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12 November 2019
Wilmington Doctor and Medical Practice Settle Civil Fraud Claims for More Than $244,000Read the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced today that Dr. Damien Brezinski and his practice group, Wilmington Health, agreed to pay more than $244,000 to settle civil claims under the False Claims Act for improper payments made under the Medicare and Tricare programs.
According to documents filed with the Court, this investigation began with a self-disclosure from New Hanover Regional Medical Center in Wilmington, North Carolina. The hospital reported that an internal audit uncovered potentially false claims for cardiac stenting procedures that Dr. Brezinski performed in that facility. The United States’ independent investigation confirmed that, from 2010 to 2014, Dr. Brezinski repeatedly inserted arterial stents for patients whose medical records did not demonstrate a need for the procedures. Dr. Brezinski and his practice group, Wilmington Health, then billed those procedures to Medicare and Tricare, in violation of program requirements and the False Claims Act.
In addition to the resolution with Dr. Brezinski and Wilmington Health, New Hanover Regional Medical Center has separately agreed to repay nearly $900,000 in facility fees it received related to the allegedly false claims.
“The United States takes healthcare fraud very seriously,” said U.S. Attorney Higdon. “Nowhere is that more true than when doctors knowingly perform medical procedures that their patients do not need. The United States will continue to vigorously pursue penalties and damages against health care providers who falsely certify the accuracy of claims they bill to Medicare and Tricare, and in the process risk the health and wellbeing of those under their care.”
The federal False Claims Act allows the United States to recover triple the money falsely obtained, plus substantial penalties for each false claim submitted. The government can also recoup investigative costs.
It should be noted that the claims resolved by settlement here are allegations only, and that there has been no judicial determination or admission of liability.
The United States Department of Health and Human Services Office of the Inspector General and the Defense Criminal Investigative Service conducted the investigation of this case. Assistant United States Attorneys Michael Anderson and Neal Fowler represented the United States.
Wilkinsburg Felon Charged with Firearms Law ViolationRead the Press Release
PITTSBURGH, PA – A resident of Wilkinsburg, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearm laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Raymond Hammond, 27, as the sole defendant.
According to the Indictment, on October 16, 2019, City of Pittsburgh Police officers arrested Hammond for possessing a Smith and Wesson model M&P Shield .45 caliber hand gun and .45 caliber ammunition, after having been convicted of crimes punishable by more than one year in prison. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Washington law enforcement agencies receive $163,500 in forfeiture from regional drug trafficking prosecutionRead the Press Release
SPOKANE—The dismantling of a regional drug trafficking organization that operated in Washington, Idaho and Montana led to the award last week of $163,500 in asset forfeiture equitable sharing funds to the City of Yakima Police Department and the Law Enforcement Against Drugs Task Force (LEAD), William D. Hyslop, United States Attorney for the Eastern District of Washington, announced on Nov. 8.
U.S. Attorney Hyslop presented $81,783.50 to each law enforcement agency to be used for further law enforcement purposes.
The asset forfeiture funds are the result of Operation Rocky Bear Paw, which targeted a regional drug trafficking organization operating in Washington, Idaho, and Montana. The principal drug distribution activities occurred in the Grandview, WA, and Havre, MT, areas.
The drug trafficking organization was the main supplier of methamphetamine, cocaine and marijuana to the Rocky Boy’s and Fort Belknap Indian reservations in Montana. The investigation and law enforcement action began in 2015, with indictments issued and defendants arrested in 2016. The last of 11 defendants was sentenced in late 2018, and the final assets forfeited were liquidated in 2019. All of the defendants were prosecuted in Washington.
The name Operation Rocky Bear Paw is a combination of the name for the Rocky Boy’s Indian Reservation where the Cervantes DTO trafficked and sold illegal drugs, and the Bear Paw Mountains which run through the Reservation.
Operation Rocky Bear Paw resulted in the successful prosecution of eleven members of the Cervantes regional drug trafficking organization (“DTO”) outlined in the attached page. As part of the investigation, law enforcement officers seized 10 pounds of crystal methamphetamine, $10,338.00 in U.S. Currency, two firearms, and numerous rounds of ammunition from defendant Rafael Cervantes’ residence in Grandview, WA.
The United States forfeited and sold Cervantes’ Yakima County residence because it facilitated the DTO and was purchased with drug proceeds.
Pursuant to applicable regulations, an 80% share of the forfeiture proceeds from the sale of Cervantes’ residence are being shared with the Yakima Police Department and LEAD in recognition of their significant contributions to the Operation. The shared asset forfeiture funds will assist these agencies in their further crime-fighting efforts.
The Department of Justice Asset Forfeiture Program is a law enforcement program. It removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The Department of Justice underscores these law enforcement purposes with all federal, state, local, and tribal law enforcement agencies.
U. S. Attorney Hyslop said, “Operation Rocky Bear Paw exemplifies the positive crime fighting results that can be achieved when federal, state, local and tribal law enforcement agencies collaborate and work together. Our citizens are safer and our communities are more secure as a result of joint law enforcement like what occurred here. The LEAD Task Force assisted with drug buys, provided surveillance during a wiretap, and helped execute a search warrant; the City of Yakima Police Department assisted with wiretap surveillance and the execution of search warrants.”
Hyslop further said, “The United States Attorney’s Office for the Eastern District of Washington remains steadfast in its commitment to dismantling drug trafficking organizations that may operate in Eastern Washington. Each of these law enforcement agencies were critical to the success of removing the Cervantes drug trafficking organization from Yakima County and we thank them for their assistance.”
The enforcement action resulting in this forfeiture was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation was conducted by the Drug Enforcement Administration.
Operation Rocky Bear Paw was a significant and successful joint law enforcement effort. The operation received a High Intensity Drug Trafficking Area (“HIDTA”) award from the U.S. Drug Enforcement Administration for Outstanding Enforcement, Prevention or Treatment Effort on Tribal Lands. The HIDTA Program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug trafficking regions of the United States.
This case was investigated and assisted by the: U.S. Drug Enforcement Administration (Yakima Resident Office and Billings Resident Office); Bureau of Indian Affairs; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; U.S. Department of Homeland Security; U.S. Customs and Border Protection; LEAD Task Force; City of Yakima Police Department; State of Washington Gambling Commission; Rocky Boy’s Indian Nation Police Department; Montana Highway Patrol; and the Western Montana based Tri-Agency and Russell County Drug Task Forces.
This case was prosecuted by Benjamin D. Seal and Brian M. Donovan, Assistant United States Attorneys for the Eastern District of Washington.
List of Defendants:
1. Rafael Cervantes—Conspiracy to Distribute Methamphetamine
Leader/Organizer, main source of supply. Sentenced to a 121-month term of prison to run consecutive to a 24-month term of prison on an unrelated supervised release violation, to be followed by a 5-year term of court supervision
2. Erica Godinez—Conspiracy to Distribute Methamphetamine
Yakima area distributor. Sentenced to a 48-month term of prison, to be followed by a 5-year term of court supervision
3. Thomas Harold Parisian—Conspiracy to Distribute Methamphetamine
Montana distributor. Sentenced to a 60-month term of prison, to be followed by a 5-year term of court supervision
4. Christopher Paul Parisian—Conspiracy to Distribute Methamphetamine
Montana distributor. Sentenced to a 108-month term of prison, to be followed by a 4-year term of court supervision
5. Lawrence Wade Russette—Conspiracy to Distribute Methamphetamine
Montana distributor. Sentenced to a 72-month term of prison, to be followed by a 4-year term of court supervision
6. Georgie Elaine Russell—Conspiracy to Distribute Methamphetamine
Montana distributor. Sentenced to a 60-month term of prison, to be followed by a 5-year term of court supervision
7. Tyson James Courchane—Conspiracy to Distribute Methamphetamine
Montana distributor. Sentenced to a 30-month term of prison, to be followed by a 4-year term of court supervision
8. Leslee Faye Parisian—Conspiracy to Distribute Methamphetamine
Montana distributor. Sentenced to a 48-month term of prison, to be followed by a 3-year term of court supervision
9. Adam David Ketchum—Conspiracy to Distribute Methamphetamine
Montana distributor. Sentenced to a 36-month term of prison, to be followed by a 3-year term of court supervision
10. Jacob Chad Parker—Conspiracy to Distribute Methamphetamine
Montana distributor. Sentenced to a 30-month term of prison, to be followed by a 4-year term of court supervision
11. Kristina Dawn Russette—Conspiracy to Distribute Methamphetamine
Montana distributor. Sentenced to a 30-month term of prison, to be followed by a 3-year term of court supervision.
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Umatilla Man Sentenced to 37 Months in Federal Prison for Brutal Assault of Significant OtherRead the Press Release
PORTLAND, Ore.—Jared Elias Case, 26, of Umatilla, Oregon, was sentenced today to 37 months in federal prison and three years’ supervised release after repeatedly assaulting his significant other.
According to court documents, on July 19, 2018, Case punched his then-significant other in the face, breaking her nose and causing other injuries. Case was charged and later convicted of fourth-degree misdemeanor assault in Umatilla County Circuit Court and a domestic abuse protection order was issued by the Umatilla Tribal Court. The protection order prohibited Case from having contact with the crime victim pending a full hearing.
One month later, on August 22, 2018, Case went to a party with the crime victim in violation of the protection order. He began drinking and started arguing with her. While she was seated in a chair, Case put his hands around her neck and strangled her until she blacked out. When she regained consciousness, she got up to leave. Case followed her outside, grabbed her by the shoulders and repeatedly punched her in the face until she again lost consciousness. Case fled, abandoning the crime victim who was lying unconscious in a driveway. He later turned himself in to the Umatilla Tribal Police Department.
On July 9, 2019, Case pleaded guilty to one count of assault by strangulation. As part of his plea agreement, Case will pay restitution his victim as ordered by the court. A restitution hearing has been scheduled for February 10, 2020.
This case was investigated by the Umatilla Tribal Police Department and FBI Portland’s Safe Trails Task Force. It was prosecuted by Jennifer Martin, Assistant U.S. Attorney for the District of Oregon.
Domestic violence is a serious violent crime that includes both physical and emotional abuse. It is frequently hidden from public view. Many survivors suffer in silence, afraid to seek help or not knowing where to turn. The traumatic effects of domestic violence also extend beyond the abused person, impacting family members and communities.
If you or someone you know are in immediate danger, please call 911.
If you need assistance or know someone who needs help, please contact the National Domestic Violence Hotline at 1-800-799-SAFE (7233). Many communities throughout the country have developed support networks to assist survivors in the process of recovery.
The StrongHearts Native Helpline offers culturally specific support and advocacy for American Indian and Alaska Native survivors of domestic violence. Please call 1-844-762-8483 or visit www.strongheartshelpline.org for more information.
The Safe Trails Task Force (STTF) unites FBI and federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTF allows participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs and gaming violations.
