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15 November 2019
Law Enforcement Leaders Announce Project Guardian-DMVRead the Press Release
Baltimore, Maryland – A new illegal firearms initiative announced today, Project Guardian-DMV, is designed to reduce violent crime and further enforce federal firearms laws across the District of Columbia, Maryland, and Virginia (DMV). The new initiative builds on the Justice Department’s national effort, Project Guardian, announced by Attorney General William P. Barr on Wednesday.
The initiative was announced by United States Attorney for the District of Maryland Robert K. Hur; United States Attorney for the Eastern District of Virginia G. Zachary Terwilliger; United States Attorney for the District of Columbia Jessie K. Liu; United States Attorney for the Western District of Virginia Thomas Cullen; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Chief Peter Newsham of the Metropolitan Police Department; and Colonel Gary T. Settle, Superintendent of the Virginia State Police.
“Gun crime remains a pervasive problem in too many communities across America,” said Attorney General Barr. “The Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian. Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
Project Guardian-DMV will localize the effort to the DMV region, and expands upon the current partnership between the U.S. Attorney’s Offices in the District of Columbia and the Eastern District of Virginia, the ATF, and Metro Police Department, and now also includes the U.S. Attorney’s Offices in Maryland and the Western District of Virginia, and the Virginia State Police.
“We are committed to working with our federal, state, and local law enforcement partners to get guns off of our streets, in order to reduce violent crime in our neighborhoods,” said Robert K. Hur, U.S. Attorney for the District of Maryland. “If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Working together with our federal and local partners is key to reducing gun violence and violent crime in the region,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “Project Guardian will allow us to identify specific incidents and trends, thereby enabling us to move quickly in investigating and prosecuting violent crime in the most appropriate venue. The correlation between the availability and use of illegal guns and violent crime is undeniable, and we will continue to work closely with our partners in the law enforcement community in the promotion of public safety and the pursuit of justice. “
“The public is on notice that we are deadly serious about illegal firearms offenses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Now with leadership of Attorney General Barr, all the tentacles of the Department of Justice, including the ATF and its Crime Gun Intelligence capabilities, and the amazing men and women in blue on the beat, we are doubling down on illegal firearms with Project Guardian.”
“Through this partnership, we hope to stanch the flow of illegal guns from the Commonwealth of Virginia to Washington, Baltimore, and other cities in the Northeast, where, too often, they are used to commit violent crimes,” said Thomas T. Cullen, U.S Attorney for the Western District of Virginia. “We will work closely with our U.S. attorney partners, the ATF, the MPD, and the Virginia State Police to identify individuals and groups in Western Virginia engaged in this deadly enterprise and put them in federal prison.”
“Criminals do not concern themselves with state line or jurisdictions, so we have ensured that our efforts to stop the illegal flow of guns into Maryland involves working closely with our neighboring ATF Field Division in Washington, as well as neighboring U.S. Attorney’s Offices in Virginia and D.C.,” said Rob Cekada, Special Agent in Charge of ATF Baltimore Field Division. “Our focus is on identifying, investigating, and incarcerating anyone who uses firearms to commit violent crime, and those who traffic or straw purchase firearms are supplying these offenders. Project Guardian serves to further strengthen our multi-state and District partnerships with law enforcements and prosecutors so we can brings these criminals to justice.”
“Straw purchasers and firearms traffickers do more than commit paperwork violations or illegally sell a firearm – they knowingly put firearms in the hands of people who should not have them, including violent offenders. These traffickers have no regard for the safety of D.C., Maryland, and Virginia communities,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “As part of Project Guardian, ATF will continue to work alongside our local, state, and federal law enforcement partners and U.S. Attorney’s Officers to ensure anyone committing these crimes is held accountable. We are putting all gun traffickers on notice that we will find you; you will be held accountable; and you will be punished under the law.”
Project Guardian’s national and DMV implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Our sincere thanks to the National Law Enforcement Officers Memorial Fund for their tremendous support of this announcement.
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
Law Enforcement Leaders Announce Project Guardian-DMVRead the Press Release
Roanoke, VIRGINIA – A new illegal firearms initiative announced today, Project Guardian-DMV, is designed to reduce violent crime and further enforce federal firearms laws across the District of Columbia, Maryland, and Virginia (DMV).
The new initiative builds on the Justice Department’s national effort, Project Guardian, announced by Attorney General William P. Barr on Wednesday.
“Gun crime remains a pervasive problem in too many communities across America,” said Attorney General Barr. “The Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian. Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
Project Guardian-DMV will localize the effort to the DMV region, and expands upon the current partnership between the U.S. Attorney’s Offices in the District of Columbia and the Eastern District of Virginia, the ATF, and Metro Police Department, and now also includes the U.S. Attorney’s Offices in Maryland and the Western District of Virginia, and the Virginia State Police.
“Through this partnership, we hope to stanch the flow of illegal guns from the Commonwealth of Virginia to Washington, Baltimore, and other cities in the Northeast, where, too often, they are used to commit violent crimes,” said Thomas T. Cullen, U.S Attorney for the Western District of Virginia. “We will work closely with our U.S. attorney partners, the ATF, the MPD, and the Virginia State Police to identify individuals and groups in Western Virginia engaged in this deadly enterprise and put them in federal prison.”
“The public is on notice that we are deadly serious about illegal firearms offenses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Now with leadership of Attorney General Barr, all the tentacles of the Department of Justice, including the ATF and its Crime Gun Intelligence capabilities, and the amazing men and women in blue on the beat, we are doubling down on illegal firearms with Project Guardian.”
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Working together with our federal and local partners is key to reducing gun violence and violent crime in the region,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “Project Guardian will allow us to identify specific incidents and trends, thereby enabling us to move quickly in investigating and prosecuting violent crime in the most appropriate venue. The correlation between the availability and use of illegal guns and violent crime is undeniable, and we will continue to work closely with our partners in the law enforcement community in the promotion of public safety and the pursuit of justice. “
“We are committed to working with our federal, state, and local law enforcement partners to get guns off of our streets, in order to reduce violent crime in our neighborhoods,” said Rob K. Hur, U.S. Attorney for the District of Maryland. “If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
“Straw purchasers and firearms traffickers do more than commit paperwork violations or illegally sell a firearm – they knowingly put firearms in the hands of people who should not have them, including violent offenders. These traffickers have no regard for the safety of D.C., Maryland, and Virginia communities,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “As part of Project Guardian, ATF will continue to work alongside our local, state, and federal law enforcement partners and U.S. Attorney’s Officers to ensure anyone committing these crimes is held accountable. We are putting all gun traffickers on notice that we will find you; you will be held accountable; and you will be punished under the law.”
“Criminals do not concern themselves with state line or jurisdictions, so we have ensured that our efforts to stop the illegal flow of guns into Maryland involves working closely with our neighboring ATF Field Division in Washington, as well as neighboring U.S. Attorney’s Offices in Virginia and D.C.,” said Rob Cekada, Special Agent in Charge of ATF Baltimore Field Division. “Our focus is on identifying, investigating, and incarcerating anyone who uses firearms to commit violent crime, and those who traffic or straw purchase firearms are supplying these offenders. Project Guardian serves to further strengthen our multi-state and District partnerships with law enforcements and prosecutors so we can brings these criminals to justice.”
Project Guardian’s national and DMV implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials. - Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health. - Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Laplace Man Sentenced on Firearms and Drug ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GARRETT STEPHENS, age 36, of LaPlace, was sentenced on November 13, 2019 for one count of conspiracy to distribute 5 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846, and one count of possessing a firearm during a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i). STEPHENS pled guilty on April 3, 2019 to the above-described offenses.
Judge Martin L.C. Feldman sentenced STEPHENS to a total of 211 months of imprisonment followed by 4 years of supervised release.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Nicholas D. Moses are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Laplace Man Sentenced on Methamphetamine ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that EDWIN WATSON, age 37, of LaPlace, was sentenced on November 14, 2019 for one count of conspiracy to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846, and one count of distribution of 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A). WATSON pled guilty on February 21, 2019 to the above-described offenses.
Judge Barry W. Ashe sentenced WATSON to a total of 120 months of imprisonment followed by 5 years of supervised release.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Nicholas D. Moses are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Knoxville resident charged with the distribution of fentanyl and heroin, resulting in overdose deaths of twoRead the Press Release
Knoxville, Tenn. – On October 16, 2019, a federal grand jury in Knoxville returned a two- count indictment against Kevin L. Catlett, 45, of Knoxville, Tennessee.
The indictment, on file with the U.S. District Court, alleges that Kevin L. Catlett distributed a quantity of a mixture and substance containing fentanyl, a Schedule II controlled substance, and heroin, a Schedule I controlled substance that resulted in the death of another on September 6, 2018. The indictment also charged Catlett with distributed a quantity of a mixture and substance containing fentanyl, a Schedule II controlled substance that resulted in the death of another on November 13, 2018.
If convicted of distribution of controlled substances, the defendant faces a maximum term of 20 years imprisonment for each count, and, if the deaths resulted from the use of the substance, the penalty would increase to a mandatory term of imprisonment of at least 20 years and up to life in prison, at least three years of supervised release, a fine of up to $1,000,000, any applicable forfeiture, and a $100 special assessment.
The investigation was conducted by the Monroe County Sheriff’s Office and the Roane County Sheriff’s Office. Leading up to the indictment, these organizations partnered with the Tennessee Bureau of Investigation, Knox County Sheriff’s Office, Appalachian HIDTA’s Drug Related Death Task Force, and the Knox County Regional Forensics Center. Assistant U.S. Attorney Brent N. Jones will represent the United States.
Today, the United States faces an unprecedented drug epidemic. The Centers for Disease Control (CDC) estimates that more than 70,000 Americans died of drug overdoses in 2017. Many of these deaths are attributed to the increased abuse of potent and dangerous synthetic opioids like fentanyl. These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Forces (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case has been set for trial on January 7, 2020.
###Justice Department Awards over $42 Million to Improve Public Safety and Serve Crime Victims in Alaska Native CommunitiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that in the past 90 days, the Department of Justice has awarded over $49 million in grants to Alaska Native communities and tribal organizations to improve public safety, serve victims of crime, combat violence against women, and support youth programs. That amount includes the $42 million recently announced by Attorney General William Barr at the 2019 Alaska Federation of Natives Convention in Fairbanks. These grants to Alaska were part of $273.4 million in grants that were awarded nationwide to American Indian and Alaska Native communities.
In Alaska, the problems with violent crime in rural areas are so severe that this summer the Attorney General declared a law enforcement emergency, providing additional resources to our state. At that time, the AG announced $6 million in Emergency Federal Law Enforcement Assistance (EFLEA) grants, and $5 million in grants from the Office of Community Oriented Policing Services (COPS) Tribal Resources Grant Program (TRGP). The $49 million in grants are in addition to the EFLEA and TRGP funding and show the continued commitment of the Department of Justice to the people of rural Alaska, and to the state as a whole.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native communities and other tribal designees through the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs (OJP), about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the COPS. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Alaska’s share of this nationwide grant funding was significant. Over $20 million of the CTAS grant funding was awarded to Alaska. In addition, over $22 million of the set-aside funding for victims of crime was also awarded to Alaska Native communities and tribal entities. Those grant funds alone totaled over $42 million dollars, as the Attorney General announced to the delegates of the Alaska Federation of Natives. Alaska Native communities and tribal organizations will also have access to an additional $7 million in “micro-grants” through the Denali Commission to help provide victim services, including capacity building and technical assistance.
- A listing of CTAS awards is available at: https://www.justice.gov/tribal/awards.
- A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
Note: The significance of the number in the left column next to each Alaska Native community refers to the Coordinated Tribal Assistance Solicitation (“CTAS”) purpose area that the tribe identified when applying for the grant, more info here: /media/1116486/dl?inline
This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
Jefferson County Counselor Guilty of Health Care Fraud in Overbilling SchemeRead the Press Release
BEAUMONT, Texas – A 59-year-old Beaumont mental health care counselor has pleaded guilty to health care fraud in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Douglas Duane Franklin pleaded guilty to an Information charging him with health care fraud today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, since 2007, Franklin has been the owner and sole provider at Guiding Light Counseling Service, PLLC, where he provides mental health counseling services, for which he bills Medicaid, Medicare and private insurance. Between 2007 and 2019, Franklin was reimbursed $591,600.69 for three different time-based counseling CPT codes, all in durations of 30 minutes or more. Medicaid rules require that the indicated time is spent face-to-face with the patient, and expressly does not include time for documentation or other administrative activities. Between 2007 and 2019, Franklin submitted over 10,000 claims for visits exceeding 30 minutes or more.
During the course of a months-long investigation, investigators with the US Attorney’s Office, the FBI, HHS-OIG, and the Texas Attorney General’s Medicaid Fraud Control Unit discovered that Franklin had patient sessions scheduled in 30-minute increments, some of which were double-booked. However, out of the 10,215 claims submitted by Franklin, only one was for a 30-minute visit. All of the remaining visits were billed under the 45-minute or 60-minute CPT codes, which provided for an increased reimbursement rate. Franklin was paid a total of $591,600.69 for all claims under the previously described CPT codes, when he was only entitled to receive $321,772.50. As a result of Franklin submitting fraudulent claims, he was overpaid $269,828.19 by Medicaid.
