southern District of Ohio.
Vincent Brocoli, 32, of Essex, Md., was indicted by a federal grand jury in August.
According to court documents, from August 2016 until April 2019, Brocoli (also known as Matthew Dehart, BunchMedia and BunchMarketing), cyberstalked a female victim and her parents by creating social media accounts in their names, sending them threats, and using the Internet to cause substantial emotional distress to their family.
Brocoli created social media accounts like @xokirstylies1, @xokirstyslut1 and @killyourselfkirsty, among others.
The defendant used the Internet to post photos of the victim with a cross on her forehead and send messages like “I hope you get cancer and die UGLY SLLUT [sic],” and “Go away and die. Just put a gun in your mouth and get it over with.”
Court documents also details that, over the course of nearly three years, Brocoli used the Internet and multiple social media platforms to post threatening and sexually vulgar comments, calling the victim a “worthless lying slut” and a “whore.” Brocoli also used the Internet to post comments asserting that the victim and her husband had AIDS, like claiming that the victim “took [her husband]’s gay cum down her throat and now she has aids. Diseased whorebag.”
Brocoli posed as the victim’s father and mother online by creating multiple Instagram and Twitter handles using their names. He also used the Internet to post comments to the victim’s mother, calling her a “pedophile,” commenting that she needed “to be arrested for child abuse,” and telling her to “Shut up and die.” Brocoli further used the Internet to post to the victim’s father that he would “be the first to go to hell and answer to the real God when the time comes.”
Cyberstalking is a federal crime punishable by up to five years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered today before U.S. Magistrate Judge Kimberly A. Jolson. Assistant United States Attorney Jessica H. Kim and Special Assistant United States Attorney Christopher N. St. Pierre are representing the United States in this case.
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Maryland Man Sentenced to Prison for Credit Card OffensesRead the Press Release
Portland, Maine: A Beltsville, Maryland man was sentenced today in federal court in Portland for his involvement in a conspiracy to use stolen credit card numbers, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr., sentenced Marcellin N’Din, 36, to concurrent sentences of 22 months imprisonment and three years of supervised release on two access-device-fraud charges. He was also ordered to pay a $1,000 fine. The amount of restitution he will be ordered to pay to victims will be determined at a later date. He pleaded guilty on July 10, 2019.
According to court records, N’Din conspired with others to use counterfeit credit cards at Maine stores. N’Din himself used counterfeit cards to make purchases at several Maine stores in August 2018. A search of a hotel room used by a co-defendant, Bryan Boley, in January of this year led to the seizure of several dozen plastic cards, 47 of which had been fraudulently re-encoded; about 25 receipts showing purchases of gift cards and other items; and a credit card reader/writer.
Last week, Boley was sentenced to 22 months imprisonment and three years of supervised release, and ordered to pay a $1000 fine.
The U.S. Secret Service; the Maine State Police; and the Auburn, Brunswick, Cape Elizabeth and Yarmouth police departments investigated the case.
Mansfield Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A Mansfield man was sentenced today in federal court in Boston for failure to register as a sex offender.
Lawrence Sheedy, 45, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison and five years of supervised release. In November 2018, Sheedy pleaded guilty to one count of failure to register as a sex offender. Sheedy was indicted in May 2018 and has been in federal custody since completing a state sentence in January 2019.
In 2004, Sheedy was convicted in Virginia of one count of sexual battery on a child less than thirteen years of age and sentenced to 20 years in prison, with four years to serve and the balance suspended for 20 years of probation. As a result, under Virginia law, Sheedy was required to register as a sex offender for life, and required by the Sex Offender Registration and Notification Act (SORNA) to register as a sex offender in any jurisdiction where he resided or worked. After his release from prison on this offense, Sheedy was convicted of other offenses and served additional time in prison.
In 2017, after his most recent release from prison, Sheedy left Virginia without the permission of the probation department, and moved to Massachusetts, where he lived in Mansfield and eventually worked in Foxborough. He did not inform authorities in Virginia that he had moved, and did not register as a sex offender in Massachusetts. In March 2018, Sheedy was arrested for an unrelated state offense, and discovered to be in violation of probation out of Virginia. Law enforcement also learned that Sheedy had not registered, as required by law, with the Massachusetts Sex Offender Registry Board.
United States Attorney Andrew E. Lelling and John Gibbons, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Lelling’s Major Crimes Unit prosecuted the case.
Manhattan U.S. Attorney Announces Indictment and Arrest of Ophthalmologist for Healthcare FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that AMEET GOYAL, M.D. (“GOYAL”), an ophthalmologist with practices in Rye, Mt. Kisco, and Wappingers Falls, New York, and Greenwich, Connecticut, has been indicted for healthcare fraud. Mr. Berman’s Office also today filed a civil fraud complaint against GOYAL and the entity that owns his medical practice, AMEET GOYAL, M.D, P.C. d/b/a/ THE EYE ASSOCIATES GROUP (the “Practice”), under the False Claims Act.
Specifically, the Indictment charges GOYAL with fraudulently billing patients, Medicare, and private insurance programs millions of dollars, between 2010 and 2017, for complex eye surgeries that GOYAL had not actually performed. The Civil Complaint further alleges that GOYAL and his Practice engaged in widespread healthcare fraud by consistently “upcoding” these and other surgical procedures, examinations, and tests in fraudulent billings submitted to Medicare and Medicaid. As alleged, GOYAL also falsified patient medical records, pressured other employees in his Practice to engage in the scheme, and initiated debt collection proceedings against patients who did not pay the full amounts of his fraudulently billed charges.
GOYAL was arrested this morning and was arraigned in federal court today before United States Magistrate Judge Paul E. Davison. The case is assigned to U.S. District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Dr. Ameet Goyal repeatedly upcoded minor ophthalmological procedures, defrauding insurers and patients by grossly overbilling, netting millions in ill-gotten gains in the process. As further alleged, Goyal also billed for tests and procedures that were never performed, falsified medical records, bullied others in his practice to abet the scheme, and intimidated patients who questioned their bills. Thanks to our law enforcement partners, Goyal’s conduct has come into focus. Ameet Goyal now faces criminal prosecution and civil sanctions for his conduct.”
FBI Assistant Director William F. Sweeney Jr. said: “When we go to the doctor, we have to put our faith in their knowledge because they have expertise we don’t. Dr. Goyal allegedly lied to patients about what they were being billed for, forced them to pay for treatments they didn’t receive, and then threatened his staff if they expressed alarm about taking part in the fraud. Medical practitioners who are more concerned with their profits than with the health of their patients are going against the oath they took, they are doing harm and they should be held accountable.”
HHS-OIG Special Agent in Charge Scott Lampert said: “Goyal’s reprehensible conduct compromised patient care and undermined the integrity of the Medicare program. Along with our law enforcement partners, HHS-OIG will continue to protect the public and ensure that those who bill for services provided by taxpayer funded health care programs do so in an honest manner.”
According to the Indictment[1]:
From at least in or about January 2010 through in or about March 2017, GOYAL systematically submitted false and fraudulent claims that misrepresented the services provided to patients of the Practice and falsely billed for higher-paying surgical treatments than the lower-paying, minor procedures actually performed.
For example, GOYAL and others at the Practice routinely treated patients for an excision of a chalazion, a small bump on an eyelid, typically removed in less than 15 minutes. An excision of chalazion, when billed truthfully under its associated code, paid the Practice approximately $200 on average from patients and insurance programs. However, GOYAL systematically billed an excision of chalazion and other similar superficial eyelid procedures as if he had performed an orbitotomy together with a conjunctivoplasty, which are complex surgeries into the orbit of the eye, often to remove an orbital tumor, that typically take an hour or more to perform. These substantial surgeries, as billed, paid the Practice approximately $1,400 on average from a combination of insurance and patient out-of-pocket payments. Goyal also upcoded certain superficial procedures as an excision and repair of eyelid, a type of higher-paying eyelid surgery involving reconstruction or removal of certain lesions other than chalazions. During the relevant time period, GOYAL billed less than 40 chalazions under the billing code designated for excision of chalazion, while billing over 1,400 orbitotomies, over 700 bundled conjunctivoplasties, and over 1,600 excision and repair of eyelid surgeries, all of which he claimed to have performed personally.
To further effectuate the scheme, GOYAL directed other employees of the Practice, including other ophthalmologists, to upcode minor procedures into higher-paying surgeries. GOYAL threatened the livelihood of employees who were reluctant to comply with these directions.
Between about January 2010 through about March 2017, GOYAL caused the Practice to bill insurance programs and patients over $8 million for supposedly performed orbitotomies, bundled conjunctivoplasties, and excisions and repair of eyelid. The Practice received over $3 million in payments for these claims, a substantial portion of which were fraudulently billed.
According to the Civil Complaint, in addition to falsely billing for orbitotomies and conjunctivoplasties and other related codes:
GOYAL and his Practice routinely submitted fraudulent claims to Medicare and Medicaid for a wide range of other surgical procedures, examinations, and tests purportedly performed by GOYAL that were not actually performed, not medically necessary, not documented in the medical records, and/or failed to otherwise comply with Medicare and Medicaid rules and regulations. In order to justify this billing, GOYAL falsified patient diagnoses and prepared operative reports that falsely described the procedures performed on patients. The lawsuit seeks to recover treble damages and civil penalties under the False Claims Act.
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GOYAL, 56, of Rye, New York, is charged with three counts in the Indictment. The first count charges healthcare fraud, which carries a maximum sentence of 10 years in prison; the second count charges wire fraud, which carries a maximum sentence of 20 years in prison; the third count charges making false statements relating to health care matters, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and HHS-OIG.
This criminal case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Vladislav Vainberg, David Felton, and Margery Feinzig are in charge of the prosecution. The civil lawsuit is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the civil case.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man with over Thirty Prior Criminal Convictions Sentenced to Federal Prison for Selling CocaineRead the Press Release
An Iowa man who distributed cocaine was sentenced today to 30 months in federal prison.
Antonio Robertson, age 43, from Manchester, Iowa, received the prison sentence after a May 31, 2019 guilty plea to distribution of cocaine after a prior felony drug conviction.
Information disclosed at sentencing and at his plea hearing showed that on two occasions in October 2018, Robertson sold cocaine to another person. Robertson has 31 prior criminal convictions, five of which are violent offenses. Two of Robertson’s prior convictions were firearms-related offenses and thirteen of his offenses occurred while he was on probation or parole for another offense.
Robertson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Robertson was sentenced to 30 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Manchester Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00027.
