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8 November 2019
Nigerian National Extradited to United States to Face Federal Charges for Leading International Fraud Scheme That Victimized Dozens of Financial InstitutionsRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney for the Northern District of Florida Lawrence Keefe today announced the extradition of Adedeji Adeniran, a national of Nigeria, to the Northern
District Florida.On Nov. 2, 2019, Nigeria extradited Adeniran, age 56, to the Northern District of Florida. He arrived in the United States on Nov. 3. Adeniran was the leader of a criminal group that committed a large bank fraud, mail fraud, and wire fraud conspiracy that involved a loss of $4.1 million and involved 42 victim financial institutions. Between 2002 and 2004, members of the criminal group fraudulently obtained the identities of others and opened numerous bank accounts in the United
States. The group members deposited counterfeited or forged checks into those accounts and then wired the proceeds of the fraud to Hong Kong, Turkey, Nigeria, and the United Arab Emirates. The criminal group consisted of three cells, one in New York City, one in Chicago, and one in South
Florida. Adeniran is alleged to be the leader of the South Florida cell and coordinated the opening of fraudulent bank accounts, the deposit of forged or counterfeit checks into the accounts, the issuance of fraudulent checks and debit card withdrawals from the fraudulent accounts, and the transfer of monies to other accounts within and outside the United States. On May 2, 2005, a grand jury in the Northern District of Florida returned a 27-count indictment charging eight defendants with conspiracy to commit bank, mail, and wire fraud, and 26 counts of bank fraud. Adeniran is charged in 20 counts of the indictment. Adeniran fled the United States in 2005 and has remained a fugitive until this year. Based upon an extradition request of the United States, a Nigerian court issued a warrant for Adeniran’s arrest on Oct. 23, 2018. Adeniran was arrested by Nigerian authorities on March 21, 2019, and bail was denied.
Adeniran was found extraditable on May 21, 2019.The Attorney-General of the Federation and Minister of Justice issued a final surrender order on
Oct. 17, 2019, and Nigeria surrendered Adeniran to agents of the Federal Bureau of Investigation.
Adeniran was arraigned in federal court on Nov. 4, 2019, at the U.S. Courthouse in
Tallahassee.Adeniran is set for trial on Jan. 6, 2020, at 8:15 a.m. at the U.S. Courthouse in Tallahassee.
Adeniran faces a maximum sentence of 30 years in prison, a $1,000,000 fine, and five years’ supervised release, on each of the 20 charged counts.
On March 30, 2006, while Adeniran was a fugitive outside the United States, the United States obtained the forfeiture of Adeniran’s residence in Miramar, Florida.
Five co-conspirators named in the indictment have previously pleaded guilty:
• Daphnee Philias pled guilty to one count of conspiracy to commit bank fraud on Sept. 7, 2005.
• Stephen Adetona pled guilty to conspiracy to commit bank fraud and two counts of bank fraud on
Sept. 13, 2005.
• Adeyinka Olushola Cheese pled guilty to one count of conspiracy to commit bank fraud on Nov. 10, 2005.
• Fatai Taiwo pled guilty to one count of conspiracy to commit bank fraud on Feb. 27, 2006.
• Anthony Goldman pled guilty to one count of conspiracy to commit bank fraud on April 13, 2006.Two other defendants remain fugitives.
This case was investigated by the FBI. Assistant U.S. Attorney Stephen Kunz is prosecuting the case. The Justice Department’s Office of International Affairs of the Department’s Criminal
Division provided significant assistance in securing the defendant’s extradition from Nigeria.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.New Haven Man Pleads Guilty to Federal Robbery ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that VINSON SINGLETON, JR., 25, of New Haven, pleaded guilty yesterday in New Haven federal court to a federal robbery offense.
According court documents and statements made in court, this matter stems from an investigation into a series of armed and attempted armed robberies of commercial establishments in Ansonia, North Haven and New Haven in March 2016. The investigation revealed that, in the evening of March 22, 2016, an individual entered the Shell gas station at 696 Main Street in Ansonia, attempted to rob the store and stabbed a store employee in his back. After the victim was stabbed, the victim saw a metal blade on the ground and the assailant holding a black handle in his hand. The assailant then ran from the store. The victim suffered a small puncture wound in his lower back.
Investigators collected the knife handle and a hat and sweatshirt that the assailant discarded as he ran from the store. DNA collected from these items matched DNA that was collected from Singleton after investigators had identified Singleton as a suspect.
Singleton pleaded guilty to one count of attempted Hobbs Act robbery, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 28, 2020.
At sentencing, the government will argue that Singleton also robbed or attempted to rob a Dunkin Donuts in New Haven on March 8, 2016; a Valero in North Haven on March 9, 2016; a Papa John’s in New Haven on March 17, 2016; a Shell in New Haven on March 17, 2016, and a 7-11 in New Haven on March 21, 2016.
Singleton is currently serving a state sentence for possessing a sawed-off shotgun and an attempted robbery.
This matter is being investigated by the FBI’s Connecticut Violent Crime Task Force and the Ansonia, New Haven and North Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Maria del Pilar Gonzalez.
Mortgage Short Sale Negotiators Charged with Defrauding Mortgage LendersRead the Press Release
BOSTON – The principals and co-founders of a North Andover mortgage short sale assistance company were charged today in connection with defrauding mortgage lenders and investors out of nearly $500,000 in proceeds from about 90 short sale transactions. The defendants allegedly defrauded the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the U.S. Department of Housing and Urban Development.
Gabriel T. Tavarez, 39, and Jaime L. Mulvihill, 40, who together founded and operated Loss Mitigation Services, LLC, were charged with conspiracy to commit wire fraud. Tavarez also was charged with aggravated identity theft.
The charges arise out of the defendants’ alleged scheme to steal undisclosed and improper fees from mortgage lenders in connection with short sales of homes. A short sale occurs where the mortgage debt on the home is greater than the sale price, and the mortgage lender agrees to take a loss on the transaction.
Loss Mitigation Services, purportedly acting on behalf of underwater homeowners, negotiated with mortgage lenders for approval of short sales in lieu of foreclosure. Mortgage lenders typically forbid short sale negotiators, such as Loss Mitigation Services, from receiving any proceeds of a short sale.
According to the court documents, from 2014 to 2017, Tavarez and Mulvihill, directly or through their employees, falsely claimed to homeowners, real estate agents, and closing attorneys that mortgage lenders had agreed to pay Loss Mitigation Services fees known as “seller paid closing costs” or “seller concessions” from the proceeds of the short sales. In reality, the mortgage lenders had never approved Loss Mitigation Services to receive those fees. When the short sales closed, at the instruction of Tavarez or Mulvihill, or others working with them, settlement agents paid Loss Mitigation Services the fees, which typically were 3% of the short sale price above and beyond any fees to real estate agents, closing attorneys and others involved in the transaction. To deceive mortgage lenders about the true nature of the fees, Tavarez or Mulvihill filed, or caused others to file, false short sale transaction documents with mortgage lenders, including altered settlement statements and fabricated contracts and mortgage loan preapproval letters. Tavarez and Mulvihill fabricated the transaction documents, or caused them to be fabricated, in order to justify the additional fees and conceal that they were being paid to Loss Mitigation Services. In addition, Tavarez created fake letters from mortgage brokers claiming that the brokers had approved buyers for financing, in order to convince mortgage lenders to approve the additional fees.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000, or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Brian M. LaMacchia of Lelling’s Office are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Missoula-area woman sentenced for possessing meth for distributionRead the Press Release
MISSOULA—A Missoula-area woman who admitted to law enforcement she was dealing methamphetamine and heroin after getting pulled over in a traffic stop was sentenced today to 51 months in prison and four years of supervised release, U.S. Attorney Kurt Alme said.
Jewell Alexandria Mann, 21, of Victor, pleaded guilty in July to possession with intent to distribute meth.
U.S. District Judge Donald M. Molloy presided.
In court records filed in the case, the prosecution said a Missoula County Sheriff’s deputy made a traffic stop on a vehicle Mann was driving on Dec. 7, 2018. A search of Mann resulted in the recovery of a digital scale, meth and heroin. Mann admitted to law enforcement that the drugs were hers and that she was a dealer.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the FBI and the Montana Violent Crimes Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mississippi Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A Macon, Mississippi, tax return preparer pleaded guilty yesterday to aiding and assisting in the preparation and filing of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Mike Hurst of the Southern District of Mississippi.
According to documents and information provided to the court, from approximately January 2012 through April 2016, Shelleen Ivory-Farmer managed ABS Tax Services, a tax preparation business in Macon, Mississippi. Through the firm, Ivory-Farmer falsified clients’ tax returns by claiming false education credits, itemized deductions, and business and farming losses to fraudulently increase client refunds. The tax loss resulting from the false education credits was more than $870,000 and the total tax loss Ivory-Farmer caused was more than $1.1 million.
Ivory-Farmer faces a statutory maximum sentence of three years in prison, a period of supervised release and monetary penalties. In addition, Ivory-Farmer agreed to pay $236,887 in restitution to the Internal Revenue Service (IRS).
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hurst thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Mary Helen Wall and Trial Attorney William Montague of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mission Man Found Guilty for Methamphetamine Trafficking and Gun ChargesRead the Press Release
United States Attorney Ron Parsons announced that Eli Erickson, a/k/a Black, age 32, of Mission, South Dakota, was found guilty of Conspiracy to Distribute Methamphetamine, Possession of Firearms in Furtherance of a Drug Trafficking Crime, and Drug User in Possession of Firearms as a result of a 3-day federal jury trial in Pierre, South Dakota.
The charges carry a maximum penalty of at least 15 years up to life in federal prison, and/or a $10,000,000 fine, at least 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered, as well as forfeiture of numerous firearms and U.S. currency.
Erickson was indicted on November 14, 2018, and a Superseding Indictment was filed on September 10, 2019.
From 2015 through 2018, Erickson knowingly and intentionally conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. The trial testimony showed the conspiracy involved importing pounds of methamphetamine from Nebraska and distributing it on the Rosebud Sioux Indian Reservation. During this time, Erickson possessed two firearms in furtherance of his drug trafficking operation, namely by using the weapons to protect his home from which he sold methamphetamine. Erickson also possessed these firearms, and a number of other firearms, while being a methamphetamine user.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services; the Stanley County Sherriff’s Office; the Lexington, Nebraska, Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Northern Plains Safe Trails Drug Enforcement Task Force; and the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
A sentencing date has not been set. Erickson was immediately remanded to the custody of the U.S. Marshals Service.
Mexican National Deported 13 Times Sentenced to 18 Months in Prison for Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALBERTO SILVA-GARCIA, 44, a citizen of Mexico, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 18 months of imprisonment for violating the conditions of his supervised release that followed a conviction for illegally reentering the U.S. after being deported. The sentence will run consecutively to a 42-month prison term that Silva-Garcia is currently serving.
According to court documents and statements made in court, Silva-Garcia was deported from the U.S. to his native Mexico in March 1999 after sustaining a domestic violence conviction in California. Between March 1999 and April 2004, Silva-Garcia was encountered multiple times in California by immigration agents, twice while in custody following his apprehension and conviction for controlled substance violations, and on several other occasions following his apprehension at the U.S. border for falsely claiming U.S. citizenship. On 11 documented occasions prior to 2005, Silva-Garcia was removed to Mexico by foot.
In August 2009, Silva-Garcia was arrested for motor vehicle offenses in Norwalk. He was subsequently charged with illegal reentry in U.S. District Court in Connecticut and was sentenced to 12 months of imprisonment. In December 2010, Silva-Garcia was again removed to Mexico.
Silva-Garcia again illegally reentered the U.S. and, in March 2015, was charged with larceny and burglary offenses in superior court in Norwalk. The charges stemmed from a crime spree involving the theft of construction tools and equipment from job sites and parked construction vehicles. He pleaded guilty and was sentenced to three years of incarceration.