Under federal statutes, Franklin faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation, HHS-OIG, and the Texas Attorney General’s Medicaid Fraud Control Unit. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
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Jasper County Men, Houston Woman, Guilty of Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – Two Buna, Texas men and a Houston woman have pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
James Joseph Fabela, 41, Benjamin Jason Fabela, 35, both of Buna, Texas, and Darian Michelle Simmons, 25, of Houston, each pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Zack Hawthorn. Simmons also pleaded guilty to conspiracy to launder money.
According to information presented in court, from as early as July 2016, the defendants have been involved in a drug trafficking enterprise trafficking methamphetamine in the Buna, Texas area. James Fabela and Benjamin Fabela have supervised, managed and controlled the drug trafficking organization with personal knowledge of the distribution of methamphetamine. In total, the organization sold nearly 200 grams of methamphetamine in the Southeast Texas area. Their plea agreements include the forfeiture of a home in Buna, Texas. Simmons arranged for couriers to transport and conceal drugs and money to and from Houston for further distribution in Southeast Texas and Southwest Louisiana. Simmons is responsible for distributing at least 1.028 kilograms of methamphetamine.
The defendants were indicted by a federal grand jury on Sep. 5, 2018.
Under federal statutes, the defendants face from 10 years to life in prison for the drug conspiracy charge. Simmons also faces up to up to 20 years for the money laundering conspiracy violations. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Six other defendants have been convicted and sentenced for their roles in the conspiracies.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety, the Jefferson County Sheriff’s Office and the Jasper County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Christopher Rapp.
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Jamestown, ND, Man Sentenced to 12 1/2 Years for Possession and Distribution of Child PornographyRead the Press Release
“We are fully committed to detecting, investigating, and aggressively prosecuting the reprehensible defendants who create, distribute, or possess child pornography.”
--United States Attorney Drew H. Wrigley
Fargo – United States Attorney Drew H. Wrigley announced that on November 15, 2019, Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, sentenced Brent Robert Braun, age 44, Jamestown, ND, to serve 12 ½ years in prison, followed by a 15 years of supervised release for the charges of Possession and Distribution of Materials Containing Child Pornography. Braun was further ordered to pay restitution in the amount of $46,000 to the victims and $200 in special assessments to the Crime Victims’ Fund.
Between March 2018 and June 2018, Special Agents from the North Dakota Bureau of Investigation conducted an online investigation of peer-to-peer file sharing networks for individuals sharing child pornography, and discovered that hundreds of files containing known child pornography had been downloaded to Brent Braun’s internet IP address. A search of Braun’s residence revealed several electronic media devices which contained more than 21,000 files of child pornography and more than 1.2 million files of child erotica. The child pornographic material depicted the graphic sexual abuse of children as young as two years of age.
“Every one of these images is essentially a crime scene photo cataloguing the brutal sexualization and victimization of the children involved,” said United States Attorney Drew Wrigley, “as such, we are fully committed to detecting, investigating, and aggressively prosecuting the reprehensible defendants who create, distribute, or possess child pornography. We must fight to protect children from these horrifying crimes.”
This case was investigated by the North Dakota Bureau of Investigation.
Assistant United States Attorney Jennifer Klemetsrud-Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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INFORMATIONAL: Federal Court ArraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Cavan and pleading not guilty on November 15:
- John Jay Dudik, 66, of Billings on charges of conspiracy to possess with intent to distribute controlled substances, and possession with intent to distribute methamphetamine. If convicted of the most serious crime, Dudik faces a minimum mandatory 10 years to life in prison, a $10,000,000 fine and at least five years of supervised release. Dudik was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-105.
Appearing in Great Falls before U.S. Magistrate Johnston and pleading not guilty on November 14:
- Jordan Alexander Werk, 31, of Fort Belknap, on charges of assault of a dating partner resulting in substantial bodily injury and strangulation. If convicted of the most serious crime, Werk faces 10 years in prison, a $250,000 fine and three years of supervised release. Werk was detained pending further proceedings. The case was investigated by the Federal Bureau of Investigation and Fort Belknap Law Enforcement Services. Pacer case reference. 19-82.
Appearing in Missoula before U.S. Magistrate DeSoto and pleading not guilty on November 14:
- Rigonaldo Diaz Chixna, 25, of Mexico, on charges of illegal reentry. If convicted of the most serious crime, Chixna faces two years in prison, a $250,000 fine and three years of supervised release. Chixna was detained pending further proceedings. The case was investigated by Gallatin County Sheriff’s Office, Department of Homeland Security, and Immigration and Customs Enforcement. Pacer case reference. 19-26
Appearing in Great Falls before U.S. Magistrate Johnston and pleading not guilty on November 12:
- Shawn Andrew Andersen, 42, of Cut Bank, on charges of advertisement of child pornography, attempted distribution and receipt of child pornography, attempted coercion and enticement of a minor, and prohibited person in possession of a firearm. If convicted of the most serious crime, Andersen faces life in prison, a $250,000 fine and lifetime supervised release. Andersen was detained pending further proceedings. The case was investigated by the Federal Bureau of Investigation. Pacer case reference. 19-79.
- Katie Lynn Big Bow, 44, of Box Elder, on charges of assault of a dating partner resulting in substantial bodily injury and assault with a dangerous weapon. If convicted of the most serious crime, Big Bow faces 10 years in prison, a $250,000 fine and three years of supervised release. Big Bow was detained pending further proceedings. The case was investigated by the Federal Bureau of Investigation and Chippewa Cree Law Enforcement Services. Pacer case reference. 19-80.
Appearing in Billings before U.S. Magistrate Cavan and pleading not guilty on November 12:
- William James Watson, 40, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and possession of firearm during a drug trafficking crime. If convicted of the most serious crime, Watson faces a minimum mandatory 10 years to life in prison, a $10,000,000 fine and at least five years of supervised release. Watson was detained pending further proceedings. The case was investigated by the FBI West Task Force. Pacer case reference. 19-142.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Head of New York Medical Clinics Found Guilty in Nearly $100 Million Money Laundering and Health Care Kickback SchemeRead the Press Release
The manager in control of multiple medical clinics in Brooklyn and Queens, New York, was found guilty today for his role in a nearly $100 million health care kickback and money laundering scheme.
After a two-week trial, Aleksandr Pikus, 44, of Brooklyn, was found guilty of one count of conspiracy to commit money laundering, two counts of money laundering, one count of conspiracy to receive and pay health care kickbacks and one count of conspiracy to defraud the United States by obstructing the IRS. Sentencing has been set for April 8, 2020.
“Aleksandr Pikus was the architect of a massive healthcare kickback and money laundering scheme in which he and his co-conspirators stole tens of millions of dollars from the Medicare and Medicaid programs,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The jury’s verdict reflects the tireless work of our dedicated prosecutors and law enforcement partners to achieve justice and protect these essential healthcare programs on behalf of American taxpayers.”
“Pikus’s health care schemes were a toxic brew of kickbacks and money laundering that streamed millions of dollars into the pockets of the defendant and his co-conspirators at the expense of the Medicare and Medicaid programs,” said U.S. Attorney Richard P. Donoghue for the Eastern District of New York. “Today’s verdict demonstrates the resolve of this office and our law enforcement partners to protect taxpayer-funded health care programs upon which our citizens rely.”
“Mr. Pikus brazenly participated in a greed-fueled scheme that stole millions from Medicare and Medicaid,” said Special Agent in Charge Scott J. Lampert for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “Along with our law enforcement partners, HHS-OIG will continue to protect the public and the taxpayer funded health care programs that serve those who need them.”
“IRS Criminal Investigation is committed to ensuring that every taxpayer is measured by the same rule of law while paying their fair share,” said Special Agent in Charge Jonathan D. Larsen of the IRS Criminal Investigation’s (IRS-CI) New York Office. “Our special agents play a critical role investigating criminal violations of the Internal Revenue Code and related financial crimes. Every day, we entrust medical service providers with our most valuable asset—our health. That is why healthcare kickbacks and money laundering schemes like this one are particularly disturbing. Today’s guilty verdict serves as a reminder that crimes like money laundering and tax fraud will not go unpunished.”
According to evidence presented at trial, Pikus and his co-conspirators operated a series of medical clinics in Brooklyn and Queens over the course of nearly a decade that submitted approximately $96 million in medical claims. The clinics employed doctors, physical and occupational therapists, and other medical professionals who were enrolled in the Medicare and Medicaid programs. In return for illegal kickbacks, Pikus and his co-conspirators referred beneficiaries to these health care providers, who submitted claims to the Medicare and Medicaid programs, the evidence showed. Pikus then laundered a substantial portion of those proceeds through companies he and his co-conspirators controlled, including by cashing checks at several New York City check-cashing businesses; he and his co-conspirators then failed to report that cash income to the IRS. Pikus used that cash to enrich himself and others and to pay kickbacks to patient recruiters, including ambulette drivers, who, in turn, paid beneficiaries to receive treatment at the defendant’s medical clinics. The evidence further established that Pikus used shell companies and fake invoices to conceal his illegal activities.
More than 25 other individuals have pleaded guilty to or been convicted of participating in the scheme, including physicians, physical and occupational therapists, ambulette drivers, and the owners of several of the sham shell companies used to launder the stolen money.
This case was investigated by the HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Assistant Chief A. Brendan Stewart and Trial Attorneys Sarah Wilson Rocha and Andrew Estes of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Greene County Commissioner of Revenue and Son Indicted on Federal ChargesRead the Press Release
Charlottesville, VIRGINIA – A federal grand jury sitting in U.S. District Court in Charlottesville has charged Larry Vernon Snow, 70, and his son, Bryant Austin Snow, 31, with federal conspiracy and identity theft charges, United States Attorney Thomas T. Cullen and FBI Special Agent in Charge for the Richmond Division David W. Archey announced today.
In an indictment returned under seal on October 23, 2019, and unsealed last week, the grand jury has charged Larry Snow, the current Commissioner of Revenue for Greene County, and his son, Bryant Snow, each with one count of conspiracy to commit identity theft and two counts of identity theft. Both defendants made their initial court appearances today in federal court.
According to the indictment, between on or about April 21, 2018, to May 2, 2018, Larry Snow and Bryant Snow, conspired to knowingly use, without lawful authority, the identification of other individuals, specifically names, addresses, vehicle identification numbers, and license plate numbers, with the intent to commit and/or in connection with drug trafficking.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia Department of Motor Vehicles. Assistant United States Attorney Kate Rumsey is prosecuting the case for the United States.
A grand jury indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Georgia Woman Admits Using NBA Player’s Stolen Identity in Scheme to Obtain $2.5 Million LoanRead the Press Release
NEWARK, N.J. – A Georgia woman today admitted using a National Basketball Association (NBA) player’s stolen identity to attempt to obtain a $2.5 million loan, U.S. Attorney Craig Carpenito announced.
Annie M. Ford, 51, of Atlanta, Georgia, pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging her with one count of wire fraud and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
From October 2013 through November 2013, Ford tried to fraudulently obtain a $2.5 million loan from a New York-based lending company using the stolen identity of another individual, who at the time was a NBA player and resident of New Jersey.
Ford created fraudulent documents using the victim’s name. She also forged or caused to be forged the victim’s signature on multiple documents, including a Merchant Agreement between the victim and the lender, an escrow document providing that the $2.5 million loan would be deposited into a bank account controlled by Ford, and a power of attorney document appointing another individual involved in the scheme to serve as the victim’s “attorney-in-fact” for banking and financial matters. Those fraudulent and forged documents were submitted in support of the $2.5 million loan application.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The aggravated identity theft charge carries a maximum potential penalty of two years in prison, which must be served consecutively to any other prison term. Sentencing is scheduled for March 4, 2020.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Catherine R. Murphy of the Economic Crimes Unit.
Defense counsel: Bruno C. Bier, Esq., New York
Georgia Man Sentenced to 18 Years for Conspiring to Distribute MethamphetamineRead the Press Release
Ocala, Florida – U.S. District Judge Paul Byron today sentenced Eric Pedro Valdez (39, Atlanta) to 18 years in federal prison for conspiring to distribute methamphetamine. A federal jury had found Valdez guilty on August 2, 2019.
According to testimony and evidence presented at trial, between November 2015 and May 2016, Valdez conspired with others to distribute more than 70 kilograms of methamphetamine. On March 23, 2016, Valdez hand-delivered 4 kilograms of methamphetamine to two co-conspirators at a business in the Atlanta area. The drugs were intended for distribution in Sumter County.
This case was investigated by the Drug Enforcement Administration and the Sumter County Sheriff’s Office. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Four Individuals Indicted in November 2019 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the November 2019 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
TAKILA SHAUNTEL CARPENTER, age 34, of Murfreesboro, Tennessee
Possession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about September 19, 2019, in the Eastern District of Oklahoma, the defendant, TAKILA SHAUNTEL CARPENTER, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The charges arose from an investigation by the Sequoyah County Sheriff’s Office and Homeland Security Investigations.
Assistant United States Attorney Ryan Conway.