USMS-led Operation Triple Beam results in 327 Felony Arrests in Central, Northern New MexicoRead the Press Release
ALBUQUERQUE, N.M. – A large-scale, 90-day law enforcement operation, known as “Operation Triple Beam Albuquerque,” concluded on Oct. 31, 2019, with the arrests of 327 alleged fugitives from throughout Bernalillo County and the Albuquerque metropolitan area.
Led by the U.S. Marshals Southwest Investigative Fugitive Team (SWIFT), multiple federal, state and local law enforcement agencies concentrated their efforts on known violent offenders.
During OTB Albuquerque, SWIFT located and apprehended 327 alleged state, local and federal fugitives, including 59 state probation and parole absconders, 10 individuals wanted for homicide, 20 for weapons offenses, 13 for sex crimes, 50 for assault, and 91 on narcotics charges. In the Santa Fe and Farmington communities, investigators made 92 arrests.
The operation resulted in the seizure of 43 illegal firearms, more than 50 pounds of methamphetamine, four pounds of heroin, and two pounds of cocaine. In addition, 31 stolen vehicles were recovered and $50,000 was seized.
“I commend the work of the brave men and women of the U.S. Marshals Service on their outstanding execution of Operation Triple Beam, a nationwide effort by the Marshals to target violent, gang-related crime in some of America’s most dangerous cities,” said Attorney General William P. Barr. “The Marshals are truly America’s fugitive hunters, with a proud tradition dating back to the founding of the United States. Their unyielding commitment to justice, in partnership with our state and local colleagues, made this initiative a great success.”
“We brought Operation Triple Beam, our mobile gang enforcement platform, to Albuquerque to target the gang-related fugitives fueling the violent crime in the area,” said U.S. Marshals Service Director Donald Washington. “The U.S. Marshals in the District of New Mexico, along with dedicated inspectors in our Investigative Operations Division, and all of our partner agencies achieved results that illustrate our full commitment to make communities safer by addressing violent crime at its core and taking the worst of the worst off the streets. The good citizens of New Mexico have our enduring support.”
“The U.S. Attorney’s Office is committed to working with its law enforcement partners to combat violent crime throughout New Mexico,” said U.S. Attorney John C. Anderson. “We commend the U.S. Marshals Service for regularly leading multi-agency operations like Triple Beam throughout the state that have made our communities safer by taking hundreds of fugitives off our streets.”
“Operation Triple Beam was an outstanding public safety effort by all personnel involved, and the unified approach for law enforcement resulted in hundreds of arrests, including many for dangerous outstanding warrants. I remain committed to collaborating with local and federal authorities to keep our children, families, and businesses safe,” said Bernalillo County Sheriff Manuel Gonzales III.
OTB Albuquerque Participating Agencies
U.S. Marshals Service
U.S. Attorney’s Office
Bernalillo County Sheriff’s Office
New Mexico State Police
New Mexico Division of Probation and Parole
Farmington Police Department
San Juan County Sheriff’s Office
Espanola Police Department
Santa Fe County Sheriff’s Office
Albuquerque Police Department
Metropolitan Detention Center
Sandoval County Sheriff’s Office
Rio Rancho Police Department
Second Judicial District Attorney’s Office
New Mexico Attorney General’s Office
Drug Enforcement Administration
Bureau of Alcohol, Tobacco, Firearms and Explosives
Homeland Security Investigations
FBI
Links to public imagery
www.usmarshals.gov
OTB Albuquerque Photographs
OTB Albuquerque B-roll Footage
This is the second OTB conducted by the U.S. Marshals in New Mexico this year. OTB Las Cruces concluded April 12, 2019, with the arrest of 154 fugitives throughout Dona Ana County; there were 115 felony arrests within the City of Las Cruces.
OTB provides communities with immediate relief from violent, gang-related crime and targets fugitives who commit violent crime and those who provide them safe harbor. Since the Department of Justice reinvigorated Project Safe Neighborhoods in 2017, U.S. Marshals have launched 33 OTB collaborations of local, state, federal and tribal law enforcement agencies in some of the nation’s most violence-plagued communities, resulting in more than 6,000 arrests, 1,200 firearms confiscations, and the seizure of $1.8 million.
USMS-Led Operation Triple Beam Results in 327 Felony Arrests in Central and Northern New MexicoRead the Press Release
A large-scale, 90-day law enforcement operation, known as “Operation Triple Beam Albuquerque,” concluded on Oct. 31, 2019, with the arrests of 327 alleged fugitives from throughout Bernalillo County and the Albuquerque, New Mexico metropolitan area.
Led by the U.S. Marshals Southwest Investigative Fugitive Team (SWIFT), multiple federal, state and local law enforcement agencies concentrated their efforts on known violent offenders.
During OTB Albuquerque, SWIFT located and apprehended 327 alleged state, local and federal fugitives, including 59 state probation and parole absconders, 10 individuals wanted for homicide, 20 for weapons offenses, 13 for sex crimes, 50 for assault, and 91 on narcotics charges. In the Santa Fe and Farmington communities, investigators made 92 arrests.
The operation resulted in the seizure of 43 illegal firearms, more than 50 pounds of methamphetamine, four pounds of heroin, and two pounds of cocaine. In addition, 31 stolen vehicles were recovered and $50,000 was seized.
“I commend the work of the brave men and women of the U.S. Marshals Service on their outstanding execution of Operation Triple Beam, a nationwide effort by the Marshals to target violent, gang-related crime in some of America’s most dangerous cities,” said Attorney General William P. Barr. “The Marshals are truly America’s fugitive hunters, with a proud tradition dating back to the founding of the United States. Their unyielding commitment to justice, in partnership with our state and local colleagues, made this initiative a great success.”
“We brought Operation Triple Beam, our mobile gang enforcement platform, to Albuquerque to target the gang-related fugitives fueling the violent crime in the area,” said US Marshals Service Director Donald Washington. “The U.S. Marshals in the District of New Mexico, along with dedicated inspectors in our Investigative Operations Division, and all of our partner agencies, achieved results that illustrate our full commitment to make communities safer by addressing violent crime at its core and taking the worst of the worst off the streets. The good citizens of New Mexico have our enduring support.”
“The U.S. Attorney’s Office is committed to working with its law enforcement partners to combat violent crime throughout New Mexico,” said U.S. Attorney John C. Anderson. “We commend the U.S. Marshals Service for regularly leading multi-agency operations like Triple Beam throughout the state that have made our communities safer by taking hundreds of fugitives off our streets.”
“Operation Triple Beam was an outstanding public safety effort by all personnel involved, and the unified approach for law enforcement resulted in hundreds of arrests, including many for dangerous outstanding warrants. I remain committed to collaborating with local and federal authorities to keep our children, families, and businesses safe,” said Bernalillo County Sheriff Manuel Gonzales III.
OTB Albuquerque Participating Agencies
- U.S. Marshals Service
- U.S. Attorney’s Office
- Bernalillo County Sheriff’s Office
- New Mexico State Police
- New Mexico Division of Probation and Parole
- Farmington Police Department
- San Juan County Sheriff’s Office
- Espanola Police Department
- Santa Fe County Sheriff’s Office
- Albuquerque Police Department
- Metropolitan Detention Center
- Sandoval County Sheriff’s Office
- Rio Rancho Police Department
- Second Judicial District Attorney’s Office
- New Mexico Attorney General’s Office
- Drug Enforcement Administration
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- Homeland Security Investigations
- FBI
This is the second OTB conducted by the U.S. Marshals in New Mexico this year. OTB Las Cruces concluded April 12, 2019, with the arrest of 154 fugitives throughout Dona Ana County; there were 115 felony arrests within the City of Las Cruces.
OTB provides communities with immediate relief from violent, gang-related crime and targets fugitives who commit violent crime and those who provide them safe harbor. Since the Department of Justice reinvigorated Project Safe Neighborhoods in 2017, U.S. Marshals have launched 33 OTB collaborations of local, state, federal and tribal law enforcement agencies in some of the nation’s most violence-plagued communities, resulting in more than 6,000 arrests, 1,200 firearms confiscations, and the seizure of $1.8 million.
U.S. Attorney’s Office Announces Opportunity for Victim Input to Court in Pending Motion by Bernard J. Ebbers for Sentence ReductionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that, pursuant to an order issued by the Honorable Valerie E. Caproni, United States District Court Judge, victims of the securities fraud scheme relating to World Com that was carried out by Bernard J. Ebbers and others have the opportunity to provide the Court with their views regarding Ebbers’s pending motion for a sentence reduction. A copy of the Court-approved notice to victims is attached (the “Notice”).
As set forth in the Notice, on July 13, 2005, defendant Bernard J. Ebbers was sentenced to a term of imprisonment of 25 years. Ebbers began to serve this term of imprisonment on September 26, 2006. Assuming credit for good conduct while incarcerated, Ebbers has an anticipated release date of approximately July 4, 2028.
On September 5, 2019, Ebbers filed a motion with the Court for a sentencing reduction pursuant to 18 U.S.C. § 3582 and the First Step Act. The motion, which seeks Ebbers’s immediate release from prison, is based on Ebbers’s numerous medical conditions and his advanced age. The Government has opposed Ebbers’s motion. A copy of the briefs relating to Ebbers’s motion for a sentence reduction can be found at:
https://www.justice.gov/usao-sdny/united-states-v-bernard-ebbers
If you are a victim of Ebbers’s fraud and you wish to provide your views to Judge Caproni with respect to Ebbers’s motion for a sentence reduction, you may do so.
Please address any such correspondence to the Court, but send the correspondence to the Victim/Witness coordinator for the U.S. Attorney’s Office for the Southern District of New York (the “Office”) by email as follows:
Ms. Wendy Olsen-Clancy
Victim/Witness Coordinator
United States Attorney’s Office
Southern District of New York
email:
The Office will then provide a copy of any correspondence received to the Court and counsel for Ebbers. The Court has imposed a deadline of November 15, 2019 to receive any correspondence from victims. Accordingly, to be considered by the Court, any such correspondence must be received by the United States Attorney’s Office by no later than November 14, 2019.
Two Men Sentenced to Prison for Cross-Country Distribution of Cocaine and HeroinRead the Press Release
TUCSON, Ariz. – On November 4, 2019, U.S. District Judge Rosemary Marquez sentenced Randolph Guillermo Ramirez-Contreras, 25, and Mario Mauricio Campos-Balderas, 28, each to 37 months in prison to be followed by 36 months of supervised release. Both defendants had previously pleaded guilty to one count of Conspiracy to Possess with Intent to Distribute Cocaine and Heroin.