In January 2017, again Silva-Garcia pleaded guilty in federal court to illegal reentry. On April 25, 2017, Judge Meyer sentenced him to 15 months of imprisonment and three years of supervised release.
On December 13, 2017, Silva-Garcia was deported to Mexico. On September 1, 2018, he was apprehended as he attempted to reenter the U.S. by scaling a fence at the border of Mexico and California.
Silva-Garcia pleaded guilty in the Southern District of California to attempted reentry of a removed alien, and was sentenced to 42 months of imprisonment and three years of supervised release.
Judge Meyer ordered Silva-Garcia to begin serving his 18-month prison term after he completes his 42-month sentence for his more recent illegal reentry conviction.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Methamphetamine Trafficker Sentenced to Fifteen Years in PrisonRead the Press Release
BOISE - Juan Frausto-Bedolla, 29, of Tijuana, Mexico, was sentenced in U.S. District Court to fifteen years in federal prison, followed by five years of supervised release, for conspiracy to distribute methamphetamine, U.S. Attorney Bart M. Davis announced today. Frausto-Bedolla was sentenced by Chief U.S. District Judge David C. Nye. Frausto-Bedolla pled guilty to the offense on December 7, 2018.
According to court records, between May 2016 and August 2017, Frausto-Bedolla conspired to distribute methamphetamine in Idaho with several other codefendants. Frausto-Bedolla secured methamphetamine from out-of-state sources and brought it into Idaho for further distribution.
This case was investigated by Drug Enforcement Administration and Idaho State Police.
This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service.
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Media Advisory – Federal and Local Officials to Hold Press Conference to Present $163,567 Forfeiture Award as a Result of Dismantling a Regional Drug Trafficking OrganizationRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that there will be a press conference at 12:30 p.m. on Friday, November 8, 2019, at Yakima City Hall – Council Chambers in Yakima, Washington, to make a significant law enforcement announcement.
WHO:
United States Attorney William D. Hyslop
Yakima County Sheriff Robert Udell
Yakima Chief of Police Matthew Murray
Assistant United States Attorney Benjamin D. Seal
Assistant United States Attorney Brian M. Donovan
United States Drug Enforcement Administration Resident-Agent-In-Charge Jason Diaz
United States Drug Enforcement Administration Special Agent Matt Petty
Law Enforcement Against Drugs Task Force Commander Edward Levesque
Law Enforcement Against Drugs Task Force Supervisor Sergeant Brian Luedtke
WHERE:
Yakima City Hall
Council Chambers
129 N 2nd Street
Yakima, WA 98901
OPEN PRESS
NOTE: All media representatives must present government-issued photo I.D. (i.e., driver’s license) as well as valid media credentials. Media representatives may begin to arrive at 12:00 p.m. Credentialed media are invited to use camera and audio equipment during the press conference.
Inquiries regarding logistics should be directed to Debra Doll, Executive Assistant to the United States Attorney, United States Attorney’s Office for the Eastern District of Washington, at 509-353-2767.
Maryland Man Pleads Guilty to Illegally Purchasing 35 Firearms in VirginiaRead the Press Release
ALEXANDRIA, Va. – A Forestville, Maryland man pleaded guilty today to making false statements in order to illegally purchase firearms.
“Preventing the illegal purchase and sale of firearms is a top priority,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The defendant played a significant role in the trafficking of dozens of firearms from Virginia to Maryland and Washington, D.C., where they wound up in the hands of a convicted felon and presented a grave danger to our community.”
According to court documents, Juan Zimmerman, 26, used a fraudulently obtained Virginia identification card to purchase 35 firearms from various Federal Firearms Licensees throughout the Eastern District of Virginia between June and August 2018. After purchasing the firearms, Zimmerman transferred the firearms to others, including his cousin, who trafficked the firearms across state lines to Maryland and Washington, D.C. to other individuals. Three of the firearms Zimmerman illegally purchased have been recovered by law enforcement after being used in a number of violent crimes, including at least one homicide and one domestic violence shooting.
Zimmerman pleaded guilty to making false statements with respect to the purchase of firearms and faces a maximum penalty of five years in prison when sentenced on February 21, 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.
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, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Nicholas Murphy and Special Assistant U.S. Attorney Jason Trigger 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. 1:19-cr-265.
Manhattan U.S. Attorney Announces $12.3 Million Settlement with Lenox Hill Hospital for Submitting Fraudulent Medicare Claims for Urology Procedures and Hospital ServicesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”) New York Regional Office, announced today that the United States filed and settled a civil fraud lawsuit against LENOX HILL HOSPITAL (“Lenox Hill”) and its corporate parent NORTHWELL HEALTH, INC. (“Northwell”) (together, “Defendants”). The Government’s Complaint-in-Intervention (the “Complaint”) alleges that Defendants violated the False Claims Act by fraudulently billing Medicare for healthcare services that did not comply with Medicare law. The Complaint specifically alleges that in conjunction with Defendants’ employment of Lenox Hill’s former chair of the Department of Urology, David B. Samadi (“Samadi”), Defendants submitted claims for: (1) endoscopic procedures that were performed, at least in part, by insufficiently supervised medical residents; (2) robotic surgeries for which, at some point during the surgery, Samadi left the patient improperly unattended in order to supervise a different surgery; (3) medically unnecessary hospital services; and (4) designated health services referred to Lenox Hill by Samadi when his compensation arrangement violated the federal Stark Law.
Under the settlement, approved by U.S. District Judge Denise Cote, Defendants agreed to pay $12.3 million to resolve the allegations in the Complaint. As part of the settlement, Defendants also admitted, acknowledged, and accepted responsibility for conduct alleged in the Complaint, including that “Defendants’ practices resulted in the submission of several million dollars of inappropriate claims to Medicare.”
Manhattan U.S. Attorney Geoffrey S. Berman said: “Patients put great trust in hospitals, particularly when it comes to surgery. Hospitals cannot pay surgeons for their referrals, and they cannot run their operating rooms like assembly lines. Defendants prioritized maximizing their own revenues over regulatory compliance. This Office will not tolerate such behavior, and today’s settlement makes clear that the Government will hold hospitals accountable when they engage in such misconduct.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Lenox Hill Hospital elected to increase their profits by paying handsomely for referrals without any regard to patient care – ultimately violating Medicare rules and regulations. The Medicare program is designed to protect both beneficiaries and taxpayers. We will continue working with our law enforcement partners to enforce these rules.”
As alleged in the Complaint, from July 2013 through June 2018 (the “Covered Period”), Samadi oversaw Lenox Hill’s Department of Urology, including the training of its medical residents. During Samadi’s tenure, Defendants encouraged and facilitated surgical practices that violated Medicare’s rules and regulations that govern a teaching physician’s presence and availability during both endoscopy and high-risk, complex surgery. Although Medicare allows teaching institutions to utilize medical residents in the provision of surgical care, the law requires that a board certified senior surgeon provide adequate supervision. Throughout the Covered Period, in order to maximize the revenues that Samadi generated for Lenox Hill, Defendants allowed Samadi to engage in an overlapping surgical practice wherein he was insufficiently available to provide the supervisory oversight required by Medicare. Specifically, Defendants would schedule Samadi to perform two separate surgeries, one endoscopic and one robotic, at the exact same time. During the course of the two surgeries, a medical resident would remain with the patient undergoing an endoscopic procedure or operation. Meanwhile, Samadi himself would travel back and forth between the endoscopic room, and an adjacent operating room in which Samadi conducted high-risk, complex, surgeries utilizing a surgical robot. This practice not only violated Medicare law, it also violated Northwell’s own resident supervision policy – and it resulted in Defendants’ submission of false claims. Moreover, Samadi’s patients were never informed that their surgeries were scheduled to overlap with another of Samadi’s scheduled surgeries.
Samadi’s operating room practices also resulted in the submission of medically unnecessary claims. In a further effort to maximize Samadi’s availability to perform revenue-generating surgeries, Defendants allowed Samadi to perform minor diagnostic procedures in a Lenox Hill operating room. Operating room services, such as the services provided by operating room nurses and/or anesthesiologists, were medically unnecessary in the case of these minor procedures. Nonetheless, in conjunction with the minor diagnostic procedures that Samadi’s patients underwent in a Lenox Hill operating room, Defendants submitted claims to Medicare for the medically unnecessary operating room services provided. These unnecessary services were also ineligible for Medicare reimbursement.
Lastly, Defendants submitted claims for health services that violated the Stark Law. The Stark Law is a federal law that prohibits a hospital from receiving Medicare reimbursement for services referred by a physician with whom the hospital has a prohibited financial relationship. The law is intended to prevent conflicts of interest in physician referrals. Throughout the Covered Period, Defendants paid Samadi a guaranteed salary of over two million dollars each year, as well as an annual incentive bonus of an additional two to five million dollars each year. This compensation grossly exceeded fair market value because it factored in the value of Samadi’s referrals to Lenox Hill. In addition, in calculating Samadi’s incentive bonus, Lenox Hill included revenues from services not personally performed by Samadi. This inclusion of non-personally performed services in a physician’s incentive compensation also violated the Stark Law. Given these facts, Samadi and Lenox Hill had a prohibited financial relationship under the Stark Law throughout the Covered Period. Defendants therefore were not permitted to submit to Medicare reimbursement claims for the health services referred to them by Samadi.
As part of the settlement, Defendants admitted conduct alleged in the Complaint, including that:
- At the time of Samadi’s recruitment and hiring, Defendants prepared internal documents that contained analyses of Samadi’s future referrals to Lenox Hill for designated health services. These documents projected revenues of over four million dollars a year attributable to Samadi’s future referrals. These documents also projected that, without taking into account these revenues, Lenox Hill would operate Samadi’s medical practice at a loss of over one million dollars each year.
- Throughout the Covered Period, taking into account only the value of Samadi’s own collections, Lenox Hill operated Samadi’s medical practice at a loss of over one million dollars each year.
- From October 2016 through at least July 1, 2017, Northwell had an internal policy stating that “[w]hen a Teaching Physician is not present during non-Critical non-Key Portions of the procedure and is participating in another surgical procedure, he/she must arrange for another qualified surgeon to immediately assist the resident in the other case should the need arise.” The policy further stated, under the section titled “Teaching Physician Requirements for Endoscopy,” that “[t]he Teaching Physician must be present in the room for the entire viewing from the time the scope is inserted to the time the scope is removed.”
- During much of the Covered Period, Samadi performed surgical operations and procedures at Lenox Hill in the following manner:
- Samadi performed procedures in two operating rooms – OR 21 and OR 25, and sequenced the order of procedures such that portions of procedures performed in OR 21 overlapped with procedures performed in OR 25, and vice versa.
- During the portions of OR 21 and OR 25 procedures that overlapped, Samadi generally performed complex, robotic surgical procedures in OR 25, and residents assigned to be supervised by Samadi performed endoscopic operations and procedures in OR 21.
- Samadi rarely designated another attending urologist to assist in OR 21 for the portions of the procedure from which Samadi himself was absent because of his participation in another surgical procedure occurring in OR 25.
- In instances when Samadi stepped away from a procedure in OR 25 to supervise a procedure in OR 21, Samadi would freeze or pause the robotic equipment in OR 25 and leave the patient under the care of the anesthesiologist, operating room staff, and, in some instances, a urology resident. No other attending urologist was present in OR 25 for the portion of time that Samadi was absent, even though the surgery had not yet concluded. Samadi also did not inform any other attending urologist of the specific times during a surgery when he was absent from OR 25.
- It was not Samadi’s personal practice to inform his patients when their surgeries were scheduled to overlap with another of Samadi’s scheduled surgeries.
- Samadi performed cystograms and cystoscopies on patients in OR 21 in certain instances when it was not medically necessary to perform these procedures in an operating room setting. Lenox Hill submitted to Medicare claims for payment associated with the services rendered by operating room staff in conjunction with these procedures.
- Defendants’ practices resulted in the submission of several million dollars of inappropriate claims to Medicare.