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Maine Man Arrested for Hobbs Act RobberyRead the Press Release
BOSTON – A Maine man has been arrested and charged with Hobbs Act robbery.
William “Billy” Angelesco, 48, of Saco, Maine, was indicted on one count of interfering with commerce by threats or violence. Angelesco was arrested this morning and will appear in federal court in Portland, Maine today. He will appear in Boston at a later date.
The charging statute provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Abington Police Chief David G. Majenski made the announcement today. Assistance was provided by the Saco (Maine) Police Department. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
MS-13 Gang Member Sentenced for Role in Gang-Related AssaultRead the Press Release
ALEXANDRIA, Va. – An MS-13 gang member was sentenced today to 38 months in prison for his role and participation in a violent gang-related assault of a victim with multiple bats.
Marlon Edgardo Huezo Rivera, aka “Oscuro,” 19, of Falls Church, a member or associate of the Chilangueras clique of MS-13 in Northern Virginia, is the final charged defendant to be sentenced in this case.
“This purpose of this senseless assault was to serve MS-13’s warped code of violence and overarching mission of instilling fear through violence,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Huezo Rivera’s conduct demonstrates his contempt for the law and his total disregard for the safety of the people who make up this community.”
According to court documents, Huezo Rivera and several other members and associates of MS-13 lured the victim to James Lee Park in Falls Church so that they could assault the victim. Rivera and other members and associates of MS-13 believed the victim was cooperating with law enforcement, falsely representing himself as a member of MS-13, and disparaging the Silvas clique of MS-13. After luring the victim to the park under false pretenses, Huezo Rivera, and approximately a dozen other members and associates of MS-13, beat the victim with bats, fists, and feet for approximately three minutes. As a result of the beating, the victim suffered multiple broken limbs and was hospitalized for several days.
"Today's sentencing shows how focused the Washington Field Office and its local, state and federal partners are in dismantling the MS-13 threat in the Capital Region," said Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office. "Huezo Rivera and his fellow gang members terrorized our community, but his sentencing today sends a clear message that violent criminals cannot evade the law. I would like to thank the FBI Special Agents, the prosecutors, and our local partners for their hard work on this case."
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Nicholas U. Murphy II, Cristina Stam, and Special Assistant U.S. Attorney Shauna Hale prosecuted the case.
This investigation was conducted by the Federal Bureau of Investigation, Washington Field Office's Safe Street/HIDTA Task Force - Northern Virginia with the Fairfax County Police. This task force is composed of FBI Agents, along with Detectives from the Fairfax County Police, the Prince William County Police, the Loudon County Sheriff's Office, the Fauquier County Sheriff's Office, the Arlington County Police, the Herndon Police Department, the Leesburg Police Department, the Vienna Police Department, the Fairfax City Police, the Alexandria City Police, along with Agents from the Department of Homeland Security, Homeland Security Investigations, Officers of the Immigration and Customs Enforcement and works cooperatively with the USMS, ATF, the Falls Church Police Department, the Prince George's County Police, MPD and the Montgomery County Police. This task force is charged with investigating, disrupting and dismantling MS-13 activity impacting the Capital Region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-129.
Local rapper sent to federal prison for sex trafficking of a minorRead the Press Release
HOUSTON – A 27-year-old Houston resident and member of The Sauce Factory has been sentenced for conspiracy and sex trafficking, announced U.S. Attorney Ryan K. Patrick. A Houston federal jury deliberated for less than eight hours before convicting Jaimian Sims May 20 after five days of trial.
Today, U.S. District Judge David Hittner sentenced Sims to life in prison. Sims was further ordered to pay $1575 in restitution to a minor victim. In handing down the sentence, Judge Hittner stated Sims was a threat to society. The court also noted he had received several letters of support, one in particular claiming Sims was a positive role model in the community. The government contended Sims has not made any contribution to society and that he and other members of The Sauce Factory waive around firearms, large amounts of cash and glorify a materialistic lifestyle built on the backs of sexually-exploited women. Sims will also be required to register as a sex offender.
At trial, the jury heard that Sims trafficked both adult and minor females.
In one instance, Sims had directed a co-defendant - Tabbetha Mangis, 22, of La Grange - to find another co-defendant - Gary Shawn Haynes Jr. - 23 of Houston - to find Haynes a girl for prostitution. The victim, only 17 years of age, was picked up from her residence and transported to a 5,000 square foot residence in Northwest Houston, known as “The Mansion.”
After a brief stay there, the jury heard that the minor was taken to the Express Inn where she was given an identification card in order to rent a room. Sims had instructed an adult victim to provide the card to the minor. He had also told that adult to take photos of the minor female victim and post ads for her which was used to solicit customers who would pay for sex.
The jury heard testimony from the adult victim who described her fear of Sims because he always carried a gun and he had assaulted some of the other women who engaged in commercial sex on his behalf.
Testimony also revealed the minor victim wanted to be “arrested” because she was afraid the perpetrators would think she was speaking to law enforcement on her own. This dovetailed with the government’s expert testimony on victimology and the pimp/prostitution subculture amongst those involved in that world as “the game.” The expert described for the jury the meaning of several terms associated with and used by those within this subculture to include victims and defendants.
The jury also saw and heard three rap videos featuring Sims which contained many of the terms people use in the game. In the videos, Sims refers to two of his co-defendants and their roles in the organization. He references selling “white” women and how successful he is at being a pimp.
The defense attempted to convince the jury that the women were not victims and engaged in the sex acts willingly nor did he use force, fraud 0r coercion to make them do so. They were not convinced and found him guilty of conspiracy to commit sex trafficking of a minor and sex trafficking of a minor.
Mangis and Haynes previously pleaded guilty for their roles.
Sims has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Harris County Constable’s Office Precinct 4 and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sherri Zack and Kimberly Leo prosecuted the case.
Leader of San Antonio-Based Heroin Trafficking Operation Sentenced to 15 Years in Federal PrisonRead the Press Release
In San Antonio, a federal judge sentenced 35-year-old ringleader Andrew Sanchez (aka “Freight,” “Hakeem”) to 15 years in federal prison for his role in a narcotics distribution operation on San Antonio’s eastside, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.
During the sentencing hearing yesterday, U.S. District Judge Fred Biery also ordered that Sanchez be placed on supervised release for a period of five years after completing his prison term and forfeit $2,961.00 in U.S. Currency that was proceeds from his criminal enterprise.
On July 24, 2019, Sanchez pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin. By pleading guilty, Sanchez admitted that from May 2018 to March 2019, he was the leader of an organization responsible for the distribution of heroin on the east side of San Antonio. The Sanchez organization operated as a full-scale delivery service for heroin to the street-level user. Street-level users contacted a set phone number (the “order phone”) to order the amount of heroin wanted and arrange for the location where the narcotics were to be delivered. The order phone holder then coordinated with organization members responsible for the delivery of the heroin. Those members then drove to the established location and delivered the heroin to the street-level user. The organization operated daily from approximately 8:00 a.m. until 2:00 a.m., with the organization members working shifts in the various roles.
To date, four defendants (including Sanchez) have been convicted and sentenced to prison terms ranging from five years to 15 years. Two defendants are awaiting sentencing and one is awaiting trial. Rodrigo Roque (aka “Scrappy”), who is charged in the conspiracy count, is scheduled for jury selection on December 16, 2019.
The DEA and the Texas Department of Public Safety investigated this case with assistance from the U.S. Marshals Service, Bexar County Sheriff’s Office, Seguin Police Department, Terrell Hills Police Department and the Bexar County District Attorney’s Office.
The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Roque is presumed innocent until proven guilty in a court of law.
Lawrence Man Sentenced to 96 Months for Fentanyl TraffickingRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Walker Manuel Moreta, 32, of Lawrence, Massachusetts, was sentenced to 96 months in federal prison for participating in a conspiracy to distribute, and possess with intent to distribute, fentanyl.
According to court documents and statements made in court, between at least January of 2017 through July of 2017, Moreta, with the assistance of others, sold quantities of fentanyl to multiple individuals, including customers from New Hampshire. Moreta and his co-conspirators often operated out of a location on Water Street in Lawrence, Massachusetts. As part of an investigation of Moreta, a cooperating individual purchased over 100 grams of fentanyl from Moreta between May and June of 2017. On July 6, 2017, Moreta was arrested and had 19 grams of fentanyl on his person.
Evidence in the case also indicated that the drugs distributed by the defendant resulted in at least one fatal fentanyl overdose in Portsmouth, New Hampshire.
Moreta previously pleaded guilty on April 1, 2019. He faces likely removal to the Dominican Republic after serving his sentence.
Two co-conspirators, Miguel Arias-Velasquez and Miguel Vasquez, previously pleaded guilty. Arias-Velasquez was sentenced to serve 48 months in prison. Vasquez is awaiting sentencing.
“Fentanyl is an incredibly lethal substance that has caused hundreds of deaths in New Hampshire,” said U.S. Attorney Murray. “We are working every day to identify, prosecute, and incarcerate the interstate fentanyl traffickers who are selling this deadly drug to the citizens of the Granite State. Drug dealers who sell fentanyl in New Hampshire should understand that they will be caught and will spend substantial portions of their lives in federal prison.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Moreta accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
This matter was investigated by the DEA, with assistance from the Massachusetts State Police, the United States Marshals Service, the New Hampshire State Police, the Lawrence Police Department, with assistance from the Portsmouth Police Department, the Dover Police Department, and the Rockingham County Attorney’s Office. The case is being prosecuted by First Assistant U.S. Attorney John J. Farley.
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Lauderdale County Man Sentenced to 10 Years in Federal Prison for Being a Convicted Felon in Possession of a Firearm Used in the Murder of a Pregnant WomanRead the Press Release
Memphis, TN - Sequna Copeland a/k/a "Cutthroat", 30, of Ripley, Tennessee has been sentenced to 120 months in federal prison on two counts of being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on June 18, 2018 in Lauderdale County, Tennessee a white minivan crashed on Highway 19. Two men emerged from the vehicle and ran in the direction of Maple Hill Circle. Multiple people identified these men as Sequna Copeland and Bryson Bonds. The Tennessee Highway Patrol investigated the wreck and found a Canik 9mm pistol and a Harrington & Richardson .22 revolver in the minivan. Tennessee Bureau of Investigation lab tests, codefendant statements, and circumstantial evidence revealed that these two handguns were used to kill Jessica Hunt and her unborn child on Berry Morrow Road earlier that same morning.