CHARLES P. HENDRICKS, age 31, of McAlester, Oklahoma a/k/a "TUFFY"Drug Conspiracy
Money Laundering ConspiracyThe Indictment alleges that from in or about April, 2017, the exact date being unknown to the Grand Jury, and continuing until on or about June 26, 2019, within the Eastern District of Oklahoma and elsewhere, the Defendant, CHARLES P. HENDRICKS, a/k/a TUFFY, did knowingly and intentionally combine, conspire, confederate and agree with others, known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 841(a)(1) & 841(b)(1)(A), as follows: to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance, in violation of Title 21, United States Code, Sections 846, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment further alleges that from in or about April, 2017, the exact date being unknown to the Grand Jury, and continuing until on or about June 26, 2019, within the Eastern District of Oklahoma and elsewhere, the defendant, CHARLES P. HENDRICKS, a/k/a TUFFY, did knowingly combine, conspire, confederate, and agree with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 18, United States Code, Section 1956, as follows: to knowingly conduct and attempt to conduct financial transactions affecting interstate and foreign commerce, that is, deposited large sums of United States Currency into the Oklahoma Department of Corrections Offender Account of CHARLES P. HENDRICKS, a/k/a TUFFY, which transactions involved the proceeds of a specified unlawful activity, to wit: the felonious receiving, concealment, buying, selling, or otherwise dealing in methamphetamine, knowing that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of specified unlawful activity, and that while conducting and attempting to conduct such financial transactions, knew that the property involved in the financial transactions represented the proceeds of some form of unlawful activity, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i), all in violation of Title 18, United States Code, Section 1956(h), punishable by not more than 20 years imprisonment, a fine up to $500,000.00, or both.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Shannon Henson.
ZACHARY GAGE PEBLEY, age 22, of Ardmore, OklahomaBank Robbery
Use, Carry, And Brandish A Firearm During And In Relation To A Crime Of ViolenceThe Indictment alleges that on or about October 15, 2019, in the Eastern District of Oklahoma, the defendant, ZACHARY GAGE PEBLEY, by force, violence and intimidation did take from the person and presence of another, money belonging to and in the care, custody, control, management and possession of the Bank of the West of Ardmore, Oklahoma, the deposits of which were then insured by the Federal Deposit Insurance Corporation, and in committing such offense, the defendant, ZACHARY GAGE PEBLEY, a/k/a ZACKARY GAGE PEBLEY, did assault and put in jeopardy the life of another person by the use of a dangerous weapon, that is a firearm, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), punishable by not more than 25 years imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about October 15, 2019, in the Eastern District of Oklahoma, the defendant, ZACHARY GAGE PEBLEY, did knowingly use, carry, and brandish a firearm, to wit, one (1) .380 CALIBER Jimenez Arms JA 380 semi-automatic pistol, serial number 065803, during and in relation to a crime of violence for which he may be prosecuted in a court of the United States, that is, Bank Robbery, as alleged in Count One in the Indictment, in violation of Title 18 United States Code, Section 924(c)(1)(A)(ii), punishable by not less than 7 years consecutive to any other sentence imposed, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Ardmore Police Department and the Federal Bureau of Investigation.
Assistant United States Attorney Jarrod Leaman.
BRIAN ALLEN HOUSTON, age 61, of Muskogee, OklahomaFelon In Possession Of Firearm And Ammunition
The Indictment alleges that on or about June 25, 2019, within the Eastern District of Oklahoma, the defendant, BRIAN ALLEN HOUSTON, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Muskogee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Ben Gifford.
Fort Campbell Soldier Convicted of Attempted Online Enticement of a MinorRead the Press Release
FRANKFORT, Ky. - A Fort Campbell soldier was convicted Thursday, by a federal jury in Frankfort, for using the internet to attempt to persuade, induce, or entice a minor to engage in sexual activity.
After deliberating for two hours, following a three-day trial, the jury convicted 27-year old Daniel J. Zulawski of attempted online enticement of a minor.
According to testimony at trial, Zulawski traveled from Lexington to Frankfort after communicating with an undercover officer on the Kik application, during which they discussed his engaging in sexual relations with the undercover mother and her fictitious 11 and 13 year-old children. Evidence revealed that Zulawski initially responded to a Craigslist ad posted by the undercover officer, which indicated she was a mother interested in incest.
Zulawski was indicted in May 2018. The criminal conduct occurred between January 16, 2018 and January 17, 2018. He traveled from Lexington, where he was staying for a week of training for the U.S. Army, to Frankfort on January 17, 2018, when he was arrested.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Richard F. Ferretti, Special Agent in Charge, Louisville Field Office of the United States Secret Service; and Andy Beshear, Kentucky Attorney General, jointly announced the guilty verdict.
The investigation was conducted by the U.S. Secret Service, U.S. Army Criminal Investigation Command at Ft. Campbell, and the Kentucky Office of Attorney General’s Cyber Crimes Branch. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys David Marye and Will Moynahan.
Zulawski will appear for sentencing on March 18, 2020. He faces a mandatory minimum of 10 years in prison and a maximum of life, as well as a maximum $250,000 fine. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Former Washington resident sentenced to 15 years in prison for fraudulent IPO stock schemeRead the Press Release
A former Seattle area resident who defrauded dozens of investors of at least $6.1 million was sentenced today in U.S. District Court in Seattle to 180 months (15 years) in prison for wire fraud and money laundering, announced U.S. Attorney Brian T. Moran. KEENAN A. GRACEY, 28, formerly of Newcastle, Washington, defrauded Seattle-area investors and others out of millions of dollars by pretending to sell them stock that GRACEY did not own and had no right to sell. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez told GRACEY: “You stole much more than money. You stole their trust. You stole their futures. You changed forever their children’s futures. All for what? To feed an outsized ego.”
“This defendant is a financial predator who singlehandedly destroyed the lives of honest, hardworking people who did nothing wrong.” said U.S. Attorney Brian T. Moran. “Gracey callously looted their retirement funds, forced some into bankruptcy, and destroyed the dreams of people who had saved to buy a house or fund their children’s educations. This sentence will protect the public from his penchant for fraud.”
According to records in the case, between 2016 and 2018, GRACEY posed as a British billionaire with degrees from the London School of Economics and Oxford University. He rented expensive cars such as Bentleys and Ferraris and rented expensive homes in Clyde Hill, Mercer Island, and Newcastle, Washington, as well as in Beverly Hills and San Diego, California. GRACEY told prospective investors that he owned all of these cars and houses. GRACEY also used falsified bank statements to make it appear he had hundreds of millions of dollars of cash on hand. The investigation revealed that GRACEY is Canadian, not British, and rented expensive homes and cars to make it appear he was wealthy.
GRACEY told potential investors he had special access to millions of shares of “pre IPO” stock that would produce returns of as much as 60 times the initial investment. Some investors gave GRACEY as much as $745,000, believing that they were purchasing stock. In fact, GRACEY did not own any of the stock he was pretending to sell and simply stole the victims’ money. In all, GRACEY collected $5,894,676 from dozens of investors.
The Securities and Exchange Commission filed a civil suit against GRACEY in May 2018 and obtained a temporary restraining order barring him from selling securities. In September 2018, the order was made permanent, and GRACEY was ordered to disgorge $4.4 million in cash and wire transfers that he had fraudulently obtained from investors. However, even after the SEC order, GRACEY continued to try to defraud investors by claiming he owned shares in a gene editing company. Between June 2018 and December 2018, GRACEY collected $2.2 million for shares of stock he did not own.
GRACEY’s fraud ended when he was arrested by the FBI on December 20, 2018. A federal grand jury charged him with wire fraud on January 3, 2019. On July 25, 2019, the grand jury returned a superseding indictment asserting additional charges, including money laundering charges. GRACEY pleaded guilty on August 15, 2019.
On March 29, 2019, the United States seized $603,840 of fraud proceeds that GRACEY had paid to rent a luxury mansion in Beverly Hills, California. According to court pleadings, the government intends to forfeit this money and request it be used to compensate GRACEY’s victims.
The case was investigated by the FBI and prosecuted by Assistant United States Attorneys Seth Wilkinson, Lyndsie Schmalz, and Michelle Jensen.
Former President of Private Tennis Academy Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – Martin Fox, the former president of a private tennis academy in Texas, pleaded guilty today in connection with his involvement in a scheme to use bribery to facilitate the admission of applicants to selective colleges and universities.
Fox, 62, of Houston, Texas, pleaded guilty to one count of conspiracy to commit racketeering. U.S. District Court Judge Indira Talwani scheduled sentencing for Feb. 14, 2020. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine and restitution.
In 2015, Fox introduced co-conspirator William “Rick” Singer to Michael Center, a tennis coach at the University of Texas (U-Texas). Center facilitated the admission of a son of one of Singer’s clients to U-Texas as a purported tennis recruit in exchange for a bribe. In return for assisting with the bribe transaction, Singer paid Fox $100,000.
Between 2015 and 2018, Fox also agreed with Singer and others to facilitate cheating on the ACT and SAT college entrance exams. Fox funneled bribe payments from Singer to Niki Williams, a test administrator for the ACT and SAT, for four of Singer’s clients. In exchange, Williams allowed someone else to purportedly proctor the exams, despite knowing that this person was not proctoring the exam consistent with ACT and SAT requirements. Singer typically paid Fox $25,000 per exam, a portion of which Fox funneled to Williams.
Williams has pleaded not guilty. The charges against her are allegations, and she is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. 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; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney, of Lelling’s Securities and Financial Fraud Unit, and Carol Head, of Lelling Asset Recovery Unit, are prosecuting the case.
Former Operator of Illegal Booter Services is Sentenced for Conspiracy to Commit Computer Damage and AbuseRead the Press Release
WASHINGTON – An Orland Park, Illinois, resident was sentenced yesterday to 13 months in prison, followed by three years of supervised release on one count of conspiracy to cause damage to internet-connected computers for his role in owning, administering and supporting illegal booter services that launched millions of illegal denial of service, or DDoS, attacks against victim computer systems in the United States and elsewhere.
Chief U.S. District Judge Terrence W. Boyle sentenced Sergiy P. Usatyuk, 21, in the U.S. District Court for the Eastern District of North Carolina. Usatyuk also was ordered to forfeit $542,925 in proceeds from the scheme, as well as dozens of servers and other computer equipment that facilitated the scheme and/or constitutes its proceeds.
According to the criminal information, Usatyuk combined with a co-conspirator to develop, control and operate a number of booter services and booter-related websites from around August 2015 through November 2017 that launched millions of DDoS attacks that disrupted the internet connections of targeted victim computers, rendered targeted websites slow or inaccessible, and interrupted normal business operations. The illegal services included ExoStress.in, (“ExoStresser”), QuezStresser.com, Betabooter.com (“Betabooter”), Databooter.com, Instabooter.com, Polystress.com and Zstress.net.
“The defendant made hundreds of thousands of dollars by launching countless indiscriminate cyber-attacks that victimized various segments of American society,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Criminal Division and our law enforcement partners will remain vigilant in protecting the American public from these types of sophisticated, far-reaching threats.”
“DDoS-for-hire services pose a malicious threat to the citizens of our district, as well as districts across the country, by impeding critical access to the internet and jeopardizing safety and security in the process,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “The operation and use of these services to disrupt the operations of our businesses and other institutions cannot be tolerated. Anyone who weaponizes web traffic in this manner will be vigorously pursued and prosecuted by my office.”
“This sentence demonstrates the FBI’s continuous commitment to unmasking malicious actors behind these type of egregious cyberattacks,” said Special Agent in Charge John Strong of the FBI’s North Carolina Field Office. “By calling out those criminals who hide behind their computer and launch attacks, the FBI is sending a strong message that we will work tirelessly with our law enforcement partners to investigate and hold all criminals accountable, no matter what weapon they use to terrorize others.”
“Booters” or “Stressers” are a class of publicly-available, web-based services that allow cybercriminals to launch distributed DDoS attacks that overwhelm a target computer system with unrequested traffic and, in turn, “boot” or “drop” the victim from the internet for a relatively small fee or no fee at all. To launch a DDoS attack using a booter, a cybercriminal often needs only a web browser and an online payment tool to subscribe to a provider, provide instructions for attacking a victim computer system, and deliver payment.
The DDoS attacks launched by the booters also harmed computer systems that were not directly targeted. For example, according to the criminal information, in November 2016, a Betabooter subscriber launched a series of DDoS attacks against a school district in the Pittsburgh, Pennsylvania, area that not only disrupted the school district’s computer systems, but affected the computer systems of 17 organizations that shared the same computer infrastructure, including other school districts, the county government, the county’s career and technology centers, and a Catholic Diocese in the area.
During the period of the conspiracy, Usatyuk and a co-conspirator gained in excess of $550,000 from charging subscriber fees to paying customers of their booter services and selling advertising space to other booter operators.
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cybercrime.
For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
The FBI’s Charlotte Field Office, Raleigh Resident Agency conducted the investigation. Additional assistance was provide by the FBI’s Chicago and Miami Field Offices, as well as the Defense Criminal Investigative Service.
Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Adam Hulbig and Matthew Fesak of the Eastern District of North Carolina are prosecuting the case.
Former Operator of Illegal Booter Services Sentenced for Conspiracy to Commit Computer Damage and AbuseRead the Press Release
An Orland Park, Illinois, resident was sentenced yesterday to 13 months in prison, followed by three years of supervised release on one count of conspiracy to cause damage to internet-connected computers for his role in owning, administering and supporting illegal booter services that launched millions of illegal denial of service, or DDoS, attacks against victim computer systems in the United States and elsewhere.