Mr. Berman praised the outstanding investigative work of HHS-OIG. This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jessica Jean Hu and Arastu K. Chaudhury are in charge of the case.
Man Sentenced for Illegal Possession of Firearms, Silencers and IEDRead the Press Release
RICHMOND, Va. – A Farmville man was sentenced yesterday to nearly eight years in prison for the illegal possession of 40 firearms and 23,000 rounds of ammunition by an unlawful user of controlled substances.
“An armed drug user presents grave dangers to our community and to law enforcement officers sworn to protect us,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Robert Baldwin was in possession of numerous extremely deadly weapons, devices, and ammunition, and opened up his home to juveniles to use and abuse illicit drugs. Simply put, the combination of drug use and possession of firearms is a recipe for disaster.”
According to court documents, on April 23, 2018, officers of the Farmville Police Department and the Virginia State Police executed a search warrant at the residence of Robert Baldwin, 50, on complaints that he was regularly using that residence for the consumption of marijuana by himself, his juvenile son, and students at Longwood University. In addition to marijuana and smoking devices, officers also recovered three illegal firearms silencers, 23 rifles, eight shotguns, six semi-automatic pistols, three revolvers, various gun parts, an improvised explosive device, more than 23,000 rounds of ammunition, tactical armor, and radios and computer equipment belonging to the Virginia State Police.
On July 26, 2019, Baldwin pleaded guilty and admitted that he was an illegal drug user and that he knowingly possessed each of the seized firearms.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Stephen W. Miller and Kenneth Simon 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-83.
Man Sentenced for Cyberstalking, ID Theft and Computer HackingRead the Press Release
RICHMOND, Va. – A Culpeper County man was sentenced yesterday to over six years in prison for cyberstalking, unauthorized access to a protected computer to obtain information, and aggravated identity theft.
According to court documents, from February to April 2018, Satyasurya Sahas Thumma, 23, dated and had a sexual relationship with Victim 1. During their dating period, Victim 1 sent Thumma multiple nude photos of herself. In April 2018, Victim 1 broke up with Thumma, and after a failed effort to get Victim 1 back, Thumma began an unsettling cyber harassment campaign. Posing as an unknown person, Thumma began sending Victim 1 anonymous text messages via a messaging app that allows users to make text messages appear to come from numbers other than their actual cell phone number. He threatened to post her nude photos to the public, created a Snapchat account to post the nude photos online and invited many of her friends to join the account, and threatened to send the nude photos to Victim 1’s parents, which he eventually did.
Thumma’s relationship with Victim 2 started in the summer of 2018 after they met through an online dating site. Victim 2 also sent Thumma multiple nude photos and videos during the several months they dated. When Victim 2 broke up with Thumma, he used the same anonymizing messaging app that he used with Victim 1 to send harassing and disturbing texts to Victim 2 and her mother. Thumma manipulated Victim 2 with a conspiracy story purportedly involving violent individuals who were threatening him and who had hacked into his online accounts to steal Victim 2’s nude photos. He sent Victim 2 multiple emails from secure, overseas providers that included extortion demands, threats of death, and gruesome photos of women who were dead or being tortured. To add credibility to his violent conspiracy charade, Thumma included his own true phone number and email address on various messages to make it appear that “they” were threatening him as well.
In March 2019, Thumma was involved in a DUI accident in Richmond that resulted in him being transported by EMS to the hospital. While lying on a hospital bed wearing a gown that appeared to be spattered with some blood, Thumma feigned being unconscious and took a selfie photograph. Several hours after being released from the hospital, Thumma used the anonymous texting application to send his hospital selfie photo to Victim 2 and her mom with the message, “Ur next.” During Thumma’s harassment of Victim 2, he sent her nude photos to both her mom and dad, and to their family’s church email address. In addition, Thumma hacked into Victim 2’s Twitter account and sent approximately 30 messages containing her nude photos to her Twitter friends. He also hacked into her Facebook account and changed the password, and claimed in messages to Victim 2 that the violent conspirators were responsible for the Twitter and Facebook hacks.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, 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 Brian R. Hood 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-103.
Macy Man Sentenced to 18 Months for RobberyRead the Press Release
United States Attorney Joe Kelly announced that Bryant Freemont, Jr., age 19, was sentenced today in federal court in Omaha, Nebraska for Robbery in Indian Country. United States District Court Judge Robert F. Rossiter, Jr., sentenced Freemont to 18 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Freemont will begin a three-year term of supervised release.
On the morning of July 14, 2018, Freemont approached the victim, an emergency medical technician, in the parking lot outside of the Carl T. Curtis Medical Center in Macy, Nebraska. The victim had just completed her shift and was in her vehicle preparing to drive home. Freemont demanded money from the victim and stated that he had a gun. After the victim initially did not provide any money, Freemont reached into his waistband. The victim thought Freemont was pulling out a firearm. The victim then gave Freemont all the money she had on her–$20. Freemont then fled the scene. Freemont later admitted to law enforcement to committing the robbery and stated that he did not actually have a firearm.
The case was investigated by the Federal Bureau of Investigation.
Local judge charged with fraudRead the Press Release
HOUSTON - A Harris County judge has been indicted on allegations of wire fraud, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI - Houston Division.
Judge Alexandra Smoots-Thomas, 44, of Houston, is currently the presiding judge for the 164th District Court for the State of Texas and has jurisdiction over Texas civil cases located within Harris County.
A federal grand jury returned the seven-count indictment Oct. 24, which was unsealed today as she surrendered to federal authorities. She is expected to make her initial appearance before U.S. Magistrate Judge Peter Bray today, as early as 10:00 a.m.
“The defendant in this case is a judge, whose responsibilities are to make sure the law is followed and carried out,” Turner. “She was entrusted to serve the citizens of Harris County with duty and honor. However, the allegations contained in today’s indictment show that the judge put personal enrichment over this duty and honor."
Smoots-Thomas allegedly embezzled campaign contributions individuals and political action committees had made to her re-election campaigns. The indictment alleges Smoots-Thomas repeatedly solicited campaign contributions on the premise the money would be used to help facilitate her re-election campaigns in both 2012 and 2016. She allegedly used campaign funds for non-campaign expenses to include monthly home mortgage payments, private school tuition payments, personal travel expenses, personal luxury items and cash withdrawals. Smoots-Thomas concealed this spending from both her campaign treasurer and the Texas Ethics Commission by filing false campaign finance reports, according to the charges.
Each count of wire fraud carries a possible sentence of up to 20 years in federal prison as well as a maximum $250,000 fine.
The FBI conducted the investigation. Assistant U.S. Attorneys Ralph Imperato and John Pearson are handling the matter.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Kirkwood Builder Sentenced for Swindling Homebuyers of Approximately $400,000Read the Press Release
St. Louis, MO – Morgan Bullock, 33, of Camdenton, Missouri, was sentenced to 12 months in prison and restitution in the amount of $136,458.68 for his scheme to defraud homebuyer customers of Bullock Building and Development, LLC. He appeared in federal court this afternoon before U.S. District Judge Audrey G. Fleissig.
According to court documents and statements made in court, Bullock owned and operated Bullock Building and Development, a construction company he operated out of Camdenton, Missouri. During 2015, Bullock and two partners purchased approximately five acres of land at 425 Emmerson Avenue, and planned to build eight residential homes in what they called Emmerson Estates. Bullock and his partners took out a loan to purchase the land from a local bank. Bullock then applied with the City of Kirkwood for approval of his development plan, and building permits. Before giving approval to build the subdivision, the city required Bullock to obtain approval from the Metropolitan Sewer District (MSD) and also to post a letter of credit as a performance guarantee from a financial institution in the amount of approximately $500,000. Bullock never obtained approval for the construction from MSD, and he was unable to find a financial institution willing to issue him and his company the performance guarantee. Thus, Bullock never obtained final approval from Kirkwood to develop the subdivision. Nevertheless, during 2017, Bullock marketed the new home construction in Emmerson Estates, and obtained lot deposits from six families based upon his false representations that he would build their new homes on the selected lots. Bullock never advised the homebuyers that he did not have approval from Kirkwood to develop the subdivision and build their promised homes. Despite promising that he would only use their lot deposits in the construction of their new homes, Bullock instead used the victim homebuyers’ funds for his own personal use and to pay off contractors working on a separate unrelated construction project in the Camdenton, Missouri area. Bullock made numerous false representations to the homebuyers as to why construction had not begun on their homes, blaming the delays on purported weather issues, contractor problems, and other false excuses. Ultimately, one of the homebuyers demanded his family’s deposit back, and Bullock wrote him a $50,000 insufficient funds check, knowing that there were not sufficient funds in his bank account. Finally, the lender foreclosed on the Emmerson Estates land for nonpayment by Bullock, and Bullock’s scheme was fully discovered. The six victim homebuyers included families with young children as well as retirees who used substantial portions of their life savings to make the lot deposit payments to Bullock. The total loss to the victim homebuyers was approximately $400,000.
As one victim stated in a letter to the court, “Morgan Bullock never appeared even the slightest bit remorseful about his scam. Even when it became completely obvious that we were victims an intentional fraudulent scam, Bullock remained smug, arrogant, and unphased. When I informed him to the authorities, he simply said, ‘Do what you think you have to do, I don’t care. But you won’t get your money back that way.’”
The United States Postal Inspection Service and the Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Kentucky Doctor Agrees to Pay $65,404 for Allegedly Engaging in Illegal Kickback Scheme with OK Compounding PharmacyRead the Press Release
A Kentucky doctor joined a growing list of medical professionals implicated in an illegal kickback scheme involving OK Compounding. This is the eleventh kickback settlement since November 2018.
Jonathan Moore, 50, a licensed doctor of podiatry, agreed to pay the government $65,404 for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores.
“Eleven kickback settlements and counting. The manipulation of our federal health insurance programs cannot be tolerated,” said U.S. Attorney Trent Shores. “There are clearly defined laws and standards that must be followed when prescribing compounding medications. Greedy doctors and marketers who have conveniently ignored those laws for their own personal enrichment will be held accountable. I appreciate the diligent work of my Affirmative Civil Enforcement team. They have an important mission and role within my office. They use civil litigation tools to ensure corrupt medical professionals cannot defraud the federal health care system and American taxpayers.”
This civil settlement resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding in return for payments.
Beginning in 2013, Dr. Moore prescribed pain creams for his patients, facilitating the sale and distribution of the creams. As compensation for his services, OK Compounding paid Dr. Moore what was characterized by the parties as “medical director fees” based upon an hourly rate. However, the payments Dr. Moore received from the company were, in actuality, “kickbacks.” Because some of the patients were insured by Medicare and TRICARE, federal health insurance programs, the kickbacks were in violation of the False Claims Act.
It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance. Prohibitions against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE Unit.
This matter was handled by Assistant U.S. Attorney Marianne Hardcastle, and is the product of a collaborative investigation by the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation Division, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Justice Department Welcomes Arkansas Joining T-Mobile/Sprint SettlementRead the Press Release
The Department of Justice announced today that it has filed an amended complaint that adds Arkansas as a plaintiff in the suit and proposed settlement relating to the proposed merger of T-Mobile and Sprint. Arkansas joins Colorado, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in the settlement, which is designed to launch Dish Network Corp., a Colorado-based satellite television provider, as a fourth nationwide provider of retail mobile wireless services. In addition to protecting competition, the proposed settlement will expedite the availability of high-quality 5G networks for American consumers and entrepreneurs.
“We are gratified that Arkansas shares our view of the tremendous benefits to competition that will arise out of the proposed consent judgment,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “A combined T-Mobile and Sprint, coupled with competition from Dish, will provide increased value to residents of Arkansas and consumers nationwide.”
The Department’s Antitrust Division and now nine co-plaintiff states have sued to block this transaction, and have agreed to settle the lawsuit based on the proposed settlement. That settlement, if approved by the court, would resolve the Justice Department’s and the co-plaintiff states’ competitive concerns.
Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint’s prepaid business, including Boost Mobile, Virgin Mobile and Sprint prepaid, to Dish. The proposed settlement also provides for the divestiture of certain spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish builds out its own 5G network.
T-Mobile US Inc. is a Delaware corporation headquartered in Bellevue, Washington. In 2018, T-Mobile posted revenues of more than $43 billion. Deutsche Telekom AG, a German corporation headquartered in Bonn, Germany, is the controlling shareholder of T-Mobile US Inc.
Sprint Corporation is a Delaware corporation headquartered in Overland Park, Kansas. In 2018, its posted revenue was over $32 billion. Sprint is controlled by SoftBank Group Corp., a Japanese Corporation headquartered in Tokyo, Japan.
Justice Department Requires Divestitures in Order for BB&T and SunTrust to Proceed with MergerRead the Press Release
The Department of Justice announced today that BB&T Corporation (BB&T) and SunTrust Banks Inc. (SunTrust) have agreed to divest 28 branches across North Carolina, Virginia, and Georgia with approximately $2.3 billion in deposits to resolve antitrust concerns arising from BB&T’s proposed merger with SunTrust. The divestiture constitutes the largest divestiture in a bank merger in over a decade.
Under their agreement with the Justice Department, the companies have agreed to divest SunTrust branches in the Eastern Shore, Virginia; Patrick County, Virginia; Franklin County, Virginia; Henry County/City of Martinsville, Virginia; Lumpkin County, Georgia; Winston-Salem, North Carolina; and Durham-Chapel Hill, North Carolina. The divested assets will include all deposits and loans associated with the divested branches.
“Banks and the financial sector are at the heart of our economy,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement ensures that banking customers across Virginia, North Carolina, and Georgia will continue to have access to competitively priced banking products, including loans to small businesses, while preserving the investments in innovation and technology this merger is expected to generate.”
The proposed merger is subject to the final approval of the Board of Governors of the Federal Reserve System, as well as the Federal Deposit Insurance Corporation (FDIC). As a result of the divestitures, the Justice Department will advise the Federal Reserve Board and the FDIC that it will not challenge the merger, provided that (1) the parties divest the branch offices and entire customer relationships (i.e., all deposits and loans) associated with the divestiture branches; (2) the parties commit to the Federal Reserve Board that they will comply with the agreement with the Department; and (3) the parties’ commitments to the Department are included as a condition to any order the Federal Reserve Board enters approving the transaction.
BB&T, headquartered in Winston-Salem, North Carolina, operates in 15 states and the District of Columbia. SunTrust, headquartered in Atlanta, Georgia, operates in 10 states and the District of Columbia.
A list of the SunTrust branches to be divested is attached.
Justice Department Comments on Settlement in Private "No-Poach" Class Action That Allows Government to Enforce Injunction Against Duke UniversityRead the Press Release
On Sept. 25, 2019, a federal district court in North Carolina entered a unique final judgment in a private no-poach class action that approves the parties’ settlement agreement and allows the United States to enforce the injunctive relief and compliance provisions of the settlement agreement. The settlement followed the Justice Department’s successful intervention in the case, which challenged alleged agreements between Duke University (Duke) and the University of North Carolina (UNC) not to compete for each other’s medical faculty.
Under the terms of the settlement, the university is prohibited from entering, maintaining, or enforcing unlawful no-poach agreements for five years. The settlement also requires Duke to implement rigorous notification and compliance measures to preclude its entry into these types of anticompetitive agreements in the future. The court’s order gives the United States the right to enforce the injunctive relief provisions of the settlement.
In the hearing to consider approving the settlement, the presiding federal judge said of the Antitrust Division’s intervention and contribution to the injunctive relief portion of the settlement: “I appreciated [your] arguments at summary judgment and the role that you all played in the injunctive relief. We hadn't really talked about that very much, but it is a substantial benefit here in not just to the Class members, but [also] in making sure that employers are aware of the risks and are likely to communicate that to folks who might not know any antitrust law, but who are making decisions as employers. So it is a pretty important part of the settlement.”
Assistant Attorney General Makan Delrahim applauded the entry of the final judgment. “This settlement is part of a larger effort by the Division to be active in enforcing the antitrust laws against practices that harm the hard-working American worker and educating the public about unlawful no-poach agreements in order to deter such agreements in the first place,” said Assistant Attorney General Delrahim. On Sept. 23, 2019, the Antitrust Division held a public workshop on competition in labor markets to discuss the role of antitrust enforcement in labor markets and promoting robust competition for American workers. The workshop covered a variety of labor competition issues, including, among other things, anticompetitive no-poach agreements.
The case is Seaman v. Duke University and Duke University Health System, Case No. 1:15-cv-000462-CCE-JLW (M.D.N.C.). On June 9, 2015, Dr. Danielle Seaman, an assistant professor at Duke University School of Medicine, filed a class action alleging that Duke and UNC agreed not to permit lateral hiring of faculty between the universities. Her complaint further alleged that the universities’ agreement violates Section 1 of the Sherman Act by eliminating competition for faculty, restricting their mobility, and suppressing their compensation. In 2018, the court certified a class comprised of faculty members with an academic appointment at the Duke or UNC Schools of Medicine.
In March 2019, the Department’s Antitrust Division filed a Statement of Interest in the lawsuit addressing the proper application of the antitrust laws, including the standard for judging the legality of alleged no-poach agreements under the Sherman Act. In April 2019, the litigants announced an agreement to settle the case. In May 2019, the Division took the unprecedented step of intervening successfully in the litigation for the limited purpose of joining the proposed settlement and thereby obtaining the right to enforce any injunctive relief entered by the court against Duke.
Duke is a private research university located in Durham, North Carolina. It has several schools and institutes, including the Duke University School of Medicine.
Insurance Broker Found Guilty of 22 Counts in $2 Million Scheme to Defraud Carefirst Bluecross BlueshieldRead the Press Release
A federal jury found a District of Columbia insurance broker guilty today for his role in a scheme to defraud CareFirst BlueCross BlueShield of more than $2 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Acting Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Philadelphia Regional Office made the announcement.
Following a two-week trial, Tarek Abou-Khatwa, aka Dean Addem, 59, of the District of Columbia, a licensed insurance broker and the owner of Benefits Consulting Associates LLC, was found guilty of one count of health care fraud, three counts of making false statements related to health care matters, seven counts of mail fraud, six counts of wire fraud and five counts of identity theft charged in a March 2018 indictment. Abou-Khatwa is expected to be sentenced on March 3, 2020, by U.S. District Judge Tanya S. Chutkan of the District of Columbia, who presided over the trial.
According to the evidence presented at trial, Abou-Khatwa was involved in a scheme to defraud CareFirst BlueCross Blue Shield by creating fictitious employees and altering years of birth of actual employees to fraudulently obtain lower insurance premiums, inflate the rates charged to clients and pocket the difference, which was in excess of $2 million.
The FBI and HHS-OIG investigated the case with the help of the D.C. Department of Insurance, Securities and Banking. Trial Attorney Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Derrick Williams of the District of Columbia are prosecuting the case. Assistant U.S. Attorney Virginia Cheatham of the District of Columbia previously handled the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Nov. 5 was:
Jaylin McKinley Half, 29, of Lodge Grass, on involuntary manslaughter. If convicted of the most serious crime, Half faces a maximum eight years in prison, a $250,000 fine and three years of supervised release. Half was released pending further proceedings. The case was investigated by Bureau of Indian Affairs. Pacer case reference. 19-131.
Christopher Dennis Shelton, 41, of Billings, on charges of conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute a controlled substance and prohibited person in possession of firearm. If convicted of the most serious crime, Shelton faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Shelton was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-137.
Appearing on Nov. 6 was:
Dustin Neal Saksa, 36, of Billings, on charges of prohibited person in possession of firearm, possession of a stolen firearm, possession of a firearm not registered in National Firearm Registry. If convicted of the most serious crime, Saksa faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Saksa was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 18-161.
Appearing on Nov. 7 were:
Franklin Joseph Takeshorse, 40, of Billings, on charges of prohibited person in possession of firearm. If convicted of the most serious crime, Takeshorse faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Takeshorse was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-139.
Joshua Ray Vogel, 41, of Billings, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of firearm. If convicted of the most serious crime, Vogel faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Vogel was detained pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-140.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Nov. 7 was:
Jeffrey Shawn McDevitt, 51, of Kalispell, on charges of prohibited person in possession of firearm and possession of stolen firearm. If convicted of the most serious crime, McDevitt faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. McDevitt was detained pending further proceedings. The case was investigated by the Flathead County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Probation and Parole. Pacer case reference. 19-50.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indianapolis Man Sentenced to 252 Months in PrisonRead the Press Release
FORT WAYNE – Floyd Thomas, 41, of Indianapolis, Indiana, was sentenced before U.S. District Court Judge Damon R. Leichty, on his plea of guilty to conspiring to possess with intent to distribute more than 5 kilograms of cocaine and possessing a firearm in furtherance of a Drug Trafficking Crime, announced U.S. Attorney Thomas L. Kirsch II.
Thomas was sentenced to 252 months in prison and 5 years of supervised release.
According to documents in this case, between November 13, 2013, and February 12, 2014, Thomas conspired with his named codefendants to possess with intent to distribute a controlled substance, namely 5 kilograms or more of cocaine. Further, on February 12, 2014, Thomas possessed a firearm in furtherance of the drug trafficking crime.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, with the assistance of the Drug Enforcement Administration as well as the Warsaw Police Department, the Fort Wayne Police Department and the IMAGE Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Anthony Geller.
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Health care fraud indictment charges man and his company in scheme to bilk Medicare, MedicaidRead the Press Release
AUGUSTA, GA: A man and his “marketing company” have been named in a five-count federal indictment for a scheme that paid workers to solicit elderly residents for information used to fraudulently bill government medical programs.
Patrick Siado, of Texas, and his company, Optimus Prime Marketing, LLC, are charged with one count of Conspiracy and four counts of Health Care Fraud, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The Conspiracy charge carries a penalty of up to five years in prison, while each count of Health Care Fraud carries a penalty of up to 10 years in prison. In addition to substantial fines and penalties, the charges also call for up to three years of supervised release after completion of any prison sentence. There is no parole in the federal system.
“Fraudulent testing and billing schemes make health care more expensive for everyone,” said U.S. Attorney Christine. “It’s even worse when it targets programs designed to assist the elderly and poor, while potentially threatening their future health care needs. We’re grateful for the work to protect these vulnerable citizens by our federal, state and local partners, particularly the Augusta District Attorney’s Office and the Burke County Sheriff’s Office.”
According to the indictment, Siado and his company, along with other companies referenced as unindicted co-conspirators, hired individuals to solicit information and DNA swabs from low-income and elderly residents. The individuals were paid $150 for each “patient,” with the information transmitted to another unindicted co-conspirator company that in turn would submit fraudulent claims to Medicare and Medicaid. Siado and his company would then receive a kickback of from $100 to $575 per test accepted for billing.
The indictment states, “Siado knew that his orders were procured through an unlawful kickback relationship, not ordered as medically necessary by the beneficiary’s treating physician, and not payable.” Each of those claims were billed to Medicaid for more than $30,000.
“When individuals bilk government subsidized programs like Medicare and Medicaid, there are many losers, to include every single taxpayer in this country and the low-income and elderly who are entitled to those funds,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “The FBI makes it a priority to root out such abuse by partnering with our federal, state and local partners.”
“The fraudulent billing of Medicare and Medicaid by unscrupulous individuals in order to line their own pockets, as alleged in this case, is unacceptable,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Our office will continue to work with our partners to ensure that those responsible for such schemes are held accountable.”
“Schemes which intentionally target our Medicaid population for profit without any intention of helping those individuals must be stopped,” said Georgia Attorney General Chris Carr. “This prosecution reflects our office’s ongoing commitment to working with our federal and local partners to put a stop to such predatory behavior.”