In 2016, Copeland, along with three other members of the Gangster Disciples, robbed the Ripley Express convenience store. He along with another defendant evaded law enforcement for eight months and was subsequently placed on the Tennessee Bureau of Investigation’s "Top 10 Most Wanted" list.
On July 30, 2015, Copeland, while under oath and testifying as a witness in a proceeding before a Federal Grand Jury, made a false statement to prevent the punishment of two co-defendants. In July 2016, Copeland pleaded guilty to one count of perjury, and was sentenced to 27 months imprisonment followed by 3 years supervised release. In 2009, Copeland was convicted in Lauderdale County of Facilitation of the Second Degree Murder of Brian Bond, son of then Haywood County Sheriff Melvin Bond.
On October 1, 2018, the Lauderdale County Grand Jury returned indictments charging Copeland with two counts of Premeditated First Degree Murder, two counts of Felony First Degree Murder, one count of Especially Aggravated Kidnapping, one count of Tampering with Evidence, one count of Felony Possession of a Firearm, one count of Employing a Firearm During the Commission of a Dangerous Felony, one count of Abuse of a Corpse, one count of Theft of Property, and one count of Leaving the Scene of an Accident.
On October 9, 2019, after a three-day federal jury trial, Copeland was found guilty on two counts of being a convicted felon in possession of a firearm.
Today, U.S. District Court Judge Thomas L. Parker sentenced Copeland to 120 months in federal prison, which is the statutory maximum sentence for these federal firearm offenses, followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said: "As his nickname indicates, ‘Cutthroat’ has a long criminal history of felony convictions involving violence, and possessed firearms that were used in the murder of Jessica Hunt and her unborn child, and while he was still on a period of supervised release from a prior felony conviction. Copeland has devoted his entire adult life to a career of criminal conduct in Lauderdale County, and that prior history has finally caught up with him. This maximum federal sentence will remove this violent recidivist from the community for 10 years, will hopefully help to deliver justice for his victims in the pending state prosecution for first degree murder."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tennessee Highway Patrol, The Tennessee Bureau of Investigation, Lauderdale County Sheriff’s Office, and the Ripley Police Department investigated this case.
Assistant U.S. Attorney P. Neal Oldham prosecuted this case on behalf of the government.
Lafayette Man Sentenced to Federal Prison for Possessing Child Pornography on Social Media Site and Personal DevicesRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Gregory Graffeo Jr., 25, of Lafayette, was sentenced today by U.S. District Judge Robert R. Summerhays, to 63 months in federal prison followed by five years of supervised release for possession of child pornography. Hall pleaded guilty on August 13, 2019.
According to court documents, this case originated on August 31, 2018, as a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) to the Louisiana Bureau of Investigation (LBI), reporting that a Tumblr user had uploaded images of child pornography. A search warrant on Graffeo’s Tumblr account revealed approximately 50 images of child pornography. On November 7, 2018, agents with Homeland Security Investigations and LBI executed a search warrant at Graffeo’s residence and found additional child pornography images on devices belonging to him. Graffeo admitted to possessing more than 100 images of child pornography on these devices and admitted that the Tumblr account belonged exclusively to him.
The U.S. Department of Homeland Security Investigations and Louisiana Bureau of Investigation investigated the case. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
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Kodiak Man Arraigned on Drug Trafficking ChargeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Cenen Placencia, 71, of Kodiak, was arraigned today on a complaint charging him with possession with intent to distribute controlled substances.
On Nov. 20, 2019, Placencia was ticketed to depart from Anchorage International Airport, destined for Kodiak, Alaska. Investigators from the Alaska State Troopers (AST) Anchorage Airport Interdiction Team (AAIT) requested Placencia’s consent to search his checked luggage, which consisted of a 47-pound fish box that was duct taped shut with a rope tied around the box.
After obtaining Placencia’s consent, the box was opened and investigators observed loosely wrapped meat pieces frozen together in a single large mass. The meat did not appear to be for human consumption, and packaging and shipping was inconsistent with the standard methods of meat processing. Investigators obtained Placencia’s consent to fully thaw and search the meat while he waited for the next Kodiak flight. As the meat was thawing, investigators detected an odor consistent with spoiled meat, no longer safe for consumption.
10 duct tape wrapped balls, each slightly larger than a golf ball, were found lodged inside the intestines of what investigators believed to be a goat and contained, in total, six packages of approximately 389 grams of meth and six packages of approximately 740.5 grams of heroin.
Placencia stated he purchased the goat for $140 from a rancher in California, packed the box himself, and intended to eat the goat intestines. Further, he denied having any knowledge of the meth and heroin found inside the goat.
If convicted, Placencia faces a statutory maximum of 40 years in prison, a $5,000,000 fine, and a minimum of 4 years of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Alaska State Troopers (AST) Anchorage Airport Interdiction Team (AAIT) and Coast Guard Investigative Services (CGIS) conducted the investigation leading to the charge in this case. This case is being prosecuted by Assistant U.S. Attorney Christina Sherman.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
King County dentists sentenced to prison and fines for eight-year tax-cheating schemeRead the Press Release
Seattle – Two Kent, Washington, dentists who avoided more than $460,000 in income taxes were sentenced today in U.S. District Court in Seattle to seven days in prison and 400 hours of community service for filing false tax returns, announced U.S. Attorney Brian T. Moran. MIKE HSIEH, 48, of Kent, Washington, and CHRISTINE CHEN, 46, of Renton, Washington, own Comfort Family Dentistry, Inc. Between 2007 and 2014, the two took steps to hide illegally their income from the IRS to reduce their tax obligation. At the sentencing hearing, U.S. District Judge Richard A. Jones ordered each to pay a $5,000 fine and said, “It was pure greed… It wasn’t about need, it was about greed…. It wasn’t a simple mistake. For eight years you had your accountant file false tax returns. You had eight separate years to change your mind and not be involved in criminal activity.”
According to records filed in the case, HSIEH and CHEN maintained two sets of financial statements for the business—one showing the actual expenses and another showing inflated expenses. The fraudulent expense statements were given to their accountant for tax preparation. The pair also established a bank account that was not disclosed to the tax preparer. Patient fees deposited into the account were not reported as income. Finally, the pair took cash proceeds from the dental practice and never reported that income to the accountant or on their taxes.
For tax year 2013, HSIEH admits he reported a taxable income of $232,753 when it was really more than $100,000 higher. HSIEH should have paid taxes on income of $348,663. For tax year 2013, CHEN reported income of $319,131 when her true income was $425,679. For all the tax years between 2007 and 2014 they each admit failing to pay about $231,000 in taxes that they should have paid.
Both dentists own multiple properties and dental practices. CHEN lists assets exceeding $4 million, while HSIEH lists assets of more than $2 million. In his sentencing memorandum, Assistant United States Attorney Brian Werner noted, “This was a deliberate, calculated scheme to cheat the government…. (These) Defendants (were) not in need of money.... There was no need to cheat the government – this offense was motivated purely by greed.”
Both defendants will pay slightly more than $231,000 in restitution. Their attorneys estimate they will also need to pay an additional $300,000 in interest and penalties to the IRS. In arguing that HSEIH and CHEN should avoid prison time, their attorneys noted that they criminal conviction prompted one bank to end its relationship with them, and that the dental practice was dropped as a preferred provider by a large dental insurance plan.
“Dr. Hsieh and Dr. Chen, each filed false tax returns that underreported income and inflated expenses at their dental practice in order to avoid paying income taxes. Their criminal scheme lasted years and cheated the Treasury of hundreds of thousands of dollars,” said IRS-Criminal Investigation’s Special Agent in Charge Justin Campbell. “Taxpayers should have confidence that IRS-Criminal Investigation will aggressively pursue tax fraud and ensure that all business owners pay their fair share.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Brian Werner.
Justice Department Seeks to Shut Down South Florida Tax Return PreparersRead the Press Release
The United States filed a civil injunction suit seeking to bar Dimary Cordero, aka Dimary Cordero Torres, and her businesses — NMB Accounting and Tax Services LLC (NMB), and WFS Accounting and Tax Services LLC (WFS) — from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The complaint also seeks an order that Cordero, NMB and WFS disgorge ill-gotten fees that they obtained through their alleged misconduct.
According to the complaint, filed in the U.S. District Court for the Southern District of Florida, Cordero operates tax preparation stores in North Miami Beach and Miami, Florida through her businesses. The complaint alleges that the defendants falsely increase their customers’ refunds and profit through high, often undisclosed fees, at the expense of their customers and the Treasury.
The complaint alleges that the defendants engage in the following misconduct:
- Falsely claiming the Earned Income Tax Credit;
- Fabricating businesses and related business income and expenses;
- Fabricating deductions, such as personal expenses and phony job-related expenses;
- Claiming education credits based on fabricated education-related expenses and
- Charging deceptive and unconscionable fees.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury convicts Holland, Ohio man of theft of public money, concealment of bankruptcy assets, and bankruptcy fraudRead the Press Release
This week, a Toledo federal jury convicted Arvel Ray Henderson, II, age 50, on one count of theft of public money, one count of concealment of bankruptcy assets, and one count of bankruptcy fraud. Henderson is scheduled to be sentenced on December 20, 2019.
Henderson, who was enrolled as a Section 8 landlord with the Lucas County Metropolitan Housing Authority (LMHA), leased several Section 8-eligible properties in the Toledo area, one of which was on Mackow Drive. Henderson began receiving rent payments for this property from LMHA starting in 2005. In 2011, Henderson transferred ownership of the Mackow Drive property to his stepfather. Because Henderson no longer owned the property, he was no longer entitled to the Section 8 payments, yet he continued taking the payments for nearly three additional years after he ceased being the property’s owner. Henderson defrauded LMHA of approximately $22,589.
In June 2014, Henderson filed as an individual for Chapter 7 bankruptcy. Henderson failed to list the following items in his bankruptcy schedules: three bank accounts, a variable annuity account, $499,980 in wire transfers, $20,000 in loaned funds, a 2004 BMW, and a 2014 Jeep Grand Cherokee. The bankruptcy court, trustee, and Henderson’s creditors were thus misled about material information used to determine Henderson’s eligibility for bankruptcy protection and the appropriate terms of any bankruptcy discharge.
The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development (HUD). It is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Jody L. King.
Jury Returns Conviction for Murder in Indian CountryRead the Press Release
OKLAHOMA CITY – A federal jury has convicted TOMMY DEAN BULLCOMING, 55, of Hammon, Oklahoma, of first-degree felony murder in Indian Country and related offenses, announced Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma.