Chief U.S. District Judge Terrence W. Boyle sentenced Sergiy P. Usatyuk, 21, in the U.S. District Court for the Eastern District of North Carolina. Usatyuk also was ordered to forfeit $542,925 in proceeds from the scheme, as well as dozens of servers and other computer equipment that facilitated the scheme and/or constitutes its proceeds.
According to the criminal information, Usatyuk combined with a co-conspirator to develop, control and operate a number of booter services and booter-related websites from around August 2015 through November 2017 that launched millions of DDoS attacks that disrupted the internet connections of targeted victim computers, rendered targeted websites slow or inaccessible, and interrupted normal business operations. The illegal services included ExoStress.in, (“ExoStresser”), QuezStresser.com, Betabooter.com (“Betabooter”), Databooter.com, Instabooter.com, Polystress.com and Zstress.net.
“The defendant made hundreds of thousands of dollars by launching countless indiscriminate cyber-attacks that victimized various segments of American society,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Criminal Division and our law enforcement partners will remain vigilant in protecting the American public from these types of sophisticated, far-reaching threats.”
“DDoS-for-hire services pose a malicious threat to the citizens of our district, as well as districts across the country, by impeding critical access to the internet and jeopardizing safety and security in the process,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “The operation and use of these services to disrupt the operations of our businesses and other institutions cannot be tolerated. Anyone who weaponizes web traffic in this manner will be vigorously pursued and prosecuted by my office.”
“This sentence demonstrates the FBI’s continuous commitment to unmasking malicious actors behind these type of egregious cyberattacks,” said Special Agent in Charge John Strong of the FBI’s North Carolina Field Office. “By calling out those criminals who hide behind their computer and launch attacks, the FBI is sending a strong message that we will work tirelessly with our law enforcement partners to investigate and hold all criminals accountable, no matter what weapon they use to terrorize others.”
“Booters” or “Stressers” are a class of publicly available, web-based services that allow cybercriminals to launch distributed DDoS attacks that overwhelm a target computer system with unrequested traffic and, in turn, “boot” or “drop” the victim from the internet for a relatively small fee or no fee at all. To launch a DDoS attack using a booter, a cybercriminal often needs only a web browser and an online payment tool to subscribe to a provider, provide instructions for attacking a victim computer system, and deliver payment.
The DDoS attacks launched by the booters also harmed computer systems that were not directly targeted. For example, according to the criminal information, in November 2016, a Betabooter subscriber launched a series of DDoS attacks against a school district in the Pittsburgh, Pennsylvania, area that not only disrupted the school district’s computer systems, but affected the computer systems of 17 organizations that shared the same computer infrastructure, including other school districts, the county government, the county’s career and technology centers, and a Catholic Diocese in the area.
During the period of the conspiracy, Usatyuk and a co-conspirator gained in excess of $550,000 from charging subscriber fees to paying customers of their booter services and selling advertising space to other booter operators.
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cybercrime.
For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
The FBI’s Charlotte Field Office, Raleigh Resident Agency conducted the investigation. Additional assistance was provided by the FBI’s Chicago and Miami Field Offices, as well as the Defense Criminal Investigative Service.
Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Adam Hulbig and Matthew Fesak of the Eastern District of North Carolina are prosecuting the case.
Former Harrison County Sheriff’s Deputy found guilty of drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Former Harrison County Sheriff’s Deputy Timothy Rock, of Clarksburg, West Virginia, was convicted this week of drug charges, United States Attorney Bill Powell announced.
After a three-day trial, Rock, age 41, was found guilty of four counts of “Distribution of Heroin.” Rock distributed heroin in Harrison County in July, September, and October 2016.
“Everyone is subject to the rule of law. This particular defendant and former deputy crossed the line, and the jury rendered a verdict. The verdict in this difficult, but important case was due to the hard work and dedication of the prosecution team. The ultimate punishment is now up to the court,” said Powell.
At trial, three former confidential informants testified that Rock gave them heroin on dozens of occasions, most often by letting them keep a portion of heroin purchased in law enforcement monitored drug transactions. Two of the informants directly received uniquely packaged heroin labeled “FLIGHT 18” from Rock on other occasions. Trial evidence established that Rock acquired the FLIGHT 18 heroin from the evidence lockers at the now defunct Street Crimes and Drug Unit of the Harrison County Sheriff’s Office.
Other evidence demonstrated that Rock falsified sheriff’s department and court records to conceal his distribution of heroin to informants, and that he violated numerous other standard protocols with respect to managing informants, tracking government funds, securing evidence, and ensuring officer safety.
Rock faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Andrew R. Cogar and Zelda E. Wesley are prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Former Employee of Hospital Charged with Compromising Dozens of Coworkers’ Email Accounts and Stealing Their Confidential InformationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of RICHARD LIRIANO for installing a malicious software program known as a “keylogger” on dozens of his coworkers’ computers at a New York City area hospital, obtaining unauthorized access to his victims’ email, social media and other online accounts, and using that unauthorized access to steal private and confidential files. Using his victims’ stolen credentials, LIRIANO repeatedly compromised their password-protected online accounts, and pilfered their sensitive personal photographs and other private documents.
LIRIANO was arrested yesterday and arraigned in federal court before United States Magistrate Judge Katharine H. Parker.
U.S. Attorney Geoffrey S. Berman said: “Richard Liriano, an information technology professional at a New York hospital, is alleged to have installed a ‘keylogger’ program onto dozens of his coworkers’ computers in order to spy on and steal personal information from them. Liriano allegedly used the access he gained through the malicious software to steal photos, tax records, and other personal information from his coworkers and people associated with them. As information technology increasingly becomes an integral part of our workplaces, ensuring the integrity of those systems becomes even more critical. The arrest of Liriano should serve as an error message to any information technology professionals seeking to capitalize on their trusted access to information: As in this case, you will be caught and prosecuted.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Whatever alleged motivation the subject in this case had, hacking into his co-workers lives, albeit extremely disturbing, wasn't the most egregious act. He allegedly installed a harmful program on computers that house vital and critical healthcare information for hospital patients, without a thought to what he could be compromising in his attempts to spy on people.”
According to the Indictment unsealed today in Manhattan federal court[1]:
From at least in or about 2017, up to and including at least about in or about September 28, 2018, LIRIANO misused administrative access provided to him as an information technology employee at a New York City-area hospital (“Hospital-1”), to log in to employee accounts, and copy other employees’ personal documents, including tax records, and personal photographs onto his own workspace computer for his own personal use.
To further his efforts to steal personal information from Hospital-1’s employees, LIRIANO, without authorization, secretly installed a malicious program known as a keylogger on the accounts of other, primarily female, employees. This program recorded and sent victim employees’ keystrokes to LIRIANO, which included the usernames and passwords those employees entered to access their personal web-based email accounts. Through the course of this conduct, LIRANO stole usernames and passwords for at least approximately 30 email accounts belonging to Hospital-1 employees or persons associated with those employees (the “Compromised Accounts”).
LIRIANO then used those stolen usernames and passwords to log in to the Compromised Accounts and obtain unauthorized access to other password-protected email, social media, photographs, and online accounts to which the Compromised Accounts were registered. Among other things, LIRIANO conducted searches for personal photographs in the Compromised Accounts.
* * *
LIRIANO, 33, of Bronx, New York, is charged in three counts. The first count charges him with transmitting a program to a protected computer that intentionally caused damage, which carries a maximum sentence of 10 years in prison. The second count charges him with intentionally accessing a protected computer without authorization and recklessly causing damage, which carries a maximum sentence of five years in prison. The third count is aggravated identity theft, which requires a two year prison term to be served consecutive to any sentence imposed on the computer intrusion charges. 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 extraordinary work of the FBI and the New York City Police Department.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
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.
Former Elementary School Teacher’s Assistant Sentenced to 150 Months for Child-Exploitation CrimesRead the Press Release
A Springfield, Virginia, man was sentenced today to 150 months in prison followed by 20 years of supervised release for the attempted coercion and enticement of a minor and distribution of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Fairfax County Chief of Police Colonel Edwin C. Roessler Jr. made the announcement.
Monis Irfan, 21, a former substitute teacher and third-grade instructional assistant at two Fairfax County elementary schools, was sentenced today by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. Irfan previously pleaded guilty on July 19, 2019.
According to admissions that he made in connection with his guilty plea, in January 2019, Irfan began communicating online with an undercover Fairfax County police detective posing as the father of a seven-year-old child. Irfan repeatedly told the detective that he was sexually interested in and active with children, and discussed his desire to perform graphic sexual acts on the detective’s fictitious child. After several days of sending sexually explicit messages and images, Irfan drove to a predetermined location to meet the undercover detective and engage in sexual acts with the child. Irfan was arrested at that time. Additional investigation revealed that Irfan received and distributed child pornography videos depicting the sexual abuse of an infant over encrypted messaging apps on his mobile phone and also used his phone to record a video of himself engaging in sexually inappropriate behavior with a five-year-old child.
The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force and the Fairfax County Police Department investigated the case. Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Maya D. Song of the Eastern District of Virginia are prosecuting 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 U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Elementary School Teacher’s Assistant Sentenced for Child-Exploitation CrimesRead the Press Release
ALEXANDRIA, Va. – A former Fairfax County elementary school teacher’s assistant was sentenced today to 12 1/2 years in prison and 20 years of supervised release for the attempted coercion and enticement of a minor and distribution of child pornography.
“Irfan was an elementary school employee who was entrusted with teaching and protecting our community’s children,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “But he was also a wolf in sheep’s clothing looking to prey on the most vulnerable members of our society, and he undertook a horrific hunt for opportunities to sexually abuse children. Our office is committed to working closely with state, local and federal authorities to ferret out such sexual predators, and we commend our investigative partners for their work in this case.”
According to court documents, Monis Irfan, 21, of Springfield, a substitute teacher and third-grade instructional assistant at two Fairfax County elementary schools, began communicating online with an undercover Fairfax County police detective who was posing as the father of a seven-year-old child in January 2019. Irfan repeatedly told the detective that he was interested in and sexually active with children, and discussed his desire to perform graphic sexual acts on the detective’s fictitious child. After several days of sending sexually explicit messages and images, Irfan drove to a predetermined location to meet the undercover detective and engage in sexual acts with the child. Irfan was arrested at that time. Additional investigation revealed that Irfan received and distributed child pornography videos depicting the sexual abuse of an infant over encrypted messaging apps on his mobile phone, and also used his phone to record a video of himself engaging in sexually inappropriate behavior with a five-year-old child.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Maya D. Song and Special Assistant U.S. Attorney William G. Clayman 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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-120.
Former Department of Corrections Nurse Sentenced for Drug ConvictionRead the Press Release
BOSTON – A nurse at the Department of Correction’s Massachusetts Alcohol and Substance Abuse Center (MASAC) in Plymouth, was sentenced today for distributing Suboxone strips to inmates in the facility.
Julie A. Inglis-Somers, 40, of Kingston, Mass., was sentenced by U.S. District Court Judge Indira Talwani to time served (11 days) and three years of supervised release with the first three months to be served in home detention. Additionally, Inglis-Somers is prohibited from seeking reinstatement of her nursing license.
In June 2019, Inglis-Somers pleaded guilty to providing Suboxone to two inmates at MASAC on multiple occasions in November and December 2018. Suboxone, a Class III controlled substance used to treat heroin addiction, is sometimes misused to get high. Suboxone is a coveted contraband in prisons across the nation and is particularly popular in New England. In December 2018, Inglis-Somers was charged by criminal complaint and arrested in Jacksonville, Fla. after fleeing Massachusetts.
MASAC is one of five facilities in Massachusetts where, under Massachusetts General Laws, a state court judge can send a person who the judge determines to be a danger to self or others due to substance abuse. MASAC is the only such facility overseen by the Massachusetts Department of Corrections.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit prosecuted the case.
Former DMV Employee Sentenced for a Scheme to Issue Commercial Licenses to Unqualified DriversRead the Press Release
SACRAMENTO, Calif. — Lisa Terraciano, 53, of North Hollywood, was sentenced today to three years and four months in prison for a conspiracy to take bribes to provide Class A commercial driver’s licenses (CDLs) without the commercial applicants having to take or pass the required tests, U.S. Attorney McGregor W. Scott announced.
On November 3, 2017, former DMV employees Terraciano and Kari Scattaglia, 40, of Sylmar, pleaded guilty to a conspiracy to commit bribery, to commit identity fraud, and to commit unauthorized access of a computer. On Aug. 29, 2019, Scattaglia was sentenced to two years and eight months in prison for her participation in the conspiracy.
According to court documents, Terraciano worked for the DMV since June 2005 and was a Motor Vehicle Representative (MVR) in the Winnetka DMV office from 2014 through 2017. Scattaglia worked as a manager, assistant manager, and a Licensing-Registration Examiner (LRE) at the Arleta DMV and the Granada Hills Driver License Processing Center. Among other things, Terraciano and Scattaglia were responsible for processing applications for California CDLs. A CDL is required to drive passenger buses and to operate tractor-trailer trucks on California and interstate highways, including, in some cases, transporting hazardous materials.
In exchange for money, Terraciano and Scattaglia each accessed the DMV’s database in Sacramento to alter the records of commercial applicants to fraudulently show that the applicants had passed the required written tests when, in truth, the applicants had not passed the tests or, at times, even taken the written tests. In so doing, this caused the DMV to issue permits to those drivers as well as issue completed CDLs upon the applicants’ passing the behind-the-wheel driving tests.