“I am incredibly proud of the hard work that my C.A.V.E. (Crimes Against the Vulnerable and Elderly) Unit put in to this investigation,” said Natalie Paine, District Attorney for the Augusta Judicial Circuit. “The men and women who serve on C.A.V.E. continue to prove that preying on our vulnerable citizens will not be tolerated. I am thankful for U.S. Attorney Bobby Christine’s unwavering commitment to aiding in the prosecution of those whom C.A.V.E. has worked so hard to bring to justice.”
“Community policing; partnerships with the community along with local, state, and federal agencies; and proactive officers and deputies help to prevent or end situations such as this,” said Burke County Sheriff’s Office Chief Deputy Lewis Blanchard. “We are proud that our C.A.V.E. team member deputy, along with the Waynesboro Police Department officers, ensured that this situation was taken to the next level. Protecting our most vulnerable and elderly citizens is a high priority for our office.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Including the defendants charged today, the Southern District of Georgia has now charged 21 individuals and companies as part of the nationwide crackdown on fraudulent genetic testing, and prescribing of orthotic braces and pain creams. For the 21 Southern District of Georgia defendants alone, this scheme has led to more than $400 million in losses to Medicare and Medicaid. Those who believe they might have been a victim of such a scheme should contact Assistant U.S. Attorney J. Thomas Clarkson at 912-652-4422.
The investigation is being conducted by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Georgia Attorney General’s Office, the Augusta Judicial Circuit District Attorney’s Office, and the Burke County Sheriff’s Office, and prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson and Hank Syms, and Special Assistant U.S. Attorney James P. Mooney.
Four Additional Individuals Charged for Role in Multi-Million Dollar Investment Fraud SchemeRead the Press Release
Four additional individuals were charged in an indictment unsealed today in the Northern District of Texas for their role in a multi-million investment fraud scheme that targeted the elderly.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group in Washington, D.C., made the announcement.
Suzanne Aileen Gagnier, 65, of Huntington Beach, California; Joe Edward Duchinsky, 64, of Alhambra, California; Joseph Lucien Duplain, 78, of Murrieta, California; and Russell Filippo, 69, of Oklahoma City, Oklahoma, were each charged with one the count of conspiracy to commit mail and wire fraud and 10 counts of mail fraud. Gagnier, Duchinsky, and Duplain were also charged with 10 counts of wire fraud, and Filippo was charged with eight counts of wire fraud. Gagnier was arrested and appeared on Nov. 7, 2019, before U.S. Magistrate Judge Frederick F. Mumm of the Central District of California. Duchinsky was also arrested and appeared on Nov. 7, 2019, before U.S. Magistrate Judge Autumn D. Spaeth of the Central District of California. Filippo was also arrested and appeared on Nov. 7, 2019, before U.S. Magistrate Judge Gary M. Purcell of the Western District of Oklahoma.
The superseding indictment also includes previously indicted co-defendants Cengiz Jan “CJ” Comu, John Mervyn Price, Harley E. “Buddy” Barnes III, Richard Lawrence Green and Daniel Thomas Broyles Sr. Comu, Price, Barnes, Green and Broyles are charged with one count of conspiracy to commit mail and wire fraud. In addition, Comu, Price, Barnes and Green are each charged with 10 counts of mail fraud and 10 counts of wire fraud. This superseding indictment also adds charges against Comu, Price and Barnes for money laundering. A trial date is currently set for March 30, 2020.
In addition, on Oct. 31, 2019, Donald Andrew Rothman, 72, of Coral Springs, Florida, who was not charged in the original indictment, pleaded guilty to one count of conspiracy to commit mail and wire fraud as charged in an information for his role in the scheme. Rothman appeared before U.S. Magistrate Judge Rebecca Rutherford of the Northern District of Texas. Sentencing has been scheduled for Feb. 26, 2020.
The superseding indictment alleges that, beginning in or around 2013 and continuing through in or around May 2019, the defendants participated in a scheme to defraud victims in the United States, the United Kingdom and Canada by fraudulently selling them stock in a company named EarthWater. To induce victims to purchase EarthWater stock, the defendants falsely promised victims the opportunity to earn a high-rate of return in a short period of time by offering them stock at a low price on what they falsely claimed was the eve of EarthWater’s initial public offering (IPO). In truth, EarthWater had no ability or actual plans to go public. The defendants also repeatedly lied to victims about how their money would be used, telling victims that nearly all of their money would be reinvested in EarthWater’s business (including to launch the IPO). In truth, the defendants stole most of the victims’ money and treated EarthWater’s accounts like their own personal piggybank.
The superseding indictment further alleges that the defendants targeted elderly victims and also selected victims whom they had swindled in the past and therefore believed to be more susceptible. For example, when the defendants successfully defrauded a victim by selling them EarthWater stock, the defendants would repeatedly call that victim to sell them more shares.
According to the superseding indictment, the defendants’ scheme lasted for more than five years and defrauded at least 300 victims of over $9.5 million.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service. Trial Attorneys Christopher Fenton, William Bowne, and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary F. Walters of the Northern District of Texas are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Fort Wayne Man Sentenced to 188 Months in Prison for Attempted Bank RobberyRead the Press Release
FORT WAYNE – Markell Palmer-Tate, 27 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Damon R. Leichty after pleading guilty to aiding and abetting an attempted bank robbery, announced U.S. Attorney Thomas L. Kirsch II.
Palmer-Tate was sentenced to 188 months in prison followed by 3 years of supervised release.
According to documents in the case, on April 11 2016, Palmer–Tate and his two co-defendants attempted to rob a First Source Bank in Fort Wayne, Indiana. In the weeks leading up to this attempted robbery, Palmer–Tate and his co-defendants had text message conversations about what bank to rob and on what date. Palmer – Tate had requested time off from work for the day of the robbery. Bank security video also captured Palmer – Tate casing the bank days before the robbery. On the day of the planned robbery, a bank employee was kidnapped and pistol whipped by one of Palmer – Tate’s co-defendants. Another bank employee, who was in a separate vehicle, managed to drive off and eluded being kidnapped, Palmer-Tate drove evasively in an attempt to block that victim’s escape. That victim had to drive up an embankment to get away from Palmer-Tate’s attempts to trap her in the parking lot. The abducted bank employee was eventually released.
This investigation was conducted by the FBI, the Indiana State Police and its North Regional Laboratory, the Allen County Police Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Former VA Employee and Two Family Members Indicted with Defrauding Veterans Healthcare in the VillagesRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Miller Wilson, Jr. (49, Sparr), his daughter Myoshi Wilson (25, Citra), and his ex-wife Erica Wilson (42, Ocala), with conspiracy to commit health care fraud and wire fraud. Miller Wilson, Jr. is also charged with eight counts of solicitation and receipt of health care kickbacks, and Erica and Myoshi Wilson are each charged with one count of making false statements. If convicted, each faces a maximum penalty of 5 years in federal prison for the conspiracy count. Erica and Myoshi Wilson each face up to 5 years’ imprisonment for the false statement count. In addition, Miller Wilson, Jr. faces up to 10 years in federal prison for each count of soliciting and receiving health care kickbacks. The indictment also notifies the defendants that the United States is seeking a money judgment in the amount of $382,462, which represents the proceeds of the charged criminal conduct.
According to the
indictment , Miller Wilson, Jr. was an employee at the Department of Veterans Affairs (“VA”) Clinic located in The Villages. As part of his employment, he provided transportation arrangements for veterans needing medical treatment. From 2014 through 2016, Miller Wilson, Jr. obtained cash kickbacks from the transportation vendors in exchange for awarding them health care contracts from the VA. Thereafter, from 2016-2017, Miller Wilson, Jr. conspired with Erica and Myoshi Wilson to open and manage two different transportation companies to provide these services to veterans. Miller Wilson, Jr. used his official position at the VA to funnel health care contracts to the companies that he had formed with Erica and Myoshi Wilson. During a 17-month period, the two companies billed the federal government $305,673.In 2019, Myoshi and Erica Wilson made false statements to a federal agent in to conceal their wrongdoing.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Department of Veterans Affairs, Office of Inspector General. It will be prosecuted by Assistant United States Attorney Michael P. Felicetta.
Former St. Louis Metropolitan Police Officer Pleads Guilty to Assaulting Undercover Officer Believed to be ProtestorRead the Press Release
St. Louis – Randy Hays, 32, a former police officer with the St. Louis Metropolitan Police Department (SLMPD) pleaded guilty today in federal court in the Eastern District of Missouri to one count of using unreasonable and excessive force against a fellow SLMPD police officer, who was believed to be a protestor while the officer was working undercover in downtown St. Louis during protests following the 2017 acquittal of a former SLMPD officer on a state murder charge. Hays’ co-defendant Bailey Colletta pled guilty to committing perjury related to this assault on Sept. 6, 2019. Co-defendants and former SLMPD officers Dustin Boone and Christopher Myers remain under indictment on federal charges related to the assault and subsequent cover-up. They have pleaded not guilty.
According to the plea agreement, in addition to facing a maximum of 10 years in prison, Hays must forfeit his law enforcement certification. A sentencing date has not yet been set.
The trial of Boone and Myers is set for Dec. 2, 2019.
This case is being investigated by the St. Louis Division of the FBI and is being prosecuted by First Assistant United States Attorney Carrie Costantin of the U.S. Attorney’s Office, and Special Litigation Counsel Fara Gold and Trial Attorney Janea Lamar of the Department of Justice Civil Rights Division Criminal Section.
Former St. Louis Metropolitan Police Officer Pleads Guilty to Assaulting Undercover Officer Believed to Be ProtestorRead the Press Release
Randy Hays, 32, a former police officer with the St. Louis Metropolitan Police Department (SLMPD) pleaded guilty today in federal court in the Eastern District of Missouri to one count of using unreasonable and excessive force against a fellow SLMPD police officer, who was believed to be a protestor while the officer was working undercover in downtown St. Louis during protests following the 2017 acquittal of a former SLMPD officer on a state murder charge. Hays’ co-defendant Bailey Colletta pled guilty to committing perjury related to this assault on Sept. 6, 2019. Co-defendants and former SLMPD officers Dustin Boone and Christopher Myers remain under indictment on federal charges related to the assault and subsequent cover-up. They have pleaded not guilty.
According to the plea agreement, in addition to facing a maximum of 10 years in prison, Hays must forfeit his law enforcement certification. A sentencing date has not yet been set.
The trial of Boone and Myers is set for Dec. 2, 2019.
This case is being investigated by the St. Louis Division of the FBI and is being prosecuted by First Assistant United States Attorney Carrie Costantin of the U.S. Attorney’s Office, and Special Litigation Counsel Fara Gold and Trial Attorney Janea Lamar of the Department of Justice Civil Rights Division Criminal Section.
Former Senior Alstom Executive Convicted at Trial of Violating the Foreign Corrupt Practices Act, Money Laundering and ConspiracyRead the Press Release
WASHINGTON – A former senior executive with Alstom S.A. (Alstom), a French power and transportation company, was found guilty today for his role in a multi-year, multimillion-dollar foreign bribery scheme and a related money laundering scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
After a two-week trial, Lawrence Hoskins, 69, of the United Kingdom, was convicted of six counts of violating the Foreign Corrupt Practices Act (FCPA), three counts of money laundering and two counts of conspiracy. Sentencing has been scheduled for Jan. 31, 2020, before U.S. District Judge Janet Bond Arterton of the District of Connecticut.
According to the evidence presented at trial, Hoskins was a senior vice president for Alstom’s International Network, who engaged in a conspiracy to pay bribes to officials in Indonesia – including a high-ranking member of the Indonesian Parliament and the President of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for Alstom Power Inc. of Connecticut and its consortium partner, Marubeni Corporation, to provide power-related services for the citizens of Indonesia. To conceal the bribes, Hoskins and his co-conspirators retained two consultants purportedly to provide legitimate consulting services on behalf of Alstom Power Inc., in connection with the Tarahan project. The primary purpose of hiring the consultants was to conceal the bribes to Indonesian officials, the evidence showed.