In late May 2018, Ramirez-Contreras traveled from Tucson, Arizona to Los Angeles, California to meet with Campos-Balderas, a Los Angeles resident. Together, the two men picked up approximately 65 kilograms of cocaine and 7 kilograms of heroin and loaded the narcotics into the cab of a tractor-trailer, intending to deliver the drugs in Georgia and New Jersey. In the early morning hours of May 26, 2018, deputies from the Greene County Sherriff’s Office located the defendants and the tractor-trailer parked at a truck stop in Greensboro, Georgia, and seized the narcotics before Ramirez-Contreras and Campos-Balderas could complete any deliveries.
The investigation in this case was conducted by the Drug Enforcement Administration, with assistance from the Greene County Sherriff’s Office. The prosecution was handled by Michael R. Lizano and Patrick T. Barry, Assistant U.S. Attorneys, District of Arizona, Tucson.
Two Charged in Major Counterfeiting SchemeRead the Press Release
PITTSBURGH – A resident of Elmhurst, New York and a resident of Philadelphia, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating Federal counterfeiting laws, United States Attorney Scott W. Brady announced today.
The 11-count Indictment named Mario Mondesir, age 35, of Elmhurst, NY and Forkpa Howard, age 30, of Philadelphia, PA as defendants.
According to the Indictment, Mondesir and Howard conspired with each other to counterfeit $100 Federal Reserve Notes, and then passed said counterfeit bills in excess of 1,050 times at various retail stores and businesses in the Western District of Pennsylvania and elsewhere. Both defendants also possessed counterfeit $100 Federal Reserve Notes.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Associates of Nuestra Familia Prison Gang Plead Guilty to Federal RICO ConspiracyRead the Press Release
SAN JOSE- Michael Rice, a/k/a Redwood, and Alberto Moreno, a/k/a Doughboy, pleaded guilty today to racketeering conspiracy charge for their respective roles as associates of the Nuestra Familia prison gang, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty pleas were accepted by the Honorable Beth L. Freeman, United States District Judge.
“Defendants Rice and Moreno conspired and racketeered while in county jail to punish gang members who did not follow gang rules,” said U.S. Attorney Anderson. “Their conduct underscores the risks of depending on county jails to deter and punish serious criminal offenders. I hope and trust that a federal sentence will send a stronger message to these and other would-be offenders.”
“Michael Rice and Alberto Moreno have admitted today to participating in brutally violent attacks and other crimes to further the control and criminal activities of the Nuestra Familia prison gang,” said FBI Special Agent in Charge Bennett. “The FBI would like to thank our Monterey County law enforcement partners for working with us to identify, stop, and prosecute this organized violence.”
According to the plea agreements, between December 2, 2012, and April 14, 2014, both defendants were members of the Nuestra Familia/Salinas Norteños Enterprise. The Enterprise consisted of members and associates of the Nuestra Familia prison gang as well as Norteño street gangs in Salinas, Calif., and the surrounding areas. Members and associates of the Enterprise agreed to commit crimes such as murder, narcotics trafficking, and other acts of violence through a pattern of racketeering activity. Norteño gang members pledge their allegiance and loyalty to Nuestra Familia and are instructed on its rules, rituals, and obligations. Gang rules and discipline are maintained by assaulting and threatening those individuals who violate the rules or pose a threat to the organization; inside prisons and local jails, all members and associates of Nuestra Familia and Norteños work together to maintain the structure and follow the rules of the Enterprise.
In their plea agreements, Rice, 35, and Moreno, 26, admit to participating in the distribution of narcotics to other inmates at Monterey County Jail. Also, the plea agreements describe the roles of the defendants in “removals” as a means of violently enforcing the most important of the gang’s rules while they were in the jail. The term “removal” refers to a violent attack designed to remove (from both the custodial housing unit and the gang itself) a member of the gang who committed a serious violation of the gang’s rules. A removal is accomplished by having one or more “hitters” stab the victim and then having at least two “bombers” assault the target by punching and kicking the victim without weapons. The purpose of the subsequent beating is to inflict upon the victim maximum damage while giving the hitters time to wash themselves and get rid of weapons. Rice admitted that in February of 2013, he was the prison gang’s “Overall Authority” in one of Monterey County Jail’s housing units and he consented to the removal of a gang prisoner who committed a serious violation of gang rules. The victim was stabbed in the head by a hitter and immediately thereafter was punched and kicked by several bombers. Rice further admitted that he approved the removal of another victim who was assaulted on April 29, 2013. On that day, the victim was stabbed in the head by the hitter and then punched and kicked by several bombers. Moreno admitted that he participated as a bomber in the April 29, 2013, attack.
On September 27, 2018, a federal grand jury indicted Rice, Moreno and several other defendants with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d). Both Rice and Moreno also were charged with conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), and conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6). Both defendants pleaded guilty to the racketeering conspiracy charge, wherein they admitted that murder was an object of the conspiracy. If they comply with their plea agreements, the additional charges will be dismissed at sentencing.
Judge Freeman scheduled defendant Moreno’s sentencing for January 7, 2020, and defendant Rice’s sentencing for March 3, 2020. The defendants face a maximum statutory sentence of life in prison, five years of supervised release, and a fine of $250,000. Pursuant to their plea agreements, defendant Rice has agreed to a sentence of 13 years and defendant Moreno has agreed to a sentence of seven years, both subject to final approval by the Court at their respective sentencings. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Claudia A. Quiroz and Stephen Meyer are prosecuting the case. The prosecution is the result of an investigation by the FBI with assistance from the Salinas Police Department, the Monterey County Sheriff’s Office, the California Highway Patrol, and the California Department of Corrections and Rehabilitation.
Texas Man Charged with Obstruction of JusticeRead the Press Release
ALBANY, NEW YORK - Tyler C. King, age 30, of Dallas, Texas, was charged today with obstruction of justice for a scheme to falsify evidence during his recently concluded criminal trial.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint filed today, King obstructed justice by falsifying evidence for use in his federal criminal trial last week. The 5-day trial ended on November 8 with King being convicted of conspiracy to commit computer fraud, computer fraud, and aggravated identity theft in connection with his hacking of a New York-based technology company. According to today’s complaint, King created several false documents that he then sought to have his attorney use during the trial.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge filed against King carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
King will be sentenced on April 1, 2020 in connection with his trial convictions. He faces at least 2 years in prison.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
Tahlequah Man Sentenced to 72 Months for Methamphetamine Distribution and Firearm Possession ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that William Wayne Anderson, a/k/a "Buffalo", age 40, of Tahlequah, Oklahoma, was sentenced to 72 months’ imprisonment and 3 years of supervised release for two counts of Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); and for Felon in Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Tahlequah Police Department, the District 27 Drug Task Force, and the Federal Bureau of Investigation.
The Indictment alleges that on November 9, 2018, in the Eastern District of Oklahoma, the defendant, William Wayne Anderson, knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment also alleges that on November 9, 2018, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate and foreign commerce.
Additionally, the Indictment alleges that on February 17, 2019, the defendant knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Each year hundreds of Oklahoman’s die as a result of methamphetamine overdose. People who sell methamphetamine are profiting from addiction which sometimes leads to death. They bear some responsibility for the tragic impact this drug has had on people, families, and communities. The defendant in this case is being held accountable for his role in a deadly business.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Jarrod Leaman represented the United States.
Smith County Man Sentenced in East Texas Marijuana Cultivation OperationRead the Press Release
TYLER, Texas – A 26-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Eduardo Pineda pleaded guilty on July 25, 2019, to manufacturing and possessing with intent to manufacture and distribute marijuana and was sentenced to 108 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, in 2016, Pineda supervised a large-scale marijuana cultivation enterprise throughout the Eastern District of Texas, including sites located on public lands such as Davy Crockett and Sabine National Forests. Other sites were located on private property where Pineda and others trespassed without the knowledge or consent of the landowners. In total, Pineda and his co-conspirators were responsible for cultivating thousands of marijuana plants.
This case was investigated by Texas Department of Public Safety - Criminal Investigations Division; Texas Department of Public Safety - Highway Patrol; Drug Enforcement Administration; Smith County Sheriff's Office; Department of Homeland Security - Immigration and Customs Enforcement; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Forest Service; U.S. Army National Guard; Texas Parks and Wildlife; Sabine County Sheriff's Office; Henderson County Sheriff's Office; Harrison County Sheriff's Office; Anderson County Sheriff's Office; Upshur County Sheriff's Office; Houston County Sheriff's Office; Morris County Sheriff's Office; Longview Police Department; and Gilmer Police Department. This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld, Lucas Machicek, and Ryan Locker.
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Serial Con Artist Sentenced to More Than 9 Years in Federal Prison for $6.7 Million Swindle of Investors, Family and FriendsRead the Press Release
LOS ANGELES – A West Hollywood man has been sentenced to 110 months in federal prison for defrauding investors, lenders, friends and family members out of approximately $6.7 million, including via a series of scams he ran while out on bond after pleading guilty in a prior federal case.
Jeffrey Craig Yohai, 37, was sentenced late Friday by United States District Judge André Birotte Jr., who, when describing Yohai, said, “This is an individual who has an evil mind.” Judge Birotte also ordered Yohai to pay $6.7 million in restitution to his victims.
Yohai pleaded guilty to two counts of conspiracy to commit wire fraud, stemming from two separate cases.
The first case, which resulted in a guilty plea in February 2018, involved more than $6 million in real estate loans and investments that supposedly would be used to purchase and rehabilitate properties in the Hollywood Hills and New York City. Yohai defaulted on the loans and the properties went into foreclosure – which Yohai tried to delay with bankruptcy filings.
While free on bond and awaiting sentencing in the first federal case, Yohai committed additional crimes. The second case, which resulted in a guilty plea in June 2019, involved a loan fraud scheme related to two of the properties at issue in the original federal case. Here, Yohai submitted a loan request that contained inflated appraisals. He also attempted to defraud another lender as he attempted to refinance the two properties, and Yohai contacted yet another lender with dramatically inflated appraisals to obtain refinancing – an effort that was rebuffed when that third lender learned of Yohai’s guilty plea earlier this year.
Also in the second case, Yohai defrauded the owner of a rental property and attempted to lull the owner by showing him a $60,000 check he falsely claimed had been remitted from his ex-wife’s account. There are additional fraudulent acts outlined in the complaint which, including a scam in which he sold non-existent artist passes to the music festival in Coachella.
“(Yohai)…chose…to prey on those who trusted him, including friends and even family, taking their savings so he could splash out on luxury housing, automobiles, and high-living,” the prosecution wrote in the government’s sentencing memorandum. “He did not restrict his marks to big businesses. He was just as likely to use his intelligence and charm to con families out of their life savings, or to steal from individuals whatever they would trust him with. Predictably, this resulted in emotional scars, financial devastation, changes in personality, and strains in partnerships and marriages.”
Yohai has been in federal custody since November 2018 one week after the Los Angeles Police Department arrested him on cases filed by local prosecutors.
These matters were investigated by the FBI and the Los Angeles Police Department’s Major Crimes Division Transnational Organized Crime Section.