A five-count indictment unsealed on April 6, 2018, charged Bullcoming with crimes he committed on September 6, 2017: first-degree premeditated murder, first-degree felony murder, carjacking resulting in death, kidnapping resulting in death, and arson. The indictment stated he "used force, violence, and intimidation to intentionally take a Lexus RX300" from an Indian and that this resulted in her death. It further alleged he killed the victim "by stabbing and cutting her with a sharp object." The arson count alleged he maliciously set fire to the victim’s dwelling in Hammon. The case is in federal court because Bullcoming is a member of the Cheyenne and Arapaho Tribes, because the offenses occurred in Indian Country, and because the vehicle used in the carjacking had traveled in interstate commerce. The victim, Linda “Lindy” Zotigh, is a member of the Cheyenne and Arapaho Tribes, as well.
Beginning on November 12, 2019, a jury heard evidence that Bullcoming beat Zotigh, his ex-girlfriend, in her home and then bound her mouth and wrists with duct tape. Using her vehicle, he drove her to a field in Indian Country and made her walk approximately 50 yards away from the road, where he stabbed her 48 times and slit her throat. He then drove her vehicle back to her home, which he set on fire. Volunteer firefighters from Hammon noticed fresh blood in the residence, and a Special Agent with the Bureau of Indian Affairs found fresh blood on the headrest of the vehicle. Both blood samples matched the victim, while blood on the vehicle’s dashboard matched Bullcoming.
The Bureau of Indian Affairs arrested Bullcoming in El Reno on September 8, 2017, for failing to appear before the Tribal District Court for the Cheyenne and Arapaho Tribes in Concho on September 7 on a charge of trafficking in controlled dangerous substances. He had scrapes and cuts on his arms, hands, and legs, as well as blood on his belt and sandals. DNA analysis confirmed the blood on his sandals belonged to the victim. On December 5, 2017, Bullcoming pleaded guilty in federal court to possessing marijuana with intent to distribute. He was sentenced in that case on April 18, 2018, to ten months in prison.
During the early evening of November 21, a jury found Bullcoming guilty of first-degree felony murder, carjacking resulting in death, kidnapping resulting in death, and arson of a dwelling. It was unable to reach a verdict on first-degree premeditated murder. The verdict was returned on what would have been Linda Zotigh’s birthday.
At sentencing, Bullcoming faces mandatory life in prison for felony murder, carjacking, and kidnapping. The maximum punishment for arson would be 25 years in prison and five years of supervised release. He could also be fined up to $250,000 on each count and be required to pay restitution. There is no parole in the federal justice system. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Bureau of Indian Affairs, Office of Justice Services; the Federal Bureau of Investigation, Oklahoma City Field Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Secret Service; the Oklahoma State Bureau of Investigation; the Oklahoma Highway Patrol; the Roger Mills County Sheriff’s Office; the Custer County Sheriff’s Office; the United States Marshals Service; and the Hammon Fire Department. Assistant U.S. Attorneys Mark R. Stoneman and Arvo Q. Mikkanen are prosecuting the case, which furthers the Department of Justice’s Missing and Murdered Indigenous Persons Initiative. Attorney General Barr is announcing that initiative today; for more information, go to https://www.justice.gov/opa/pr/attorney-general-william-p-barr-launches-national-strategy-address-missing-and-murdered.
Reference is made to court filings for further information.
Jury Finds Topeka Man Guilty on Federal Drug, Firearm ChargesRead the Press Release
TOPEKA, KAN. - A Topeka man was convicted in a jury trial in federal court today on drug trafficking and firearms charges, U.S. Attorney Stephen McAllister said.
Dennis Dean Neff, 63, Topeka, Kan., was convicted on one count of possession with intent to distribute methamphetamine within 1,000 feet of Holton Middle School (count one), one count of possession of a firearm in furtherance of drug trafficking (count two), one count of unlawful possession of a firearm by a felon (count three) and one count of possession with intent to distribute methamphetamine within 1,000 feet of Meadows Elementary School in Topeka (count four).
During trial, the prosecutor presented evidence that on Nov. 27, 2018, Neff was found at a residence in Holton. He possessed 73.8 grams of methamphetamine and a 9 mm Bersa pistol. On Feb. 12, 2019, he was arrested with 18 grams of methamphetamine and $6,327 in cash.
Sentencing will be set for a later date. He could face not less than 10 years in federal prison and a fine up to $10 million on count one, not less than five years and a fine up to $250,000 on count two, ten years and a fine up to $250,000 on count three, and not less than five years and not more than 40 years and a fine up to $5 million on count four.
McAllister commended the Drug Enforcement Administration and Assistant U.S. Attorney Greg Hough for their work on the case.
Jury Finds Somerset Felon Guilty of Illegally Possessing Rifles, Shotguns and AmmoRead the Press Release
JOHNSTOWN, Pa. – A resident of Somerset, Pa., was found guilty after a four-day jury trial of violating federal firearms laws, U.S. Attorney Scott W. Brady announced today.
Kelly B. Shaulis, 51, of Somerset, Pa., was tried before U.S. District Judge Kim Gibson in Johnstowm, Pa.
According to information presented at trial, Kelly B. Shaulis, 51, of Somerset, Pa., was illegally possessed twelve rifles, shotguns and ammunition on July 5, 2017 and Dec. 21, 2018. On Dec. 19, 2011, Shaulis was convicted in United States District Court for the Western District of PA, of unlawful possession of a firearm by a convicted felon, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
"The prosecution of felons who illegally possess firearms has long been a key part of an of our office’s anti-violence strategy," said U.S. Attorney Brady. "Removing these violent offenders from our neighborhoods creates safer living places for law-abiding citizens."
Judge Gibson scheduled sentencing for April 9, 2020, at 10:00 A.M. The law provides for a maximum sentence of 20 years in prison and a fine of $500,000 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 of the defendant.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Pennsylvania Office of Attorney General. The case is being prosecuted by Assistant U.S. Attorney Arnold P. Bernard, Jr. of the Western District of Pennsylvania.
Jury Convicts Man in Federal "Lie and Buy" Trial of Making A False Statement During Purchase of A FirearmRead the Press Release
LAS VEGAS, Nev. – After a three-day trial, a federal jury found James Williams, Jr., 29, guilty of making a false statement during the purchase of a firearm, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the San Francisco Field Division.
“I am proud to announce Nevada’s first conviction under Project Guardian—our new gun violence reduction initiative,” said U.S. Attorney Trutanich. “Lying to a licensed firearms dealer and buying a gun for someone else is a serious offense. My office will continue to work closely with ATF and local law enforcement to prosecute these crimes.”
“Public safety is at the forefront of ATF’s mission,” said Special Agent in Charge Roundtree. “Our focus is removing crime guns from our communities. To reiterate what ATF Acting Director Regina Lombardo said, the focus of Project Guardian is to enhance our crime gun intelligence. This enhancement will encompass identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms. We are very happy to announce Nevada’s first Project Guardian conviction with the U.S. Attorney’s Office and the Las Vegas Metropolitan Police Department.”
According to court documents and evidence presented at trial, between May 2017 and May 2018, Williams purchased 35 firearms, mostly pistols, and many of the same make and model, from various Las Vegas firearms dealers. In May 2018, when purchasing one of those firearms, Williams made a false statement to a licensed firearms dealer regarding his residential address in Las Vegas, Nevada. At trial, his former roommate testified that Williams had not lived at that address for over a year at the time he made the false statement. The jury at trial found Williams guilty of falsely stating his address in the Firearms Transaction Record form that he completed when he purchased the firearm and acquitted him of illegal acquisition of a firearm for one set of those purchases.
The case was the product of an investigation by the ATF, with the assistance of the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Jared Grimmer and Tony Lopez prosecuted the case.
Williams is scheduled to be sentenced by U.S. District Chief Judge Miranda M. Du on January 29, 2020. Williams faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 ATF 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, visit https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
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Jackson Man Sentenced under Project EJECT to over 4 Years in Federal Prison for Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Rodney Davis Kimble, 26, of Jackson, was sentenced today by Chief U.S. District Court Judge Daniel P. Jordan III to 50 months in federal prison, followed by three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Kimble was also ordered to pay a $1,500 fine.
On August 8, 2017, officers with the Jackson Police Department responded to a burglary alarm on Southland Drive in Jackson. At the scene, the resident reported a .380 caliber Taurus had been stolen. JPD’s Crime Scene Unit collected evidence, including blood samples, from the crime scene. On September 3, 2017, officers were dispatched to West McDowell Road, where Rodney Davis Kimble had threatened an individual with a gun. Kimble was arrested and charged with possession of a firearm by a convicted felon. The firearm in Kimble’s possession matched the description of the stolen firearm. Following his arrest, law enforcement matched Kimble’s DNA to that recovered at the scene of the burglary on August 8. Kimble confessed to the crime when confronted with the DNA evidence. Kimble was charged with house burglary and convicted in the Circuit Court of Hinds County in September 2018. Kimble had previously been convicted in Hinds County of house burglary in 2012, and business burglary in 2015.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Sentenced under Project EJECT to 2 ½ Years in Federal Prison for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Bernard Lavon Woofter, 43, of Jackson, was sentenced today by Chief U.S. District Court Judge Daniel P. Jordan III to 30 months in federal prison, followed by three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation. He was also ordered to pay a $1,500 fine.
On February 13, 2018, Woofter was arrested by an officer with the Jackson Police Department following a pat down search wherein the officer discovered Woofter was carrying a Rossi .38 Special revolver in his waistband. He had two previous convictions for felony theft in Knox County, Tennessee, and was prohibited from possessing a firearm.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indiana livestock broker sentenced to prison for wire fraudRead the Press Release
CINCINNATI – Brian D. Jones, 40, of Vevay, Ind., was sentenced in U.S. District Court today to 51 months in prison and ordered to pay nearly $750,000 in restitution to victims he defrauded.
According to court documents, Jones operated a business buying bull calves from dairy farms in Wisconsin and selling them to cattle ranches in Texas and Missouri. By the end of 2015, Jones had squandered funds from the cattle purchasers and was in debt with both his suppliers and purchasers.
Jones began soliciting investors in 2015, promising sizable returns for the investments. Rather than invest the funds, Jones used the money for his personal benefit, such as gambling at casinos. He used the investment funds to pay “returns” back to earlier investors as if the funds had actually generated income through investment in his business.