The first consultant retained by Hoskins and other members of the conspiracy received hundreds of thousands of dollars in his Maryland bank account to be used to bribe the member of Parliament, the evidence showed. The consultant then transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to emails admitted at trial, Hoskins and other co-conspirators discussed in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project, including referring to him as a “cashier.”
The trial evidence further showed that, in the fall of 2003, Hoskins and his co-conspirators determined that the first consultant was not effectively bribing key officials at PLN, who expressed concerns that the first consultant was just going to give them “pocket money” and “disappear” after Alstom Power Inc. won the project. As a result, the co-conspirators retained a second consultant to more effectively bribe PLN officials. Evidence revealed that Hoskins and his co-conspirators pressed Alstom Power Inc. to front-load the second consultant’s terms of payment in order to “get the right influence” due to upcoming elections. Hoskins and his co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the purpose of bribing the Indonesian officials.
The FBI’s Washington Field Office is investigating the case with assistance from the FBI’s Meriden, Connecticut, Resident Agency. The Department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia, Switzerland's Office of the Attorney General and the United Kingdom, as well as authorities in France, Germany, Italy, Singapore and Taiwan.
Senior Deputy Chief Daniel S. Kahn and Assistant Chief Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Former Senior Alstom Executive Convicted at Trial of Violating the Foreign Corrupt Practices Act, Money Laundering and ConspiracyRead the Press Release
A former senior executive with Alstom S.A. (Alstom), a French power and transportation company, was found guilty today for his role in a multi-year, multimillion-dollar foreign bribery scheme and a related money laundering scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge Paul D. Delacout of the FBI’s Los Angeles Office made the announcement.
After a two-week trial, Lawrence Hoskins, 69, of the United Kingdom, was convicted of six counts of violating the Foreign Corrupt Practices Act (FCPA), three counts of money laundering and two counts of conspiracy. Sentencing has been scheduled for Jan. 31, 2020, before U.S. District Judge Janet Bond Arterton of the District of Connecticut.
According to the evidence presented at trial, Hoskins was a senior vice president for Alstom’s International Network, who engaged in a conspiracy to pay bribes to officials in Indonesia – including a high-ranking member of the Indonesian Parliament and the President of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for Alstom Power Inc. of Connecticut and its consortium partner, Marubeni Corporation, to provide power-related services for the citizens of Indonesia. To conceal the bribes, Hoskins and his co-conspirators retained two consultants purportedly to provide legitimate consulting services on behalf of Alstom Power Inc., in connection with the Tarahan project. The primary purpose of hiring the consultants was to conceal the bribes to Indonesian officials, the evidence showed.
The first consultant retained by Hoskins and other members of the conspiracy received hundreds of thousands of dollars in his Maryland bank account to be used to bribe the member of Parliament, the evidence showed. The consultant then transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to emails admitted at trial, Hoskins and other co-conspirators discussed in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project, including referring to him as a “cashier.”
The trial evidence further showed that, in the fall of 2003, Hoskins and his co-conspirators determined that the first consultant was not effectively bribing key officials at PLN, who expressed concerns that the first consultant was just going to give them “pocket money” and “disappear” after Alstom Power Inc. won the project. As a result, the co-conspirators retained a second consultant to more effectively bribe PLN officials. Evidence revealed that Hoskins and his co-conspirators pressed Alstom Power Inc. to front-load the second consultant’s terms of payment in order to “get the right influence” due to upcoming elections. Hoskins and his co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the purpose of bribing the Indonesian officials.
The FBI’s Los Angeles Field Office is investigating the case with assistance from the FBI’s Meriden, Connecticut, Resident Agency. The Department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia, Switzerland's Office of the Attorney General and the United Kingdom, as well as authorities in France, Germany, Italy, Singapore and Taiwan.
Senior Deputy Chief Daniel S. Kahn and Assistant Chief Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Former Prattsville Town Supervisor and Local Businessman Charged with FraudRead the Press Release
ALBANY, NEW YORK – An indictment unsealed today charges former Prattsville Town Supervisor Kory O’Hara, age 42, and Prattsville resident Stephen Baker, age 68, with fraud relating to grants extended to Prattsville in the wake of Hurricane Irene.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- New York State Comptroller Thomas P. DiNapoli;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
- John Tiano, Special Agent in Charge of the Detroit Field Office, Department of Homeland Security, Office of Inspector General (DHS-OIG); and
- Christina Scaringi, Special Agent in Charge, Housing and Urban Development, Office of Inspector General, Northeast Region (HUD-OIG).
The indictment charges O’Hara and Baker with conspiracy to commit wire fraud, wire fraud, and theft concerning a program receiving federal funds. O’Hara is also charged with bank fraud and making false statements in a loan application.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
In August 2011, Hurricane Irene caused significant damage to the Town of Prattsville, resulting in the issuance of millions of dollars in rehabilitation grants to Prattsville and its residents. As Town Supervisor, O’Hara entered into various grant agreements, including with the New York State Housing Trust Fund Corporation and the New York Department of State.
The indictment charges O’Hara and Baker with conspiring to fraudulently obtain grant funds.
According to the indictment, between 2013 and 2015, Baker provided O’Hara with false invoices from his Prattsville-based modular home business, Moore’s Homes, purporting to reflect construction work on O’Hara’s automotive garage, O’Hara’s Service Station, which Moore’s Homes did not perform. O’Hara issued checks to Moore’s Homes reflecting payment on the invoices, but Baker returned all of the money.
O’Hara, who was Town Supervisor at the time, then submitted the false invoices and fully reimbursed checks to Prattsville and the New York State Housing Trust Fund Corporation to fraudulently obtain $24,915 in grant proceeds under the New York Main Street Program.
The indictment further alleges that, between 2014 and 2016, O’Hara submitted the same false invoices and fully reimbursed checks to the New York Department of State and Office of the New York State Comptroller to fraudulently obtain grant proceeds for Prattsville under the Local Waterfront Revitalization Program. In addition, the indictment alleges that O’Hara submitted other false invoices to obtain grant proceeds from the New York State Electric and Gas Corporation, and submitted the same false invoices and made false representations to NBT Bank, N.A., in applying for a business loan in November 2012.
O’Hara and Baker appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and were released pending a trial scheduled before Senior United States District Judge Frederick J. Scullin, Jr.
This case is being investigated by the Office of the New York State Comptroller, Division of Investigation; FBI; DHS-OIG; and HUD-OIG, with assistance from the U.S. Commodity Futures Trading Commission Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Former Postal Worker Sentenced for Role in Multi-Kilogram Cocaine ConspiracyRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester for his role in a cocaine trafficking ring responsible for smuggling over 20 kilograms of cocaine into central Massachusetts.
Erick Cruz, 29, was sentenced by U.S. District Court Judge Timothy S. Hillman to 34 months in prison and three years of supervised release. Garcia previously pleaded guilty to conspiring to distribute in excess of five kilograms of cocaine and possession with the intent to distribute over 500 grams of cocaine.
Garcia is the last of four defendants to be sentenced in this investigation. Jose Gonzalez was sentenced on Sept. 24, 2019, to 10 years in prison, Japhet Garcia was sentenced on Oct. 1, 2019, to 40 months in prison, and Deibby Garcia was sentenced on Nov. 7, 2019, to 120 months in prison.
In early December 2017, Japhet Garcia and co-conspirator Jose Gonzalez were captured on surveillance footage entering a Worcester Postal Facility and attempting to retrieve a package shipped from Puerto Rico that had been found to contain approximately three kilograms of cocaine.
Subsequent to those events, a court-authorized wiretap of a phone belonging to Deibby Garcia revealed discussions between Deibby Garcia and an unidentified individual concerning the delivery of two packages from Puerto Rico on Jan. 16, 2017. The intercepts further revealed that Deibby Garcia made arrangements with Erick Cruz, a U.S. Postal Service letter carrier, to have the packages picked up once they had arrived in Massachusetts.
During the course of communications between Jan. 9, 2018, and Jan. 13, 2018, Cruz texted Deibby Garcia two addresses, both of which were on Cruz’s assigned route as a letter carrier. Deibby Garcia, in turn, forwarded the addresses to what authorities believed to be his cocaine source in Puerto Rico. On Jan. 12, 2018, two packages were sent from Puerto Rico to the addresses provided by Cruz and Deibby Garcia. On Jan. 15, 2018, one package was searched pursuant to a federal search warrant and was found to contain three kilograms of cocaine. The following day, federal agents permitted the second package to be provided to Cruz for delivery.
Agents thereafter intercepted discussions between Cruz and Deibby Garcia in which they discussed arrangements for Deibby Garcia to have the second package picked up, and speculated about what had happened to the package that had been seized and searched. Soon after, the men were arrested and the second package was recovered.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the United States Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; and Leicester Interim Police Chief Kenneth Antanavica made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.
Former Mortgage Broker Sentenced to More Than Eight Years in Federal Prison for Fraudulent Auto Loan Scheme with Losses of More Than $1 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced John O’Day, age 48, of Chester and Stevensville, Maryland, and Sarasota, Florida, to 104 months in federal prison, followed by five years of supervised release, for federal charges of bank fraud and aggravated identity theft, in connection with a scheme to defraud at least 20 individuals and five financial institutions of more than $1 million by submitting fraudulent auto loan applications. Judge Hollander also ordered O’Day to pay restitution of $1,072,091, with interest.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rodney A. Davis of the Treasury Inspector General for Tax Administration; Chief Marcus Jones of the Montgomery County Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, between April 2016 and January 2018, O’Day and his co-conspirators, Denise White and Nigel Broomes, submitted at least 30 fraudulent applications for auto loans to victim financial institutions falsely listing O’Day as the seller of various motor vehicles, which were listed as collateral, but in which neither O’Day or the listed purchaser had any ownership interest. At least 27 of the fraudulent applications were successful and resulted in the disbursement of loan checks totaling approximately $1,167,192. O’Day deposited those funds into his personal bank accounts in Maryland. O’Day provided a portion of the fraud proceeds to his co-conspirators. The funds were not used to purchase vehicles. O’Day attempted to obtain additional loan checks totaling at least $246,000 through several unsuccessful auto loan applications.
Most of the applicants listed in the auto loan applications were recruited by O’Day under false promises and pretenses. Specifically, O’Day falsely promised that he would pay off the auto loans within up to 90 days and that the borrowers would not be responsible for loan payments. O’Day made payments in smaller amounts to most of the borrowers to assist them temporarily in making periodic payments on the loans and to compensate them for their involvement in the scheme. However, O’Day eventually stopped assisting borrowers with their payments and failed to pay off the loans as he promised. Most of the borrowers remained liable for the loans and suffered financial hardship as a result. At least some of the fraudulent auto loans were eventually converted to unsecured personal loans with higher interest rates as a result of the applicants’ failure to produce proof that they had purchased the vehicles. Several of the applicants had no knowledge that O’Day and his co-conspirators had submitted applications in their names and never authorized them to do so.
O’Day, White, and Broomes used the personal identification information of at least five individuals, without their knowledge or approval, to submit fraudulent loan applications. At least two of the applications were approved and resulted in the disbursement of loan checks totaling $98,000.
O’Day admitted that he also laundered the proceeds of the fraudulent auto loan scheme through the purchase of a home. O’Day worked as a loan officer with a mortgage brokerage company located in Maryland between January 2014 and August 2017. Between January and March 2017, O’Day requested that his employer issue him a company check for his closing costs in return for him transferring funds to the company. O’Day deposited $90,000 in fraud proceeds into a bank account he controlled, then wired $33,750 from that account to his employer’s account. The following day, the employer wired $33,750 to another of O’Day’s accounts and O’Day purchased a cashier’s check in the amount of $30,000 drawn on that account, which he used to pay the closing costs associated with the purchase of his home.
