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Thursday 3 October 2019
Mexican Man Sentenced for Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that GREGORIO GALAVIZ-ZAMORA, age 60, a native of Mexico, was sentenced today after previously pleading guilty to illegally using a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
United States District Court Judge Nannette Jolivette Brown sentenced GALAVIZ-ZAMORA to time served and was required to pay a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, prior to August 14, 2019, GALAVIZ-ZAMORA submitted a fraudulent Form I-9 application in order to obtain employment with a construction company. He attested on the form that he was someone else. He used a fraudulent Social Security card in the name of the other person which also contained that person’s actual Social Security number as verification. In order to finalize employment with that company, he was required to take a safety course at another location on August 14, 2019. He once again provided the fraudulent Social Security card and number as proof of his identity, but an employee suspected the card was fraudulent and alerted Customs and Border Protection. Subsequent record checks confirmed his real identity.
U.S. Attorney Strasser praised the work of United States Customs and Border Protection, Immigration and Customs Enforcement, Enforcement and Removal Operations, Homeland Security Investigations, and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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McAlester Woman Pleads Guilty to Heroin DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Callie Marie Woolsey, age 31, of McAlester, Oklahoma, entered a guilty plea to Distribution Of Heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 2, punishable by imprisonment for not more than 20 years.
The Information alleges that on or about December 16, 2018, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance. As a part of its case, the Government presented evidence that the defendant distributed the heroin to A.B. and that A.B. died after ingesting the heroin.
The charges arose from an investigation by the McAlester Police Department and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Man from Santa Fe, N.M., faces federal charges for allegedly robbing banks in Santa Fe and EspañolaRead the Press Release
The complaint further alleges Padilla committed the third bank robbery in Santa Fe on September 26. Padilla allegedly received money from a teller after presenting a demand note.
The FBI arrested Padilla yesterday in Santa Fe. He is currently in custody awaiting preliminary and detention hearings scheduled for tomorrow. Padilla faces up to 20 years in prison if convicted. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
The FBI investigated this case with assistance from the Espanola Police Department. Assistant U.S. Attorney Eva Fontanez is prosecuting the case.
Man Sentenced for Distributing Cocaine and Heroin in Hampton RoadsRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced yesterday to over seven years in prison after for distributing cocaine and heroin in Hampton Roads.
According to court documents, in May a federal jury convicted Erick Allen Osby, 24, of possession with intent to distribute cocaine and heroin.
In September 2018, Osby, who had active warrants for his arrest regarding narcotics distribution charges out of Hampton at the time, was observed by law enforcement approaching multiple vehicles parked in a residential area of 72nd Street in Newport News and acting in a manner consistent with drug trafficking. Osby appeared to be distributing and receiving items to and from a white shoulder bag that he was wearing. Upon entering the back seat of one of the vehicles, law enforcement moved in and arrested Osby. Inside the white shoulder bag was a bag of heroin, suspected narcotics packaging material, and Osby’s identification card. A bag of cocaine was also found on top of the shoulder bag and Osby had nearly $2,000 in cash and a digital scale on his person.
This case is part of Project Safe Neighborhoods (PSN), which 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Peter G. Osyf 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. 4:19-cr-9.
Man Sentenced for Bank and Identity FraudRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to nearly five years in prison for bank fraud and aggravated identity theft.
According to court documents, Christopher Nelson, aka Fabian Ellington III, 42, was part of a group that defrauded the Virginia Credit Union (VACU), a federally insured financial institution, through a sophisticated scheme. In the first step, Nelson, doing business as Financial Solutions, LLC, and others, recruited and paid financially needy individuals to open bank accounts, in their own name, and thereafter turn over to Nelson and his conspirators, the account numbers, debit cards, PINs, and starter checks associated with the new accounts.
In the next step, Nelson and his conspirators would then deposit fraudulent checks into the newly-opened accounts to inflate the account balances. Shortly after the deposits, Nelson or a conspirator would go to an ATM machine or drive-up window, and fraudulently use the debit cards to withdraw currency generated by the fraudulently inflated balances. Nelson and his conspirators also would use the debit cards to purchase items at commercial establishments. After the financial institution detected the scheme and deactivated a fraudulent account, Nelson simply opened a new fraudulent account in the name of a new person, and continued the scheme.
The loss sustained by the Virginia Credit Union was approximately $40,000 from the Spring 2017 until June 2018.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jerald W. Page, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney David T. Maguire 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. 3:18-cr-09.
Man Pleads Guilty to Misuse of Social Security NumberRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that LUIS FELIPE PALAFOX-ALVAREZ (PALAFOX-ALVAREZ), age 25, pled guilty on October 1, 2019 before United States District Court Judge Greg G. Guidry, to a one-count bill of information charging him with misuse of a Social Security Number, in violation of Title 18, United States Code, Section 408(a)(7)(B).
According to court documents, PALAFOX-ALVAREZ, a citizen of Mexico, presented a false Social Security card when attending a pre-employment safety class at the Gulf Coast Safety Council in St. Rose, Louisiana. PALAFOX-ALVAREZ falsely represented that a social security number was assigned to him when, in fact, the social security number had been assigned by the Commissioner of Social Security to another individual.
PALAFOZ-ALVAREZ faces a possible sentence up to five (5) years imprisonment, a fine of $250,000 and one (1) year of supervised release following any term of imprisonment. United States District Court Judge Greg G. Guidry set sentencing for October 8, 2019.
U.S. Attorney Peter G. Strasser praised the work of the U.S. Department of Homeland Security, Immigration and Customs Enforcement, United States Border Patrol and the Office of Inspector General, Social Security Administration. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
Man Arrested in Rancho Cordova Sentenced to over 4 Years in Prison for Identity Theft and a Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Cody Patrick Cannon, 31, a transient, was sentenced to four years and nine months in prison for bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January and August 2018, Cannon and an accomplice engaged in a bank fraud scheme in which they used counterfeit U.S. Postal Service keys to open apartment complex mailboxes and steal hundreds of pieces of mail throughout Northern California. From the stolen mail, Cannon and the accomplice then harvested financial information, government-issued IDs, credit and debit cards, and personally identifiable information. They also defrauded banks by using the stolen cards to purchase goods and withdraw cash from ATMs in Vacaville, Folsom, Rocklin, and Rancho Cordova.
On Aug. 2, 2018, Cannon and co-defendant Candice Freitas were arrested at their RV, which was parked in a hotel parking lot in Rancho Cordova. They were found to be in possession of stolen mail, checks, multiple stolen and fake California driver’s licenses, at least two passports bearing the names of others, and at least seven counterfeit U.S. Postal Service mail keys.
The U.S. Postal Inspection Service has identified over 1,500 victims of mail theft associated with these offenses.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, the Folsom Police Department, and the Vacaville Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Freitas has pleaded not guilty to the charges in the indictment and remains in custody pending trial, which is scheduled for April 20, 2020. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
MS-13 defendant pleads guilty to murder, admits responsibility as shooterRead the Press Release
COLUMBUS, Ohio – A defendant in the MS-13 racketeering case pleaded guilty in U.S. District Court today and accepted responsibility for his involvement as a shooter in one homicide. His plea agreement includes a recommended sentence of 30 years in prison.
Jose Mendez-Peraza, 37, of Columbus, pleaded guilty today to one count of participating in a racketeering conspiracy and one count of murder through the use of a firearm during a crime of violence.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Interim Columbus Police Chief Thomas Quinlan announced the plea entered into today before U.S. District Judge Edmund A. Sargus, Jr.
Mendez-Peraza, also known as “Shadow,” is one of 23 individuals charged in a second superseding indictment in February 2018 who are alleged to be members and associates of MS-13 in Columbus.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
The second superseding indictment alleges that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
As part of his guilty plea, Mendez-Peraza accepted responsibility for his role as a shooter in the murder of Salvador Martinez-Diaz. MS-13 members and associates began targeting Martinez-Diaz, a suspected 18th Street gang member, for murder as early as 2015.
On Dec. 3, 2016, co-conspirators waited in the parking lot of the Resolute Athletic Complex in Columbus where the victim was playing soccer. Others, including Mendez-Peraza, wore dark ski masks and waited for Martinez-Diaz near his apartment building at Melroy Avenue and Kelburn Road in Columbus.
When the victim arrived near his home, Mendez-Peraza and another MS-13 member opened fire on Martinez-Diaz with pistols, shooting him multiple times and killing him.
As part of his plea, Mendez-Peraza also admitted to threatening a witness/victim in this case while at the Joseph P. Kinneary United States Courthouse in Columbus. Mendez-Peraza told the witness/victim that MS-13 members would kill the individual and his/her family if the individual cooperated with law enforcement.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
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Lynn Man Charged with Aggravated Identity Theft and Stealing Government BenefitsRead the Press Release
BOSTON – A Lynn man was arrested yesterday and charged in federal court in Boston with theft of government benefits and aggravated identity theft.
John Doe, whose true identify is unknown, was indicted on two counts of theft of public money, one count of false statement on an application for Social Security benefits, and one count of aggravated identity theft.
According to the charging document, Doe made a false statement in an application for Social Security benefits in July 2019. In addition, Doe is charged with stealing over $16,000 in MassHealth benefits from October 2008 through July 2016, and over $12,000 in Food Stamps from September 2009 through July 2016.
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 false statements in an application for Social Security benefits 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. Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Luzerne County Woman Indicted for Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Laquanna Bacote, age 25, of Wilkes-Barre, Pennsylvania, was indicted on October 1, 2019, by a federal grand jury for her role in a scheme to illegally obtain firearms from federally licensed gun dealers.
According to United States Attorney David J. Freed, the indictment alleges that Bacote conspired with others to make false statements on federal firearms forms to purchase firearms and unlawfully obtain firearms from H & H Tactical in Exeter, Pennsylvania, NJT Arms in Northampton, Pennsylvania, and The Army & Navy Store in Whitehall, Pennsylvania. The indictment alleges that the conspiracy began in or about April 2019, and continues to the present. Bacote is also charged with a substantive count of making a false statements in connection with the purchase of three firearms from H & H Tactical in Exeter on April 23, 2019.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the substantive offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for the conspiracy offense is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Ligonier Man Sentenced to 165 MonthsRead the Press Release
FORT WAYNE – Jeffrey Brown, age 55, of Ligonier, Indiana was sentenced before U.S. District Court Judge Damon R. Leichty for possession with intent to distribute methamphetamine, announced U.S. Attorney Kirsch.
Brown was sentenced to 165 months in prison followed by 5 years of supervised release.
According to documents in this case, in January of 2018, a federal search warrant was executed on Mr. Brown’s residence. During this search, approximately 40 grams of crystal methamphetamine, a scale, smoking devices and multiple cell phones were found.