Jones fabricated bank documents to show that he had sizable business deposits that would soon be “released” by the bank. He also sent some checks to investors for investment returns only to have the checks bounce due to insufficient funds in his account.
Jones was indicted by a federal grand jury in July 2017 and pleaded guilty to wire fraud in June 2018.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by U.S. District Court Judge Timothy S. Black. Assistant Deputy Criminal Chief Timothy S. Mangan is representing the United States in this case.
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Illinois Man Who Pulled Gun on His Son’s Mother While Their Son Was in the Room Sentenced to Federal PrisonRead the Press Release
A convicted felon from Illinois who unlawfully possessed a gun was sentenced November 21, 2019, to nearly four years in prison.
Korey Russell, age 40, from Hoopeston, Illinois, received the prison sentence after a June 10, 2019 guilty plea to possession of a firearm by a felon.
Information disclosed at sentencing and at a plea hearing showed that on March 12, 2018, Russell went to the Cedar Rapids, Iowa, home of his young child’s mother. Russell went into the home uninvited and confronted the woman and another man. During the confrontation, Russell produced a loaded gun and “cocked it.” Russell’s young son was in the room at the time. Russell then chased the man from the residence. Outside of the residence, Russell kicked the woman’s vehicle causing thousands of dollars in damages. Russell then fled the area and was eventually arrested by police. Russell’s criminal history includes residential armed burglary, obstruction of justice, harassment, and domestic assault.
Russell was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gerber was sentenced to 46 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery. This case was brought as part of Project Safe Neighborhoods (PSN) through a cooperative effort of the Cedar Rapids Police Department and the FBI Safe Streets Task Force. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00010.
Follow us on Twitter @USAO_NDIA.
Idabel Man Sentenced to 38 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joel Seth Hood, age 37, of Idabel, Oklahoma. was sentenced to 38 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
The Indictment alleged that on November 30, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “This office received the investigation that led to the defendant’s prosecution as a result of collaboration and strong working relationships between the ATF, the McCurtain County Sheriff’s Office, and the District 17 District Attorney’s Office. Members of this office work hard to maintain open lines of communication with federal, state, local, and tribal law enforcement agencies. When we all work together, the communities we serve are the beneficiaries.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.Houston engineering corporation enters into corporate resolution and agrees to pay $1.6 million fineRead the Press Release
HOUSTON – A major local-based civil engineering company and its parent company have agreed to enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information charging the company with violating the Federal Election Campaign Act. As part of the agreement, Dannenbaum Engineering Corporation (DEC), based in Houston, and its parent company, Engineering Holding Corporation (EHC), agreed to pay a $1.6 million criminal fine for its involvement in a multi-year conduit contribution scheme.
“DEC engaged in a criminal scheme that undermined the fairness and transparency of our nation’s campaign finance laws in a misguided effort to increase its own power and prestige,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution demonstrates the Department’s resolve to aggressively pursue those who seek to corrupt our democratic process.”
“Protecting the integrity of the finest democratic system in the world is a cornerstone of our collaborative prosecutive efforts,” said First Assistant U.S. Attorney Tim S. Braley for the Southern District of Texas. “Any corporation that attempts to circumvent the protective cloak provided by the nation’s election laws will be held accountable for its actions.”
“The Federal Election Campaign Act is designed to limit financial influence in the election of candidates for federal office. In other words, it's designed to make sure that our democratic process, and representation in our democratic process, is fair and transparent,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “In this case, through DEC Jim Dannenbaum thought that by exceeding its contribution limits it could unfairly and illegally outweigh the lawful ones, and now that company is being held accountable. Our system of representative government works only when honest contributions are not diluted by fraud. Through our Public Corruption Unit, the FBI will continue to do its part in making sure there are fair and free elections.”
According to the companies’ admissions made in connection with the DPA, from 2015 through 2017, DEC and EHC made $323,300 in illegal conduit contributions through various employees and their family members to federal candidates and their committees. DEC corporate funds were used to advance or reimburse employee monies for these contributions. DEC did not reveal to any of the federal candidates that the corporation was the true source of the contributions. The object of the scheme was for DEC, its CEO James Dannenbaum, and a former employee to gain access to and potentially influence various candidates for federal office, including candidates for the presidency as well as the Senate and House of Representatives.
The department reached this resolution based on a number of factors, including DEC’s cooperation with the investigation, the internal investigation conducted and the significant remedial measures taken. For example, DEC altered its board structure to ensure the former CEO does not control the board and stopped all politically-related payments to its employees (including, but not limited to, payments treated as “marketing advances”) resulting in a cessation of these expenditures. Further, DEC hired and/or designated a full-time chief governance and compliance officer. The department also took into account the companies’ inability to pay a fine.
Former CEO Dannenbaum has been charged in a separate criminal information. An information is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and John Pearson and Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section are prosecuting the case. IRS-Criminal Investigation also provided substantial assistance in this matter.
Houston Engineering Corporation Enters into Corporate Resolution and Agrees to Pay $1.6 Million FineRead the Press Release
A major Houston, Texas-based civil engineering company and its parent company have agreed to enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information charging the company with violating the Federal Election Campaign Act. As part of the agreement, Dannenbaum Engineering Corporation (DEC), headquartered in Houston, and its parent company, Engineering Holding Corporation (EHC), agreed to pay a $1.6 million criminal fine for its involvement in a multi-year conduit contribution scheme.
“DEC engaged in a criminal scheme that undermined the fairness and transparency of our nation’s campaign finance laws in a misguided effort to increase its own power and prestige,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution demonstrates the department’s resolve to aggressively pursue those who seek to corrupt our democratic process.”
“Protecting the integrity of the finest democratic system in the world is a cornerstone of our collaborative prosecutive efforts,” said First Assistant U.S. Attorney Tim S. Braley for the Southern District of Texas. “Any corporation that attempts to circumvent the protective cloak provided by the nation’s election laws will be held accountable for its actions.”
“The Federal Election Campaign Act is designed to limit financial influence in the election of candidates for federal office. In other words, it's designed to make sure that our democratic process, and representation in our democratic process, is fair and transparent,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “In this case, through DEC, Jim Dannenbaum thought that by exceeding its contribution limits it could unfairly and illegally outweigh the lawful ones, and now that company is being held accountable. Our system of representative government works only when honest contributions are not diluted by fraud. Through our Public Corruption Unit, the FBI will continue to do its part in making sure there are fair and free elections.”
According to the companies’ admissions made in connection with the DPA, from 2015 through 2017, DEC and EHC made $323,300 in illegal conduit contributions through various employees and their family members to federal candidates and their committees. DEC corporate funds were used to advance or reimburse employee monies for these contributions. DEC did not reveal to any of the federal candidates that the corporation was the true source of the contributions. The object of the scheme was for DEC, its CEO James Dannenbaum, and a former employee to gain access to and potentially influence various candidates for federal office, including candidates for the presidency as well as the Senate and House of Representatives.
The department reached this resolution based on a number of factors, including DEC’s cooperation with the investigation, the internal investigation conducted and the significant remedial measures taken. For example, DEC altered its board structure to ensure the former CEO does not control the board and stopped all politically-related payments to its employees (including, but not limited to, payments treated as “marketing advances”) resulting in a cessation of these expenditures. Further, DEC hired and/or designated a full-time chief governance and compliance officer. The department also took into account the companies’ inability to pay a fine.
Former CEO Dannenbaum has been charged in a separate criminal information. An information is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI conducted the investigation. Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Carolyn Ferko and John Pearson are prosecuting the case. IRS-Criminal Investigation also provided substantial assistance in this matter.
Holden Man Indicted for Cocaine and Firearms OffensesRead the Press Release
BOSTON – A federal grand jury has indicted a Holden man for cocaine and firearms offenses.
William Hoey, 39, was charged with three counts of possession with intent to distribute cocaine and distribution of cocaine; one count of possession with intent to distribute cocaine; one count of possession with intent to distribute more than 500 grams of cocaine; one count of using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of, a drug trafficking crime; and one count of possession of a firearm in furtherance of a drug trafficking crime.
The charge of possession with intent to distribute cocaine and distribution of cocaine provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of possession with intent to distribute more than 500 grams of cocaine provides for a sentence of between five and 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of using and carrying a firearm during and in relation to, or possessing a firearm in furtherance of a drug trafficking crime provides for a mandatory five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Heppner Physician Sentenced to Federal Prison for Tax EvasionRead the Press Release
PORTLAND, Ore.—Kenneth Wenberg, 73, a medical doctor from Heppner, Oregon, was sentenced today to 12 months and one day in federal prison and three years’ supervised release for failing to report income resulting in a tax loss of approximately $128,000.
“Tax evasion is a crime of greed and arrogance that hurts every citizen who lawfully pays their taxes,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The U.S. Attorney’s Office will continue working closely with our partners at IRS-CI to bring criminal tax evaders to justice.”
“For twenty years, Dr. Wenberg took steps to evade his tax obligation and today’s sentence demonstrates the consequences of those actions,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “Tax evasion is IRS-Criminal Investigation’s number one priority and we will continue to prosecute those who fail to pay their fair share of taxes.”
According to court documents, Dr. Wenberg created nominee entities to hide assets and income he personally earned while serving as a physician at the Morrow County Health District (MCHD) and Urgent Health Care Center (UHCC) in Heppner. Dr. Wenberg instructed MDHD and UHCC to make payments for services he performed directly to sham entities to avoid income tax liabilities.
Dr. Wenberg opened numerous bank accounts and purchased real property in the names of his nominee entities. He also paid for his and his family’s personal living expenses out of the nominee accounts. Dr. Wenberg failed to report his income to the IRS, despite knowing he owed taxes.
During sentencing, U.S. District Court Judge Marco A. Hernandez ordered Wenberg to pay $128,964 in restitution to the IRS.
On February 12, 2019, Wenberg pleaded guilty to one count of tax evasion.
This case was investigated by IRS-Criminal Investigation (IRS-CI) and is being prosecuted by Clemon D. Ashley and Seth D. Uram, Assistant U.S. Attorneys for the District of Oregon.
Harrison County woman sentenced for methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA –Ashley Wagner, of Clarksburg, West Virginia, was sentenced today to for her involvement in methamphetamine distribution operation, U.S. Attorney Bill Powell announced.