According to the plea agreements, Terraciano caused at least 148 fraudulent CDLs, including permits, to be issued, and Scattaglia caused at least 68 fraudulent CDLs, including permits, to be issued.
This case was the product of an investigation by the Federal Bureau of Investigation, the Homeland Security Investigations, the U.S. Department of Transportation – Office of Inspector General, and the California Department of Motor Vehicles, Office of Internal Affairs. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.
Former Bedford VA Nursing Assistant Sentenced for Making False StatementsRead the Press Release
BOSTON – A former nursing assistant at the Veterans Affairs (VA) Medical Center in Bedford was sentenced today in federal court in Boston for making false statements to federal agents in connection with an investigation of a patient’s death.
Patricia A. Waible, 52, of Nashua, N.H., was sentenced by U.S. District Court Judge F. Dennis Saylor IV to one year of probation. In July 2019, Waible was charged and agreed to plead guilty to two counts of making false statements.
On July 3, 2016, Waible, a nursing assistant at the time, worked the overnight shift from midnight to 8:00 a.m. at the Bedford VA’s nursing home unit. During the shift, Waible’s responsibilities included conducting hourly bed checks. Early that morning, a patient who suffered from several serious medical ailments was found unresponsive and not breathing. The patient was transferred by ambulance to an emergency room, where he was later pronounced dead. During the ensuing investigation, on two separate occasions, Waible falsely stated to federal agents that she had conducted the hourly checks on the patient during her shift.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, made the announcement today. Assistant U.S. Attorneys Amanda P.M. Strachan, Chief of Lelling’s Health Care Fraud Unit, and William B. Brady, also of Lelling’s Health Care Fraud Unit, prosecuted the case.
Florida Man Pleads Guilty to Shipping Synthetic Drugs to Southwest VirginiaRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen announced today that Michael John Harrigan, 60, of Valrico, Fla. and Jared Andre Roa, 30, of Tampa, Fla., pleaded guilty last week to one count of conspiring to distribute Schedule I controlled substances in the form of synthetic cannabinoids.
At sentencing, each defendant faces a potential sentence of up to twenty years in prison and/or a fine of up to $1,000,000. Additionally, Harrigan agreed to forfeit $500,000 in criminal proceeds to the United States.
According to court documents, Harrigan and Roa admitted to packaging and shipping large quantities of AB-FUBINACA, a Schedule I synthetic cannabinoid, throughout the United States via the United States Postal Service, and other shipping services. Quantities of these drugs were sent to the Western District of Virginia from Florida, including packages that were intercepted before delivery in Coeburn, Va. in October 2014. Additionally, in September 2017, a search of a storage unit belonging to Roa in Tampa, Fla. yielded quantities of AB-FUBINACA, packaging materials, and address labels listing Harrigan’s name and address. Harrigan’s illegal profits from this drug activity were found to have been at least $500,000.
Roa is scheduled to be sentenced on February 25, 2019, in Abingdon. Harrigan’s sentencing is scheduled for March 2, 2019. According to Harrigan’s plea agreement, he must pay to the United States $50,000 within seven days his guilty plea and $450,000 on or before the date of his sentencing.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Postal Inspection Service, Drug Enforcement Administration, and the Southwest Virginia Drug Task Force. Assistant United States Attorney Lena Busscher is prosecuting the case for the United States.
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Fifteen Charged in Mt.Vernon Drug RingRead the Press Release
Fifteen men who allegedly participated in a drug trafficking ring in Mt. Vernon, Illinois, have been indicted on federal methamphetamine-related charges, Steven D. Weinhoeft, U.S. Attorney for the Southern District of Illinois, announced today. The seven-count indictment was returned on Oct.
24, 2019, and accuses the following men of engaging in a conspiracy to distribute 50 grams or more of methamphetamine in Jefferson County, Illinois:
• David D. Hunt, 28, of Dayton, Ohio
• Trevon M. Taylor, 35, of Mt. Vernon, IL
• Dedrick R. Bell, 41, of Bluford, IL
• Chalar L. Taylor, 25, of Mt. Vernon, IL
• Major J. Monroe, 45, of Marion, IL
• Carlos D. Knox, 48, of Mt. Vernon, IL
• Korey B. Alexander, 35, of Centralia, IL
• Myron T. Seigart, 32, of Mt. Vernon, IL
• Brandon N. Barnett, 35, of Bloomington, IN
• Jhytrenton C. Ladd, 27, of Mt. Vernon, IL
• Keith Peoples, Jr., 33, of Mt. Vernon, IL
• Nathaniel Nesbit, Jr., 34, of Mt. Vernon, IL
• Terry M. Turner, 39, of Mt. Vernon, IL
• Cortez E. Davis, 40, of Mt. Vernon, IL
• Terwin L. Morgan, 38, of Mt. Vernon, IL
The charged conspiracy allegedly ran from June 2018 through September 2019. If convicted of the conspiracy charge, all 15 defendants face 10 years to life imprisonment, up to a
$10 million fine, and supervised release of not less than 5 years.Hunt and Bell are also charged separately with knowingly and intentionally possessing with the intent to distribute 50 grams or more of methamphetamine on various dates, while Knox is accused of distributing 50 grams or more of methamphetamine on one occasion in February 2019. The indictment further alleges that on separate occasions during the timeframe charged in
the conspiracy, Monroe and Turner each knowingly distributed 5 grams or more of methamphetamine.
The additional charges against Hunt, Bell, and Knox are each punishable by 10 years to life imprisonment, up to a $10 million fine, and supervised release of not less than 5 years. For their individual counts, Monroe and Turner both face 5 to 40 years imprisonment, a fine of up to
$5 million, and supervised release of not less than 4 years.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Drug Enforcement Administration, the Mt. Vernon
Police Department, the Jefferson County Sheriff’s Office, the Illinois State Police, the
United States Marshal Service, the Marion Police Department, and the FBI.
Felon Cannot Hide from Nearly Seven Years in Federal Prison for Third Conviction for Unlawfully Possessing a GunRead the Press Release
A convicted felon who was twice previously convicted of being a felon in possession of a firearm was sentenced November 14, 2019, to nearly seven years in federal prison following his third such conviction.
Jamaal Baker, age 41, from Waterloo, Iowa, received the prison term after a May 30, 2019 guilty plea to possessing a firearm as a felon.
At the guilty plea, Baker admitted he unlawfully possessed a handgun on January 23, 2019. Evidence at sentencing established that Baker took a gun to his ex-wife’s house. Baker and his ex-wife got into a heated argument. During the argument, Baker told his ex-wife that he was going to kill her and then have the police kill him. The ex-wife left the house along with minor children that were present. As they were walking away from the house, Baker pulled the handgun out and at least one round was fired.
Police responded to the house after a neighbor, who operated a daycare in her home, called 9-1-1. After setting up a perimeter around the house, officers learned that Baker had fled the home and went to a local convenience store. Officers found him in the store attempting to hide from them in a walk-in freezer.
Baker has a long criminal history starting at age 17 while he was living in Chicago. From age 18 through age 32, Baker was convicted of five drug offenses, two battery offenses, and aggravated vehicular hijacking for being part of an incident involving armed robbery, carjacking, and kidnapping. He was also twice convicted of being a felon in possession of a firearm. Baker was a member of the Gangster Disciples gang during this time.
Baker was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Baker was sentenced to 81 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Baker is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2023.
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Federal-State Law Enforcement Partnership Results in Multiple Arrests in South Bay CountiesRead the Press Release
SAN FRANCISCO – Officials from over a dozen law enforcement agencies arrested and charged more than two dozen defendants with a variety of state and federal crimes pursuant to a joint federal-state effort to combat crime in South Bay counties, announced U.S. Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) San Francisco Field Division Special Agent in Charge Rayfield Roundtree.
The investigation was spearheaded by the ATF. The agency coordinated operations with the U.S. Marshal Service; the Homeland Security Investigations, the Federal Bureau of Investigations, the San Mateo County Sheriff’s Office; the San Joaquin County Sherriff’s Office; the California Department of Corrections; the California Highway Patrol; and the police departments of Redwood City, San Mateo, San Francisco, and Daly City to arrest and charge the defendants. In addition to the arrests, law enforcement officials seized more than 130 firearms, 39 pounds of methamphetamine, and about 20 pounds of marijuana over the course of the operation.
“Guns and drugs are a dangerous combination,” said U.S. Attorney Anderson. “Public safety demands the kind of law enforcement cooperation we see in this enforcement action.”
“Combating violent crime is at the core of ATF’s mission and we stand at the frontline of eradicating violent crime from our streets,” said Special Agent in Charge Ray Roundtree, San Francisco Field Division, ATF. “It is our duty to make this community a safer place for you and your families. This operation was years in the making. Years ago, ATF and the San Mateo County Gang Intelligence Unit began laying the foundation for the culmination you see here today. We believe that one firearm in the hand of a criminal or prohibited person is one firearm too many. The work you see here today is about making neighborhoods safer because to us the most important thing is that you and your loved ones make it home safely every day. Today ATF and our partners stand united in honoring that promise to you. Through everyone’s hard work and dedication, this large-scale operation has been a true success. These are also our neighborhoods and today they are a safer place.”
The defendants have been charged with a variety of state and federal crimes. The defendants charged with federal crimes include the following:
Name
Age/Residence
Charges
Maximum Statutory Sentence
Francisco Garibay
21, South San Francisco
Distribution of fifty grams and more of methampheta-mine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii)
(two counts)
40 years in prison and a $5 million fine, per count
Jonathan Flores
20, San Mateo
Distribution of fifty grams and more of methampheta-mine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii)
(two counts)
40 years in prison and a $5 million fine
Vladimir Magallan- Gallegos
26, Modesto
Possession with intent to distribute fifty grams and more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(l)(B)(viii)
40 years in prison and a $5 million fine
Jonathan Robert Figueroa
25, Redwood City
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2
5 years in prison and a $250,000 fine, per count
Erizondo Mora-Tapia
25, East Palo Alto
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2
5 years in prison and a $250,000 fine, per count
Jesus Antonio Tapia
19, Sunnyvale
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $10,000 fine
Hernan Padilla- Landa
25, Tracy
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of a firearm with a removed serial number, in violation of 18 U.S.C. § 922(k)
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $250,000 fine
William Alexis-Villa
22, Menlo Park
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of a machine gun and aiding and abetting, in violation of 18 U.S.C. §§ 922(o) and 2;
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
(two counts)
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $250,000 fine
10 years in prison and a $10,000 fine, per count
Francisco Nunez-Nepita
21, East Palo Alto
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing in firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of a machine gun and aiding and abetting, in violation of 18 U.S.C. § 922(o), and 2
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $250,000 fine
Erik Acevedo-Cruz
19, Fremont
Conspiracy to deal firearms without a license, in violation of 18 U.S.C. § 371;
Dealing firearms without a license and aiding and abetting, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2;
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
5 years in prison and a $250,000 fine
5 years in prison and a $250,000 fine
10 years in prison and a $10,000 fine
Jaime Avina Barajas
19, East Palo Alto
Possession of a machine gun and aiding and abetting, in violation of 18 U.S.C. § 922(o) and 2;
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
10 years in prison and a $250,000 fine
10 years in prison and a $10,000 fine
Noe Robledo-Lopez, Jr.,
19, Redwood City
Possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d)
10 years in prison and a $10,000 fine
Jose Buenrostro
30, Redwood City
Conspiring to deal firearms without a license and dealing firearms without a license, in violation of 18 U.S.C. §§ 371 and 922(a)(1)(A);
Felon in possession of a firearm or ammunition, in violation of 18 U.S.C. § 922(g)(1);
Conspiring to distribute or possess with intent to distribute, and distributing or possessing with intent to distribute 50 grams and more of methamphetamine, in violation of 21 U.S.C. §§ 841(a), (b)(1)(B)(viii), and 846
5 years in prison and a $250,000 fine, per count
10 years in prison and a $250,000 fine
40 years in prison and a $5 million fine
Cristian Rafael Morales
23, San Mateo
Distribution of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
20 years in prison and a $1 million fine
Mario Carlos
24, Cottonwood
Felon in possession of a firearm or ammunition, in violation of 18 U.S.C. § 922(g)(1)
10 years in prison and a $250,000 fine
Daniel Zaragoza
32, Oakland
Felon in possession of a firearm or ammunition, in violation of 18 U.S.C. § 922(g)(1)
10 years in prison and a $250,000 fine
The indictments merely allege that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt. These prosecutions are the result of investigations by the ATF in coordination with Homeland Security Investigations (HSI) and the Federal Bureau of Investigation. Additional assistance was provided by the U.S. Marshal Service; the San Mateo County Sheriff’s Office; San Joaquin County Sherriff’s Office; the California Department of Corrections; the California Highway Patrol; and the police departments of Redwood City, San Mateo, San Francisco, and Daly City.
Federal Officials and Acoma Pueblo Leaders to Hold Press Conference to Make Significant Announcement regarding Item of Cultural PatrimonyRead the Press Release
ALBUQUERQUE, N.M. – Federal officials and Tribal Leaders of the Pueblo of Acoma will hold a press conference at 10:00 a.m., on Monday, November 18, 2019, at the offices of the Bureau of the Indian Affairs in Albuquerque, New Mexico, to make a significant announcement regarding an important item of cultural patrimony.