According to their plea agreements, White and Broomes personally submitted some of the fraudulent auto loan applications. White also contacted the financial institutions under false pretenses in order to get the applications approved. White used multiple e-mail accounts in which she received correspondence from the various financial institutions to which she submitted fraudulent loan applications. Upon O’Day’s request, White also contacted borrowers whom O’Day had recruited in order to assuage their concerns about their involvement with the auto loans, requests made by the financial institutions for proof of ownership of the vehicles, and O’Day’s failure to pay off the loans taken out in their names, falsely identifying herself as “Lisa.” White and Broomes also fabricated documents in support of the fraudulent loan applications and O’Day’s efforts to negotiate the loan checks.
Denise White, age 32, of East Point, Georgia, and Nigel Broomes, age 39, of Atlanta, Georgia previously pleaded guilty to their roles in the scheme. White and Broomes each face a maximum of 30 years in federal prison for bank fraud, and White also faces a mandatory minimum sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Judge Hollander has scheduled sentencing for White and Broomes on November 15, 2019, at 10:00 a.m. and 11:00 a.m., respectively.
United States Attorney Robert K. Hur commended TIGTA, the Montgomery County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.
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Former City of Boston Employee Pleads Guilty to Distributing Cocaine and FentanylRead the Press Release
BOSTON – A former employee for the City of Boston pleaded guilty yesterday to distributing cocaine and fentanyl.
Gary “Jamal” Webster, 36, pleaded guilty to four counts of distributing and possessing with intent to distribute cocaine, one count of distributing and possessing with intent to distribute more than 40 grams of fentanyl, and one count of conspiracy to distribute and possess with intent to distribute cocaine and fentanyl. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 30, 2020. Webster was charged in August 2018.
According to court documents, a cooperating witness made four controlled purchases of cocaine and one purchase of fentanyl in September and October 2016 from Webster, who was the Director of Constituent Services for a Boston City Councilor at the time. In total, Webster sold over 300 grams (two-thirds of one pound) of cocaine, and 49 grams of fentanyl to the cooperating witness during a two-month period.
The charge of conspiracy to distribute and possess with intent to distribute cocaine and more than 40 grams of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of distributing more than 40 grams of fentanyl and possessing more than 40 grams of fentanyl with intent to distribute provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of distributing cocaine and possessing cocaine with the intent to distribute provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This case was part of Operation Landshark, a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, each who have prior convictions for acts of violence, firearm offenses and/or drug trafficking.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachel Rollins; Boston Police Commissioner William Gross; and Brockton Police Chief John Crowley made the announcement today. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Services; and the U.S. Secret Service. Assistant United States Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Operation Landshark is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Atlanta Regional Commission employee charged with bribery and extortionRead the Press Release
ATLANTA - Marc Hannon-White, a former Atlanta Regional Commission employee, has been arraigned on charges of bribery and extortion.
“Hannon-White abused his position at the Atlanta Regional Commission to enrich himself,” said U.S. Attorney Byung J. “BJay” Pak. “He allegedly extorted and took bribes from training providers that received federal funds through the Commission.”
“An important mission of the U.S. Department of Labor, Office of Inspector General is to investigate allegations of fraud relating to Workforce Innovation and Opportunity Act grants issued by the U.S. Department of Labor. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
“Hannon-White instilled fear in Georgia providers trying to compete in the global economy to line his own pockets with thousands of dollars of federal funds administered by the state of Georgia. Our partnership with the US Department of Labor OIG and other agencies and law enforcement partners is essential for continued public trust. We are committed to weeding out individuals who misuse their positions for their own greed at the expense of Georgia taxpayers,” said Inspector General Deb Wallace of the State of Georgia Office of Inspector General.
According to U.S. Attorney Pak, the charges, and other information presented in court: the Workforce Innovation and Opportunity Act (WIOA) and the Workforce Investment Act (WIA) are federal public laws designed to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy.
The Atlanta Regional Commission (ARC) administers WIOA and WIA funds by serving as the administrative agency for the Atlanta Regional Workforce Development Board for Cherokee, Clayton, Douglas, Fayette, Gwinnett, Henry, and Rockdale counties. In this role, ARC oversees federally funded workforce development programs for those seven counties.
Between February 2014 and January 2015, Hannon-White worked for the division of ARC that administered, managed, and staffed those federally funded workforce development programs. During this time, Hannon-White used his position to solicit and accept payments from training providers that received federal funds for each qualified student they trained. As detailed in the indictment, Hannon-White allegedly arranged some of the bribe payments by text, sending his bank account number to one training provider who then caused money to be deposited into Hannon-White’s account in exchange for receiving additional students.
Marc Hannon-White, 52, of Atlanta, Georgia, was arraigned before Christopher C. Bly, United States Magistrate Judge, on federal charges of extortion and soliciting and accepting bribes. A federal grand jury indicted Hannon-White on November 5, 2019, on one count of conspiracy to commit bribery, one count of conspiracy to commit Hobbs Act extortion, and two counts of Hobbs Act extortion.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The U.S. Department of Labor Office of Inspector General is investigating this case with the help of the State of Georgia Office of Inspector General.
Assistant U.S. Attorney Bret R. Hobson is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida man convicted of fraudulently exploiting programs designed to protect service-disabled veteran-owned businesses and small disadvantaged businessesRead the Press Release
A federal jury in Cleveland convicted a Florida man of Major Fraud, Wire Fraud and Submitting False and Fictitious Claims after he engaged in six-year long scheme to defraud the government.
James Allen Clark, 62, is scheduled to be sentenced February 25, 2020.
According to court documents and trial testimony:
Federal departments and agencies, as directed by Congress, work with the Small Business Administration and the Department of Veteran’s Affairs to award portions of contracts to small businesses, with specific goals for small disadvantaged business, including service-disabled veteran-owned small businesses.
Businesses must register and meet a number of criteria to be classified as small disadvantaged business – also known as the 8(a) program -- such as being at least 51 percent owned and 100% controlled by socially and economically disadvantaged individuals. Businesses must also meet a number of criteria to be classified as a service-disabled veteran-owned small business, such as being at least 51 percent owned by a veteran with a service-connected disability who controls the management and daily operations of the company. Service-disabled veteran-owned small businesses are permitted to enter into joint ventures with other companies but must meet specific requirements to do so.
Clark, who is neither a service-disabled veteran nor a qualified 8(a) participant, and others engaged in several criminal schemes to submit false claims and defraud the United States by obtaining government contracts set aside for qualified companies to which they were otherwise ineligible to obtain by fraudulently using proxy and pass-through companies.
Clark and others made false statements, misrepresentations and omissions of facts to hide his role in providing bonding assistance and asserting control over businesses that certified to the VA and the SBA that they were either service-disabled veteran-owned or otherwise owned and controlled by socially and economically disadvantaged individuals. Clark then used these companies to obtain government contracts meant for legitimate companies and passed through up to 95% of the contract proceeds to his own unqualified company. As a result, companies legitimately run by service-disabled veterans or socially and economically disadvantaged people were underbid and deprived of contracts with the government.
Evidence showed that Clark obtained over $12 million in government contracts intended for service-disabled veterans and socially and economically disadvantaged individuals.
“As our nation recognizes the dedication and service of veterans, this jury’s verdict in this case is especially timely,” U.S. Attorney Justin Herdman said. “These programs were created to help those who defended our country and freedom, and suffered disabilities as a result of that service. Clark, who never served this country, took advantage of these programs to fraudulently obtain taxpayer money.”
Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs, said: “We are pleased that this joint investigation resulted in convictions against those who abused federal government contracting set-asides for service-disabled veterans. The VA OIG will vigorously pursue those who wrongfully and fraudulently exploit the integrity of this program.”
“I applaud the excellent work of the entire investigative team,” said NASA Inspector General Paul K. Martin. “Their commitment to protecting the integrity of the Federal procurement process will deter future misuse of taxpayer dollars.”
“Enola Contracting Services and Mr. Clark defrauded the U.S. Marine Corps and jeopardized the integrity of the Department of the Navy procurement process by engaging in a scheme to obtain contracts intentionally set aside for small businesses,” said Matthew Lascell, Special Agent in Charge of the NCIS Southeast Field Office. “NCIS will continue to work collaboratively with our Federal law enforcement partners to combat corruption, financial fraud, and product substitution that threaten Navy and Marine Corps readiness.”
"The conviction secured in this trial is the direct result of a joint investigative effort to protect the integrity of the U.S. Government's procurement process," stated Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service's (DCIS), Northeast Field Office. "DCIS will continue to work with its law enforcement partners and the U.S. Attorney's Office, Northern District of Ohio, to ensure that companies and individuals do not engage in fraudulent activity when they contract with the U.S. Department of Defense."
"OIG is committed to bringing to justice those that commit fraud to gain or extend access to SBA’s set-aside contracting programs,” said SBA Inspector General Hannibal “Mike” Ware. “It is paramount that those responsible for committing fraud are held accountable for their wrongdoing to ensure the integrity of these programs. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“The Air Force Office of Special Investigations, along with our investigative and prosecutorial partners, stand firm in defense of our U.S. Air Force, said Special Agent in Charge Wendell W. Palmer of Air Force Office of Special Investigations Procurement Fraud Detachment 5, Dobbins Air Reserve Base, Georgia. “We will aggressively seek out and prosecute to the fullest extent of the law, those who would fraudulently victimize our ability to protect and defend the United States and our citizens.”
This case was investigated by National Aeronautics and Space Administration -- Office of Inspector General, the Defense Criminal Investigative Service, Naval Criminal Investigative Service, Department of Veterans Affairs -- Office of Inspector General, Small Business Administration -- Office of Inspector General, Defense Contract Audit Agency and the Air Force Office of Special Investigations. It is being prosecuted by Assistant U.S. Attorneys Alejandro A. Abreu, Om M. Kakani, and Brian McDonough.
Federal Jury Convicts Former Xerox Employee of Credit Union Robbery and MurderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that following a five-week trial, a federal jury has convicted Richard Leon Wilbern, 59, of Rochester, NY, of the August 12, 2003, armed robbery of the Xerox Federal Credit Union which resulted in the death of Raymond Batzel. The charges carry a penalty of mandatory life in prison.
Assistant U.S. Attorneys Douglas E. Gregory and Joel L. Violanti, who handled the prosecution of the case, stated that on August 12, 2003 at approximately 9:45 a.m., the defendant walked into Xerox Federal Credit Union (XFCU), located on the Xerox Corporation campus at 800 Phillips Road in Webster, NY. Wilbern was wearing a dark blue nylon jacket with the letters “FBI” written in yellow on the back of the jacket, sunglasses and a poorly fitting wig. The defendant was also carrying a large briefcase, a green and gray-colored umbrella and had what appeared to be a United States Marshals badge hanging on a chain around his neck.
Wilbern went into the cubicle of a female employee and told the employee that he was there to conduct a security assessment and to “stage” a robbery. The defendant subsequently removed two firearms from the briefcase, one described as a handgun, the other a sawed-off shot gun or sawed-off rifle. Wilbern also removed a bag and instructed the employee to fill the bag with money from behind the teller counter. The employee complied with the demands.
Shortly after, the defendant ordered employees and customers to lay down on the floor. While doing so, Wilbern confronted a customer Raymond Batzel who had just finished a banking transaction with the teller. After a very brief verbal altercation, the defendant shot Batzel in the neck which resulted in his death. As Wilbern shot Batzel, a second customer, Joseph Doud, entered the credit union and attempted to turn and run back outside after witnessing the shooting. The defendant shot and wounded the customer in the back as he fled. After shooting the two customers, Wilbern returned to the teller counter area and, while holding the firearm in the air, told credit union employees to fill the bag with cash. The defendant then took the money and fled the credit union leaving behind the umbrella.