Wagner, age 28, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in April 2019. Wagner admitted to working with others to distribute methamphetamine from October 2017 to September 2018 in Harrison County and elsewhere.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Greensboro Man Convicted of Firearm Offenses and Trafficking Controlled SubstancesRead the Press Release
GREENSBORO, N.C. - On Wednesday November 20, 2019, a jury in federal court found a Greensboro resident guilty on three felony charges, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
Following a three day trial in Greensboro, the jury found CLYDE OTIS ALSTON, JR., age 25, guilty of possession with intent to distribute a mixture containing heroin, fentanyl, and 4-Anilino-N-phenethylpiperidine (4-ANPP), possession of a firearm in furtherance of a drug trafficking crime, and knowingly possessing a firearm after previously being convicted of a felony offense.
“The national epidemic of opioid abuse continues to take hundreds of lives each day. Fentanyl is especially deadly: as little as two milligrams of fentanyl, an amount equal to two grains of sand, can kill a person, yet drug trafficking organizations continue to mix fentanyl with other drugs to increase potency and profit,” said United States Attorney Martin. “We will not, we cannot, rest in our efforts to stop these poisons from continuing to ruin people’s lives.”
Evidence presented at trial showed that on January 11, 2019, at approximately 9:30 a.m., officers from the Greensboro Police Department attempted to stop a gray Ford truck being operated by ALSTON on Flag Street near Sussmans Street in Greensboro. When a GPD officer tried to block the road in an attempt to stop ALSTON, he swerved, striking the officer’s vehicle and also sideswiping another vehicle parked on the south side of Flag Street. ALSTON continued on Flag Street toward Sussmans Street, where he drove through a park and out onto O’Connor Street. ALSTON then turned into a parking lot on O’Connor Street and exited the vehicle on foot while the truck was still in motion. The truck then struck two trees while ALSTON began running away from officers on foot. A GPD officer was able to stop the truck and put it in park, and when doing so observed a Glock model 22, .40 caliber handgun and a 50 round drum magazine lying in plain view on the passenger side floorboard, and, in the center console area of the truck, a bag containing approximately 21.91 grams of a mixture containing heroin, Fentanyl, and 4-ANPP.
A review by officers of ALSTON’s publically-available Instagram account resulted in discovery of a video of a person who appears to be ALSTON, dated December 31, 2018, holding a semi-automatic handgun with a silver slide over a black frame. The gun in the video also had a high capacity drum style magazine attached with visible ammunition and what appeared to be a laser assisted sighting system on the trigger guard, much like the firearm and magazine he was arrested with eleven days later.
Sentencing is scheduled for February 27, 2020, at 9:30 a.m., in Greensboro, before United States District Judge William L. Osteen, Jr. With regard to the drug offense, ALSTON faces a maximum sentence of 20 years in prison, a fine of up to $250,000, or both, and a term of not less than three years of supervised release. For possessing a firearm in furtherance of a drug crime, ALSTON faces a minimum sentence of five years, and up to life, consecutive to any other sentence, a fine of up to $250,000, or both, and not more than five years of supervised release. And finally, for being a felon in knowing possession of a firearm, ALSTON faces a maximum sentence of ten years in prison, a fine of up to $250,000, or both, and not more than three years of supervised release.
The case was investigated by the Greensboro Police Department, NC Department of Probation and Parole, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Veronica L. Edmisten and Clifton T. Barrett.
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Four Felons Appeared in Court This Week in Connection with Federal Gun Crime OffensesRead the Press Release
SHREVEPORT, LAKE CHARLES, MONROE, La. – United States Attorney David C. Joseph announced the resolution of several cases this week, all of which are separately noted, that were brought pursuant to the Project Safe Neighborhoods (PSN) Program, which is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lake Charles Man Sentenced for Illegally Possessing a Stolen Firearm
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Jeremy Rankins, 28, of Lake Charles, was sentenced November 19, 2019, by U.S. District Judge James D. Cain Jr., to 80 months in federal prison followed by three years of supervised release for possession of a stolen firearm. Rankins pleaded guilty on August 15, 2019.
According to court documents, on May 19, 2018, the Calcasieu Parish Sheriff’s Office responded to a complaint of an attempted armed robbery with a firearm and an attempted carjacking at a Lake Charles casino. Upon arrival, officers came in contact with Rankins, who had already been detained by the casino’s security officers. Deputies also spoke with the 61-year-old victim, who stated that she was in her car at around 4 a.m. when Rankins sat in the passenger seat brandishing a firearm and demanding money. She denied having any money, at which point he demanded the keys to her car. The hotel security later detained Rankins, and while he was being questioned, a witness discovered the loaded 9 mm Ruger handgun he used on the ground under a truck tire. The investigation revealed that the handgun was stolen on May 17, 2018, from a vehicle parked in the casino’s parking garage.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Calcasieu Parish Sheriff’s Office conducted the investigation, with assistance from the casino security. Assistant U.S. Attorney Daniel J. Vermaelen prosecuted the case.
Lake Charles Man Sent to Prison for Lying on Federal Firearms Form
Defendant lied about his criminal background when he tried to purchase a firearm at a Pawn Shop
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Darrien Lamont Rogers, 24, of Lake Charles, was sentenced on November 19, 2019, by U.S. District Judge James D. Cain Jr., to six months in federal prison followed by three years of supervised release for lying on a firearm application at a Lake Charles pawn shop. Rogers pleaded guilty on August 15, 2019.
On March 4, 2019, Rogers attempted to purchase a Taurus, Model PT 111, 9 mm semi-automatic pistol at a pawn shop in Lake Charles. He lied on an ATF Form 4473 by indicating that he had no felony convictions. Rogers pleaded guilty to one count of simple burglary on September 27, 2018, in the 14th Judicial District Court in Calcasieu Parish. Because of this felony conviction, Rogers is prohibited from purchasing or possessing a firearm or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Daniel J. Vermaelen is prosecuted the case.
Shreveport Convicted Felon Pleads Guilty to Illegally Possessing a Firearm
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Christopher John Williams, 30, of Shreveport, pleaded guilty before U.S. District Judge Donald E. Walter on November 19, 2019, to being a convicted felon in possession of a firearm.
On January 31, 2019, Williams was arrested on a state offense and held in custody at Caddo Correctional Center. While he was in custody, he called two friends and asked them to get rid of a firearm that was located at his residence. Following the calls, agents made contact with an individual Williams shared his residence with and secured a Springfield XDS .45 caliber pistol. At the guilty plea, Williams admitted that the pistol belonged to him and to being a convicted felon. As a convicted felon, he knew it was illegal for him to possess a firearm or ammunition.
Williams has prior felony convictions in Caddo Parish for illegal use of a weapon (2007), second degree battery (2009), accessory after the fact – robbery (2014), domestic abuse battery (2015), and public intimidation (2017).
Christopher Williams will be sentenced by Judge Walter on March 24, 2020, and faces a maximum sentence of 10 years in prison, three years of supervised release and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI Northwest Louisiana Violent Crimes Task Force, and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Multiple-Time Convicted Felon Pleads Guilty to Illegally Possessing Seven Firearms That He Stole From Simmons’ Sporting Goods in Bastrop
MONROE, La. – United States Attorney David C. Joseph announced that Brandon Keith Harris, 32, of Bastrop, Louisiana, pleaded guilty before U.S. District Judge Terry A. Doughty on November 20, 2019, to being a convicted felon in possession of a firearm.
On the evening of July 14, 2018, Harris broke into Simmons’ Sporting Goods in Bastrop, Louisiana and stole seven guns. Federal law prohibits Harris from ever possessing a firearm because of his status as a convicted felon. He had previously been convicted of multiple felonies in Morehouse Parish including: the manufacture and possession of a bomb (2005), possession of methamphetamine (2009), simple burglary, and possession of a firearm by a convicted felon (2014). This case is a joint federal and local investigation into the July 14, 2018 break-in and firearm theft.
Harris returns to court on March 4, 2020, where he will be sentenced by Judge Doughty, and faces a maximum sentence of 10 years in prison, five years of supervised release, and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Bastrop Police Department, and Morehouse Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mike Shannon is prosecuting the case.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
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Former corrections officer sentenced to prison for smuggling drugs into state prisonRead the Press Release
COLUMBUS, Ohio – A longtime corrections officer at the Belmont Correctional Institution was sentenced in U.S. District Court today to 30 months in prison for smuggling contraband into the prison.
Alfred M. Horvath, 59, of Shadyside, conspired with others to sneak illegal drugs and tobacco into the prison.
According to court documents, from 2015 through 2018, Horvath received cash from multiple inmates and their representatives in exchange for smuggling tobacco, oxycodone pills and Suboxone strips into the prison.
On several occasions, and for several years, Horvath was paid approximately $500 to $1,000 for each smuggling trip.
He would meet inmates’ representatives outside the prison in locations in the Southern District of Ohio and elsewhere. The individuals would provide him with the drugs and his cash profit. Horvath admitted to smuggling or agreeing to smuggle at least 300 30-milligram oxycodone pills and several thousand Suboxone strips.
Horvath pleaded guilty in January 2019 to conspiring to distribute and to possess with the intent to distribute controlled substances.
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; Annette Chambers-Smith, Director, Ohio Department of Rehabilitation & Correction; and officials with the Jefferson County Drug Task Force announced the sentence imposed by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Former Sheriff’s Captain Indicted for Gun Trafficking, Aiding Marijuana Distribution & Lying to Federal AgentsRead the Press Release
Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 or Andrew Haden (619) 546-6961
NEWS RELEASE SUMMARY – November 22, 2019
SAN DIEGO – Former San Diego County Sheriff’s Captain Marco Garmo was arrested this morning based on a federal grand jury indictment that charges him with operating an illegal firearms trafficking business – sometimes from his office at the Rancho San Diego Station with the help of others, including a fellow Sheriff’s deputy.
The indictment also charges Sheriff’s Department Lieutenant Fred Magana, prominent San Diego jeweler Leo Hamel, firearms dealer Giovanni Tilotta and El Cajon resident Waiel Anton with aiding and abetting Garmo’s illegal firearms business.
In federal court this morning, Magana and Hamel entered guilty pleas before U.S. Magistrate Judge Bernard G. Skomal, admitting that they aided Garmo’s business by engineering and engaging in straw purchases of firearms, creating false records to conceal those purchases, and offering to promote Garmo’s weapons. Magana was granted a $25,000 bond; Hamel a $250,000 bond secured by a lien on a piece of property. They are scheduled to be sentenced February 21, 2020 at 8:30 a.m.
Anton was arrested early this morning and like Garmo is scheduled to be arraigned this afternoon at 2; Tilotta is currently at large.