The case was investigated by Drug Enforcement Administration with the assistance of the Noble County Sheriff’s Department and the IMAGE Drug Task Force. The case was handled by Assistant United States Attorney Sarah E. Nokes.
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Lawrence Man Pleads Guilty to Fentanyl PossessionRead the Press Release
BOSTON – A Lawrence man pleaded guilty in federal court in Boston today to possession with intent to distribute 400 grams or more of fentanyl.
Yoan Paniagua, 24, pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Jan. 9, 2020. Paniagua was arrested and charged in March 2019.
On March 12, 2019, law enforcement stopped Paniagua, who was driving on Route 495 in Andover, and seized approximately 500 grams of fentanyl from his vehicle.
The charge of possession with intent to distribute 400 grams or more of fentanyl provides for a minimum mandatory sentence of 10 years and up to life in prison, a minimum of five years of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Lancaster Surgeon to Pay $4.25 Million to Resolve False Billing and Kickback ClaimsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced a $4.25 million civil settlement with Glenn A. Kline, D.O. and Community Surgical Associates to resolve civil allegations relating to kickbacks received from two hospitals formerly operated by Health Management Associates (HMA) in Lancaster, Pennsylvania, in violation of the False Claims Act and Anti-Kickback Statute. Dr. Kline’s case is related to a larger investigation under which HMA agreed to pay $260 million to the United States to settle claims arising from HMA’s fraudulent billing practices in multiple healthcare institutions across the United States.
Between 2009 and 2012, as alleged in the relators’ complaint, Dr. Kline practiced as a general surgeon in Lancaster, Pennsylvania. Dr. Kline was a major source of surgical business in the Lancaster area. His ability to refer patients to two former HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center, gave Dr. Kline significant leverage over HMA as it attempted to compete in the Lancaster market.
To secure Dr. Kline’s referrals, the complaint alleges that HMA compensated Dr. Kline by paying him exorbitantly more than the fair market value of his services. Dr. Kline was being paid 300% more than the Medical Group Management Association (MGMA) median salary for comparable general surgeons, and no fair market value analysis was done to support this payment. In addition to his excessive salary, Dr. Kline demanded, and was paid, additional amounts to benefit his practice, Community Surgical Associates. As alleged, Dr. Kline was paid these amounts as kickbacks for his referral of patients to Lancaster Regional Medical Center and Heart of Lancaster Medical Center, which in turn billed federal health care programs for those patients’ services. According to the complaint, these arrangements were intentionally structured to disguise payments which were, in actuality, payments for patient referrals, not for legitimate services.
“Our resolution of this matter and the significant recovery we have obtained from this physician show once again that no matter how complex the fraud scheme is, we will find it, stop it, and punish it,” said First Assistant U.S. Attorney Williams. “The alleged improper physician inducements that Dr. Kline demanded, and received, are a form of ‘pay to play’ business practice that could compromise professional judgment. In sum, this conduct must be rooted out because it interferes with a physician’s ability to provide top-notch patient care to American citizens.”
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. George E. Miller and Michael J. Metts, former HMA hospital executives in Lancaster, filed suit in the Eastern District of Pennsylvania, alleging the improper financial relationship between HMA and Dr. Kline. Mr. Miller and Mr. Metts will receive approximately $1,054,000 million as their share of the recovery. Counsel for the whistleblowers, Marc S. Raspanti, Esquire and Pamela Coyle Brecht, Esquire from the law firm of Pietragallo Gordon Bosick & Raspanti, LLP, worked closely with the United States to investigate and resolve this case. “We sincerely thank Mr. Miller and Mr. Metts. Together with their lawyers, these two citizens provided invaluable assistance to the government throughout this case. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging. Their efforts played a vital role in the resolution of these cases,” said Williams.
“Today’s settlement highlights our dedication to ensuring physicians are making health care decisions based on their patients’ needs, not illegal inducements,” said Maureen R. Dixon, Special Agent in Charge, Philadelphia Regional Office, U.S. Department of Health and Human Services, Office of the Inspector General. “We will continue to work with the U.S. Department of Justice to safeguard patients and taxpayers.”
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Deputy Chief Charlene Keller Fullmer, Assistant United States Attorney Veronica Finkelstein, and Auditor Dawn Wiggins.
The civil claims resolved by the settlement are allegations against Dr. Kline only, and there has been no determination of liability.
Kemah Man Indicted for Liberty County Attempted Bank RobberyRead the Press Release
BEAUMONT, Texas – A 58-year-old Kemah, Texas man has been indicted for attempted bank robbery in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jimmy James Mamoth, Jr., was indicted by a federal grand jury on Oct. 2, 2019 and charged with attempted bank robbery.
According to information presented by prosecutors, on Sep. 27, 2019, Mamoth was alleged to have been seen walking outside the Texas First Bank located on FM 834 in Hull, Texas, dressed in a dark hooded jacket with a Halloween-style mask on his face. Mamoth was also reported to have been wearing gloves and carrying a small duffle bag. As Mamoth approached the bank’s entrance, a bank customer in a vehicle saw Mamoth pulling the mask over his face. The bank customer began honking the horn when he realized Mamoth was entering the bank. The honking startled Mamoth who then ran past the bank entrance and into the nearby woods. The customer followed Mamoth and reported the incident to police. Law enforcement officers responded and were able to locate Mamoth with the reported hooded jacket, gloves, mask, duffle bag and an airsoft style plastic replica gun meant to resemble a Beretta 9mm pistol.
If convicted, Mamoth faces up to 20 years in federal prison.
“What a great job this citizen did to prevent a bank robbery,” said U.S. Attorney Joe Brown. “He didn’t just look the other way, he acted. And even though it may have seemed like a small act, it could have saved lives. He is a hero in my book.”
This case is being investigated by the Federal Bureau of Investigation and the Liberty County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Kennedy Gates.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Jefferson County Man Indicted on Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A 39-year-old Beaumont, Texas man has been indicted for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Brandon Michael Wyatt was named in a three-count indictment returned by a federal grand jury on Oct. 2, 2019, charging him with possession of child pornography, distribution of child pornography, and receipt of child pornography.
According to the indictment, on June 17, 2019, Wyatt was in possession of a digital media card that contained at least one visual depiction of a pre-pubescent minor engaged in sexually explicit conduct. The indictment also alleges that from Sep. 5, 2018 to Dec. 6, 2018, Wyatt received and distributed visual depictions that involved the use of a person under the age of 18 engaging in sexually explicit conduct.
If convicted, Wyatt faces up to ten years in federal prison.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.
This case is being investigated by Homeland Security Investigations, the Orange County Sheriff’s Office, and the Office of the Attorney General – Louisiana Bureau of Investigation. Assistant U.S. Attorney Christopher T. Tortorice is prosecuting the case.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Jefferson County Couple Indicted for Falsifying Tax ReturnRead the Press Release
BEAUMONT, Texas –A Jefferson County business owner and his wife have been indicted on federal tax violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Dick Brocato, Jr., 68, and his wife, Judith L. Brocato, 65, both of Beaumont, Texas, were named in a seven-count indictment charging them with conspiracy to defraud the United States for purposes of impeding government functions and six counts of making a false return. The indictment was returned by a federal grand jury on Sep. 4, 2019. The defendants made initial appearances before U.S. Magistrate Judge Keith F. Giblin today.
According to information presented by prosecutors, the Brocato’s owned a lawn service company, Superior Lawn Service, which was operated for tax purposes as an S corporation. The Brocato’s are the sole shareholders of the company with Judith Brocato as corporate president, maintaining the books and records of the corporation, and signing the corporate tax returns in that capacity. The Brocato’s are alleged to have conspired to defraud the United States for the purpose of impeding, impairing, obstructing, the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of federal income and other taxes for years 2012, 2013, and 2014. As part of that conspiracy, it is alleged that that they filed false corporate and personal income tax returns for years 2012, 2013, and 2014. To facilitate the scheme, the Brocato’s are alleged to have underreported income received by checks from numerous customers of the company and having the checks cashed and converted to cash rather than depositing the checks into the company accounts and then failing to report the amount on the various tax returns. According to the indictment, the underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014.
If convicted, the defendants each face up to five years in federal prison for the conspiracy charge and up to three years for each of the false return charges.
This case is being investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Jacksonville Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
Jacksonville, Florida – Joanna Arlean Tukes has pleaded guilty to aiding and assisting others with the filing of fraudulent tax returns. She faces a maximum penalty of three years in federal prison. Tukes has also agreed to pay $366,000 in restitution to the IRS for the tax loss caused by the offenses. A sentencing date has not yet been set.
According to the plea agreement, since 2012, Tukes owned and operated a tax return preparation business in Jacksonville. In preparing income tax returns for others, Tukes reported false information, including false claims for deductible expenses and losses, to reduce the amount owed by, or to increase the amount refunded to, the taxpayers. She then electronically filed the tax returns with the IRS causing the IRS either to issue refunds when taxes would have been owed in the absence of the fraud, or to issue larger refunds than would have been due in the absence of the fraud.
For example, Tukes prepared and filed a 2015 tax return in which she represented that the taxpayer had a business with no income and $99,651 in expenses. She also represented that the taxpayer had incurred medical and dental expenses of $29,600 and unreimbursed employee expenses of $15,600. Tukes subtracted the business “loss” of $99,651 from the taxpayer’s gross income and deducted a portion of the claimed expenses from the taxpayer’s adjusted gross income. When Tukes made these representations, she knew that the taxpayer was a wage-earning employee of a corporation and did not operate a business in 2015, and that the taxpayer had not incurred the claimed expenses. After Tukes filed the tax return, the IRS issued a refund to the taxpayer in the amount of $28,836. In the absence of the false statements, the taxpayer would have owed additional tax in the amount of $12,459. In this instance, the tax loss to the IRS was $41,295.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Jacksonville Man Sentenced to Prison After Selling Fake Heroin While Armed and Holding an InfantRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Kirkland George Lawrence (34, Jacksonville), a/k/a “Killa,” to eight years and nine months in federal prison for attempted distribution of heroin, possessing a firearm in furtherance of a drug trafficking crime, possessing a firearm as a convicted felon, and distribution of cocaine. The court also ordered Lawrence to forfeit the Smith & Wesson pistol that he had used in one of the offenses.
Lawrence had pleaded guilty on June 28, 2019.
According to court documents, in April 2018, Lawrence agreed to sell drugs to a confidential informant (CI) working at the direction of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The CI traveled to Lawrence’s apartment in the Arlington area of Jacksonville, where Lawrence sold a powder to the CI that Lawrence had represented to be heroin. It was later determined that the substance did not contain heroin. At the time of the sale, Lawrence was seated at a kitchen table, within reach of a pistol, and holding an infant.