The two cases against Yohai were prosecuted by Assistant United States Attorney Andrew G. Brown of the Major Frauds Section.
Russian National Extradited for Running Online Criminal MarketplaceRead the Press Release
A Russian national made his initial appearance in federal court today on charges related to his alleged operation of two websites devoted to the facilitation of payment card fraud, computer hacking, and other crimes.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Special Agent in Charge Matthew S. Miller of the U.S. Secret Service’s Washington Field Office made the announcement.
Aleksei Burkov, 29, arrived at Dulles International Airport this morning after being extradited from Israel. The indictment unsealed today charges Burkov with wire fraud, access device fraud, and conspiracy to commit wire fraud, access device fraud, computer intrusions, identity theft, and money laundering.
According to court documents, Burkov allegedly ran a website called “Cardplanet” that sold payment card numbers (e.g., debit and credit cards) that had been stolen primarily through computer intrusions. Many of the cards offered for sale belonged to U.S. citizens. The stolen credit card data from more than 150,000 compromised payment cards was allegedly sold on Burkov’s site and has resulted in over $20 million in fraudulent purchases made on U.S. credit cards.
Additionally, Burkov allegedly ran another online Cybercrime Forum that served as an invite-only club where elite cybercriminals could meet and post in a secure location to plan various cybercrimes, to buy and sell stolen goods and services, such as personal identifying information and malicious software, and offer criminal services, such as money laundering and hacking services. As alleged in the indictment, to obtain membership in Burkov’s cybercrime forum, prospective members needed three existing members to “vouch” for their good reputation among cybercriminals and to provide a sum of money, normally $5,000, as insurance. These measures allegedly were designed to keep law enforcement from accessing Burkov’s cybercrime forum and to ensure that members of the forum honored any deals made while conducting business on the forum.
Burkov was arrested at Ben-Gurion airport near Tel Aviv in December 2015. An Israeli district court approved his extradition in 2017. He was extradited yesterday after appeals to the Israeli Supreme Court and the Israeli High Court of Justice were denied.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Laura Fong of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kellen S. Dwyer and Alexander P Berrang of the Eastern District of Virginia are prosecuting the case.
The Justice Department extends it gratitude to the Government of Israel for making the extradition possible. The Office of International Affairs of the Justice Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Israel.
Russian National Extradited for Running Online Criminal MarketplaceRead the Press Release
ALEXANDRIA, Va. – A Russian national made his initial appearance in federal court here today on charges related to his alleged operation of two websites devoted to the facilitation of payment card fraud, computer hacking, and other crimes.
Aleksei Burkov, 29, arrived at Dulles International Airport last night after being extradited from Israel. The indictment was unsealed today.
According to court documents, Burkov allegedly ran a website called “Cardplanet” that sold payment card numbers (e.g., debit and credit cards) that had been stolen primarily through computer intrusions. Many of the cards offered for sale belonged to United States citizens. The stolen credit card data sold on Burkov’s site has resulted in over $20 million in fraudulent purchases made on United States credit cards.
Additionally, Burkov allegedly ran another website that served as an invite-only club where elite cybercriminals could advertise stolen goods, such as personal identifying information and malicious software, and criminal services, such as money laundering and hacking services. To obtain membership in Burkov’s cybercrime forum, prospective members needed three existing members to “vouch” for their good reputation among cybercriminals and to provide a sum of money, normally $5,000, as insurance. These measures were designed to keep law enforcement from accessing Burkov’s cybercrime forum and to ensure that members of the forum honored any deals made while conducting business on the forum.
Burkov was arrested at Ben-Gurion airport near Tel Aviv in December 2015. An Israeli district court approved his extradition in 2017. He was extradited yesterday after appeals to the Israeli Supreme Court and the Israeli High Court of Justice were denied.
Burkov is scheduled for a detention hearing on Friday at 2 p.m. at the federal courthouse in Alexandria.
Burkov is charged with wire fraud, access device fraud, and conspiracy to commit wire fraud, access device fraud, computer intrusions, identity theft, and money laundering. If convicted on all counts, he faces a maximum of 80 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Kellen S. Dwyer and Alexander P. Berrang are prosecuting the case, along with Trial Attorney Laura Fong of the Criminal Division’s Computer Crime and Intellectual Property Section.
The Justice Department extends it gratitude to the Government of Israel for making the extradition possible. The Office of International Affairs of the Justice Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Israel.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-245.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Richmond Man Sentenced to 22 Years for Armed CarjackingRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 22 years in prison for brandishing a firearm and carjacking the vehicle of a 73-year-old man in Richmond.
According to court records, on January 22, 2019, Gregory Garrison, 25, approached a man as he parked his car in the parking lot outside of his place of employment. Garrison held a firearm in his hand and demanded that the victim provide him the keys. The victim refused and began to walk away from Garrison. Garrison then grabbed the victim and wrestled him to the ground. While the two wrestled, the victim’s car keys fell to the ground and Garrison picked them up and stole the vehicle.
The vehicle broke down a few blocks away from where it was stolen, and police confronted Garrison as he was abandoning the broken-down vehicle. During a search incident to arrest, police officers found the firearm in Garrison’s possession and several small baggies of cocaine, which Garrison claimed was for personal use. Richmond Police drove the victim over to the location where officers had arrested Garrison. The victim identified the defendant as the person who fought with the victim and stole the victim’s vehicle.
Garrison’s brother, Gary Garrison, was sentenced to eight years in prison on November 1, 2019, for having possessed a firearm as a convicted felon in the Creighton Court area of Richmond. According to court records, Gary was the founder of the Closed Mouth Gang, a gang operating out of Creighton Court and to which Gary claimed his brother Gregory also belonged.
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, William C. Smith, Chief of Richmond Police, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney Jr. Assistant U.S. Attorney Stephen E. Anthony 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. 3:19-cr-65.
Richmond Man Sentenced to Seven Years in Custody for Possessing Loaded GunRead the Press Release
OAKLAND – Saul Espinoza was sentenced today to seven years in prison for being a felon in possession of a firearm and ammunition, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
Espinoza, 32, of Richmond, pleaded guilty to the charge on August 20, 2019. According to his plea agreement, Espinoza admitted he was driving a Toyota 4Runner in Richmond, Calif., on October 4, 2018, when he turned at a high rate of speed and flipped his vehicle on its driver’s side. Espinoza’s car came to a rest after colliding with an unoccupied van parked along the curb. He remained in the car while officers approached and found him in possession of a Springfield XD-40 0.40 caliber semi-automatic pistol, with a fully loaded 16 round magazine. Espinoza admitted that at the time of these events he was a convicted felon and therefore was not eligible to possess a firearm.
A federal grand jury indicted Espinoza on February 28, 2019, charging him with being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1).
In addition to the prison term, Judge White sentenced the defendant to a three-year term of supervised release. The defendant will begin serving the sentence immediately.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Rodriguez and Kathleen Turner. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Richmond Police Department.
Randolph County Woman Sentenced for Methamphetamine OffenseRead the Press Release
Kayla S. Kempfer, 31, of Red Bud, Illinois, has been sentenced to 135 months in federal prison on a methamphetamine violation. Kempfer previously pled guilty to a one-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine. As part of her sentence, she was also ordered to serve four years of supervised release and pay $200 in fines.
Evidence at the plea and sentencing hearings established that Kempfer was involved with co-defendants Scott A. Carnell, Jordan D. Vuichard, Jarrett C. Hood, and others in the distribution of methamphetamine in Southern Illinois. At sentencing, the district judge found that Kempfer was responsible for the distribution of 1.4 kilograms of ice. Ice is methamphetamine which has a purity level of at least 80%.
The offense occurred between 2017 and August 2018, in Jackson, Randolph, and St. Clair counties.
Co-defendants Carnell, Vuichard, and Hood were previously sentenced to prison terms of 192 months, 219 months, and 108 months, respectively, for their roles in the methamphetamine conspiracy.The investigation was conducted by the Randolph County Sheriff’s Office, the Jackson County
Sheriff’s Office, the Sparta Police Department, the New Athens Police Department, the Marissa
Police Department, the St. Louis County Police Department, the Brentwood (Missouri) Police
Department, the Drug Enforcement Administration, and the FBI. The Randolph County
State’s Attorney’s Office also assisted in the investigation.
Pittsburgh Resident Pleads Guilty to Conspiracy and Health Care FraudRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to one count each of conspiracy to defraud the Pennsylvania Medicaid program and health care fraud, United States Attorney Scott W. Brady announced today.
Julie Wilson, 48, pleaded guilty before United States District Judge Cathy Bissoon.
During her plea hearing, Wilson admitted that, at various times between 2011 and 2017, she was an employee of Moriarty Consultants, Inc. (MCI) and Everyday People Staffing, Inc. (EPS), two related entities operating in the home health care industry. The other entities were Activity Daily Living Services, Inc. (ADL) and Coordination Care, Inc. (CCI). MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients ("consumers"), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Wilson admitted that she was responsible for claims processing and billing matters related to Pennsylvania Medicaid. Between in and around January 2011 and in and around April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for these services, with PAS payments accounting for more than $80,000,000 of the total amount.
During that time, Wilson admitted that she participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims. Among others, Wilson admitted that she conspired with Arlinda Moriarty, the owner of MCI, ADL, and EPS; Daynelle Dickens, the owner of CCI and Arlinda Moriarty’s sister; various office workers at the companies, including Tamika Adams, Tony Brown, Terra Dean, Larita Walls, Keith Scoggins, and Tia Collins; and attendants at MCI, including Tionne Street and Luis Columbie-Abrew.
As part of the conspiracy, Wilson admitted that she and various co-conspirators fabricated timesheets to reflect the provision of in-home PAS care they provided to consumers, when, in fact, no such care ever occurred. Wilson further admitted that, at Arlinda Moriarty’s direction, she collected information about consumers who had "unused" PAS care hours—that is, hours of authorized PAS care that had not been performed and, as a result, had not been billed to Pennsylvania Medicaid. In response, Wilson would provide lists of such consumers and their "unused" hours to Arlinda Moriarty and Daynelle Dickens. Moriarty, in turn, would direct Wilson to submit false claims, in bulk, for some or all of the "unused" hours—without the relevant consumers’ knowledge or consent. Wilson further admitted that she would then send Moriarty a list of the "unused" hours Wilson had billed and that required the creation of back-dated timesheets to document the purported care. Wilson further admitted that she caused Medicaid billings for purported in-home care of a consumer while the consumer was in the hospital, and that she obtained signature stamps for certain consumers that were used execute falsified timesheets in the consumers’ names.