According to the indictment, Garmo was a Sheriff’s deputy for almost 27 years until September 20, 2019, serving as the captain in charge of the Rancho San Diego Station until the February 13, 2019 search warrants executed as part of this investigation. The indictment alleges that Garmo was engaged in the unlawful acquisition, transfer, and sale of firearms during his entire tenure as the Captain of the Rancho San Diego Station.
Garmo is also accused of tipping off his cousin, who was a partner in an illegal marijuana dispensary, based on information Garmo had received of an impending warrant search of the cousin’s dispensary by Sheriff’s Deputies.
The indictment describes Garmo’s business of firearms dealing as undertaken for both financial profit and to cultivate future donors for his anticipated campaign for Sheriff of San Diego County. Most of Garmo’s firearms transactions involved the purchase and resale of “off roster” handguns, which designates guns that may be purchased by members of law enforcement but not members of the general public. While law enforcement officers are not prohibited from reselling “off roster” handguns in certain circumstances, Garmo received an explicit warning from the ATF that excessive resales for profit could violate federal law. Garmo acquired roughly 146 firearms between March 2013 and February 2019, per California’s firearms record database, and he sold or otherwise transferred 104 of them to others.
“This office will not tolerate public servants who abuse their positions of trust for personal gain,” said First Assistant U.S. Attorney Peter J. Mazza. “Law enforcement members who step outside of the law are subject to the same standards as everyone else in our community. No one deserves the fair application of the law more than all of the law-abiding men and women who wear the badge honorably to protect our communities.”
As part of his guilty plea, Leo Hamel, the owner of Leo Hamel Fine Jewelers, admitted to purchasing a variety of off roster handguns from Garmo, and engineered a series of “straw purchases” in which Garmo would falsely certify that he was acquiring an “off roster” gun for himself when in truth he was purchasing it for Hamel. Hamel further admitted that he acquired several firearms from Garmo without proper documentation through bogus, long-term firearm “loans” in exchange for money—which were sales in all but name. Hamel agreed in his plea to conducting straw purchases with Garmo and Lt. Fred Magana, and to planning with Garmo and Tilotta to construct a false paper trail to make it appear that the straw purchases were legitimate. As part of his guilty plea, Hamel has also agreed to forfeit over 200 firearms and 100,000 rounds of ammunition seized from him on February 13, 2019.
Tilotta, a Federal Firearms Licensee and the owner of Honey Badger Firearms, repeatedly facilitated Garmo’s straw purchase of firearms by accepting and submitting falsified firearms records, according to the indictment. The indictment further alleges that Tilotta sold and transferred firearms inside Garmo’s captain’s office at the Rancho San Diego Station, in violation of state and federal law.
Lt. Magana admitted in his plea agreement that he straw purchased a pair of off roster firearms for Leo Hamel at Garmo’s direction. Magana also admitted that he offered to advertise Garmo’s firearms to potential customers, but to keep Garmo’s name out of it until he found a buyer willing to close the deal.
Finally, according to the indictment, Anton aided and abetted Garmo’s unlicensed firearms dealing by helping Garmo’s firearms buyers apply for permits to carry a concealed weapon (“CCW”) as part of Anton’s “consulting” business. In exchange, the indictment alleges that Anton received cash payments from his clients and then paid a kickback to Garmo for referrals. The benefit of Anton’s “consulting” arrangement was to secure early appointments for his clients to avoid the substantial backlog of CCW applicants—a benefit that Anton provided by leveraging his relationship with a member of the CCW processing staff to whom he had made an unlawful cash payment.
Anton is also charged with obstruction of justice for repeatedly urging one of his “consulting” clients—in reality, an undercover agent—to lie to federal investigators following the search of Anton’s residence in February. Per the indictment, Anton exhorted the undercover agent not to tell investigators about the $1,000 Anton had charged the undercover agent to fast-track his CCW appointment, and instead to lie and say that Anton was helping him with his application because they were friends.
Garmo is also charged with aiding and abetting the distribution of marijuana, and with using a telephone to further a drug crime. As the Captain of Rancho San Diego station, Garmo was responsible for policing unlicensed marijuana dispensaries operating in and around Spring Valley. One such dispensary was known as “Campo Greens.” The indictment alleges that Garmo provided an advance tip to the owners of Campo Greens—including Garmo’s cousin—when he was notified that it was scheduled to be searched within 24 hours. After receiving this tip, staff at Campo Greens emptied its shelves and removed its inventory and cash to avoid a law enforcement seizure.
According to the indictment, when Garmo was notified the following morning that the planned search had been cancelled, he again notified his family member. Campo Greens reopened later that day. Weeks later, when Campo Greens was posted with a cease-and-desist letter by San Diego County Code Compliance, Garmo again reached out to an acquaintance at the County. Asking about the scheduled enforcement action against Campo Greens, Garmo inquired “Can we push it back?” His acquaintance replied, “Yes, you can.”
Garmo lied to federal agents when interviewed about the tip-off, per the indictment, falsely claiming that he had never told a dispensary about an impending search warrant because he would never have put his deputies in harm’s way.
Mazza praised the lead prosecutors on the case, Assistant U.S. Attorneys Nicholas Pilchak and Andrew Haden, as well as the investigators from the ATF and FBI. Mazza added that the U.S. Attorney’s Office wishes to extend its sincerest gratitude to the San Diego County Sheriff’s Department for initiating this investigation and for their assistance and support during its course.
“It is ATF’s duty and obligation to conduct criminal investigations whenever presented with credible evidence of violations of federal firearms laws,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Los Angeles Field Division Special Agent in Charge Carlos A. Canino. “ATF’s mission is to focus our efforts on firearms traffickers and trigger pullers. We will continue to pursue individuals engaged in this type of firearms trafficking activity while working with our law enforcement partners and the U.S. Attorney’s Office to increase public safety.”
“Law enforcement officers, at any level, who abuse their positions and the sacred trust placed in them by the communities they serve by aiding the criminal element will ultimately be brought to justice,” said FBI Assistant Special Agent-In-Charge Todd Hemmen. “The FBI will continue to relentlessly work to detect, investigate, and prosecute those officers who place personal enrichment above their allegiance to the rule of law.”
If you – or anyone you know – has information about the whereabouts of firearms listed in the attached bulletin that are registered to Garmo but have not been recovered by law enforcement, please call ATF at 858-966-1010.
DEFENDANT Criminal Case No. 19-CR-4768-GPC
Morad Marco Garmo Age: 52 La Mesa. CA
Leo Joseph Hamel Age: 62 Jamul, CA
Giovanni Vincenzo Tilotta, Age: 38 El Cajon, CA
Fred Magana Age: 42 Chula Vista, CA
Waiel Yousif Anton Age: 35 El Cajon, CA
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 922(a)(1)(A) – Engaging in the Business of Dealing in Firearms Without a License
Maximum Penalty: Five years in prison
Title 18, U.S.C., Sec. 922(a)(6) – False Statement in the Acquisition of a Firearm
Maximum Penalty: Ten years in prison
Title 18, U.S.C., Sec. 924(a)(1)(A) – False Statement in the Acquisition of a Firearm
Maximum Penalty: Five years in prison
Title 18, U.S.C., Sec. 922(b)(2) – Conducting Firearms Transaction in Violation of State Law
Maximum Penalty: Five years in prison
Title 26, U.S.C., Sec. 5861(d) – Possession of Unregistered Firearm
Maximum Penalty: Ten years in prison
Title 18, U.S.C., Sec. 1001(a)(2) – False Statement
Maximum Penalty: Five years in prison
Title 18, U.S.C., Sec. 1512(b)(3) – Attempted Obstruction of Justice
Maximum Penalty: Twenty years in prison
Title 21, U.S.C., Sec. 841 – Possession of Marijuana with Intent to Distribute
Maximum Penalty: Twenty years in prison
Title 21, U.S.C., Sec. 843(b) – Use of a Communications Facility to Further a Drug Crime
Maximum Penalty: Four years in prison
INVESTIGATING AGENCIES
Bureau of Alcohol Tobacco Firearms & Explosives (ATF)
Federal Bureau of Investigation (FBI)
*The charges and allegations contained in an indictment are merely accusations. The defendants are considered innocent unless and until proven guilty.
Former President of Transportation Company Found Guilty of Violating the Foreign Corrupt Practices Act and Other CrimesRead the Press Release
The former president of Transportation Logistics Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, was found guilty today for his role in a scheme to bribe an official at a subsidiary of Russia’s State Atomic Energy Corporation and on related fraud and conspiracy charges.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) made the announcement.
After a three-week trial, Mark Lambert, 56, of Mount Airy, Maryland, was found guilty of four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud. Sentencing has been scheduled for March 9, 2020, before U.S. District Judge Theodore D. Chuang of the District of Maryland, who presided over the trial.
According to the evidence presented at trial, Lambert participated in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, in order to secure contracts with TENEX. The trial evidence demonstrated that, over the course of years, Lambert conspired with others at TLI to make the corrupt and fraudulent bribery and kickback payments to Mikerin through offshore bank accounts associated with shell companies, at Mikerin’s direction. In order to conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided, and then Lambert and others caused TLI to wire the corrupt payments for those purported services to shell companies in Latvia, Cyprus and Switzerland.
The trial evidence further showed that Lambert and other members of the conspiracy used code words like “lucky figures,” “LF,” “lucky numbers” and “cake” to describe the payments in emails to the Russian official at an alias, personal email account under the name “Marvin Jodel.” The evidence at trial also demonstrated that Lambert and his co-conspirators caused TLI to overbill TENEX by building the cost of the bribe payments into their invoices, and TENEX thus overpaid for TLI’s services in order to fund the bribes paid to Mikerin.
This case is being investigated by the FBI’s Washington Field Office and DOE-OIG. Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland are prosecuting the case.
The Department appreciates the significant cooperation provided by its law enforcement colleagues in Switzerland’s Office of the Attorney General as well as authorities in Latvia and Cyprus.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Former President of Maryland-Based Transportation Company Found Guilty of Federal Charges, Including Violating the Foreign Corrupt Practices ActRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Mark Lambert, 56, of Mount Airy, Maryland, of four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud, for his role in a scheme to bribe an official at a subsidiary of Russia’s State Atomic Energy. Lambert is the former president of Transport Logistics International, Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, including to the Russian Federation.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG); and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington, D.C. Field Office.
According to the evidence presented at his three-week trial, Lambert engaged in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, in order to secure contracts with TENEX.