WHO: The Honorable John C. Anderson
U.S. Attorney for the District of New Mexico
The Honorable Brian Vallo
Governor of the Pueblo of Acoma
James C. Langenberg
Special Agent in Charge, FBI Albuquerque Division
James “Jim” James
Deputy Bureau Director-Field Operations, Bureau of Indian Affairs
Member, Pueblo of Ohkay Owingeh
WHAT: Press Conference
WHEN: Monday, November 18, 2019 at 10:00 a.m. MST
WHERE: Bureau of Indian Affairs – Southwest Regional Office
Conference Room 133 on the First Floor
1001 Indian School Road NW
Albuquerque, NM 87104
OPEN PRESS
NOTE: All media representatives must present government-issued photo I.D. (i.e., driver’s license) as well as valid media credentials when they check in with security upon entering the building. Media representatives may begin to arrive at 9:15 a.m. Inquiries regarding logistics should be directed to Sean Sullivan at 505-350-3153 or [email protected].
NOTE ALSO: Due to ongoing construction at the BIA-SWRO, visitors are encouraged to use 12th Street and Indian School to enter the premises.
Federal Officials and Acoma Pueblo Leaders to Hold Press Conference to Make Significant Announcement regarding Item of Cultural PatrimonyRead the Press Release
ALBUQUERQUE, N.M. – Federal officials and Tribal Leaders of the Pueblo of Acoma will hold a press conference at 10:00 a.m., on Monday, November 18, 2019, at the offices of the Bureau of the Indian Affairs in Albuquerque, New Mexico, to make a significant announcement regarding an important item of cultural patrimony.
WHO: The Honorable John C. Anderson
U.S. Attorney for the District of New Mexico
The Honorable Brian Vallo
Governor of the Pueblo of Acoma
James C. Langenberg
Special Agent in Charge, FBI Albuquerque Division
James “Jim” James
Deputy Bureau Director-Field Operations, Bureau of Indian Affairs
Member, Pueblo of Ohkay Owingeh
WHAT: Press Conference
WHEN: Monday, November 18, 2019 at 10:00 a.m. MST
WHERE: Bureau of Indian Affairs – Southwest Regional Office
Conference Room 133 on the First Floor
1001 Indian School Road NW
Albuquerque, NM 87104
OPEN PRESS
NOTE: All media representatives must present government-issued photo I.D. (i.e., driver’s license) as well as valid media credentials when they check in with security upon entering the building. Media representatives may begin to arrive at 9:15 a.m. Inquiries regarding logistics should be directed to Sean Sullivan at 505-350-3153 or [email protected].
NOTE ALSO: Due to ongoing construction at the BIA-SWRO, visitors are encouraged to use 12th Street and Indian School to enter the premises.
Farm Service Agency Executive Director, Former Clerk of Court, and 27 Others Indicted for Conspiracy to Commit Wire Fraud and Theft of Government FundsRead the Press Release
PANAMA CITY, FLORIDA – A federal grand jury in Tallahassee has returned a far-reaching indictment that unveils a criminal network of 29 people who actively worked to defraud the federal government and taxpayers of hundreds of thousands of dollars. At the helm of the scheme, a County Executive
Director of the United States Department of Agriculture’s Farm Service Agency is charged with orchestrating a broad-based conspiracy to steal government drought assistance funds and hide the actions through identify theft, tax evasion, and other federal crimes with a criminal network of more than two dozen other people.The indictment, announced today by Lawrence Keefe, U.S. Attorney for the Northern District of
Florida as part of a crackdown by his office’s enhanced Public Trust Unit, produced a sweeping roundup of 29 current and former federal, state, and local officials and local business people all connected in the scheme to defraud the U.S. Department of Agriculture.The indictment alleges that Farm Service Agency director Duane Edward Crawson, 43, Bonifay, Florida, led the conspiracy that included a former Holmes County Clerk of Court and numerous other individuals who had served in positions of public trust and others in a variety of occupations.
Charges include conspiracy to commit wire fraud, theft of government funds, aggravated identity theft, income tax evasion, and obstruction of Internal Revenue laws.“These individuals betrayed their duty as public servants and as citizens in a shallow but breathtakingly bold effort to lie, cheat, and steal from their fellow citizens and our federal government,” said Keefe. “This pattern of shameless criminality strikes at the very heart of our system of self-government and undermines public trust in the integrity of our basic institutions.
The United States Attorney’s Office and all our law enforcement partners will be relentless in pursuing and prosecuting all such violations of public trust.”The indictment alleges that between May and December 2017, Crawson -- while employed as the County
Executive Director of the USDA’s Farm Service Agency for Bay, Holmes, and Washington counties in
Florida -- devised a kickback scheme in which he and his co-conspirators unlawfully obtained approximately $373,483 in taxpayer funds by submitting fraudulent drought assistance claims.Crawson is alleged to have submitted fraudulent claims for livestock and farmland parcels that were not actually owned or leased by the conspirators, resulting in drought assistance funds being deposited into the conspirators’ bank accounts. The co-conspirators are alleged to have paid
Crawson a portion of the fraud proceeds in the form of cash kickbacks.The defendants’ trial is scheduled for January 6, 2020, at 8:00 a.m. at the United States
Courthouse in Pensacola, Florida.Each defendant faces the following potential penalties: - Conspiracy to Commit Wire Fraud: a maximum of 20 years imprisonment and a $250,000 fine.
- Theft of Government Funds: a maximum of 10 years imprisonment and a $250,000 fine.Besides Crawson, the defendants are:
• Jeremiah Joe Rolling, 43, of Westville, Florida; Investigator – Office of the State Public Defender
• Jordan Ryan Hicks, 36, of Ponce De Leon, Florida; Former Florida Department of Corrections Officer
• Davey Eugene Mancill, 44, of Westville, Florida; Mancill Masonry, LLC
• James Stacey Paul, 46, of Bonifay, Florida; Public Works - City of Bonifay, Florida
• Kyle Martin Hudson, 39, of Westville, Florida; Former Holmes County Clerk of Court
• Christopher Marion Ammons, 31, of Ponce De Leon, Florida; Heavy Equipment Operator
• Danyel Michelle Witt, 44, of Bonifay, Florida; Clerk – United States Postal Service
• Sheryl Day Gillman, 52, of Bonifay, Florida; Secretary - Florida Farm Bureau
• Shyloe Rose Sachse, 40, of Bonifay, Florida; Former Corrections Officer
• Tillman Douglas Mears, 30, of Bonifay, Florida; Public Works - City of Bonifay, Florida
• Dawn Marie Crutchfield, 48, of Bonifay, Florida; Medical Assitant
• Justin Mikel Chopelas, 21, of Fayetteville, North Carolina; Construction
• Ronald Ryan Roof, 23, of Westville, Florida; Specialist – Army National Guard
• Megan Leann Roof, 22, of Caryville, Florida; Hotel Clerk
• Billy Coal Bradshaw, 35, of Bonifay, Florida; Auto Parts Employee
• James Erwin Mancill, 48, of Bonifay, Florida; Auto Parts Employee
• Joseph Matthew Crowder, 47, of Caryville, Florida; Brick Mason – Mancill Masonry, LLC
• Audrey Lynn Smith, 32, of Caryville, Florida; Convenience Store Clerk
• Brian Anthony Ammons, 44, of Ponce De Leon, Florida; Heavy Equipment Operator
• Taylor Ward Stripling, 28, of Westville, Florida; Farm Laborer
• Dawn Marie Roof, 44, of Chipley, Florida; Licensed Practical Nurse
• Daniel Olajuwon Boston, 33, of Chipley, Florida; Brick Mason – Mancill Masonry, LLC
• Chassity Lynn Lee, 31, of Bonifay, Florida; Auto Parts Employee
• Jennifer Marie McCabe, 30, of Bonifay, Florida; Holmes County Council on Aging
• Justina Rae Williams, 30, of Caryville, Florida; Unemployed
• Joseph Bailey Alexander, 22, of Chipley, Florida; Poker Dealer
• Douglas Edward Mixon, 60, of Westville, Florida; Farmer
• Dwayne Frazier White, 49, of Bonifay, Florida
Former City of Bonifay Police OfficerDuane Crawson, Davey Mancill, James Paul, and Danyel Witt face an additional charge of aggravated identity theft, which carries a penalty of a minimum 2 years imprisonment consecutive to any other term of imprisonment and a $250,000 fine. In addition, Crawson also faces charges of income tax evasion, carrying a maximum of 5 years imprisonment and a $100,000 fine; and obstruction of Internal Revenue laws, carrying a maximum of 3 years imprisonment and a $5,000 fine.
“The Livestock Forage Disaster Program (LFP) was created to help stabilize the U.S. livestock industry and support producers whose grazing lands were significantly damaged by drought.
Those involved in fraud and abuse of USDA farm programs will be investigated by our office to the fullest extent. This is particularly applicable for USDA employees who violate the trust vested in them by American taxpayers,” said U.S. Department of Agriculture, Office of Inspector General
Special Agent-in-Charge Bethanne M. Dinkins. “In this joint investigation with the Internal Revenue
Service-Criminal Investigation, we worked together to identify those who sought to profit from the
LFP through illegal schemes. The USDA Office of Inspector General will continue to dedicate investigative resources and work with our law enforcement partners to protect the integrity of these programs and bring to justice those who commit fraud.”The indictment culminates a 20-month investigation conducted by a partnership of law enforcement agencies and prosecutors at all levels of government, including the United States Department of
Agriculture-Office of Inspector General and the Internal Revenue Service- Criminal Investigations.
Assistant United States Attorney Jason R. Coody is prosecuting the case.“Those who violate their oaths and abuse positions of trust in our community do so out of greed.
IRS Special Agents are uniquely skilled to follow the money trail and bring to light financial transactions conducted in such ways as to stay undetected,” stated Ron Loecker, Assistant Special
Agent in Charge for IRS Criminal Investigation’s Tampa Field Office. “IRS is a committed partner of the U.S. Attorney’s Office Public Integrity Unit and we stand ready to ensure our public officials work honestly in communities throughout northern Florida.”An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney's Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fall River Woman Indicted for Social Security FraudRead the Press Release
BOSTON – A Fall River woman was arrested today for fraudulently receiving Social Security disability benefits.
Gloria Camara, 60, was indicted on one count of theft of public funds and one count of making a false statement. She is scheduled to appear before U.S. District Court Magistrate Judge Dein at 3:30 p.m.
According to the indictment, over a period of ten years, Camara stole approximately $81,929 in Social Security benefits. In April 2017, she falsely told the Social Security Administration that her only income came in the form of unemployment compensation benefits and wages from two companies when she was also earning income as a caregiver.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of making a false statement provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Eleven Indicted for Conspiracy to Commit Healthcare Fraud Related to Kickbacks Involving Compounded Medication Prescriptions and Tricare BeneficiariesRead the Press Release
UPDATE
On October 18, 2021, a federal jury acquitted defendants Greg Carter and John Clark Walton of the charges alleged in the indictment described in the press release below.
Jacksonville, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Scott Balotin (49, Saint Johns), Greg Carter (62, Fleming Island), Thomas Jones (50, Jacksonville), John Clark Walton (49, Jacksonville), David Stevens (40, Callahan), Sam Todd (40, Jacksonville Beach), Derwin Allen (50, Jacksonville), and Pablo Ortiz (51, Middleburg) with conspiracy. Various defendants are also charged with multiple counts of receiving and paying kickbacks and/or money laundering. The maximum penalty for the conspiracy count and each count of money laundering is 10 years in federal prison. The maximum penalty for each count of receiving and paying kickbacks is 5 years in federal prison. The indictment also notifies the individuals that the United States intends to forfeit the proceeds traceable to the offense, as well as items and properties purchased with proceeds traceable to the offense, including a 2015 Cadillac Escalade, a 2015 Ford Thor Motor Coach, and two residences.
In a related case, a grand jury returned an indictment charging Qualla Miller (42, Orange Park), Earl Smalls (57, Jacksonville), and Mario Correa Jackson (35, Jacksonville) each with one count of conspiracy to commit health care fraud and separate counts of soliciting and receiving kickbacks. In addition, Smalls and Jackson were each charged with paying kickbacks, and Miller and Smalls were each charged with money laundering. The maximum penalty for the conspiracy count and each count of receiving and paying kickbacks is 5 years in federal prison. The maximum penalty for each count of money laundering is 10 years in federal prison. The indictment also notifies the individuals that the United States intends to forfeit the proceeds traceable to the offense.
According to the indictments, Balotin owned and operated Casepark, a marketing firm in Jacksonville that utilized sales representatives to market compounded medications, including creams for pain and scars, to health care benefit program beneficiaries. The creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000 for a one-month supply. Casepark focused its promotional efforts on TRICARE beneficiaries, based upon an understanding and belief that TRICARE would pay claims for these compounded medications. The indictment alleges that a large number of the prescriptions generated for the recruited TRICARE beneficiaries were directed to Park and King Pharmacy, owned and operated by Greg Carter. Casepark received approximately 55 percent of the after-cost amount of each claim paid by a health care benefit program to Park and King Pharmacy for each prescription filled. Casepark, and Park and King, paid the sales representatives a percentage of the paid claims they received from the pharmacies.