The following day, the CI returned to Lawrence’s apartment after Lawrence agreed to sell a firearm. Inside the apartment, Lawrence brandished a pistol while additional firearms were visible on a sofa and on the floor. Lawrence also retrieved an Uzi pistol from a kitchen cabinet and displayed it to the CI. Lawrence then retrieved a Smith and Wesson pistol from outside of the apartment and sold it to the CI. Approximately two weeks later, following the execution of a search warrant at his apartment, Lawrence was arrested by officers from the Jacksonville Sheriff’s Office. At the time, Lawrence was in possession of another Smith & Wesson pistol.
In October 2018, while on bond for his previous arrest, Lawrence sold cocaine to the CI on three occasions. Lawrence was arrested again and admitted to the officers that he believed that the purported heroin that he had sold in April 2018 was genuine. During these incidents, Lawrence had a prior felony conviction for attempted armed robbery and is therefore prohibited from possessing any firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jacksonville Man Pleads Guilty to Transporting North Carolina Woman to Florida for ProstitutionRead the Press Release
Jacksonville, Florida – Richard Ronnie Jenkins (39, Jacksonville) today pleaded guilty to transporting a person in interstate commerce for the purpose of prostitution. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Jenkins met the victim (N.J.) on July 14, 2019, after N.J. had posted an online advertisement for prostitution in Fayetteville, North Carolina. Jenkins agreed to pay N.J. $160 for sex, then fraudulently told N.J. that she could make a lot more money by engaging in prostitution in Jacksonville, Florida. N.J. agreed to go to Jacksonville with Jenkins, not knowing that Jenkins intended to keep all of the money that N.J. would make. Jenkins then had sex with N.J. in his car and refused to pay her.
As Jenkins drove through the night from North Carolina to Jacksonville, he instructed N.J. to begin posting advertisements for prostitution in the Jacksonville area using a phone number with an app-generated 904 area code. When they arrived in Jacksonville on July 15, 2019, Jenkins obtained a hotel room and arranged three prostitution “dates” for N.J. The following day, Jenkins arranged a fourth “date” for N.J. Jenkins supervised each of these “dates” from the hotel parking lot. He came to the room after each “date” to collect all of the money, which he refused to share with N.J. N.J. engaged in the “dates” because she was afraid of Jenkins and because she had no funds or other resources that she could use to leave.
On July 16, 2019, Jenkins took N.J. to a hair braiding shop in Jacksonville and instructed the employees to place long braids in N.J.’s hair. Jenkins then left the shop. Believing that the shop employees were associates of Jenkins, N.J. took her phone into the bathroom, contacted a family member, and reported that she was in Jacksonville with a pimp. N.J.’s mother contacted the Jacksonville Sheriff’s Office (JSO) and reported that N.J. had been kidnapped. During the phone call, N.J. can be heard crying and stating that Jenkins was trying to call her and, that if she did not answer, she believed that Jenkins would find her and kill her. A JSO patrol officer responded to the shop and recovered N.J. Shortly thereafter, Jenkins was arrested nearby.
This case was investigated by the Jacksonville Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Erin Wolfson.
Indiana Man and His Niece Indicted on Federal Kidnapping and Domestic Violence ChargesRead the Press Release
CHICAGO — An Indiana man and his niece have been indicted on federal kidnapping and domestic violence charges for allegedly kidnapping and assaulting the man’s former girlfriend.
ROBERT SPEED and his niece, SHIRLEY SPEED, held the victim against her will and repeatedly assaulted her with various dangerous weapons from July 26, 2019, to July 31, 2019, according to an indictment returned Wednesday in federal court in Chicago. According to a criminal complaint previously filed in the case, the assaults occurred at residences in Chicago and Gary, Ind., as well as a hotel in the Chicago suburb of South Holland, during which the victim was repeatedly punched, hit with a crutch, kicked in the head and body, and choked with items such as an electrical cord. The victim, who had a previous romantic relationship with Robert Speed, was eventually released and treated in a hospital for serious injuries, according to the charges.
The indictment charges Robert Speed, 36, of Gary, Ind., and Shirley Speed, 24, of Chicago, with one count of kidnapping and one count of interstate domestic violence. Arraignments are scheduled for Oct. 10, 2019, at 11:00 a.m., before U.S. Magistrate Judge Susan E. Cox.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Matthew L. Kutcher and Michelle Kramer.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The kidnapping charge is punishable by a maximum sentence of life in prison, while the domestic violence charge carries a maximum sentence of ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Illegal Alien Previously Convicted of a Felony Sentenced for Unlawful Reentry by an AlienRead the Press Release
Gulfport, Miss. – Felipe De Jesus Dominguez-Jop, 34, an illegal alien from Mexico, was sentenced yesterday by U.S. District Judge Sul Ozerden to 14 months in prison, followed by three years of supervised release, for unlawful reentry by an alien deported after conviction of a felony, announced U.S. Attorney Mike Hurst, and William Joyce, Acting Field Office Director of Immigration & Customs Enforcement (ICE), Enforcement and Removal Operations in New Orleans.
Dominguez-Jop pled guilty to the felony offense on June 26, 2019 before Judge Ozereden. After completion of his prison term, Dominguez-Jop will be transferred to the custody of the U.S. Department of Homeland Security, Immigration & Customs Enforcement, where he will be subject to administrative detention and proceedings to remove him from the United States to his home nation of Mexico.
On May 10, 2019, while conducting Criminal Alien Program duties at the Jackson County Adult Detention Center, an ICE agent encountered Felipe De Jesus Dominguez-Jop, who had been arrested by local law enforcement for possession of a controlled substance. Agents determined that he was an illegal alien from Mexico with multiple prior immigration removals. Dominguez-Jop was arrested and transported to the Gulfport ICE office for processing.
U.S. Department of Homeland Security records confirmed Dominguez-Jop as a previously deported or removed alien. Records revealed that he initially illegally entered the U.S. on November 21, 2008, near Laredo, Texas and was granted a voluntary return in lieu of formal removal. However, he illegally reentered the U.S. and was apprehended on July 27, 2015, again in Texas. He was convicted of unlawful return by an illegal alien and removed from the United States after serving his sentence. In 2018, he was arrested again in Texas and convicted of the misdemeanor offense of unlawful entry into the U.S. After serving his sentence, he was removed from the United States, only to return again to be apprehended in South Mississippi in 2019.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations, and the Jackson County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for this case.
Hudson Man Convicted of Illegally Possessing a FirearmRead the Press Release
Bangor, Maine: A Hudson, Maine man was convicted today in federal court in Bangor of illegally possessing a firearm, U.S. Attorney Halsey B. Frank announced.
Following a one-day bench trial, U.S. District Judge Lance E. Walker found Charles Werenko, 51, guilty of possessing a firearm after being convicted of a misdemeanor crime of domestic violence.
The evidence at trial revealed that in 2015, Werenko was convicted of domestic violence assault in the Penobscot County Superior Court. Following his conviction, Werenko knowingly possessed a .357 Magnum revolver from an unknown date until January 31, 2019.
Werenko faces up to 10 years imprisonment and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Penobscot County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Hopkins County Man Sentenced for Child Sexual Exploitation ViolationsRead the Press Release
PLANO, Texas – A 53-year-old Sulphur Springs, Texas man has been sentenced to 17.5 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Russell Dean Hill pleaded guilty on May 3, 2019, to distributing child pornography and was sentenced to 210 months in federal prison by U.S. District Judge Sean D. Jordan on Oct. 2, 2019. Upon his release from the Bureau of Prisons, Hill will serve 8 years on federal supervised release and will be required to register as a sex offender.
According to information presented in court, in September of 2018, law enforcement in Hopkins County, Texas received a tip that Hill, who had previously been convicted of child exploitation offenses, had uploaded child pornography onto an online social media platform. A team of law enforcement officers from Hopkins County Sheriff’s Office, Sulphur Springs Police Department, and the FBI executed a search warrant at the residence where Hill was residing in November 2018. Law enforcement discovered that Hill was trading child pornography on multiple platforms, using a digital device that he owned and possessed. During the investigation, Hill also told law enforcement that he was in the process of trying to privately adopt what he believed to be an 11-year old boy in order to teach the child about sex. Through further investigation, and with the assistance of FBI-South Bend, Indiana, law enforcement determined that even though Hill had been communicating with someone he believed to be the child, the person with whom he had been communicating was not actually a child, and in reality, there was no child at risk.
“The level of depravity we discover never ceases to amaze,” said United States Attorney Joseph D. Brown. “Thankfully, there are law enforcement officers watching for these types of things, and doing everything they can to prevent these crimes.”
“The defendant was not only a prolific collector and distributor of child pornography, but also a registered sex offender who posed a threat to the community he lived in and individuals he interacted with online,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Division. “The FBI will continue working with our state and local partners to actively identify and pursue sexual predators who endanger the safety of our children.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.
This case was investigated by the Hopkins County Sheriff’s Office, the Federal Bureau of Investigation’s Tyler Resident Agency, and the Sulphur Springs Police Department and prosecuted by Assistant U.S. Attorney Marisa J. Miller.
Honduran Man Sentenced for Illegal Alien SmugglingRead the Press Release
Gulfport, Miss. – Marcelo Jecher Ortonez, 28, an illegal alien from Honduras, was sentenced yesterday by U.S. District Judge Louis Guirola, Jr. to 14 months in prison, followed by three years of supervised release, for illegal transportation of an alien, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
On April 4, 2019, a Biloxi Police officer conducted a traffic stop on I-10 east bound. The driver was Marcelo Jecher Ortonez, an illegal alien from Honduras. The officer observed seven unidentified Hispanic passengers, five males and two females. Because the officer did not speak Spanish, he contacted the Department of Homeland Security’s Blue Lightning Operations Center, and two Homeland Security Investigations Special Agents responded to the traffic stop. All occupants of the vehicle were determined to be illegally present in the U.S. and were transported to the U.S. Border Patrol office in Gulfport for further processing. After interviewing all occupants, it was determined that the occupants were being smuggled from Houston, Texas, to Maryland.
Further investigation revealed that, in addition to Marcelo Jecher Ortonez, three of his passengers (Lucas Ramirez-Hernandez, 28, a citizen of Guatemala; and Jose Valdez-Santana, 46, and Angel Martinez-Garcia, 23, both citizens of Mexico) also were aliens who had unlawfully returned to the United States after they had been formally removed from the U.S. to their home nations.
Ramirez-Hernandez, Valdez-Santana and Martinez-Garcia all were separately prosecuted. Each of the three men pled guilty and was convicted of the felony offense of unlawful reentry by a removed alien to the United States. All were sentenced to terms of imprisonment to be followed by further administrative detention and proceedings with the U.S. Department of Homeland Security, Immigration & Customs Enforcement, for removal to their home nations.