The trial evidence demonstrated that, over the course of years, Lambert conspired with others at TLI to make the corrupt and fraudulent bribery and kickback payments to Mikerin through offshore bank accounts associated with shell companies, at Mikerin’s direction. In order to conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided, and then Lambert and others caused TLI to wire the corrupt payments for those purported services to shell companies in Latvia, Cyprus and Switzerland.
Lambert faces a maximum of five years in federal prison for the conspiracy to violate the FCPA and commit wire fraud. He also faces a maximum of 20 years in federal prison for each of two counts of wire fraud; a maximum of five years in federal prison for each of four counts of violating the FCPA. The jury acquitted Lambert of three counts of violating the FCPA and of money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Lambert on March 9, 2020 at 2 p.m.
Vadim Mikerin, 60, a Russian official formerly residing in Chevy Chase, Maryland, previously pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA and was sentenced to four years in federal prison.
United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski commended the DOE-OIG and the FBI for their work in the investigation, and thanked the Criminal Division’s Office of International Affairs and law enforcement in Switzerland, Latvia and Cyprus for providing valuable assistance with the investigation and prosecution of the case. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney David I. Salem and Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, who are prosecuting the case.
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Former Pollock Inmate Sentenced for Attack on Prison Staff MemberRead the Press Release
ALEXANDRIA, La. - A former Pollock inmate was sentenced today to seven years in federal prison for attacking a Pollock staff member, said U.S. Attorney David C. Joseph.
Brandon L. Jones, 38, who is in federal custody, pleaded guilty on August 20, 2019, to one count of assaulting a federal officer. In his plea, he admitted he attacked a staff member in the kitchen area at U.S. Penitentiary Pollock, slammed her to the table and threw her to the floor. Correctional officers responded to the scene and took Jones into custody. The staff member suffered multiple injuries, and underwent surgery to repair a ruptured ligament in her thumb. Jones is currently serving a 188-month federal prison sentence for possession with intent to distribute cocaine.
The FBI and U.S. Bureau of Prisons investigated the case. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
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Former Personal Care Aide Pleads Guilty to Health Care FraudRead the Press Release
WASHINGTON – Hope Falowo, 53, of Bowie, Maryland, pled guilty today to a federal charge of health care fraud stemming from a scheme in which she caused the District of Columbia’s Medicaid program to be defrauded out of approximately $400,000.
The announcement was made by U.S. Attorney Jessie K. Liu; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; and Daniel W. Lucas, District of Columbia Inspector General.
Falowo pled guilty in the U.S. District Court for the District of Columbia, to one count of health care fraud. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Falowo faces a likely range of 18 to 24 months in prison and a fine of up to $250,000. The plea agreement calls for Falowo to pay $316,887 in restitution and $316,887 in a forfeiture money judgment. The Honorable Colleen Kollar-Kotelly scheduled sentencing for March 20, 2020.
Falowo worked as a personal care aide for twelve home health agencies at various times between January 2013 and March 2017. The home health agencies employed Falowo to assist D.C. Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Falowo was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Between January 2013 and March 2017, Falowo caused the D.C. Medicaid Program to issue payments totaling $399,000 for services that she did not render. As part of her fraud scheme, she paid kickbacks to beneficiaries and submitted false timesheets to different home health agencies claiming that she provided 24 hours or more of personal care aide services. She also submitted false timesheets claiming to have provided personal care aide services while she was out of the country. Falowo fraudulently earned more than $300,000 in wages as a result of the healthcare fraud scheme.
In announcing the plea, U.S. Attorney Liu, Assistant Attorney General Benczkowski, Special Agent in Charge Dunham, Special Agent in Charge Dixon of U.S. HHS-OIG, and District of Columbia Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services Office of Inspector General, and the District of Columbia Office of Inspector General. They also expressed appreciation for the work of Paralegal Specialist Lauren Fernandez. Finally, they commended the work of Trial Attorney Amy Markopoulos, who investigated and prosecuted the case.
Former Paraguayan Congresswoman and Two Others Charged in International Money Laundering ConspiracyRead the Press Release
TRENTON, N.J. – A former member of Paraguay’s Congress, her husband and another senior member of a Paraguayan money exchange business are charged by complaint for their participation in an international money laundering conspiracy, U.S. Attorney Craig Carpenito announced today.
Cynthia Elizabeth Tarrago Diaz, 40; Raimundo Va, 44; and Rodrigo Alvarenga Paredes, 33, are charged in a criminal complaint with conspiracy to commit money laundering. Tarrago and Va were arrested by the FBI on Thursday after they arrived in Newark as part of their unlawful money laundering activities. They appeared today before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and were detained. Alvarenga remains at large in Paraguay.
“As alleged in the complaint, Tarrago, while a former member of Paraguay’s legislature, brazenly offered to launder the proceeds of international drug trafficking, and even went so far as to offer to traffic in cocaine herself,” U.S. Attorney Carpenito said. “When we stop this kind of money laundering activity, we help to stop the underlying drug trafficking activity that motivates and depends upon it. By eliminating the means by which international drug trafficking organizations launder their ill-gotten gains, we help to keep New Jersey safer by limiting the flow of drugs into our communities from outside the United States.”
“Money laundering is illegal no matter your position in society,” said Special Agent in Charge Gregory W. Ehrie. “The FBI follows the evidence and makes arrests based on the actions of those individuals. We will find and bring to justice anyone who uses unlawful means to enrich themselves with no regard for the law.”
According to documents filed in this case and statements made in court:
Tarrago is a former member of Paraguay’s Congress, and recently announced her intention to run for mayor of the capital district of Asunción. Tarrago and Va, her husband, agreed to accept at least $2 million in United States currency from two individuals who represented themselves to be narcotics traffickers. Believing the money to be proceeds of unlawful narcotics trafficking, they laundered the funds through an international network of accounts to disguise the unlawful source of the proceeds.
Tarrago and Va traveled to New Jersey and Florida on multiple occasions and accepted approximately $800,000 in United States currency from the purported drug traffickers, caused those funds to be laundered through the conspiracy’s network of accounts, and ultimately transferred the money back to an account maintained by the purported drug traffickers. Members of the conspiracy generated fraudulent invoices that stated legitimate business reasons for the transfers of laundered funds to the purported drug traffickers’ account. On multiple occasions during the purported drug dealers’ meetings with Tarrago and Va, Tarrago offered to assist them with procuring large quantities of cocaine from Paraguay at an inexpensive price.
Unbeknownst to Tarrago and Va, the currency they accepted from the purported drug traffickers and caused to be laundered was not actually illicit drug proceeds. The funds were provided by two undercover FBI agents as part of an extensive undercover investigation of the money laundering network. During the investigation, the undercover agents met with Tarrago and Va in the United States on numerous occasions, and obtained video and audio recordings of their interactions with Tarrago and Va, which include details of the money laundering network. The evidence uncovered during the investigation revealed that Alvarenga, a high-ranking member of a large money-exchange company in Paraguay, coordinated the laundering of the funds that the undercover agents provided to Tarrago and Va.
The money laundering conspiracy count carries a statutory maximum potential penalty of 20 years in prison and a maximum fine of the greater of $500,000 or twice the value of the funds involved in the conspiracy.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charges. He also thanked the Department of Justice’s Office of International Affairs for their assistance in the case.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Former Marijuana Warehouse Employee Convicted of Planning $2 Million Armed Heist with Corrupt L.A. County Sheriff’s DeputyRead the Press Release
LOS ANGELES – A former employee of a marijuana distribution warehouse was found guilty by a jury today of federal criminal charges that he conspired with a corrupt Los Angeles County Sheriff’s Department deputy to rob his former employer of $2 million dollars’ worth of marijuana and cash through an armed robbery staged to look like a legitimate law enforcement operation.
Christopher Myung Kim, 29, of Walnut, was found guilty of conspiracy to distribute marijuana, possession with intent to distribute marijuana, conspiracy against rights, deprivation of rights under color of law, and brandishing a firearm in furtherance of a drug trafficking crime.
According to evidence presented at his four-day trial, at approximately 3 a.m. on October 29, 2018, LASD Deputy Marc Antrim, 42, of South El Monte, and six co-conspirators, robbed a marijuana distribution warehouse in downtown Los Angeles. Antrim, who was assigned to the LASD station in Temple City, was arrested by federal authorities for his role in the robbery and agreed to cooperate with the government. Antrim, who was dressed as an armed deputy, flashed his badge and a fake search warrant to gain access to the warehouse and detain the warehouse’s security guards in a cage in the back of an LASD Ford Explorer.
Days before the robbery, Kim had supplied Antrim with inside information about the robbery, including key details about the warehouse’s layout, operation and security. Kim also gave Antrim the warehouse’s blueprints, noting where security guards likely would be stationed and which rooms Antrim and their co-conspirators should “hit” to ensure that the most valuable items were stolen.
During the two-hour robbery, Antrim and the fake law enforcement team absconded with more than 1,200 pounds of marijuana, two large commercial safes containing more than $600,000 in cash and money orders, and other items of value from the warehouse.
Hours after the robbery, Antrim drove a rental truck to a storage facility in Walnut, where Kim had rented a storage unit the day of the robbery. Antrim and co-conspirator Kevin McBride, 44, of Glendora, delivered $1.5 million dollars’ worth of stolen marijuana and marijuana products to Kim to resell for profit. The next day, Kim and others unloaded the stolen marijuana from the storage unit into Kim’s white Lexus RX, a Subaru SUV, and a U-Haul moving truck.
Kim had worked at the warehouse for years, but a dispute with its owners left him “bitterly disgruntled,” according to court documents. Evidence admitted at trial, including Kim’s social media communications, showed that Kim left his job just weeks before the robbery and conspired with Antrim to orchestrate the raid both for profit and to get revenge against his own bosses.
Antrim, who was arrested on November 8, 2018 on a federal criminal complaint, pleaded guilty on March 4 to multiple felonies in connection with the armed robbery. His sentencing is scheduled for March 16. Five other defendants, including McBride, also have pleaded guilty for their involvement in the robbery and will be sentenced early next year.
United States District Judge Virginia A. Phillips scheduled a February 10 sentencing hearing, at which time Kim will face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 12 years in prison.
The jury acquitted Kim of possession with intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime.
This case was investigated by the Drug Enforcement Administration, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. LASD’s Internal Criminal Investigations Bureau provided substantial assistance to the federal investigation.
This matter is being prosecuted by Assistant United States Attorneys Lindsey Greer Dotson of the Public Corruption and Civil Rights Section and Joseph D. Axelrad of the Violent and Organized Crime Section.