The conspiracy and health care fraud charges each carry a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
To date, a total of 16 defendants have been charged in connection with this investigation. Wilson is the sixth defendant to enter a guilty plea. The remaining defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorneys Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
Palm Beach County Tax Return Preparer Convicted of Filing False Tax Returns and Theft of Government FundsRead the Press Release
WASHINGTON – A federal jury in Fort Lauderdale, Florida, convicted Paul Senat today of aiding and assisting in the preparation of false tax returns and theft of government funds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the evidence presented at trial, from at least 2012 to 2016, Paul Senat was the owner and operator of multiple tax return preparation businesses in Palm Beach and surrounding areas. Through the businesses, Senat falsified his clients’ returns by reporting fictitious business losses and false education credits in order to fraudulently inflate their refunds.
Following the jury verdict, Senat was taken into custody. United States District Judge Rodolfo A. Ruiz scheduled sentencing for Jan. 27, 2020.
Senat faces a statutory maximum sentence of 10 years in prison for theft of government funds and three years for each count of aiding and assisting in the preparation of false returns. He also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who prosecuted the case.
Pain Management Doctor Pleads Guilty to Unlawfully Prescribing DrugsRead the Press Release
RICHMOND, Va. – A Henrico man pleaded guilty today to unlawfully prescribing Oxycodone and Tramadol to patients at a Richmond-area pain management practice.
According to court documents, Zeljko Stjepanovic, 58, was a doctor working in a pain management practice, initially in Fredericksburg and later in Henrico County. As part of his plea, Stjepanovic admitted that he wrote prescriptions for numerous patients without assessing the individual needs of those patients, and that his prescribing practices were outside the usual course of his professional practice and were without any legitimate medical purpose.
In addition, on at least two occasions, Stjepanovic prescribed Tramadol for Patient 1, but put the prescription in the name of Patient 2. Before the first instance, Stjepanovic notified both Patient 1 and Patient 2 that he knew what he was doing was illegal, but he proposed doing it nonetheless. On one of these occasions, Patient 1 was not even present when Stjepanovic wrote the Tramadol prescription. At no point did Stjepanovic or anyone working on his behalf ever obtain a medical history for Patient 1, conduct any physical examination or range of motion test for the patient, discuss causes of pain or what might alleviate it, consider any non-medicine based alternative treatments, or obtain or analyze any urine samples. Stjepanovic maintained no records for his treatment of Patient 1 on these two occasions.
On both of the occasions when Stjepanovic wrote a prescription for Patient 1 in the name of Patient 2, Stjepanovic also wrote a prescription for Oxycodone for Patient 2. As was the case with Patient 1, at no point did Stjepanovic or anyone working on his behalf ever obtain a medical history for Patient 2, conduct any physical examination or range of motion test for the patient, discuss causes of pain or what might alleviate it, consider any non-medicine based alternative treatments, or obtain or analyze any urine samples. Nonetheless, Stjepanovic falsely reported in his records for Patient 2 that he had done these things.
In addition, because Stjepanovic was concerned that writing prescriptions for Tramadol and Oxycodone for the same person might alert others to his scheme, he instructed Patient 2 what to tell the pharmacy if questioned about the two prescriptions.
Stjepanovic pleaded guilty to the unlawful distribution and dispensing of controlled substances, specifically, Oxycodone, a Schedule II controlled substance, and Tramadol, a Schedule IV controlled substance. He faces a maximum 20 years in prison when sentenced on February 24, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorneys Stephen W. Miller and Janet Jin Ah Lee are prosecuting 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. 3:19-cr-27.
Ohio Man Sentenced to 25 Years in Prison for Armed Robbery of Mobile Communications Company Retail StoreRead the Press Release
NEWARK, N.J. – An Ohio man was sentenced today to 300 months in prison for robbing a mobile communications company retail store in Orange, New Jersey, at gunpoint in June 2016, U.S. Attorney Craig Carpenito announced.
Frederick A. White, 47, previously pleaded guilty to one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On the afternoon of June 11, 2016, White entered a mobile communications company retail store in Orange wearing a wig and brandishing a handgun. White stole cash from an employee of the store and fled. He was arrested a short while later after a foot pursuit by the Orange Police Department.
White previously was convicted of multiple counts of armed and attempted carjacking and discharging a firearm during a crime of violence in federal court in Newark in 1993.
In addition to the prison term, Judge Cecchi sentenced White to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the Orange Police Department, under the direction of Director Todd Warren and Chief Law Enforcement Officer Vincent Vitiello, for their assistance with the investigation leading to today’s sentencing. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens 2nd, for its assistance.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Desiree Grace Latzer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey
Neche, ND, Man Sentenced to 60 Years for Multiple Offenses of Sexual Exploitation of a Minor and Possession and Distribution of Child PornographyRead the Press Release
Fargo – United States Attorney Drew H. Wrigley announced that on November 12, 2019, Chief Judge U.S. District Court Peter D. Welte sentenced Brandon Lee Bjornstad, age 35, Neche, North Dakota, to serve 60 years in prison, followed by a lifetime of supervised release for the charges of Sexual Exploitation of Minors, Extortion, Receipt and Distribution of Materials Containing Child Pornography, and Possession of Materials Containing Child Pornography. Bjornstad was further ordered to pay restitution in the amount of $3,635.00 to the victims and $1,800.00 in special assessments to the Crime Victims’ Fund.
Between May 2015 and May 2017, Bjornstad solicited thousands of self-produced child pornography from hundreds of children located across the United States and elsewhere. Using various aliases, Bjornstad coerced hundreds of children into producing and electronically sharing their self-produced sexually explicit images and videos. Bjornstad illegally enticed his victims with the use of multiple social media platforms such as Skype, Kik, Snapchat, and Musical.ly, among others. On hundreds of occasions, he directed the children to engage in very specific sexually explicit conduct after which he recorded the live presentations. In many cases, Bjornstad then shared this material with others, including other children, and other adult men who shared his sexual interest in children. To date, the North Dakota Bureau of Criminal Investigation has identified 90 children residing in three different countries as part of this investigation.
“This defendant used social media and preyed on young girls whom he enticed into self-producing explicit photos and videos,” said United States Attorney Drew Wrigley, adding, “these young girls were essentially coerced into on-line sexual servitude, through manipulation and intimidation. Brandon Lee Bjornstad’s 60 year sentence represents justice in this case, and the details of his heinous crimes send a somber warning about the very real and present dangers that lurk just a key stroke away on so many social media platforms.”
United States Attorney Wrigley praised the efforts of the North Dakota Bureau of Criminal Investigation, Homeland Security Investigations, and Assistant United States Attorney Jennifer Puhl, all of whom Wrigley said, “tirelessly pursued this investigation and secured justice on behalf of hundreds of young victims.”
Assistant United States Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
NDTX Round-Up November 12, 2019Read the Press Release
GUILTY PLEA – Demeron Jamal Brown
On November 7, Demeron Jamal Brown, 36, pled guilty to conspiracy to possess with the intent to distribute heroin and possession of a firearm by a felon. Brown and his coconspirators utilized a room within the Han Gil Hotel to distribute heroin, methamphetamine, cocaine, and other drugs to customers. He was arrested when officers responded to a 911 call regarding a man armed with an assault rifle. Officers seized 187 grams of cocaine, 900 grams of methamphetamine, and various other drugs. Brown faces up to 20 years in federal custody. To read more about the Han Gil case, click here or here. This investigation was led by the Drug Enforcement Administration and the case was prosecuted by AUSA Rick Calvert and AUSA Phelesa Guy.
GUILTY PLEA – Pedro Perez-Velazquez
On November 7, Pedro Perez-Velazquez, 49, pled guilty to conspiracy to possess with the intent to distribute methamphetamine. Perez-Velazquez drove a vehicle with methamphetamine concealed in the tires from Mexico to Dallas on multiple occasions. He routinely dropped off the vehicle at a location where the tires would be dismantled, and would wait in a hotel until the drugs had been retrieved. He faces a maximum sentence of life in prison. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA Rachael Jones.
GUILTY PLEA – Constance Marie Kelly
On November 5, Constance Marie Kelly pled guilty to conspiracy to commit wire fraud. Between 2002 and 2007, Kelly had access to funds deposited in an escrow account at Compass Bank and used this access to move funds to the bank account controlled by her codefendant. Kelly moved a total of $1.4 million in furtherance of this crime. She faces up to 5 years in federal custody and a $250,000 fine. This case was investigated by the Federal Bureau of Investigation – Dallas Field Office and is prosecuted by AUSA David Jarvis.
GUILTY PLEA – Roger Rojas Aventura
On November 5, Roger Rojas Aventura, 35, pled guilty to receipt of child pornography. The Ozark, Arkansas Police Department conducted an investigation into the eDonkey peer-to-peer file sharing network. Law enforcement officials found that Rojas Aventura’s IP address was linked to the website and had downloaded child pornography. He possessed over 130 images and 201 videos of child pornography. He faces up to 20 years in federal custody. This case was investigated by the US Department of Homeland Security, the Ozark Police Department, and the Dallas Police Department and is prosecuted by SAUSA Danielle Jones.
SENTENCING - James Jeaphier Tobar Ramon
On November 4, James Jeaphier Tobar Ramon, 29, was sentenced to 4 years in federal custody and over $1 million in restitution for his racketeer influenced and corrupt organization conspiracy. Tobar and his coconspirators used rental vehicles, obtained by fraudulent identification documents, to stop a traveling jewelry salesman’s car. They broke the window of the defendant’s car and stole over $1 million in diamonds and personal property. This was one of many robberies that were committed by this group, who disguised their identities using long sleeved clothing, gloves, and masks. This case was investigated by the Federal Bureau of Investigation Dallas Violent Crime Squad and prosecuted by AUSA Keith Robinson.
Moshannon Valley Correctional Center Inmate Charged with Possessing Controlled SubstancesRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Moshannon Valley Correctional Center in Philipsburg, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named Javier Herrera-Hernandez, 36.
According to the indictment presented to the court, on April 26, 2019, Herrera-Hernandez possessed a quantity of Fentanyl, a Schedule II narcotic controlled substance, and a quantity of Buprenorphine, a Schedule III narcotic controlled substance.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation leading to the prosecution of Herrera-Hernandez.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monmouth County Man Sentenced to 12 Years in Prison for Drug and Firearms OffensesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 144 months in prison for narcotics trafficking, possession of a firearm as a convicted felon, and using a firearm in furtherance of drug trafficking, U.S. Attorney Craig Carpenito announced.
Jeramie Harris, 34, of Asbury Park, New Jersey, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of possession with the intent to distribute cocaine, one count of possession of a firearm as a convicted felon, and one count of possession of a firearm in furtherance of drug trafficking. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Harris was arrested as part of a Drug Enforcement Administration (DEA) investigation into a drug trafficking organization known to traffic heroin and fentanyl, as well as cocaine, in Monmouth and Ocean counties and elsewhere.