To induce beneficiaries to provide their TRICARE information and obtain prescriptions for compounded creams from various doctors, patient recruiters (Jones, Walton, Stevens, Todd, Allen, Ortiz, Miller, Smalls, and Jackson) agreed to make, made, and caused to be made illegal kickbacks in the form of cash payments to the beneficiaries. Those prescriptions were filled at Park and King and other pharmacies and resulted in commission payments being made to Casepark and its sales representatives, including the defendants.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, the Jacksonville Sheriff’s Office, the Florida Department of Law Enforcement, and the United States Marshals Service. It will be prosecuted by Assistant United States Attorney Julie Hackenberry.
Edward Ambrosino, Former Town of Hempstead Councilman, Sentenced to Prison for Tax EvasionRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Edward Ambrosino, a former Town of Hempstead Councilman, was sentenced to six months’ imprisonment for tax evasion, to be followed by three years’ supervised release. The Court also ordered Ambrosino to pay $700,000 in restitution to his former employer and $254,628 in restitution to the Internal Revenue Service (IRS). Ambrosino pleaded guilty in April 2019. The sentencing proceeding was held before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, IRS-Criminal Investigation, New York (IRS-CI), announced the sentence.
“Ambrosino, a licensed attorney and elected official charged with levying taxes, abused his positions of trust and was himself a tax cheat,” stated United States Attorney Donoghue. “This is yet another example of a public official on Long Island breaking the law, this time by failing to pay his fair share of taxes like every other citizen.” Mr. Donoghue expressed his thanks to IRS-CI and the FBI for their help during the investigation.
“The tax evasion perpetuated by Mr. Ambrosino impacts various services provided by the income taxes collected by the IRS on behalf of all of our citizens,” stated IRS-CI Special Agent-in-Charge Larsen.
As detailed in court filings, Ambrosino was an attorney licensed to practice in New York State, specializing in economic and industrial development and financings, and formerly was “Of Counsel” at a law firm based in Uniondale, New York (the “Law Firm”). In addition, Ambrosino served as a Councilman for the Town of Hempstead, New York, from March 2003 until he resigned last April.
In 2011, Ambrosino incorporated Vanderbilt Consulting Group, Inc. (“Vanderbilt”). Ambrosino was the sole shareholder of Vanderbilt. In September 2012, Ambrosino opened a bank account in the name of Vanderbilt (the “Vanderbilt Bank Account”); he was the sole authorized signer on the Vanderbilt Bank Account.
From 2013 through 2015, Ambrosino diverted to the Vanderbilt Bank Account more than $800,000 in legal fees from clients, including the Nassau County Industrial Development Agency (NCIDA) and the Nassau County Local Economic Assistance Corporation (NCLEAC), that were due as revenue to the Law Firm. While the defendant neither admitted nor denied wrongdoing with regard to his conduct related to the Law Firm, as part of his sentence, the Court ordered the defendant to pay $700,000 in restitution to the Law Firm.
Ambrosino also evaded substantial income tax and filed false and fraudulent corporate tax returns on behalf of Vanderbilt for the 2011, 2012 and 2013 tax years. Ambrosino evaded the assessment of income tax by claiming false and fraudulent business expense deductions and failing to report funds he diverted from the Law Firm. Specifically, Ambrosino claimed as a business expense rent for a Manhattan apartment that he paid for on behalf of a third-party. In addition, for the 2013 tax year, Ambrosino failed to claim approximately $335,000 in funds he diverted from the Law Firm on either his personal income tax return or the Vanderbilt corporate tax return. With respect to the 2014 tax year, Ambrosino did not timely file his personal tax return or the corporate tax return for Vanderbilt. As a result of Ambrosino’s conduct, the IRS suffered a tax loss of approximately $254,628 and the New York State Tax Department suffered a tax loss of approximately $56,517. At the time of sentencing, Ambrosino had substantially paid his tax debt to the IRS and the New York State Tax Department.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Catherine M. Mirabile is in charge of the prosecution.
The Defendant:
EDWARD AMBROSINO
Age: 55
North Valley Stream, NYE.D.N.Y. Docket No. 17-CR-162 (JS)
Duxbury Man Arrested on Child Pornography ChargeRead the Press Release
BOSTON – A Duxbury man was arrested and charged with a child pornography offense.
Louis Ackerman Jr., 45, was charged by criminal complaint with possession of child pornography. Ackerman had his initial appearance this afternoon before Magistrate Judge Donald L. Cabell who will schedule a detention hearing for next week. Ackerman remains in custody.
According to the charging document, during the execution of a federal search warrant at Ackerman’s home today, law enforcement found hundreds of videos and images of child pornography on his laptop and multiple printed computer pages depicting child pornography under his bed.
The charging statute provides for a sentence of up to 20 years in prison, a minimum of five years and up to a lifetime 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; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of Massachusetts State Police; Barnstable Police Chief Matthew Sonnabend; and Duxbury Police Chief Stephen McDonald made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Durham Man Caught by Alamance County Child Exploitation Operation Sentenced to 10 Years in PrisonRead the Press Release
GREENSBORO, N.C. – A man who pleaded guilty to attempted enticement of a minor was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
I. JEFFREY BRANDEIS, 49, of Durham, North Carolina, pleaded guilty on July 25, 2019, to one count of attempted enticement of a minor. He was sentenced today by United States District Judge N. Carlton Tilley, Jr. to 120 months of imprisonment followed by 15 years of supervised release.
In September 2018, BRANDEIS used a popular chat application to contact an individual purporting to be a 13 year-old girl, but that was actually an undercover detective with the Alamance County Sheriff’s Office. BRANDEIS exchanged more than one thousand text messages with the undercover detective for several months, with many of those messages being of a sexual nature. BRANDEIS was arrested after he traveled to a park in Graham on the night of January 2, 2019, for the purpose of engaging in indecent liberties with a minor, as shown in his text messages.
Investigators seized BRANDEIS’S phone and, with the assistance of Homeland Security Investigations (HSI), found that the device had been used to navigate to websites that contained child pornography. Investigators subsequently seized BRANDEIS’s computer and examined it. Child pornography artifacts discovered on the computer revealed that it has been used to access and download child pornography over several years.
The Alamance County Sheriff’s Office and Homeland Security Investigations (HSI) are both members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. With the consistent support of HSI, the referenced undercover child exploitation operation conducted by the Alamance County Sheriff’s Office has resulted in multiple arrests and convictions.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse, and prosecuted by Assistant United States Attorney Eric L. Iverson. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Drug Dealer Sentenced to More Than 17 Years in Prison for Selling Fentanyl That Caused Overdose Death of Public School Teacher in the BronxRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KASHAWN LYONS was sentenced to 210 months in prison in connection with his sale of the fentanyl that resulted in the death of Matthew Azimi, a public school teacher in the Bronx. LYONS pled guilty to narcotics conspiracy on January 14, 2019. As part of his guilty plea, LYONS stipulated that he sold the drugs that resulted in the death of Mr. Azimi. U.S. District Judge Andrew L. Carter, Jr. imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Kashawn Lyons admitted to selling a fatal dose of fentanyl to Matthew Azimi, a public school teacher in the Bronx, who overdosed inside of his schoolhouse at the age of 36. The tragic death of a public educator is a reminder of the pervasiveness of the opioid epidemic and its destructive effect on our society. Today’s sentence serves as a reminder that lengthy prison terms will result from dealing deadly opioids.”
According to court documents and statements made in open court:
On November 30, 2017, Matthew Azimi, age 36, was found dead inside a faculty bathroom at a special education public school in the Bronx (the “School”) where Mr. Azimi was a teacher. The New York City Police Department (“NYPD”) responded to the School and began investigating Mr. Azimi’s death. An autopsy conducted following Mr. Azimi’s death revealed that he died from a lethal dose of fentanyl. NYPD officers recovered a syringe and a pink glassine bag with no stamp or other distinctive marking next to Mr. Azimi’s body. NYPD also recovered Mr. Azimi’s cellphone.
The NYPD was able to trace the last three completed calls that Mr. Azimi made before he overdosed on November 30, 2017 to a cellphone used by LYONS. Through surveillance, the NYPD learned that LYONS continued to sell fentanyl and heroin in the vicinity of the School. In February 2018, the NYPD made undercover buys of fentanyl and heroin from LYONS in close proximity to the School. The fentanyl and heroin purchased from LYONS was packaged in the same unique pink glassine bags as the one that was found next to Mr. Azimi’s body.
* * *
In addition to the prison term, LYONS, 33, of the Bronx, New York, was sentenced to five years of supervised release.
Mr. Berman praised the outstanding investigative work of the NYPD in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Justin V. Rodriguez and Jacob Warren are in charge of the prosecution.
Dayton businessman sentenced for mail fraudRead the Press Release
DAYTON – Dayton businessman Clayton Luckie was sentenced in U.S. District Court today to four months imprisonment followed by four months of home detention for his role in defrauding the City of Dayton’s disadvantaged business program.
Luckie, who pleaded guilty on July 2 to one count of mail fraud, was also ordered to serve three years under court supervision following his prison term, and perform 100 hours of community service.
According to court documents, Luckie agreed in 2016 to help create a fake paper trail indicating to Dayton that a company had performed work under a disadvantaged business component. In return he understood that he would receive a small portion of any funds received from the contract with the city.
Luckie ordered large magnetic signs emblazoned with the name of the company and intended to put them on the trucks of another company to make it appear that the first company was doing the work. Luckie also created fake invoices intended for submission to Dayton. Luckie received $2,000 for his role in the scheme.
Luckie is one of seven people charged as part of an ongoing public corruption investigation.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Joseph Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the sentence imposed today by U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Brent Tabacchi, SaMee Harden and Dominick S. Gerace are representing the United States in this case.
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Convicted Felon Sentenced to 100 Months for Illegally Possessing Weapons and Drugs at Gun ShowRead the Press Release
Memphis, TN – Jonathan Shelton, 29, has been sentenced to 100 months in federal prison for being a convicted felon illegally in possession of firearms and drugs. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on April 23, 2017 at approximately 4:30 PM, Multi-Agency Gang Unit ("MGU") detectives were investigating a theft near the gun show at the Agricenter at 7777 Walnut Grove Road. While there, they were stopped by the security detail at the gun show, who told the officers that an individual was causing a disturbance inside the gun show and smelled very strongly of marijuana. This individual was later identified as Jonathan Shelton. Officers watched Shelton hand a large amount of cash to a female and then be escorted out of the gun show by security. The female was later identified as Tammy Fox, 50,—Shelton’s mother.
Officers followed Shelton outside and saw him get into the rear left passenger seat of a 2006 Mitsubishi Endeavor. A short time later, Fox exited the gun show carrying a Spikes Tactical multi-caliber pistol--a black semi-automatic AR-15 style pistol. She then got into the rear right passenger seat and handed the pistol to Shelton. Detectives followed the vehicle and conducted a traffic stop because the windows were tinted below the Tennessee legal limit.
The car had four occupants: Shelton in the left rear passenger seat; Fox in the right rear passenger seat; Mario Silas, 39, in the front passenger seat; and, Sheritha Wells, 39, the registered owner of the vehicle, in the driver’s seat. Officers saw in plain view the Spikes Tactical multi-caliber pistol on the floorboard of the left rear passenger seat where Shelton was seated and could smell marijuana emanating from the vehicle. A K9 unit on scene provided a positive alert for narcotics.
Officers searched the vehicle based on the marijuana smell and on the K9 positive alert. In a brown purse, they found 0.7 grams of cocaine, 1.2 grams of heroin, 4.8 grams of marijuana and a Ruger .357 caliber revolver. Officers also recovered a stolen Springfield Armory .45 caliber pistol in the glove box and the Spikes Tactical multi-caliber pistol from the left rear floorboard.
All of the occupants of the vehicle waived their rights and gave statements to the police. Wells denied knowledge of any of the firearms or drugs. Silas admitted to possessing the stolen Springfield Armory .45 caliber pistol. Shelton admitted to possessing the Spikes Tactical multi-caliber pistol, the Ruger .357 revolver and all of the drugs. He later admitted on recorded jail calls to putting the gun and drugs in his mother’s purse. Fox admitted to purchasing the Spikes Tactical multi caliber pistol for her son. At the time of these events Silas was a convicted felon; Shelton was a knowingly convicted felon; and Fox had been knowingly convicted of a misdemeanor crime of domestic violence.
On November 13, 2019, U.S. District Court Judge John T. Fowlkes Jr., sentenced Shelton to 100 months in federal prison followed by 3 years supervised release. On November 28, 2018, the co-defendant Silas was sentenced to 180 months imprisonment and 3 years supervised release. Tammy Fox has pleaded guilty to being in possession of a firearm after being convicted of a misdemeanor crime of domestic violence and is set for sentencing on January 9, 2020.
U.S. Attorney D. Michael Dunavant said: "Reducing gun and violent crime is the top priority of this office and the Department of Justice. Prohibited persons in possession of firearms, such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to their families and the community at large. Clearly, all three of these defendants possessed firearms despite their prohibited status, and I commend the work of our federal and local law enforcement partners in holding them responsible and removing them from our streets."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Multi-Agency Gang Unit.