U.S. Attorney Hurst praised the teamwork and cooperation exhibited by the Biloxi Police Department, the Department of Homeland Security, Immigration & Customs Enforcement, Customs & Border Protection, the U.S. Border Patrol, and Homeland Security Investigations. Assistant United States Attorney Stan Harris was the prosecutor for the case.
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High-Ranking Members of Nine Trey Gangsta Bloods Convicted of Racketeering and Related OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ALJERMIAH MACK, a/k/a “Nuke,” and ANTHONY ELLISON, a/k/a “Harv,” were found guilty today of racketeering conspiracy in connection with their membership in the Nine Trey Gangsta Bloods (“Nine Trey”), a violent gang that operated in New York City. ELLISON was also found guilty of kidnapping, maiming, and assault with a dangerous weapon, in connection with his membership in Nine Trey. MACK was also found guilty of conspiring to distribute more than one kilogram of heroin. The convictions followed a two-week trial before the Honorable Paul A. Engelmayer.
U.S. Attorney Geoffrey S. Berman said: “Aljermiah Mack and Anthony Ellison were high-ranking members of Nine Trey, a ruthless gang, and were responsible for terrible acts of violence and the trafficking of dangerous narcotics throughout New York City. They now stand convicted of their crimes, and will no longer be able to inflict harm on the people of this city.”
According to court documents and the evidence at trial:
Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn. Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business. Members and associates of Nine Trey enriched themselves by committing robberies and selling drugs, such as heroin, fentanyl, furanly fentanyl, MDMA, dibutylone, and marijuana.
MACK, 33, a high-ranking member of Nine Trey, conspired with other members of Nine Trey to distribute heroin and MDMA throughout New York City.
ELLISON, 32, another high-ranking member of Nine Trey, kidnapped and robbed a fellow Nine Trey member on or about July 22, 2018, in order to enhance his status within the gang. In addition, on or about October 24, 2018, ELLISON slashed an individual in the face in retaliation for the shooting of one of ELLISON’s associates earlier that evening.
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MACK and ELLISON were convicted of racketeering conspiracy, which carries a maximum sentence of 20 years in prison. ELLISON was also convicted of kidnapping, maiming, and assault with a dangerous weapon in aid of racketeering, which carry maximum sentences of life in prison, 30 years in prison, and 20 years in prison, respectively. MACK was also convicted of narcotics conspiracy, which carries a maximum sentence of life in prison, with a mandatory minimum of 10 years in prison. ELLISON was acquitted of one count of assault with a dangerous weapon, and MACK was acquitted of a firearms offense. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
MACK is scheduled to be sentenced by Judge Engelmayer on February 19, 2020. ELLISON is scheduled to be sentenced on February 26, 2020.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael Longyear, Jacob Warren, Jonathan Rebold, and Max Nicholas are in charge of the prosecution.
Heroin Trafficker Sentenced to Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Kanawha County woman was sentenced to federal prison for a heroin trafficking crime, announced United States Attorney Mike Stuart. Valerie Ramey, 42, of Hernshaw, was sentenced to 72 months in prison for conspiracy to distribute heroin.
“Ramey was selling powerful and deadly heroin and fentanyl,” said United States Attorney Mike Stuart. “We are prosecuting drug dealers with a sense of urgency like never before. Too many lives have been lost. The poison peddlers have to be held accountable.”
Ramey previously admitted that between May 30, 2017 and November 17, 2017, she participated in a conspiracy with her co-defendant, Curtis Watson, also known as “Low,” to distribute heroin in and around Hernshaw, West Virginia.
Beginning in 2015, Watson would typically deliver at least five grams of heroin to Ramey at her residence in Hernshaw approximately every two days. Ramey would store and sell the heroin out of her residence and transferred the proceeds of her drugs sales to Watson.
In furtherance of the conspiracy, on May 30, 2017 and June 8, 2017, Ramey distributed a quantity of heroin to a confidential informant working for the Federal Bureau of Investigation. On August 1, 2017, Ramey distributed a quantity of fentanyl to a confidential informant working for the Federal Bureau of Investigation.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police Forensic Laboratory, the U.S. 119 Drug and Violent Crime Task Force, and the Kanawha County Sheriff’s Department conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Ryan A. Saunders handled the prosecution.
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Hattiesburg Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Hattiesburg, Miss. – Jakobe McCray Woullard, 19, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to being an unlawful user of a controlled substance in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Woullard was an admitted unlawful user of a marijuana and had been smoking it since he was about 12 years old. On December 2, 2018, Woullard was the passenger in a vehicle that smelled of marijuana when he was found to be in possession of a firearm. Woullard admitted possessing the firearm and, during a subsequent interview, he admitted his longstanding marijuana habit. Woullard’s hair also tested positive for a marijuana metabolite shortly after his arrest. He was charged in a federal criminal indictment on August 6, 2019.
Woullard will be sentenced by Judge Starrett on February 5, 2020 at 9:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hattiesburg Man Pleads Guilty under Project EJECT to Illegally Possessing Multiple FirearmsRead the Press Release
Hattiesburg, Miss. – Marcus Foster, 29, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On February 11, 2019, Foster was found in possession of two firearms during the search of an apartment in Forrest County. He has prior felony convictions out in Forrest County for burglary of a dwelling and receipt of stolen property. On July 24, 2019, he was charged in a federal criminal indictment with being a felon in possession of a firearm.
Foster will be sentenced by Judge Starrett on February 5, 2020 at 10:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hattiesburg Man Pleads Guilty under Project EJECT to Illegally Possessing FirearmRead the Press Release
Hattiesburg, Miss. – Alfred McCaskill, 25, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On February 27, 2019, McCaskill was found in possession of a firearm during a traffic stop in Forrest County. He fled on foot and evaded law enforcement until his arrest in April 2019. McCaskill was on state probation when he committed the offense. He has prior felony convictions in Forrest County for possessing a stolen firearm and possessing a controlled substance (cocaine). On July 24, 2019, he was charged in a federal criminal indictment with being a convicted felon in possession of a firearm.
McCaskill will be sentenced by Judge Starrett on February 5, 2020 at 10:15 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hattiesburg Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hartford Man Pleads Guilty to Sex Trafficking and Faces a Minimum of 15 Years in Federal PrisonRead the Press Release
United States Attorney Matthew D. Krueger announced that on October 3, 2019, Christopher L. Childs (age 47), of Hartford, Wisconsin, entered a guilty plea before United States District Judge Pamela Pepper to one count of sex trafficking by force, fraud, and coercion, in violation of Title 18, United States Code, Sections 1591(a)(1) & 1591(b)(1).
In a written plea agreement filed in the case, Childs acknowledged he: (1) operated as a pimp in the Milwaukee area and elsewhere; (2) recruited adult females and at least one minor female to work for him; (3) caused the females to perform prostitution dates using fraud, coercion, and, at times, force and threats of force; (4) required his victims to provide the proceeds to him; and (5) transported victims to strip clubs and other locations inside and outside of Wisconsin, including clubs known as TNT and the Hardware Store.
As part of his plea agreement, Childs agreed that in addition to the individual victim identified in the count of conviction, five other women described in a Second Superseding Indictment filed in the case could be considered victims for sentencing purposes.
Judge Pepper scheduled the sentencing hearing for May 21, 2020. At sentencing, Childs faces at least 15 years and up to life in prison. Childs also faces a fine of up to $250,000 and will be required to complete a term of supervised release following his release from federal prison.
This case was investigated by the Federal Bureau of Investigation, Dodge County Sheriff’s Office, Internal Revenue Service – Criminal Investigations, Racine Police Department, United States Department of Labor – Office of Inspector General, Hartford Police Department, United States Department of Homeland Security – Homeland Security Investigations, Federal Deposition Insurance Corporation – Office of Inspector General, Milwaukee Police Department, Watertown Police Department, and Wisconsin Department of Justice –Division of Criminal Investigation.
The case has been assigned to Assistant United States Attorneys Erica J. Lounsberry and Richard G. Frohling for prosecution.
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Hartford Licensed Professional Counselor Pays $45K to Settle False Claims AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that VALERIE WILLIAMS, LPC, and her business, CIRCLE OF LIFE TRANSITION CENTER, LLC, have entered into a civil settlement agreement with the federal and state governments and will pay more than $45,000 to resolve allegations that they violated the federal and state False Claims Acts.
Williams is a state Licensed Professional Counselor and the owner of Circle of Life Transition Center, a private behavioral health practice in Hartford. Williams is enrolled as a Licensed Behavioral Health Clinician in Independent Practice in the Connecticut Medical Assistance Program (“CMAP”), which includes the state’s Medicaid program. It is alleged that Williams billed Medicaid for psychotherapy services as if she had provided those services when, in fact, unlicensed individuals provided the services.
The Connecticut Department of Social Services Provider Manual for Licensed Behavioral Health Clinicians in Independent Practice explicitly states, “The department shall not pay for…services provided by anyone other than the provider.”
To resolve the allegations under the federal and state False Claims Acts, Williams and the Circle of Life Transition Center will pay $45,488.57 in order to reimburse the Medicaid program for conduct occurring from January 1, 2014 to April 5, 2017. Williams has also agreed to a voluntary seven-year suspension from the Connecticut Medicaid Program as part of the settlement.
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $11,181 to $22,363 for each false claim.
This case stems from a larger investigation into fraudulent activity in the area of behavioral health services, which has been jointly conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Connecticut Office of the Attorney General, with support from the Connecticut Department of Social Services.
This matter was handled by Assistant U.S. Attorney Anne Thidemann, and Assistant Attorney General Karla Turekian of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Harrison County man sentenced to 10 years for methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Koch, of Anmore, West Virginia, was sentenced today to 121 months incarceration for methamphetamine distribution, U.S. Attorney Bill Powell announced.
Koch, age 34, pled guilty to one count of “Distribution of Methamphetamine” in March 2019. Koch admitted to selling methamphetamine in August 2018 in Harrison County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Great Falls man sentenced to five years in prison for receiving child pornographyRead the Press Release
GREAT FALLS—A Great Falls man who admitted receiving child pornography on his computer was sentenced today to five years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Lothar Konrad Krauth, 81, pleaded guilty in April to receipt of child pornography.
U.S. District Judge Brian M. Morris presided. Judge Morris also ordered $9,000 restitution.
The prosecution said in court records that agents from the Great Falls Homeland Security Investigations team received a CyberTipline report in October 2018 from the National Center for Missing and Exploited Children. NCMEC reported that the user of an internet provider address in Great Falls had uploaded an image of a nude prepubescent boy. An investigation found the address belonged to Krauth. HSI and Great Falls police executed a search warrant at Krauth’s residence on Oct. 26, 2018 and seized about 20 items of electronic media, including a desktop computer, external hard drives, thumb drives and more. A search of the electronic media found thousands of images of child porn, including images of prepubescent children engaged in sexually explicit conduct.