On May 1, 2019, law enforcement officers arrested Harris at his residence, which was an identified drug mill/stash house used to store and package narcotics, including fentanyl and heroin. Harris was found with a large kilogram press and narcotics packaging materials in his vehicle. Law enforcement officers found a bag containing a Röhm Gesellschaft .22 caliber six-shot revolver containing six rounds of ammunition, a metal spoon, and clear zip-lock baggies, as well as a second kilogram press, rubber bands, a digital scale, and a bundle of heroin. In a drawer in the kitchen area, law enforcement also found a clear bag containing approximately 25 grams of cocaine.
In addition to the prison term, Judge Wolfson sentenced Harris to five years of supervised release.
U.S. Attorney Carpenito credited special agents of Drug Enforcement Administration’s High Intensity Drug Trafficking Area Program out of Monmouth and Ocean counties, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lauren Repole of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Brandon D. Minde Esq., Cranford, New Jersey
Mexican National Sentenced to 60 Months for Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alexis Fernando Lopez, age 23, was sentenced to 60 months’ imprisonment and 4 years of supervised release for Possession With Intent To Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B) and Title 18, United States Code, Section 2. The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on November 28, 2018, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “There are many different roles within a drug trafficking organization, including manufacturing, wholesale distributing, transporting, and street level distribution. Regardless of the role, the people who are involved in the distribution network are responsible for the tragedies that communities across this country have experienced as a result of drugs. I commend the Oklahoma Highway Patrol and the DEA for their work in this case and their commitment to identifying and investigating those who profit from addiction.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Jarrod Leaman represented the United States.Mexican National Sentenced to 30 Months for Illegal ReentryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jose Sebastian-Bello, a/k/a Victor Antonio Martinez, a/k/a Anthony Casen, a/k/a Victor Martinez-Gonzalez, a/k/a Jose Antonio-Ignacio, a/k/a Lorenzo Castro Romero, a/k/a Mario Diago Diego, age 51, of Mexico, was sentenced to 30 months’ imprisonment and 3 years of supervised release for Illegal Reentry Of Previously Removed Alien, in violation of Title 8, United States Code, Sections 1326(a) and 1326(b). The charges arose from an investigation by the Ardmore Police Department and U.S. Immigration and Customs Enforcement (“ICE”).
The Indictment alleged that on or about October 1, 2018, in the Eastern District of Oklahoma, the defendant, an alien, was found to be knowingly in the United States after having been removed from the United States on or about June 10, 2015, at or near Laredo, Texas, and not having obtained the express consent of the Attorney General of the United States or the Secretary of Homeland Security to reapply for admission into the United States in violation of Title 8, United States Code, Sections 1326(a) and 1326(b).
United States Attorney Brian J. Kuester said, “The defendant reentered the United States numerous times after having been removed. Following his most recent reentry he committed crimes and was convicted in state court using an alias. Immigration and Customs Enforcement officers determined his true identity and he was prosecuted in federal court. Enforcing immigration laws in these circumstances is one way ICE and this office can help state and local law enforcement agencies remove violent offenders from the communities they inhabit.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States.
Meridian Man Pleads Guilty under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Corey Douglas Burt, 28, of Meridian, pled guilty Thursday before Chief U.S. District Judge Daniel P. Jordan III to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On April 18, 2019, the Meridian Police Department was called to a motel located on South Frontage Road in Meridian. An MPD officer responded to the scene and learned that motel staff were attempting to clean a room, but the door was locked and the person inside the room would not answer the door despite insistent knocking and verbal requests. The MPD officer was eventually able to get the occupant, Burt, to answer the door.
Burt was not the guest registered in the room and he was unable or unwilling to tell the officer how he had gained access to the room or who had rented the room. There was no one else in the room. The officer noticed a .380 caliber pistol on a bedside table as he was checking the room. Burt told the officer that he had gotten the gun from a friend. A check of the firearm revealed that it was reported stolen in 2017. Further investigation revealed that Burt had a prior conviction for burglary in Lauderdale County and was prohibited from possessing a firearm.
On July 24, 2019, Burt was indicted by a federal grand jury for being a felon in possession of a firearm. He is currently in custody and will be sentenced by Judge Jordan on February 18, 2020. He faces a maximum penalty of ten years in prison and a $250,000.00 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
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.
McKean-FCI Inmate Indicted for Possessing ContrabandRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of possession of contraband in prison, United States Attorney Scott W. Brady announced today.
The one-count indictment named William Hunt, 36, as the sole defendant.
According to the indictment presented to the court, on or about June 11, 2019, Hunt was in possession of contraband, namely a quantity of synthetic cannabinoid NM2201 while an inmate at the McKean Federal Correctional Institution.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man indicted for coercing minors for sex; wife accused of trying to persuade victim to recantRead the Press Release
SAVANNAH, GA: A Bryan County man and his wife are charged in separate federal indictments with coercing minors for sex and tampering with a witness.
Michael Wilson, 37, is charged with one count each of Coercion and Enticement of a Minor to Engage in Sexual Activity, and Attempted Coercion and Enticement of a Minor to Engage in Sexual Activity, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry possible sentences of up to life in prison, and there is no parole in the federal system.
Lori Wilson, a/k/a “Loretta Lightningbolt,” 34, is charged in a separate federal indictment with Tampering with a Victim or Witness, a charge that carries a possible sentence of up to 20 years in prison, along with up to five years of supervised release.
“Exploitation of children is inexcusable,” said U.S. Attorney Christine. “Our office and law enforcement partners will aggressively pursue and bring to justice anyone who would victimize the most vulnerable among us.”
According to court documents and testimony, Michael Wilson is accused of attempting to coerce multiple minor victims to engage in sexual activity from 2017 through early 2019. After the minors reported the information to authorities, Lori Wilson “did knowingly intimidate, corruptly persuade, and engage in misleading conduct,” the indictment states, in an effort to persuade one of the victims to “withhold information regarding… reports of sexual assault.”
Lori Wilson, the indictment states, attempted to persuade the victim that the minor’s experiences were “psychic visions” or “dreams” in an effort “to prevent truthful communication of information relating to the possible commission of a federal offense to agents of the Army Criminal Investigation Division.”
“The allegations in this indictment are disturbing in many different ways,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “The FBI will make every effort to protect our most vulnerable members of society from adults who choose to prey on them.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The cases were investigated by the FBI and by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Special Assistant U.S. Attorney Katelyn Semales and Assistant U.S. Attorney Jennifer G. Solari.
Man Involved in New Haven Drug Ring Sentenced to 30 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL MILLER, 38, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing heroin and cocaine.
According to court documents and statements made in court, an investigation headed by the Drug Enforcement Administration New Haven Task Force and New Haven Police Department revealed that Malbin Rubiera-Herrera, also known as “Chaca,” acquired heroin and cocaine from sources in Connecticut and New Jersey and distributed the drugs through a network of associates, including Miller, in the greater New Haven area. Between October and December 2018, investigators made controlled purchases of heroin and cocaine from Rubiera-Herrera. Subsequent court-authorized wiretaps revealed a widespread narcotics trafficking conspiracy that involved the trafficking of kilogram-quantities of heroin into Connecticut.
In January and February 2019, Miller was intercepted numerous times on recorded calls and text messages ordering distribution quantities of heroin and cocaine from Rubiera-Herrera. At the time, Miller was on escape status with the State of Connecticut. On September 10, 2018, Miller failed to return to a halfway house where he was serving a state sentence. He has been detained since April 5, 2019.
On June 5, 2019, a grand jury returned a superseding indictment charging Miller, Rubiera-Herrera and 12 other individuals with heroin, cocaine and fentanyl trafficking offenses. On August 19, Miller pleaded guilty to one count of conspiracy to distribute, and to possess with the intent, to distribute heroin and cocaine.
A search of Rubiera-Herrera’s residence at the time of arrest on April 30, 2019, revealed approximately 300 grams of fentanyl. He pleaded guilty on June 20.
This matter is being investigated by the DEA New Haven Task Force and the New Haven Police Department, with the assistance of the Federal Bureau of Investigation, Department of Homeland Security, U.S. Marshals Service, Connecticut State Police, Connecticut Department of Correction, East Haven Police Department, Easton Police Department, Orange Police Department, and the Cape May County (N.J.) Prosecutor’s Office, Gangs, Guns and Narcotics Task Force.
The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and S. Dave Vatti.
MEDIA ADVISORY: United States Attorney Robert Duncan Jr. and ATF to Discuss Gun Violence in Eastern District of KentuckyRead the Press Release
LEXINGTON, Ky. – United States Attorney Robert M. Duncan Jr., will be joined with federal partner, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), to discuss gun violence in the Eastern District of Kentucky.
Who: Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky
Tommy Estevan, Acting Special Agent in Charge, ATF
Where: U.S. Attorney's Office
Eastern District of Kentucky
260 W. Vine Street, Suite 300
Lexington, Kentucky, 40507
When: Wednesday, Nov. 13, 2019 at 3:30 p.m.
Luzerne County Man Was Sentenced to 120 Months’ Imprisonment for Sexual Exploitation of ChildrenRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Mark Scott, age 60, of Wilkes-Barre, Pennsylvania, was sentenced to 120 months’ imprisonment followed by five years’ supervised release by United States District Court Judge Malachy E. Mannion for possession of videos and images involving sexual exploitation of children.
According to United States Attorney David J. Freed, from June 2017 through September 2018, Scott received and possessed multiple videos and images depicting minors under the age of 12 engaged in sexually explicit conduct with adult males and females.
In addition to the term of imprisonment, Judge Mannion ordered that Scott comply with the Sexual Offender and Registration Notification Act (SORNA), a national system for the registration of sex offenders.
The matter was investigated by the United States Postal Service, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Lexington Man Pleads Guilty in Federal Court to Defrauding Dumpster CompanyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that William Tye Grisel, age 39, of Lexington, pleaded guilty in federal court to Wire Fraud after using his position and access to company networks and credit cards to embezzle approximately $1,050,000.00 from his employer, Big Red Box (BRB), a waste management call center located in Columbia.
Facts presented to the court showed BRB hired Grisel on December 23, 2013, to be a national dumpster salesperson. He later became an IT manager. As the IT manager, he was responsible for BRB’s computer hardware, phone systems and servers, computer systems and servers, proprietary software, and email systems. Most significantly, he was responsible for hiring, managing, tracking, and paying the search engine optimization companies (SEOs) that generated marketing calls for BRB.
SEOs initiate marketing phone calls that are routed to the BRB call center. This is a significant expense. Since 2011, BRB has hired and paid approximately ten SEOs.
Grisel started a company called Local List. Local List generated no calls on its own. Instead, Local List used the call lists of other SEOs, represented that these call lists were its own, and billed BRB for them. Over almost three years, Local List billed BRB around $1,049,996.97.
Grisel ceased his full-time employment with BRB on March 1, 2016. He then started his own company, G5 Marketing. As an independent contractor, Grisel, through G5, continued to receive $1,600 per month from BRB.