Assistant U.S. Attorney J. William Crow prosecuted this case on behalf of the government.
Compounding Pharmacy and Its Owner Pay More Than $200,000 to Resolve False Claims Act AllegationsRead the Press Release
A compounding pharmacy headquartered in Lenexa, Kansas, along with its owner, agreed to pay $205,000 to resolve allegations that the pharmacy submitted false claims to Tricare, the health care program for uniformed service members, retirees, and their families. Neither the owner nor the pharmacy admitted liability as part of the settlement.
Midwest Compounders, Inc., and its owner, Troy DeLong, agreed to settle allegations that claims submitted to Tricare from June 2012 to December 2014 were fraudulent for purposes of the False Claims Act. The United States alleged that certain claims for compound medications during this period resulted from unlawful arrangements between the pharmacy and prescribers or marketers, or were otherwise improperly inflated in that the claims sought payment for medically unnecessary dosages or for redundant active ingredients.
The allegations were made in a qui tam, or whistleblower, lawsuit. The lawsuit was brought under the False Claims Act, which punishes violators who submit false claims to the government or who knowingly attempt to avoid an obligation to repay federal funds. The whistleblower provisions allow private parties who have knowledge of fraud committed against the government to file suit on behalf of the government and share in any recovery. The individual who filed this lawsuit received a share of the total amount recovered.
The matter was handled by Assistant United States Attorney Jake Schunk and investigated by the Defense Criminal Investigative Service. The lawsuit is captioned United States ex rel. Sten v. Midwest Compounders, et al.
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Cocaine Trafficker Sentenced to Nearly 15 Years in PrisonRead the Press Release
RICHMOND, Va. – A Hopewell man was sentenced today to nearly 15 years in prison for his role in a cocaine trafficking conspiracy.
According to court documents, Lorenzo Coleman, 41, was the leader and organizer of a multi-defendant drug trafficking ring that distributed cocaine into Hopewell and the surrounding areas. Coleman admitted that between 2013 and 2015, he conspired to distribute nearly 15 kilograms of cocaine. Coleman fled Virginia in July 2017, but was located by the U.S. Marshals Service last June and returned to Virginia. As part of his plea, Coleman has agreed to forfeit the sum of $500,000, which represents the proceeds of the crime to which he has pleaded guilty.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel John F. Keohane, Chief of Hopewell Police Department, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-9.
Clinton Man Sentenced to Seven Years for Possessing a Firearm and High-Capacity MagazinesRead the Press Release
OKLAHOMA CITY – JASON SCOTT PEDRO, 37, of Clinton, has been sentenced to 84 months in prison for being a felon in possession of a firearm, announced U.S. Attorney Timothy J. Downing.
On April 16, 2019, a federal grand jury indicted Pedro for possessing a firearm on February 7, 2019, during a traffic stop. In particular, he possessed a lower receiver of an AR-15-style rifle, along with five loaded high-capacity magazines.
Pedro pleaded guilty on June 25, 2019.
On November 14, U.S. District Judge David L. Russell sentenced Pedro to 84 months in prison, an upward variance from an advisory sentencing guideline range of 51 to 63 months. Pedro will be required to serve three years on supervised release after his prison term. This sentence was based, among other things, on the nature and circumstances of the offense and the need to protect the public from further crimes of the defendant, whose criminal history includes two offenses involving domestic violence.
This case is the result of an investigation by the Clinton Police Department and the U.S. Department of Homeland Security. Prosecuted by Assistant U.S. Attorney Mary E. Walters, it is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime.
Reference is made to court filings for further information.
California Health System and Surgical Group Agree to Settle Claims Arising from Improper Compensation ArrangementsRead the Press Release
Several hospitals owned and operated by Sutter Health (Sutter), a California-based healthcare services provider, and Sacramento Cardiovascular Surgeons Medical Group Inc. (Sac Cardio), a practice group of three cardiovascular surgeons, have agreed to pay the United States a total of $46,123,516 to resolve allegations arising from claims they submitted to the Medicare program, the Department of Justice announced today.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. It is intended to ensure that medical decision-making is not influenced by improper financial incentives and is instead based on the best interests of the patient.
As part of the settlements announced today, one of Sutter’s hospitals, Sutter Memorial Center Sacramento (SMCS), has agreed to pay $30.5 million to resolve certain allegations that, from 2012 to 2014, it violated the Stark Law by billing Medicare for services referred by Sac Cardio physicians, to whom it paid amounts under a series of compensation arrangements that exceeded the fair market value of the services provided. Relatedly, Sac Cardio has agreed to pay $506,000 to resolve allegations that it knowingly submitted duplicative bills to Medicare for services performed by physician assistants that it was leasing to SMCS under one of those compensation arrangements.
“Improper financial arrangements between hospitals and physicians can influence the type and amount of health care that is provided,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department is committed to taking action to eliminate improper inducements that can impact physician decision-making.”
“This office will continue to take all appropriate action to help ensure that the beneficiaries of federal health care programs receive services untainted by improper financial incentives,” said U.S. Attorney David L. Anderson for the Northern District of California.
“Providers must rigorously comply with the law and Medicare requirements” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “This office is committed to pursuing enforcement actions that will ensure the integrity of federal health care programs.”
Separately, Sutter has agreed to pay $15,117,516 to resolve other conduct that it self‑disclosed to the United States, principally concerning additional violations of the Stark Law. Specifically, Sutter hospitals submitted Medicare claims that resulted from referrals by physicians to whom those hospitals (1) paid compensation under personal services arrangements that exceeded the fair market value of the services provided; (2) leased office space at below-market rates; and (3) reimbursed physician-recruitment expenses that exceeded the actual recruitment expenses at issue. Additionally, several Sutter ambulatory surgical centers double-billed the Medicare program by submitting claims that included radiological services for which Medicare separately paid another entity that had performed those services.
Certain allegations relating to SMCS and Sac Cardio were originally brought by Laurie Hanvey in a lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the federal government and to share in any recovery. The whistleblower will receive $5,891,140 as her share of the federal government’s recovery in this case. The case is captioned United States ex rel. Hanvey v. Sutter Health et al., Civil Action No. 14-4100 (N.D. Cal.).
These matters were handled on behalf of the government by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Northern District of California, and the U.S. Attorney’s Office for the Eastern District of California. Investigative support was provided by the Department of Health and Human Services’ Office of the Inspector General.
The claims resolved by these settlements are allegations only and there has been no determination of liability.
California Health System Agrees to Pay over $15M to Settle Claims Arising from Improper Compensation Arrangements and Double BillingRead the Press Release
SACRAMENTO, Calif. — Sutter Health has agreed to pay $15,117,516 to resolve conduct concerning violations of the Physician Self-Referral Law, commonly known as the Stark Law, as well as double-billing for certain services, U.S. Attorney McGregor W. Scott announced today.
The Stark Law prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The law is intended to ensure that medical decision-making is not influenced by improper financial incentives and is instead based on the best interests of the patient.
The conduct at issue was self-disclosed by Sutter to the United States, and includes submission of claims to Medicare that resulted from referrals by physicians to whom certain Sutter hospitals: (1) paid compensation under personal services arrangements that exceeded the fair market value of the services provided; (2) leased office space at below-market rates; and (3) paid reimbursements of physician-recruitment expenses that exceeded the actual recruitment expenses at issue. Additionally, several Sutter ambulatory surgical centers double-billed the Medicare program by submitting claims that included radiological services for which Medicare separately paid another entity that had performed those services.
“Providers must rigorously comply with the law and Medicare requirements” said U.S. Attorney Scott. “This office is committed to pursuing enforcement actions that will ensure the integrity of federal health care programs.”
This settlement is the result of work by the U.S. Attorney’s Office for the Eastern District of California with help from the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
California Health Group and Surgical Group Agree to Settle Claims Arising from Improper Compensation ArrangementsRead the Press Release
SAN FRANCISCO – Several hospitals owned and operated by Sutter Health (“Sutter”), a California-based healthcare services provider, and Sacramento Cardiovascular Surgeons Medical Group, Inc. (“Sac Cardio”), a practice group of three cardiovascular surgeons, have agreed to pay the United States a total of $46,123,516.36 to resolve allegations related to reimbursement claims they submitted to the Medicare program, the Department of Justice announced today.
The Physician Self Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The law is intended to ensure that medical decisions are not influenced by improper financial incentives.
As part of the settlements announced today, one of Sutter’s hospitals, Sutter Memorial Center Sacramento (“SMCS”), has agreed to pay $30.5 million to resolve allegations that, from 2012 to 2014, it violated the Stark Law by billing Medicare for services referred by Sac Cardio physicians, to whom it paid amounts under a series of compensation arrangements that exceeded the fair market value of the services provided. Relatedly, Sac Cardio has agreed to pay $506,000 to resolve allegations that it improperly submitted duplicative bills to Medicare for services performed by physician assistants that it was leasing to SMCS under one of those compensation arrangements.
“Improper financial arrangements between hospitals and physicians can influence the type and amount of health care that is provided,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department is committed to taking action to eliminate improper inducements that can corrupt the integrity of physician decision-making.”
“Medical decisions should be based on the best interests of the patient, not improper financial incentives. In this case, the Stark Law is being enforced to ensure that Medicare recipients and other beneficiaries of federal health care programs receive care untainted by prohibited financial incentives,” said David L. Anderson, United States Attorney for the Northern District of California.
Separately, Sutter has agreed to pay $15,117,516.36 to resolve other conduct that the company itself disclosed to the United States, principally concerning additional violations of the Stark Law. Specifically, Sutter hospitals submitted Medicare claims that resulted from referrals by physicians to whom those hospitals (1) paid compensation under personal services arrangements that exceeded the fair market value of the services provided; (2) leased office space at below-market rates; and (3) paid reimbursements of physician-recruitment expenses that exceeded the actual recruitment expenses at issue. Additionally, several Sutter ambulatory surgical centers double-billed the Medicare program by submitting claims that included radiological services for which Medicare separately paid another entity that had performed those services.
“Providers must rigorously comply with the law and Medicare requirements” said United States Attorney McGregor Scott. “This office is committed to pursuing enforcement actions that will ensure the integrity of federal health care programs.”
The allegations relating to SMCS and Sac Cardio were originally brought by Laurie Hanvey in a lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the federal government and to share in any recovery. The whistleblower will receive $5,891,140 as her share of the federal government’s recovery in this case.
These matters were handled on behalf of the government by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Northern District of California, and the U.S. Attorney’s Office for the Eastern District of California. Investigative support was provided by the Department of Health and Human Services’ Office of the Inspector General.
The claims resolved by these settlements are allegations only and there has been no determination of liability.
Buffalo Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Angelo Kidd, 31, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with intent to distribute, and distributing, 28 grams or more of crack cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that between August 2018 and June 18, 2019, the defendant conspired with others to sell crack cocaine. On August 31, 2018, Buffalo Police Officers executed a search warrant at 67 and 76 Townsend Street in Buffalo. Kidd was detained along with Charles Washington, John Sanders, Jr., and others. Officers recovered approximately 158 grams of crack cocaine, approximately 76 grams of marijuana, and items used to process and package crack cocaine for distribution. These items included cooking pans, "cut" of white powder, sandwich bags, and a digital scale that contained crack cocaine residue. Officers also recovered approximately $3,163 in United States currency.
On January 21, 2019, the Town of Tonawanda Police Department conducted a stop of a vehicle driven by John Sanders, Jr. The defendant was in the passenger seat. A search of the vehicle recovered 462 grams of marijuana in a vacuum sealed bag in the trunk, and approximately $3,000 to $4,000 in United States currency.
A total of 10 defendants were charged in this case, Kidd is the first to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the City of Tonawanda Police Department, under the direction of Chief William Strassburg.
Sentencing is scheduled for February 26, 2020, before Judge Arcara.
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Atlantic City Woman Sentenced to 78 Months in Prison for Money LaunderingRead the Press Release
CAMDEN, N.J. – An Atlantic City woman was sentenced to 78 months in prison for her role in a drug trafficking and money laundering operation in the Atlantic County area, U.S. Attorney Craig Carpenito announced today.
Jazmin Vega, 45, previously pleaded guilty to one count of an indictment charging her with conspiracy to commit money laundering. U.S. District Judge Renee Marie Bumb imposed the sentence Nov. 14, 2019, in Camden federal court.
According to documents filed in this case and statements made in court:
From 2010 through December 2014, Vega’s long-time paramour, Toye Tutis, 47, operated a large-scale drug trafficking ring out of the Ta’Ja Laundromat in Atlantic City, purchasing and distributing between 150 to 450 kilograms of cocaine and approximately 26 kilograms of heroin, and laundering between $1.5 and $3 million in drug proceeds. Tutis was aided by Vega, who admitted to laundering his drug trafficking proceeds in several ways, including through the couple’s various businesses – Ta’Ja Construction I LLC; Ta’Ja Real Estate Investors LLC; and Integrity Heating and Cooling LLC; and by purchasing more than 30 properties with tainted funds.
In addition to the prison term, Judge Bumb sentenced Vega to three years of supervised release and fined her $1,000. As part of their plea agreements, Vega and Tutis must forfeit 20 properties, cash and other assets.
Tutis also pleaded guilty and was sentenced to 264 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to sentencing.
He also thanked the New Jersey State Police; the Pennsylvania State Police, the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield, and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Camden Office.