Assistant U.S. Attorneys Tom Bartleson and Cyndee Peterson prosecuted the case, which was investigated by Homeland Security Investigations, U.S. Border Patrol and the Internet Crimes Against Children Task Force.
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Great Falls heroin trafficker sentenced to more than 11 years in prisonRead the Press Release
GREAT FALLS—A woman who admitted possessing heroin for distribution as part of a Great Falls methamphetamine and heroin distribution ring was sentenced today to 11 years and four months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Jacqueline Marie Kirkaldie, 32, of Great Falls, pleaded guilty in July to possession with intent to distribute controlled substances.
U.S. District Judge Brian M. Morris presided.
An investigation into a meth and heroin ring in Great Falls began in September 2018 by the Russell Country Drug Task force and Drug Enforcement Administration, the prosecution said in court records.
Investigators became aware that Kirkaldie redistributed meth and heroin for the group, which included co-defendants Anthony Beltran and David Awberry. Beltran has pleaded not guilty and is pending trial. Awberry has pleaded guilty and awaiting sentencing. Kirkaldie possessed with intent to distribute meth and heroin from September 2018 until April.
Prosecutors allege that Beltran had a California source for drugs and that he used numerous individuals, including Kirkaldie, to redistribute the drugs in Great Falls. A witness told law enforcement that he or she bought heroin from Kirkaldie and had seen her in possession with distributable amounts of heroin and meth. When arrested at a casino in on Jan. 5, Kirkaldie had two baggies of heroin. Another individual told law enforcement of receiving heroin from Kirkaldie. In April 2019, law enforcement seized 2,191 grams, or about 4.8 pounds, of actual methamphetamine from a home where the group stored their drugs. The amount of meth seized from the home is the equivalent of about 17,395 doses.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Drug Enforcement Administration and the Russell Country Drug Task Force.
The case is part of Project Safe Neighborhoods (PSN), which 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.
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Fresno Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Darren Duane Coleman, 24, of Fresno, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, during a traffic stop, police officers observed Coleman reaching up in the area of the sunroof of the car that he was driving. Officers subsequently located a loaded firearm tucked in a pocket behind the car’s sunroof. Coleman is a convicted felon and prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, and the California Highway Patrol. Assistant U.S. Attorney Katherine Schuh is prosecuting the case.
If convicted, Coleman faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), 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.
Fourth Parent Sentenced to Prison in College Admissions CaseRead the Press Release
BOSTON – The former co-chairman of a global law firm became the fourth parent to be sentenced to prison in connection with his involvement in the college admissions case.
Gordon Caplan, 53, of Greenwich, Conn., was sentenced today by U.S. District Judge Indira Talwani to one month in prison, one year of supervised release, ordered to complete 250 hours of community service and to pay a fine of $50,000. In May 2019, Caplan pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of eight months in prison, one year of supervised release and a fine of $40,000.
Beginning in 2018, Caplan conspired with William “Rick” Singer and others to have his daughter’s college entrance exam corrected, thereby fraudulently inflating the score. During a June 2018 phone call, Caplan and Singer discussed the scheme and the cost. Over the next several months, Caplan took steps to facilitate the scheme, including securing extended time for his daughter to take the ACT and arranging for her to take the exam at a test center in West Hollywood that Singer “controlled” through the center’s corrupt administrator. During a phone call with Singer that was intercepted pursuant to a Court-authorized wiretap, Caplan noted that he was “not worried about the moral issues here.” Caplan ultimately made payments totaling $75,000 to Singer’s sham charity, the Key Worldwide Foundation, to pay for the scheme.
Co-defendants Felicity Huffman, Devin Sloane, and Stephen Semprevivo were previously sentenced to two weeks, four months, and four months in prison, respectively.
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.
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 are prosecuting the case.
Four People Charged, Fifth Pleads Guilty, in $4.5 Million Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Four people, including two doctors, are scheduled to appear in court today on charges they defrauded New Jersey state health benefits programs and other insurers of $4.5 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced. A fifth individual, a physician’s assistant, has pleaded guilty to participating in the health care fraud conspiracy.
Steven Monaco, 37, of Sewell, New Jersey; Daniel Oswari M.D., 48, of Bordentown, New Jersey; Michael Goldis D.O., of Mt. Laurel, New Jersey; and Aaron Jones, 25, of Willingboro, New Jersey, were all charged in a 33-count indictment with conspiracy to commit health care fraud and wire fraud. Monaco, Oswari, and Goldis also were each charged with individual acts of health care fraud and wire fraud, and Jones was charged with 10 false statement counts. Monaco and Oswari were charged with a conspiracy involving kickbacks for referrals for laboratory work.
The cases are assigned to U.S. District Judge Robert B. Kugler in Camden. The indicted defendants are expected to appear today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to the indictment:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2014 through April 2016, the conspirators recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from a Louisiana pharmacy, identified in the indictment as the “Compounding Pharmacy 1,” and a Pennsylvania pharmacy, identified in the indictment as “Compounding Pharmacy 2.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, and other insurance plans. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey or the other insurance plans for the amounts paid.
Richard Zappala, who previously pleaded guilty to conspiracy to commit health care fraud, had agreements to receive a percentage of the amount that Compounding Pharmacies 1 and 2 received for prescriptions obtained by Zappala and his associates. Zappala had Monaco and other conspirators find people who would agree to receive prescriptions for compounded medications. Zappala’s sentencing is scheduled for Nov. 13, 2019.
The conspirators recruited public employees and others covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from Compounding Pharmacies 1 and 2 without any evaluation or determination by a medical professional that the medications were medically necessary. The defendants paid individuals to agree to receive prescription medications from the Compounding Pharmacy. The defendants completed prescriptions for these individuals and selected the most expensive medications with the highest number of refills to obtain the highest possible insurance reimbursement. The conspirators would have prescriptions signed by a doctor or medical professional who did not examine the patients or determine that the medications were medically necessary. Monaco paid kickbacks to Dr. Oswari and another medical professional to reward them for signing prescriptions, and Zappala paid Dr. Goldis for signing prescriptions. Jones, who was a medical assistant in Goldis’ office, also forged Goldis’ signature on other prescriptions.
The completed prescriptions were faxed to the Compounding Pharmacies, which filled the prescriptions and billed the Pharmacy Benefits Administrator. The Pharmacy Benefits Administrator paid Compounding Pharmacies 1 and 2 over $4.5 million for compounded medications obtained by the conspiracy. Compounding Pharmacies 1 and 2 paid Zappala a percentage of that amount, which he used to pay members of the conspiracy.
The indictment charges Monaco and Oswari with a second conspiracy in which Monaco caused Oswari to receive kickbacks for referring laboratory work and signing prescriptions. Monaco, who worked for a blood and urine testing lab, arranged for his employer to hire Oswari’s medical assistant as a phlebotomist, while continuing to do medical assistant work for Oswari. In return for receiving the free services of an employee for over two years, Oswari referred his blood and urine samples to Monaco’s employer for testing, and Monaco received a commission from the insurance payments made for tests run on those samples. It was also part of this conspiracy that Monaco paid kickbacks to Oswari for writing prescriptions for compounded medications and received money from the resulting insurance payments.
The health care fraud and wire fraud conspiracy count with which all indicted defendants are charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The kickbacks conspiracy count and the false statement counts each carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense
On Oct. 2, Jason Chacker, 36, of Feasterville, Pennsylvania, a physician’s assistant who practiced in Mercer County, pleaded guilty before Judge Kugler to conspiracy to commit health care fraud. Chacker admitted that he and his conspirators recruited individuals who had prescription drug benefits administered by the Pharmacy Benefits Administrator that covered compounded medications. At the request of a conspirator, Chacker signed prescriptions for individuals without ever meeting them or evaluating whether they needed the compounded medications. He also paid one individual to receive compounded medications. Chacker received $3,200 and other valuable items from a conspirator for his role. The Pharmacy Benefits Administrator paid $365,454 for prescriptions fraudulently obtained by Chacker and his conspirators.
Chacker faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 5, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the indictment and guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Monaco: Gerard Egan Esq., Exton, Pennsylvania
Daniel Oswari: Scott Krasny Esq., West Trenton, New Jersey
Michael Goldis: Ralph Kramer Esq., Haddon Heights, New Jersey
Aaron Jones: Christopher O’Malley Esq., Camden, New Jersey
Jason Chacker: Teri Lodge Esq., Marlton, New JerseyFour Louisiana Businessmen Plead Guilty to Conspiracy to Commit Bribery of Former MDOC Commissioner and Kemper County SheriffRead the Press Release
Jackson, Miss. – Four Louisiana businessmen pled guilty yesterday before U.S. District Judge Henry Wingate to conspiring to pay bribes to former Mississippi Department of Corrections (MDOC) Commissioner Christopher B. Epps and current Kemper County Sheriff James Moore in exchange for receiving contracts involving MDOC and a regional detention facility located in Kemper County, Mississippi, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
Michael LeBlanc, Sr., 71, of Baton Rouge, Louisiana, Tawasky Ventroy, 60, of Opelousas, Louisiana, Michael LeBlanc, Jr., 42, of Prairieville, Louisiana, and Jacque Jackson, 51, of LaPlace, Louisiana, attempted to bribe former Commissioner Epps and Sheriff Moore who were both assisting the FBI at the time of the investigation. The four men paid the bribes in an attempt to secure lucrative contracts in commissary and inmate calling services. The men were associated with Brothers Commissary Services and American Phone Systems, both located in Louisiana but operating in the state of Mississippi.
"Mississippians are sick and tired of corruption, and those who bribe our public officials will soon find themselves in a federal indictment. This office has made fighting public corruption a priority, and we will continue working with all of our partners to end corruption throughout our state," said U.S. Attorney Hurst.
“I want to thank Sheriff Moore who made the conscious effort to help the FBI in combating public corruption,” said FBI Special Agent in Charge Sutphin. “Corruption of public officials at any level is something that we take very seriously and is one of our top criminal priorities.”
On October 16, 2014, LeBlanc, Sr. spoke with a confidential informant about his intent to put something in the hands of former Commissioner Epps that would help LeBlanc, Sr. obtain MDOC and County contracts. During the conversation, he stated that he would let his business partner in American Phone Systems, Tawasky Ventroy, meet with former Commissioner Epps because they were both African Americans. On October 21, 2014, Tawaksy Ventroy traveled to Jackson and met former Commissioner Epps in his office. Ventroy provided former Commissioner Epps with a $2,000 cash bribe. The payment was to influence former Commissioner Epps into helping American Phone Systems receive contracts in state corrections facilities.