Senior United States District Court Judge Joseph F. Anderson, Jr. accepted Grisel’s plea and will sentence him after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The United States Secret Service and Richland County Sheriff’s Department investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Leeds, ND, Man Sentenced in a $11 Million Dollar Fraud SchemeRead the Press Release
BISMARCK – United States Attorney Drew H. Wrigley announced that on November 12, 2019, US District Court Judge Daniel L. Hovland sentenced Hunter Brian Hanson, age 22, Leeds, ND, on charges of Wire Fraud and Money Laundering, to serve eight years imprisonment, serve a three year period of supervised release, and pay $11,103,309.19 in restitution. Additionally, Judge Hovland ordered that Hunter Hanson forfeit property, which constituted proceeds of the crime and ordered a $1,265,679.29 money judgment against him. Hanson previously pleaded guilty to these charges on July 30, 2019.
The charges and Hanson’s guilty plea stem from Hanson’s criminal acts committed from January 2018 to December 2018, during which time Hanson engaged in a scheme to defraud approximately sixty (60) farmers and elevators in North Dakota and Canada. As a result of Hanson’s fraud schemes, these approximately sixty (60) farmers and elevators suffered significant financial losses totaling approximately $11,103,309.19. Hunter Hanson fraudulently contracted with multiple farmers and grain elevators in an effort to deceitfully obtain grain or other agricultural commodities. Once Hanson fraudulently obtained these commodities, he either failed to pay the farmers and elevators, or in some instances, he sent farmers and elevators checks for which he did not have sufficient funds to cover.
Hunter Hanson, as part of this fraudulent scheme, maintained multiple bank accounts, engaged in check kiting to cover his deposits and withdrawals, illegally laundered money between his bank accounts and other businesses, and often did not have sufficient funds in his bank accounts when he remitted payments to farmers and elevators for money owed on the commodities purchasing contracts. When fraud victims became weary of Hanson’s business practices and non-payment, Hanson sent email communications to lull farmers, elevators, or brokers into a false sense of security, to postpone inquiries, or to make his transactions between the farmers, elevators, or brokers less suspect.
“Hunter Hanson’s criminal acts cost producers, elevators and brokers over 11 million dollars,” said United States Attorney Drew Wrigley. “These losses would be financially debilitating at any time, but they are back-breaking at such a challenging time for our critically important ag sector.”
Although the court ordered restitution of $11,103,309.19, investigators are still working to try to locate the proceeds that can be provided to the victims of Hanson’s crimes. “These devastating financial crimes harmed real people, and undermined generations of their family’s hard work, and the damages continue,” said United States Attorney Drew Wrigley, who added, “Hunter Hanson has displayed a heart of stone in committing these acts, and we will do everything possible to squeeze the proverbial blood from the stone and off-set the losses to the degree possible.”
The investigating agencies include: Federal Bureau of Investigation, North Dakota Bureau of Criminal Investigation, North Dakota State and Local Intelligence Center, McLean County Sheriff’s Office and States Attorney’s Office, and Mountrail County Sheriff’s Office and States Attorney’s Office.
Assistant United States Attorney Jonathan J. O’Konek prosecuted the case.Last defendant in Stanford investment fraud scheme extradited to USRead the Press Release
HOUSTON - The former chief of Antigua’s Financial Services Regulatory Commission has been extradited from Antigua to face charges for his alleged role in connection with the Stanford International Bank (SIB) $7 billion investment fraud scheme, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Leroy King, 74, of Dickerson Bay, Antigua, is the last remaining defendant in the SIB Ponzi scheme. He has been a fugitive since 2009.
King appeared before U.S. Magistrate Judge Dena Hanovice Palermo in Houston today. He is scheduled to appear again before Judge Palermo Thursday, Nov. 14, at 2 p.m. for a counsel determination hearing.
King was charged in June 2009 along with R. Allen Stanford, Houston, and others. The indictment charges King with one count of conspiracy to commit mail, wire and securities fraud; seven counts of wire fraud; 10 counts of mail fraud; one counts each of conspiracy to obstruct and obstruction of a Securities and Exchange Commission (SEC) investigation; and conspiracy to commit money laundering.
The indictment alleges King accepted more than $100,000 in bribes from Stanford in exchange for ignoring the actual value of SIB’s assets. He also allegedly assisted Stanford and others in obstructing the SEC’s investigation into the bank.
A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from three to 20 years in federal prison.
The FBI’s Houston Field Office, IRS-Criminal Investigation and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney John Pearson and Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance with the preparation of the extradition request and in support of Antigua’s domestic litigation. The FBI Legal Attaché’s Office in Barbados and the U.S. Marshals Service in Houston coordinated King’s extradition.
The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Last Defendant in Stanford Investment Fraud Scheme Extradited to U.S.Read the Press Release
The former chief of Antigua’s Financial Services Regulatory Commission has been extradited from Antigua to face charges for his alleged role in connection with the Stanford International Bank (SIB) $7 billion investment fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement.
Leroy King, 74, of Dickerson Bay, Antigua, is the last remaining defendant in the SIB Ponzi scheme. He has been a fugitive since 2009.
King appeared before U.S. Magistrate Judge Dena Hanovice Palermo in Houston, Texas, today.
King was charged in June 2009 along with R. Allen Stanford, of Houston, and others. The indictment charges King with one count of conspiracy to commit mail, wire and securities fraud; seven counts of wire fraud, 10 counts of mail fraud, one counts each of conspiracy to obstruct and obstruction of a Securities and Exchange Commission (SEC) investigation; and conspiracy to commit money laundering.
The indictment alleges King accepted more than $100,000 in bribes from Stanford in exchange for ignoring the actual value of SIB’s assets. He also allegedly assisted Stanford and others in obstructing the SEC’s investigation into the bank.
A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from three to 20 years in federal prison.
The FBI’s Houston Field Office, IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case. Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney and John Pearson of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance with the preparation of the extradition request and in support of Antigua’s domestic litigation. The FBI Legal Attaché’s Office in Barbados and the U.S. Marshals Service in Houston coordinated King’s extradition.
The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.
Las Vegas, Nevada Man Sentenced to 63 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Carlos Francisco Lainez, age 34, of Las Vegas, Nevada, was sentenced to 63 months’ imprisonment and 3 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charges arose from an investigation by the Sequoyah County Sheriff’s Office and the Drug Enforcement Administration.
The Indictment alleged that on February 3, 2019, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “The defendant was playing a key role in a drug trafficking organization – delivery. Fortunately the Sequoyah County Sheriff’s office stopped him before he reached his intended destination. As a result, thousands of dosage units of methamphetamine did not enter into the cities, towns, and communities they were intended for, and the defendant is being held accountable for participating in a business – drug dealing – that has taken many lives.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Jarrod Leaman represented the United States.KC Woman Sentenced for Embezzling $547,000 from Health Care FoundationRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman was sentenced in federal court today for embezzling almost $547,000 from the health care foundation that employed her as an accountant.
Kathleen Frederico, 52, was sentenced by U.S. District Judge Greg Kays to two years and three months in federal prison without parole. The court also ordered Frederico to pay $546,603 in restitution.
Frederico was employed as the accounting and special projects manager at Saint Luke’s Foundation, a non-profit organization established to support Saint Luke’s Hospitals and Health Systems with funding for medical and nursing education, research, charity care, and medical programs, from May 7, 1999, until she was terminated from employment on Feb. 23, 2018.
Frederico, who pleaded guilty to wire fraud on June 4, 2019, admitted that she conducted two related fraudulent embezzlement schemes over a 14-year time period while employed at Saint Luke’s Foundation. According to court documents, an auditor hired by the foundation found that Frederico had embezzled nearly $1.2 million. However, because bank records were not available for the earliest years, the government’s evidence is that Frederico stole at least $546,603 from the foundation.
She began embezzling from the foundation in June 2003 and continued to embezzle until March 29, 2017. The investigation has revealed Frederico’s spending of the embezzled funds included more than $150,000 on shopping and retail; more than $67,000 in cash; more than $30,000 in travel; more than $21,000 in internet purchases to support her illegal drug habit; and mortgage payments, utility bills, and other living expenses.
In the primary fraud scheme, Frederico created unauthorized checks made payable to herself. To conceal the embezzlement, she entered a different payee into the general ledger and created or falsified corresponding invoices. Through this method, Frederico embezzled at least $441,268.
Frederico also created unauthorized checks in which the foundation paid her personal credit card bill, and on two occasions, a relative. The government’s evidence is that through Frederico’s second fraud scheme, she embezzled at least $105,333.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI.
KC Man Indicted for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who threatened another person at gunpoint and led police officers in a pursuit was indicted by a federal grand jury today for illegally possessing firearms.
Ronald P. Harris, 26, was charged with being a felon in possession of firearms in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Harris on Nov. 1, 2019.
Today’s indictment alleges that Harris was in possession of a Smith and Wesson 9mm semi-automatic pistol on July 20, 2019. The indictment also alleges that Harris was in possession of a .38 Special .357 Magnum revolver on Nov. 9, 2019.
According to an affidavit filed in support of the original criminal complaint, a witness told law enforcement officers that Harris approached him in his back yard on the morning of July 20, 2019. Harris allegedly pointed a gun at him and stated, “I know you called the cops on me. I'll kill you. I don't care about the police.” Alarmed, he went inside his home and called 911.
When police officers arrived, they saw Harris driving a Mercury Mountaineer in reverse at a high rate of speed, traveling southbound on Highland Avenue towards East 44th Street. As officers pursued the vehicle, Harris was involved in an accident with another vehicle at East 44th Street and The Paseo. Harris fled the scene of the accident, and officers continued the pursuit. Officers saw Harris throw a semi-automatic handgun from his vehicle before coming to an abrupt stop. The loaded pistol was later recovered on the lawn of a residence.
Harris refused to follow officers’ commands to exit the vehicle, forcing the officers to remove him and place him under arrest. Harris refused to sit up and laid down on the ground, stating that he needed an ambulance. Harris was still extremely belligerent, the affidavit says, shouting profanities at the police officers and making sudden movements. Harris was transported by ambulance to the hospital. While being loaded on the gurney, a spit-mask had to be placed on him and he continued to physically act in a hostile manner and threaten the officers. After arriving at the hospital, he was handcuffed to the hospital bed and his spit-mask was removed. While an officer was adjusting the handcuffs, Harris spit in the officer’s face and struck him on his left cheek. He was discharged from the hospital after a short time because the hospital staff was unable to find anything wrong with him.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Harris has a prior felony conviction for burglary.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Caleb J. Aponte, who is a cross-designated prosecutor from the Missouri Attorney General’s office as part of the Safer Streets Initiative to combat violent crime. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department Settles Immigration-Related Discrimination Claim Against Florida-Based Tech Staffing FirmRead the Press Release
The Department of Justice announced today that it has reached a settlement with Perspective Talent LLC, a Pembroke Pines, Florida information technology recruiting and staffing firm. The settlement resolves the Department’s investigation into whether the firm discriminated against work-authorized non-U.S. citizens, including asylees, because of their citizenship status, in violation of the Immigration and Nationality Act (INA).