During this same time, LeBlanc, Jr. and his business partner, Jackson, were trying to secure contracts for Brother’s Commissary and American Phone Systems in Kemper County. On December 8, 2019, while attending the Mississippi Sheriff’s Conference, LeBlanc, Jr. retrieved $2,000 worth of casino chips from a table game and provided the chips to Jackson. At Jackson’s request, Sheriff Moore met Jackson in the men’s restroom of the casino in Biloxi, Mississippi. Jackson gave Sheriff Moore the casino chips to influence him into helping Jackson and LeBlanc, Jr. secure the contracts for commissary and inmate calling services in Kemper County. Jackson told Sheriff Moore that he would provide another $1,000 once the contract was awarded. On January 16, 2015, when confronted by the FBI, Jackson admitted to passing the $2,000 in casino chips to Sheriff Moore in exchange for his assistance with securing the lucrative contracts.
The defendants will be sentenced by Judge Wingate on February 10, 2020 at 10:00 a.m. They each face a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
The case was investigated by the FBI and prosecuted by First Assistant United States Attorney Darren LaMarca and Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Founder of Meridian Capital Asset Management Pleads Guilty in Manhattan Federal Court to Conspiring to Commit Securities and Wire FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN GERACI pled guilty in Manhattan federal court today to conspiring to commit securities and wire fraud. GERACI’s plea stems from his participation in a scheme to defraud clients of his company, Meridian Capital Asset Management. GERACI caused two clients (“Victim-1” and “Victim-2”) to invest in a hedge fund called the Meridian Matrix Long Short Fund (the “Meridian Matrix Fund”). Between in or about December 2015 and November 2016, GERACI provided fictitious account statements and updates to Victim-1 and Victim-2, telling them that their investment was worth millions when, in reality, GERACI knew that large portions of it had been stolen by the Meridian Matrix Fund’s administrator. GERACI eventually liquidated the Meridian Matrix Fund and misappropriated significant portions of the remaining funds. Although he had recovered over $1 million of Victim-1 and Victim-2’s investment, GERACI falsely told them that their entire investment had been lost, and improperly used their money to pay his own personal and business expenses.
GERACI was arrested on August 7, 2018, and pled guilty today before United States District Judge Alison J. Nathan.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, John Geraci lied to his clients about how much of their money was lost in investments with Nicholas Mitsakos. What wasn’t actually lost to Mitsakos was stolen by Geraci. Now Geraci, like Mitsakos, is a convicted felon.”
According to the Complaint, the Indictment, and other statements made in open court:
JOHN GERACI was the principal and founder of Meridian Capital Asset Management. In or about February 2015, GERACI was introduced to another individual, Nicholas Mitsakos, who purported to operate a hedge fund called Matrix Capital (“Matrix”). Mitsakos told GERACI that Matrix had tens of millions of dollars under management and had achieved annual returns between 19.4% and 66.3% from 2012 to 2014. GERACI and Mitsakos subsequently entered into an arrangement whereby GERACI would raise money for Mitsakos, Mitsakos would manage that money through a new vehicle, the Meridian Matrix Fund, and GERACI and Mitsakos would then split any fees that the Meridian Matrix Fund generated. As part of this arrangement, GERACI solicited Victim-1 and Victim-2 to invest approximately $2 million in the Meridian Matrix Fund, in large part by relying on Mitsakos’s claims about his supposed fund’s assets under management and performance returns.
In or about December 2015, however, GERACI learned that Mitsakos had only invested approximately $1.2 million of Victim-1 and Victim-2’s investment, and had misappropriated significant portions of the remaining money. GERACI also learned that Mitsakos never had any actual assets under management, and that his performance returns were accordingly fictitious and misleading. Nonetheless, GERACI never told Victim-1 or Victim-2 that their investment was in jeopardy or had been solicited with misleading information. To the contrary, GERACI sent Victim-1 and Victim-2 updates that hid Mitsaskos’s misappropriation and falsely claimed that their investment had appreciated. GERACI sent these fictitious updates even after GERACI had liquidated the Meridian Matrix Fund’s trading positions in or about June 2016.
In or about August 2016, Mitsakos was charged in this District with securities fraud and other offenses. In or about September 2016, GERACI changed course: instead of providing fictitious account updates to Victim-1 and Victim-2, GERACI told them, in substance and in part, that their entire investment had been wiped out through Mitsakos’s fraud. GERACI did this even though he had ultimately received approximately $1.1 million of Victim-1 and Victim-2’s investment back from Mitsakos after liquidating the Meridian Matrix Fund’s trading positions. Rather than returning this amount to Victim-1 and Victim-2, GERACI used it to pay for his own personal and business expenses, including, for example, payments on a BMW automobile, a gym membership, gas, groceries, travel expenses, and his cellphone bill.
In addition to sending false account updates to Victim-1 and Victim-2 even after learning that Mitsakos had lied about his fund’s assets and performance and that Mitsakos had stolen significant portions of Victim-1 and Victim-2’s investment, GERACI continued to try to raise money for an investment related to Meridian Matrix Fund from others. In attempting to do so, moreover, GERACI relied on the same representations about Matrix’s assets and performance that he knew to be false.
Mitsakos pled guilty to conspiring to commit securities fraud and wire fraud on May 25, 2017, and on November 7, 2017, was sentenced to 30 months in prison by the Honorable Denny Chin, a judge on the United States Court of Appeals for the Second Circuit who was sitting by designation in the Southern District of New York.
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GERACI, 62, pled guilty to one count of conspiring to commit securities and wire fraud. This charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GERACI will be sentenced on January 23, 2020.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Jared Lenow and Drew Skinner are in charge of the prosecution.
Former mayor pro tem admits to child pornography chargesRead the Press Release
HOUSTON – A 68-year-old resident of Seabrook has entered a guilty plea to receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Ocal John Miller is a former law enforcement officer, having served as chief of police in Martinsville, West Virginia; and city councilman and mayor pro tem for Seabrook.
Miller came to the attention of law enforcement in June 2016 when the National Center for Missing and Exploited Children (NCMEC) sent multiple cybertips to the Houston Metro Internet Crimes Against Children Task Force.
The investigation revealed Miller was using Skype to receive and distribute child pornography images to others via the internet. Miller also used Dropbox and Kik Messenger to obtain and store child pornography. Based on information gathered during the investigation, authorities executed a federal search warrant for Miller’s home in Seabrook March 30, 2017. At that time, they seized a computer, iPhone and several digital storage devices. Forensic examination resulted in the discovery of more than 1,300 images and 1,000 videos containing child pornography.
U.S. District Judge Alfred Bennett accepted the plea today and set sentencing for Dec. 12. At that time, Miller faces a minimum of five and up to 20 years for receipt as well as a maximum of 10 years for possessing it. Miller will also have to register as a sex offender and abide by special conditions limiting his use of the internet and interactions with persons under the age of 18. He also faces up to a $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and police departments in Webster and Pearland conducted the investigation as part of the Houston Metro Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Former Parkersburg Physician Pleads Guilty for His Role in Hope Clinic ConspiracyRead the Press Release
CHARLESTON, W.Va. – A former Parkersburg physician pled guilty to a drug conspiracy, announced United States Attorney Mike Stuart. Paul W. Burke, 68, pled guilty to conspiracy to distribute controlled substances not for legitimate medical purposes in the usual course of professional medical practice and beyond the bounds of medical practice.
Burke worked at the Charleston HOPE Clinic, a chronic pain clinic, from April 2014 through September 2014. Burke admitted that the owner of the HOPE Clinic recruited him to work there despite Burke being primarily an emergency room doctor and surgeon with little experience in dealing with chronic pain patients and no training in prescribing schedule II narcotics for the treatment of chronic pain. The owner explained to Burke that narcotics auditors employed by PPPFD who were “former DEA Agents,” would screen customers for abuse, addiction, and diversion prior to the customer ever seeing him. In approximately April 2014, Burke began working at the Charleston HOPE Clinic. Burke understood at the time he was contracted that the purpose of HOPE Clinic was to provide pain customers with oral opiate pain medicine. As the practice manager and owner both knew, however, Burke had no background or specialized training in chronic pain management.
Burk admitted that when he started working at the HOPE Clinic, it became apparent that some of the customers were not getting properly evaluated prior to the doctors writing them prescriptions for opioids, that the customers’ files were poorly kept and had little relevant medical information in them. Burk admitted that many of the patients came to the HOPE Clinic from out of state, and most customers paid in cash. He also admitted that he often received a bonus on top of his hourly pay that was clearly based on the number of paying customers at the Clinic. Despite all of these red flags, Burke admitted that he continued to work at the HOPE Clinic and continued to write customers prescriptions for Schedule II narcotics. For example, Burke admitted that he and other doctors at HOPE Clinic should not have prescribed Schedule II opioid medications to customer S.W. Doctors at the HOPE Clinic, including Burke, prescribed oxycodone to S.W., and Burke admitted those prescriptions were not for a legitimate medical reason in the usual course of professional practice and were beyond the bounds of medical practice. Between December 2012 and September 2014, eight different doctors at the HOPE Clinic wrote her prescriptions for a total of 720 oxycodone 10 mg pills and 2,670 oxycodone 15 mg pills. During that less than two-year period, S.W. took eight drug tests and failed every single one. Burke admitted to only recognizing that S.W. failed three drug tests. Between December 2012 and September 2014, no one at the HOPE Clinic discussed drug addiction, drug abuse, drug treatment or drug diversion with S.W. On August 25, 2014, despite the clear evidence of abuse and diversion, Burke admitted to writing S.W. a prescription for 150 oxycodone 15 mg and 60 Percocet 10 mg.
“As I’ve said many times, medical professionals who prey on individuals struggling with substance use disorder to line their own pockets will be held accountable,” said United States Attorney Mike Stuart. “A drug dealer in a lab coat is still just a drug dealer. We will work with our law enforcement partners to remove them from our communities to protect West Virginia families.”
“Patients struggling with opioid addiction are someone’s parents, children, friends or loved ones, and it’s our responsibility to protect them from bad actors who seek to profit from their struggle” said Maureen R. Dixon, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General-Philadelphia Regional Office (HHS-OIG). “Today’s conviction shows we are holding bad actors accountable and working to prevent further harm to patients.”
“Distributing addictive opioids for illegitimate purposes poses a serious threat to patients and public health and will not be tolerated,” said Mark S. McCormack, Special Agent in Charge, U.S. Food and Drug Administration's Office of Criminal Investigations, Metro Washington Field Office. “We will continue to pursue and bring to justice unscrupulous actors who unlawfully distribute these dangerous drugs to the American public.”
Burke faces up to five years in prison when sentenced on January 30, 2020.
The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General (OIG), the Internal Revenue Service – Criminal Investigations, the Food and Drug Administration - Office of Criminal Investigations, the Federal Bureau of Investigation, the West Virginia State Police, the Kentucky State Police, the Beckley Police Department, the Virginia State Police, the Charleston Police Department, and the Drug Enforcement Administration. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Monica D. Coleman and Steven I. Loew are handling the prosecution.
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Former New Haven Tax Preparer Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DEVON WILLIAMS, 30, of Atlanta, Georgia, pleaded guilty yesterday before U.S. District Judge Janet C. Hall in New Haven to preparing false tax returns
According to court documents and statements made in court, Williams formerly owned and operated Perfect Preparers, LLC, a tax preparation business based in New Haven. Between approximately 2014 and 2017, Williams prepared numerous federal tax returns for clients that contained false deductions, including deductions for unreimbursed employee expenses, charitable donations, and mortgage interest. Some returns contained false Schedule C (sole proprietorship business) information.
Williams pleaded guilty to one count of aiding and assisting the preparation of a false tax return, an offense that carries a maximum term of imprisonment of three years.
In pleading guilty, Williams agreed that losses suffered by the IRS as a result of his fraud totaled more than $550,000.
Judge Hall scheduled sentencing for December 27, 2019. Williams is released on a $150,000 bond pending sentencing.
As a result of Williams’ fraudulent conduct, many of his clients’ filed tax returns will need to be amended. Williams’ clients are required to resolve their own tax liability with the IRS.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Former KPMG Executive Pleads Guilty to Fraudulent Scheme to Steal Confidential PCAOB Information and Use That Information to Fraudulently Improve KPMG Inspection ResultsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID BRITT, a former KPMG partner who was the co-head of the Banking and Capital Markets Group within the audit group of KPMG’s Department of Professional Practice (“DPP”), pled guilty today to participating in a scheme to defraud the PCAOB by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections. BRITT pled guilty to one count of conspiracy to commit wire fraud before the Honorable J. Paul Oetken.
Manhattan U.S. Attorney Geoffrey S. Berman said: “David Britt, a former KPMG partner, admitted today to obtaining confidential lists that contained the information on which KPMG audits would be reviewed by the PCAOB. Using the playbook he illicitly acquired, Britt used that information to improve the results his of firm’s audits. Independent reviews of accounting firm audits exist to ensure their integrity and accuracy. David Britt corrupted that process and now faces time in federal prison.”
According to the allegations contained in the Indictment filed against BRITT and statements made in related court proceedings, including the trial of co-defendants David Middendorf and Jeffrey Wada:
The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms with respect to the financial statements of publicly traded companies. The PCAOB inspects the largest U.S. accounting firms on an annual basis. As part of the inspection process, the PCAOB chooses a selection of audits performed by the accounting firm for a closer review. Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an auditor does not perform additional work or modify its work papers in anticipation of an inspection. Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally.
KPMG is one of the largest accounting firms in the world. In recent years, KPMG fared poorly in PCAOB inspections, and in 2014 received approximately twice as many comments as its competitor firms. By at least in or about 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel, including Brian Sweet. At the time, BRITT was a partner in DPP, which was broadly responsible for the quality of KPMG’s audits and KPMG’s performance in PCAOB inspections.
KPMG’s efforts to improve inspection results, however, were not limited to legitimate means. Instead, between 2015 and 2017, BRITT, David Middendorf, Thomas Whittle, Cynthia Holder, Brian Sweet, and Jeffrey Wada worked to illicitly acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected, in an effort to game the system and improve inspection results. For example, during Sweet’s first week of employment at KPMG in 2015, BRITT, Middendorf, and Whittle began asking Sweet for confidential PCAOB information about which KPMG audits would be inspected by the PCAOB that year.
In March 2016, Holder obtained the PCAOB’s confidential 2016 inspection selections for KPMG from Wada, who was still working at the PCAOB but who had recently been passed over for a promotion. Wada – who was not responsible for KPMG inspections at the PCAOB– accessed and stole valuable confidential information from the PCAOB and passed it on to Holder. Holder, in turn, provided the 2016 inspection selections to Sweet, who passed them to Middendorf, Whittle, and BRITT. Middendorf, Whittle, BRITT, and Sweet then agreed to launch a stealth program to “re-review” the audits that had been selected. In order to cover up their illicit conduct, BRITT gave other KPMG engagement partners a false explanation for the re-reviews. The stealth re-review program allowed KPMG to double-check its audit work, strengthen its work papers, and, in some cases, identify deficiencies or perform new audit work that had not been done during the live audit.
In January 2017, Wada, who had again been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to Holder. At the same time, Wada provided Holder with his resume and sought her assistance in helping him to acquire employment at KPMG. Sweet shared the preliminary inspection selections provided by Wada with Whittle and BRITT, while noting that the information was only preliminary. Whittle’s response was to ask Sweet to confirm that they would get the final list as well.
In February 2017, Wada texted Holder saying “I have the grocery list. . . . All the things you’ll need for this year.” Wada then spoke to Holder and provided her with the full confidential 2017 final inspection selections. Holder again shared the stolen information with Sweet, who shared it with Middendorf, Whittle, and BRITT, so that it could be acted upon to improve the audits on the list.
In 2017, a KPMG partner who received early notice that her engagement was on the confidential 2017 inspection list reported the matter, and it was ultimately reported to KPMG’s Office of General Counsel.
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DAVID BRITT, 56, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for May 8, 2020 before the Honorable J. Paul Oetken.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission, which has brought an administrative proceeding against BRITT.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes, Margaret Graham, Martin Bell, and Rebecca Mermelstein are in charge of the prosecution.
Former Assisted Living Facility Employee Accused of Embezzling from an Assisted Living Facility ResidentRead the Press Release
BIRMINGHAM – A four-count information filed today in U.S. District Court charges a former Oak Landing Assisted Living Facility employee with embezzling money and assets from a former resident at Oak Landing, announced U.S. Attorney Jay E. Town, Special Agent in Charge Patrick M. Davis, United States Secret Service, Special Agent in Charge Rod Owens, Social Security Administration Office of the Inspector General and Special Agent in Charge Thomas J. Holloman, III, Internal Revenue Service Criminal Investigation.
Lisa Talton Wells Daugherty, 52, of Rainbow City, a former Unit Coordinator at Oak Landing Assisted Living Facility in Atalla, Alabama is charged with one count each of wire fraud, money laundering, filing a false tax return, and theft of government property. The information alleges that while Daugherty was the Unit Coordinator at Oak Landing Assisted Living Facility, she obtained power of attorney from the victim. Daugherty then arranged for the victim to become a resident of Oak Landing. Beginning in January 2017, after the victim became a resident of Oak Landing, Daugherty used the power of attorney to gain access to the victim's assets. Daugherty subsequently transferred the victim's assets to herself and purchased a primary residence, multiple vacations homes, automobiles, and paid her ordinary living expenses. In addition, Daugherty is charged with embezzling the victim's Social Security benefits and filing a false tax return. The information seeks forfeiture of a number of assets seized from Daugherty, including cash and automobiles.
“Elder abuse cases like this all too often go unreported and unchecked.” Town said. “The dedication and hard work of the agents investigating this case assures the people of Alabama that one such abuser will spend time as a resident of the federal prison system. In addition, the assets seized will begin to help restore some of the losses the victim sustained.”
“The U.S. Secret Service remains steadfast in its resolve to bring those who would take advantage of the elderly for their own financial gain to justice,” Davis said. “This case highlights the extent that some individuals will go to financially exploit those who are among the most vulnerable in our community. Without the intervention of the U.S. Secret Service, these individuals would have been able to steal millions of dollars, collectibles, personal effects, and property from the victim.”
“Social Security benefits are a lifeline to millions of Americans in retirement. We are committed to pursuing those who misuse these benefits and victimize some of our most vulnerable citizens,” Owens said. “We will continue to work with our law enforcement partners and the U.S. Attorney's Office to protect elderly and disabled Americans from this type of fraud.”
"Elder fraud is a fast-growing problem in our communities as it disproportionally affects seniors,” Holloman said. “Individuals who seek to exploit our elderly through financial fraud schemes involving trickery, deception and outright theft deserve the wrath of all Americans. IRS Criminal Investigation and all of its partners will remain vigilant in identifying, investigating and seeking prosecuting of those individuals who seek to willfully defraud our most vulnerable citizens.”
The maximum penalties for the charged crimes include the following: Wire Fraud, 20 years and a fine of not more than $250,000 or twice the gross gain; Money Laundering, 10 years and a fine of not more than $250,000 or twice the amount of criminally derived property involved in the transaction; Filing a False Tax Return, 3 years and a fine of not more than $100,000; and Theft of Government Property, 10 years and a fine of not more than $250,000.
The United States Secret Service, Social Security Administration Office of Inspector General, and Internal Revenue Service Criminal Investigation investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Florida Woman Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kimberly Dumbleton, 47, of Casselberry, FL, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to distribute heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between 2016 and December of 2018, the defendant conspired with others to sell heroin and fentanyl to customers at 774 Smith Street in Rochester, NY.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and Rochester Police Department, under the direction of Chief La’Ron Singletary.
Sentencing is scheduled for January 10, 2020, at 10:00 a.m. before Judge Geraci.
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Florida Man Sentenced to over 12 Years for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Justin Scott Hunt (31, Tampa) to 12 years and 8 months in federal prison for attempting to entice a minor to engage in sexual activity and attempting to transfer obscene material to a minor.
A jury found Hunt guilty on March 21, 2019.
According to court documents, Hunt engaged in six months of online conversation with someone he believed to be a small child and the child’s mother. In reality, he was talking to an undercover agent. On numerous occasions, Hunt requested to meet the child and described, in graphic detail, the sex acts that he planned to engage in with the child.
“This predator intended to rape a young child,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs. “Instead, he was stopped in his tracks by HSI special agents and will now be held accountable for his crimes.”
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Candace Garcia Rich.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fentanyl Distributor who Used the Dark Web and Crypto Currency in Furtherance of his Criminal Enterprise Sentenced to 30 Years in Federal PrisonRead the Press Release
In what is believed to be the first fentanyl distribution case using the dark web and crypto currency in the Southwest Organized Crime Drug Enforcement Task Force (OCDETF) Region, a federal judge in San Antonio today sentenced 30-year-old Alaa Mohammed Allawi to 30 years in federal prison for distributing approximately 245 kilograms of fentanyl, cocaine, methamphetamine, oxycodone and Xanax. The distribution of fentanyl-laced oxycodone pills, through the use of the dark web and crypto currency, resulted in the overdose death of a U.S. Marine stationed at Camp Lejeune, North Carolina, and serious bodily injury to two Grand Forks, North Dakota, residents.
That announcement was made today by U.S. Attorney John F. Bash, DEA Special Agent in Charge Will Glaspy, Houston Division; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; Naval Criminal Investigative Service Special Agent in Charge Charles Humenansky, Carolinas Field Office; San Antonio Police Chief William McManus; and, University of Texas at San Antonio Police Chief Gerald Lewis, Jr.