"Recruitment agencies canno post unlawful job adervitsemetns that operate as artificial barriers and narrow employment opportunities based on citizenship status or national origin,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to removing these discriminatory barriers to employment.”
The Department’s investigation arose from a complaint made by a work-authorized asylee alleging that Perspective Talent’s discriminatory job advertisement excluded him from consideration based on his citizenship status. After investigating the complaint, the Department concluded that Perspective Talent routinely posted job advertisements that unlawfully restricted applicants to U.S. citizens, lawful permanent residents, and TN-1 visa holders. Based on this practice, Perspective Talent initially failed to refer the complainant for a job because of his asylee status. After learning of the Department’s investigation, Perspective Talent took immediate corrective action by referring the complainant for the position and correcting its job advertisements. Federal law generally prohibits discrimination in recruiting based on a worker’s citizenship status or national origin.
Under the terms of the agreement, the firm will participate in training on the INA’s anti-discrimination provision, change its policies and procedures, and be subject to departmental monitoring and reporting requirements to ensure that its job advertisements do not unlawfully exclude individuals who are authorized to work in the United States based on their citizenship or immigration status.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English or Spanish websites. You can also sign up to receive updates about IER’s work by subscribing to GovDelivery.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Jury Convicts Texas Man of Computer Fraud, Aggravated Identity TheftRead the Press Release
ALBANY, NEW YORK – A jury on Friday convicted Tyler C. King, age 30, of Dallas, Texas, of computer fraud and aggravated identity theft in connection with his hacking of a New York-based technology company.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The evidence at the 5-day trial established that King – the founder of a defunct Texas computer repair company – conspired with Ashley St. Andria in 2015 to gain access to the computer network of a New York-based technology company that employed St. Andria.
While on the company’s network, King and St. Andria created unauthorized administrator accounts that gave them access to proprietary company information, including real-time access to the emails of senior company executives, personnel files, and financial records. In response to the company shutting down the fake administrator accounts, King regained access to the network with the assistance of St. Andria, stole proprietary business records, and – through a series of sophisticated steps, including the use of password-cracking programs – bypassed the company’s security measures. In doing so, King illegally used the credentials of two company employees based overseas.
The jury convicted King of conspiring to commit computer fraud, computer fraud, and two counts of aggravated identity theft.
King faces at least 2 years and up to 19 years in prison, a term of post-imprisonment supervised release of up to 3 years, and a fine of up to $250,000, when Senior United States District Judge Thomas J. McAvoy sentences him on April 3, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
King’s co-conspirator, Ashley St. Andria, age 30, of Irving, Texas, pled guilty to computer fraud on August 15, 2018. St. Andria is scheduled to be sentenced on February 13, 2020 in Albany by Judge McAvoy.
This case was investigated by the FBI, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
Joint Statement from DOJ, DOD, DHS, ODNI, FBI, NSA, and CISA on Ensuring Security of 2020 ElectionsRead the Press Release
WASHINGTON – Attorney General William Barr, Secretary of Defense Mark Esper, Acting Secretary of Homeland Security Kevin McAleenan, Acting Director of National Intelligence Joseph Maguire, FBI Director Christopher Wray, U.S. Cyber Command Commander and NSA Director Gen. Paul Nakasone, and CISA Director Christopher Krebs today released the following joint statement:
“Today, dozens of states and local jurisdictions are hosting their own elections across the country and, less than a year from now, Americans will go to the polls and cast their votes in the 2020 presidential election. Election security is a top priority for the United States Government. Building on our successful, whole-of-government approach to securing the 2018 elections, we have increased the level of support to state and local election officials in their efforts to protect elections. The federal government is prioritizing the sharing of threat intelligence and providing support and services that improve the security of election infrastructure across the nation.
In an unprecedented level of coordination, the U.S. government is working with all 50 states and U.S. territories, local officials, and private sector partners to identify threats, broadly share information, and protect the democratic process. We remain firm in our commitment to quickly share timely and actionable information, provide support and services, and to defend against any threats to our democracy.
Our adversaries want to undermine our democratic institutions, influence public sentiment and affect government policies. Russia, China, Iran, and other foreign malicious actors all will seek to interfere in the voting process or influence voter perceptions. Adversaries may try to accomplish their goals through a variety of means, including social media campaigns, directing disinformation operations or conducting disruptive or destructive cyber-attacks on state and local infrastructure.
While at this time we have no evidence of a compromise or disruption to election infrastructure that would enable adversaries to prevent voting, change vote counts or disrupt the ability to tally votes, we continue to vigilantly monitor any threats to U.S. elections.
The U.S. government will defend our democracy and maintain transparency with the American public about our efforts. An informed public is a resilient public. Americans should go to trusted sources for election information, such as their state and local election officials. We encourage every American to report any suspicious activity to their local officials, the FBI, or DHS. In past election cycles, reporting by Americans about suspicious activity provided valuable insight which has made our elections more secure. The greatest means to combat these threats is a whole-of-society effort.”
Jamaican National Sentenced to over Four Years’ Imprisonment for Sweepstakes Scam Targeting the ElderlyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jennmariey Burchell, age 26, a Jamaican citizen who formerly resided in Panama City, Florida, was sentenced to 51 months’ imprisonment followed by two years of supervised release by United States District Court Judge Sylvia H. Rambo for mail fraud.
According to United States Attorney David J. Freed, Burchell and identified and unidentified coconspirators perpetrated a scheme to defraud senior citizens, some of whom resided in the Middle District of Pennsylvania, that were falsely told they had won multi-million dollar international sweepstakes prizes. The purported winners were directed to send Western Union and MoneyGram money transfers, money orders and checks to persons known as “money mules,” ostensibly to pre-pay taxes and other fictitious expenses, in order to collect the non-existent cash prizes. Burchell enlisted the “money mules” to receive and transfer the fraud proceeds to him and other conspirators in Jamaica.
Judge Rambo also ordered Burchell to pay $549,495 in restitution to nine elderly victims in this Jamaican Sweepstakes fraud prosecution.
The case was investigated by the Harrisburg Office of the United States Postal Inspection Service. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
The United States Attorney’s Office and the United States Postal Inspection Service remind all citizens that they should never make an advance payment of any kind on the promise of a sweepstakes prize, loan or grant.
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Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Travis Cortez Lewis, 30, of Jackson, pled guilty today before U.S. District Carlton W. Reeves to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On May 13, 2018, officers with the Jackson Police Department arrested Travis Cortez Lewis on a pending warrant and found him in possession of a firearm. Upon questioning, Lewis admitted to purchasing the firearm and to being a convicted felon. Lewis has prior convictions in Hinds County for cocaine possession and robbery.
Lewis will be sentenced by Judge Reeves on February 10, 2020, and faces a maximum sentence of 10 years in prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Lynn Murray.
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.
Inland Empire Woman Charged with Production of Child PornographyRead the Press Release
RIVERSIDE, California – A San Bernardino County woman has been arrested on a federal criminal complaint alleging she produced child pornography of her boyfriend’s daughter, who is under the age of 12 years old.
Stefani Kasey Marie Stevens, 28, of Yucaipa, was arrested at her home on Friday afternoon. During her initial court appearance this afternoon in United States District Court in Riverside, she was ordered detained.
Stevens has been charged with one count of production of child pornography. Her arraignment is scheduled for December 17.
According to an affidavit filed with the complaint, on November 8, law enforcement officers executed two search warrants at Stevens’s home. Stevens agreed to be interviewed by law enforcement and she admitted to using her iPhone to take sexually explicit photographs of a minor girl, the affidavit states. Stevens allegedly told law enforcement that she had taken between eight and 10 sexually explicit images of the victim and later sent them to someone on the online messaging service Kik.
Kik previously identified a user account as having uploaded child exploitation material to its platform, the affidavit states. That user account was identified as belonging to Stevens, the affidavit states.
During the search, law enforcement seized Stevens’s iPhone, two tablets, a desktop computer, and bedding that matched bedding depicted in the sexually explicit photographs, according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of this charge, Stevens would face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of 30 years in federal prison.
This matter was investigated by Homeland Security Investigations and the San Bernardino County Sheriff’s Department.
This case is being prosecuted by Assistant United States Attorney Robert S. Trisotto of the Riverside Branch Office.
Henrico Man Sentenced for Gun and Drug CrimesRead the Press Release
RICHMOND, Va. – A Henrico man was sentenced today to over twelve months in prison for making false statements when acquiring firearms and possession with the intent to distribute marijuana.
According to court records and evidence presented at trial, in January 2018, the Richmond Police Department (RPD) and Virginia State Police (VSP) confronted Jawuan House, 22, on suspicion that one of his associates stole a firearm from a vendor table at a gun show in Richmond. When VSP and RPD made contact with House, they found him in the company of Yamin Maxey. Law enforcement ultimately followed House to his vehicle in the parking lot in order to gain information to find the person who stole the firearm.
In the course of speaking with House and Maxey, law enforcement learned from Maxey that he had straw purchased two firearms for House at the gun show. House also purchased a third firearm, an AK pistol, at the gun show. When law enforcement searched House’s vehicle for those firearms, they found, in total, five firearms. Three of the firearms were purchased from the gun show, including the straw-purchased firearms, and two were previously purchased and belonged to House and an associate, Brian Samuels. Law enforcement also found in the trunk of the vehicle 40 grams of marijuana in two mason jars and a digital scale. House stated that he and his friends were using the marijuana at a party.
House’s case was related to a larger investigation into Brian Samuels, 21, and other members of the Black Disciples Gang in Henrico. According to court documents, Samuels sold 39 firearms to an undercover agent over the course of approximately four months in 2018. These firearms included multiple AK pistols, AR pistols, extended magazines with 30–60 round capacities, and stolen firearms. In February 2019, ATF and other assisting law enforcement agencies executed a search warrant at Samuels’s home and located an additional 14 firearms, bringing the total to 53. Samuels forfeited all 53 firearms to the United States and was sentenced to five years in prison on June 24.
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, William C. Smith, Chief of Richmond Police, and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge John A. Gibney Jr. Assistant U.S. Attorneys Stephen E. Anthony and Janet Jin Ah Lee 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. 3:19-cr-46.
Heidelberg Man Pleads Guilty in Crack Distribution Scheme in Pittsburgh’s West EndRead the Press Release
PITTSBURGH, PA - A resident of Heidelburg, PA, pleaded guilty in federal court to a charge of conspiracy to distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Antoine Dean, Sr., age 54, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Antoine Dean, Sr. and his co-conspirators distributed 28 grams or more of crack cocaine in and around the area of the Greenway Projects.
Judge Schwab scheduled sentencing for March 31, 2020 at 10:00 a.m. The law provides for a total sentence of not less than 5 years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Antoine Dean, Sr.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.