In addition to the prison term, Senior U.S. District Judge David A. Ezra entered a $14.32 million money judgment against Allawi based on his online dark net sales profit. Judge Ezra also ordered that Allawi forfeit to the government his San Antonio residence, valued at approximately $270K; five firearms including an AR style assault rifle; approximately $28K in U.S. currency; more than $21K in crypto currency, an assortment of jewelry valued at over $31K, four (4) vehicles including a 2013 Maserati Gran Turismo, and any and all rights in a “DRNK coffee + tea” franchise (in California).
“The United States welcomed Allawi into our country from war-torn Iraq in 2012. But instead of taking advantage of the many opportunities this country affords, he decided to make money by peddling a deadly narcotic to Americans in the grips of addiction,” said U.S. Attorney Bash. “This case illustrates many of the emerging threats that law enforcement is confronting. Allawi and his co-conspirators manufactured and distributed oxycodone laced with deadly fentanyl – over 350,000 such pills – to people suffering from opioid addiction, targeting a college campus here in San Antonio. At least one victim – a United States Marine – died from a fentanyl overdose, and at least two others suffered non-fatal overdoses. The co-conspirators attempted to conceal their activities by operating through the dark web and using seven different crypto-currencies. I am proud of our office and the law enforcement partners who uncovered and destroyed this conspiracy. Thirty years in federal prison is a just sentence for this despicable conduct.”
On June 21, 2019, Allawi pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl resulting in death and serious bodily injury, one count of possessing a firearm in furtherance of a drug trafficking crime and one count of conspiracy to commit money laundering.
According to records, Allawi arrived in the U.S. from Iraq in 2012 on a SQ1 visa granted to him based on his service as an interpreter for the Department of Defense while in Iraq.
This investigation began in 2015, when the San Antonio Police Department and the University of Texas at San Antonio (UTSA) Police Department began looking into a surge in various prescription pills found on the campus and in the student housing of UTSA. Allawi was subsequently identified as the manufacturer and supplier of the pills. By pleading guilty, Allawi admitted that beginning in 2015, he purchased fentanyl and industrial size pill presses from the dark net website called AlphaBay. Allawi also used AlphaBay to sell his pills which were laced with fentanyl or methamphetamine. Allawi accepted seven different crypto currencies, such as Bitcoin and Ethereum, as payment for the pills. AlphaBay has been subsequently shut down by law enforcement.
There are a total of eight (8) defendants in this federal indictment. Three, including Allawi, have been sentenced. Five have entered guilty pleas and are awaiting sentencing. A 9th defendant, Kunal Kalra, age 25 of Los Angeles, is charged by an Information pending in the Central District of California with conspiracy to launder monetary instruments. Allawi laundered his digital currency through Kalra. Kalra and Allawi both set up sham businesses as fronts to transfer the digital currency into U.S. currency, and vice versa. In so doing, Allawi used his illegal proceeds to purchase interest in a business, vehicles, residences, and jewelry.
On May 17, 2017, authorities executed a search warrant at Allawi’s stash house in Fort Bend County and seized ½ kilogram of fentanyl powder, ½ kilogram of crystal methamphetamine, ½ kilogram of powder cocaine, 10 kilograms of Hydrocodone pills laced with fentanyl, four kilograms of Adderall pills laced with methamphetamine, five kilograms of Xanax tablets, multiple industrial-size pill presses and four firearms. The total number of pills distributed on the dark web by Allawi during his scheme is estimated to be around 850,000, including:
Oxycodone laced with fentanyl 359,553 pills Weight 35.9 kilograms
Adderall laced with methamphetamine 342,551 pills Weight 173.6 kilograms
Xanax 45,395 pills Weight 32.36 kilograms“Today’s sentencing of Allawi is an indication of the sophistication and callousness with which Allawi conducted his illegal drug activities. From his use of the dark web, to his clandestine manufacturing of counterfeit pills laced with fentanyl, to his drug sales targeting college students, Allawi operated with little concern for the people in our communities,” said DEA Special Agent in Charge Glaspy.
Regarding the overdose death, NCIS Special Agent in Charge Humenansky noted that fentanyl-laced pills sold by Allawi were purchased using the dark web by Marine Sergeant Anthony P. Tognietti, in coordination with Marine Corporal Marcos Jamie Villegas; both of whom were stationed at Camp Lejeune, North Carolina. During a party in 2017, Villegas gave a fentanyl-laced pill to 20-year-old Corporal Mark M. Mambulao, who died shortly after consuming it. Villegas was kicked out of the Marine Corps on Tuesday and was arraigned yesterday in federal court in the Raleigh Division of the Eastern District North Carolina, for distributing a quantity of pills containing oxycodone and fentanyl, and aiding and abetting. Sgt. Tognietti was arraigned on the same charges in April of this year.
“This case underscores the value of law enforcement agencies working together. The U.S. Postal Inspection Service (USPIS), and the Drug Enforcement Administration (DEA) were actively investigating Allawi when NCIS made them aware of the death of Corporal Mambulao. The subsequent joint investigation by DEA, USPIS and NCIS linked the pills purchased by Villegas to Allawi, which ultimately resulted in the charge of conspiracy to possess with intent to distribute 400 grams or more of fentanyl resulting in death or serious bodily injury, and today’s stiff 30-year sentence for Allawi,” stated NCIS Special Agent in Charge Humenansky.
“Opioids such as fentanyl are a public health crisis that have taken countless lives and destroyed many more,” said U.S. Postal Inspector in Charge Gonzalez. “Postal Inspectors have always made it their mission to protect the public and the U.S. Postal Service from drug traffickers who try to use the mail to distribute their poison. The sentence handed down today should serve as a reminder to other perpetrators engaged in this type of criminal activity that we will continue to work closely with all of our law enforcement partners to ensure they are brought to justice.”
“Today’s sentencing of Alaa Allawi for his role in the distribution of illegal drugs laced with deadly fentanyl and money laundering of the illegal proceeds from his operation is a victory for the American public and a defeat to drug traffickers everywhere,” said IRS Criminal Investigation Special Agent in Charge Goss. “The Special Agents of IRS Criminal Investigation continue in their mission to disrupt the flow of ill-gotten gains that is the life-blood for these criminals.”
Agents and officers with the DEA, U.S. Postal Inspection Service, IRS Criminal Investigation, Naval Criminal Investigation Service (NCIS), San Antonio Police Department and the University of Texas at San Antonio Police Department conducted this OCDETF investigation. Assistant U.S. Attorney Sarah Wannarka is prosecuting this case on behalf of the government. Mr. Bash extends his appreciation to the U.S. Attorney’s Offices in the Eastern District of North Carolina, District of North Dakota and the Central District of California for their cooperation with this prosecution.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Federal charges are not considered as evidence of guilt. The defendants are innocent until proven guilty in a court of law.
Fentanyl Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Christopher Hurd, 33, of Harrington, was sentenced today by the U.S. District Court Chief Judge Leonard P. Stark to 10 years in prison for his role in conspiracy to distribute furanyl fentanyl.
Between August 30, 2017 and November 9, 2017, Hurd and his co-conspirator ordered furanyl fentanyl, a powerful fentanyl analog, from China on the Dark Web. They then packaged the fentanyl into baggies which they branded with a “predator” stamp and sold the drug on the streets of Harrington, Delaware. On November 7, 2017, a woman ingested the furanyl fentanyl contained in one of those “predator” branded bags, overdosed on the drug, and died. When police executed a search warrant at Hurd’s residence, they found additional furanyl fentanyl.
Fentanyl’s high potency and unpredictable effects continue to lead to victim overdoses and deaths in record numbers in this country. A very small amount of fentanyl can be lethal. In sentencing Hurd, Chief Judge Stark spoke about the recklessness with which Hurd acted and pointed out that his drug dealing had a devastating consequence.
“We at the Department of Justice seek to reduce the supply of illegal drugs in the United States by aggressively investigating and prosecuting drug traffickers who distribute fentanyl knowing of its deadly effects,” said U.S. Attorney Weiss. “We are grateful that our state and federal law enforcement partners acted swiftly in this instance to remove this harmful drug from our community and to bring some small measure of justice to the victim’s family.”
“Hurd was convicted of distributing furanyl fentanyl, a dangerous and incredibly powerful synthetic opioid, that lead to the fatal overdose of a woman in this case,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “For the drug traffickers that seek to obtain and distribute these dangerous drugs, the penalties are severe.”
This case was investigated by the Drug Enforcement Administration and the Dover Police Department. It was prosecuted by Assistant U.S. Attorney Maureen McCartney.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No.18-29.
Felon with a Firearm Sentenced to 92 Months ImprisonmentRead the Press Release
GREENSBORO, N.C. B A Rowan county resident was sentenced September 27 in federal court in Greensboro for knowingly possessing a firearm after previously being convicted of a felony, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
LAMICHAEL DONELL FEAMSTER, age 27, of Salisbury, North Carolina, was sentenced to a 92 month term of imprisonment by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, FEAMSTER was ordered to serve three years of supervised release and to pay a special assessment of $100.00. FEAMSTER pleaded guilty on July 8, 2019 to knowing possession of a 9mm handgun even though he had previously been convicted of a felony offense punishable by imprisonment for more than one year.
Court records show that on July 16, 2018, officers with the Salisbury Police Department attempted to serve FEAMSTER with an outstanding warrant for arrest at a residence in Salisbury. When they arrived, Feamster was standing on the sidewalk near the rear of the apartment. When instructed to walk toward the officers, FEAMSTER instead fled into the apartment, where he was apprehended soon after. During FEAMSTER’s arrest, a silver 9mm SSCY Industries handgun fell out of his waistband. The firearm had been reported stolen in May of 2018. Detectives reviewed video surveillance footage of the incident in which the firearm was stolen and positively identified him from the video footage. FEAMSTER has a 2014 conviction for felony eluding arrest, which resulted in a term of imprisonment of 7 to 18 months.
The case was investigated by the Salisbury Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Felon with 13 Prior Convictions Sentenced to 7½ Years’ Imprisonment for Illegally Possessing Handgun and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of imprisonment of seven years and six months to be followed by three years of supervised release on his conviction of possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Darnell James Shipman, age 29.
Previously, in connection with Shipman’s guilty plea, the court was advised that on or about May 2, 2018, Shipman unlawfully possessed a Canik 9-millimeter pistol and ammunition after having been convicted of multiple crimes punishable by more than one year in prison. Shipman’s prior convictions included 13 offenses in seven different cases between 2010 and 2018. Federal law prohibits an individual with any felony convictions from possessing a firearm or ammunition. The court was specifically advised that on May 2, 2018, Pittsburgh Police arrested Shipman on outstanding warrants and recovered the Canik pistol and 17 rounds of 9-millimeter ammunition in the center console of a vehicle he was driving.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of Shipman.
This case was brought as part of Project Safe Neighborhoods (PSN), 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.