In the aftermath of the robbery/homicide at the Xerox Federal Credit Union, the Monroe County Public Safety Laboratory attempted to obtain DNA samples from the green and gray umbrella which was left behind by Wilbern. Two sets of swabs were taken from various locations on the umbrella, including the “external wrap around closure and button”, the “lower latch mechanism”, the “metal shaft and upper latch mechanism” and an “internal strap.” One set of swabs was tested for the presence of DNA while the second set was allowed to dry, packaged and appropriately stored at the lab for future testing. Based upon the technology available at the time, insufficient amounts of DNA were located on the first set of swabs and therefore no conclusions could be drawn.
On November 15, 2011, Webster Police investigators transferred the second set of swabs from the Monroe County Public Safety Building to the Office of Chief Medical Examiner (OCME) in New York City. OCME had developed the expertise and facilities necessary to perform a DNA testing technique that enables testing to be performed on trace amounts of evidence. This testing technique is referred to as High Sensitivity DNA testing, also referred to as Low Template testing.
December 28, 2011, OCME issued a report advising that they were able to recover human DNA from each of submitted swabs from the umbrella, and that two of the submitted swabs contained sufficient levels of human DNA to conduct High Sensitivity PCR DNA testing and comparison. Regarding DNA taken from the “umbrella closure wrap around”, the Medical Examiner concluded that DNA from at least two people was located, but included one major male contributor, referred to as “Male Donor A.” The DNA profile of “Male Donor A”, based on a 15 loci result, is expected to be found in only 1 in 6.80 trillion people. As for the second sample, which was taken from the “umbrella latch mechanism (lower)” of the umbrella, based on a 10 loci result, is expected to be found in in one in 138 million people. The DNA profile was placed in a local and state data base with no positive hits.
In March 2016, a press conference was held to seek new leads in the investigation. Details of the crime were released as well as photographs of Wilbern committing the robbery. Anyone with information was asked to call a dedicated hotline.
On March 27, 2016, a concerned citizen contacted the Federal Bureau of Investigation and indicated that the person who committed the crime was likely a former Xerox employee named Richard Wilbern. The citizen indicated that the defendant worked for Xerox prior to the robbery but had been fired. The citizen also stated that they recognized Wilbern’s face from the photos.
In July 20016, FBI agents met with Wilbern regarding a complaint he had made to the FBI regarding an alleged real estate scam. During one of their meetings, agents obtained a DNA sample from Wilbern after he licked and sealed an envelope. That envelope was sent to OCME, and after comparing the DNA profile from the envelope to the DNA profile previously developed from the umbrella, determined there was a positive match.
Wilbern was employed by Xerox between September 1996 and February 23, 2001 as which time he was terminated for repeated employment related infractions. In 2001, Wilbern filed a lawsuit against Xerox alleging that the company unlawfully discriminated against him with respect to the terms and conditions of his employment, subjected him to a hostile work environment, failed to hire him for a position for which he applied because of his race, and retaliated against him for complaining about Xerox’s discriminatory treatment. Wilbern also maintained a checking and savings accounts at the Xerox Federal Credit Union. Evidence at trial demonstrated that Wilbern was in significant financial distress from roughly 2000 – 2003, including filing for bankruptcy.
The verdict is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gary Loeffert; the Webster Police Department, under the direction of Chief Joseph P. Rieger, the New York State Police, under the direction of Major Eric Laughton, the Monroe County Sheriff’s Department, under the direction of Todd Baxter, the Rochester Police Department, under the direction of Chief La’Ron Singletary, the United States Marshals Service, under the direction of Charles Salina, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
Sentencing is scheduled for February 11, 2020, before U.S. District Judge Charles J. Siragusa who presided over the trial.
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Federal Grand Jury Indicts Kedrick Ross on Drug Distribution and Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – November 8, 2019 – Kedrick Ross, 27, of Nashville, was indicted Wednesday by a federal grand jury and charged with drug distribution and firearms offenses, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee.
Ross was initially charged in a criminal complaint on October 2, 2019, with two counts of being a convicted felon in possession of a firearm and two counts of possession of a firearm in furtherance of a drug crime. The indictment charges Ross with three counts of being a convicted felon in possession of firearms; three counts of possession of a firearm in furtherance of a drug crime; possession of a controlled substance with intent to distribute marijuana, methamphetamine and Xanax, within 1,000 feet of an educational institution; possession of a controlled substance with intent to distribute marijuana and methamphetamine, within 1,000 feet of a public housing complex; possession with intent to distribute methamphetamine; and two counts of obstruction of justice.
According to the indictment, on December 13, 2018, Ross, a convicted felon, was in possession of a Glock .40 caliber handgun, 208 grams of marijuana, and a mixture of methamphetamine near the Watkins College of Art in Nashville. On May 29, 2019, Ross was in possession of a Glock 9mm handgun and a Glock .45 caliber handgun, marijuana and methamphetamine, while in the Cumberland View Public Housing development. The indictment also alleges that on September 9, 2019, Ross was in possession of a Glock .40 caliber handgun while in possession of methamphetamine, with intent to distribute. This firearm was determined to have been the same firearm that caused a gunshot wound to the head of a 3-year-old child on the same day. The indictment also alleges that Ross obstructed justice during the investigation of this incident by attempting to persuade an individual to falsely claim that this firearm belonged to a deceased individual.
If convicted, Ross faces up to life in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Father and Son Members of Brooklyn Gang Sentenced to Prison for Racketeering and Marijuana DistributionRead the Press Release
Earlier today, in federal court in Brooklyn, Tammeco Cargill, an armed enforcer for the Nineties Crew street gang, was sentenced to 121 months’ imprisonment by United States District Judge Raymond J. Dearie for racketeering and racketeering conspiracy, including predicate acts of drug trafficking and passport fraud. Previously, on August 13, 2019, Winston “Pops” Cargill, a drug supplier for the gang and Tammeco Cargill’s father, was sentenced to 36 months’ imprisonment for racketeering and racketeering conspiracy, to run consecutively to a term of 96 months of imprisonment he is currently serving for a separate federal conviction. The defendants were convicted in December 2018 following an eight-day trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentences.
“With these sentences, defendants Tammeco and Winston Cargill will pay the price for contributing to their street gang’s corrosive impact on the quality of life and public safety in the Canarsie and Flatbush neighborhoods in Brooklyn,” stated United States Attorney Donoghue. “Eliminating violent street gangs is a priority of this Office and our law enforcement partners.”
“This sentencing marks the end of the Cargill family business in which violence and drug trafficking played pivotal roles,” stated DEA Special Agent-in-Charge Donovan. “I applaud the collaboration between law enforcement agencies and the work by the U.S. Attorney’s Office for the Eastern District of New York. By investigating and arresting drug traffickers, we are taking away sources of supply from the street and saving people’s lives.”
For more than a decade, the defendants were members of the Nineties Crew, a violent gang that operated as a criminal enterprise and sold narcotics in the Flatbush and Canarsie neighborhoods of Brooklyn. During that period, the gang trafficked thousands of pounds of marijuana, earned hundreds of thousands of dollars, operated numerous stash houses and relied upon firearms to protect and further the operations of their enterprise. Tammeco Cargill acted as an enforcer, and Winston Cargill served as one of the gang’s principal marijuana suppliers. The defendants also fraudulently obtained passports to travel to Jamaica and then illegally re-enter the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Hiral Mehta and Ryan Harris are in charge of the prosecution.
The Defendants:
TAMMECO CARGILL
Age: 36
Brooklyn, New YorkWINSTON CARGILL (also known as “Pops”)
Age: 57
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-330 (RJD)
East Hartford Doctor Admits Illegally Prescribing Oxycodone, Failing to Pay TaxesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that Dr. SHEIKH AHMED, 56, of Orange, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to offenses related to his illegal prescribing of oxycodone, and his failure to pay federal withholding taxes.
According to court documents and statements made in court, Ahmed is a pediatrician who operated a medical practice, under the name East Hartford Medical Center, at 580 Burnside Avenue in East Hartford. Despite being a pediatrician, Ahmed’s practice did not only focus on children. Between December 2017 and May 2018, Ahmed prescribed controlled substances, including Oxycodone, to two individuals outside the scope of professional medical practice. The individuals paid Ahmed $500 to issue prescriptions for 30-day supplies of Oxycodone, and Ahmed agreed to increase the patients’ dosage in the future, without discussion as to the medical justification for the increase. Ahmed counseled the patients about the need to increase dosages gradually to avoid scrutiny from pharmacies regarding the prescribed medications. Ahmed also had the patients bypass normal financial intake procedures and took cash payments directly from the patients. Ahmed failed to perform sufficient examinations to assess the patients’ pain levels prior to issuing the prescriptions.
The investigation also revealed that Ahmed failed to pay over to the Internal Revenue Service $117,893 in employee withholding taxes from five of his businesses, including East Hartford Medical Center, between 2013 and 2016.
Ahmed pleaded guilty to one count of prescribing outside the scope of medical practice, which carries a maximum term of imprisonment of 20 years, and one count of willful failure to pay withholding taxes, which carries a maximum term of imprisonment of five years. A sentencing date is not scheduled.
Ahmed was arrested on a criminal complaint on November 28, 2018. He is released on a $200,000 bond pending sentencing.
This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad and the Internal Revenue Service – Criminal Investigation Division. The DEA Task Force includes officers from the Bristol, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Christopher W. Schmeisser.
Eagle Butte Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 7, 2019, by U.S. District Judge Roberto A. Lange.
Vine Janis, age 39, was sentenced to 4 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Janis was indicted by a federal grand jury on March 12, 2019. He pled guilty on August 12, 2019.
Janis was convicted of Abusive Sexual Contact in June 2001. As a result of this conviction, he is required to register as a sex offender. Janis updated the sex offender registry on February 7, 2018, to an address in Cherry Creek, South Dakota. On May 31, 2018, a compliance officer did a compliance check at the listed Cherry Creek address and found that Janis had moved out of the residence. Janis was later found residing at another address. From April 1, 2018, through the time of his arrest on June 18, 2018, Janis did not register as a sex offender or update his sex offender registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Janis was immediately turned over to the custody of the U.S. Marshals Service.
Durham Man Sentenced for Conspiracy to Rob Certain Business Owners in Their Homes and on Drug ChargesRead the Press Release
GREENSBORO, N.C. – A Durham man who participated in the home invasion robbery of a tobacco store owner was sentenced to prison Thursday, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
DEION TYRELL LILES, age 23, pleaded guilty on September 6, 2018, to distribution of cocaine, and on August 19, 2019, to conspiracy to interfere with commerce by robbery. LILES was sentenced for both convictions on November 7, 2019, by United States District Judge N. Carlton Tilley, Jr. to 84 months of imprisonment, followed by 3 years of supervised release.
LILES was one of eleven defendants identified as members of the Nine Trey Gangstas who committed acts of violence throughout North Carolina and along the entire east coast of the United States. That gang systematically targeted Middle Eastern and Asian business owners for home-invasion robberies after discovering that these owners often kept the proceeds of their respective businesses at their homes. LILES was one of seven defendants who took part in the robbery of a tobacco store owner at the store owner’s Durham home on December 20, 2016. Gang members including LILES had followed the store owner from his tobacco store business to his residence prior to the robbery.
This case was investigated by the Federal Bureau of Investigation, the Durham Police Department, and the Durham County Sheriff’s Office, and was prosecuted by Assistant United States Attorney Terry M. Meinecke for the Middle District of North Carolina.
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Detroit Police Department Officer Convicted of ExtortionRead the Press Release
Detroit Police Department Officer, Deonne Dotson, was convicted today by a federal jury in Detroit on six charges of extortion announced United States Attorney Matthew Schneider.
Joining Schneider in the announcement were Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Patricia Armstrong, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James Craig, Detroit Police Department.
The 8-day trial was conducted before United States District Robert H. Cleland. Officer Dotson, age 47, will be sentenced on March 19, 2020 at 1;30 p.m. Each of the extortion charges carry a maximum sentence of 20 years imprisonment and a fine of $250,000.
According to the evidence presented at trial, Officer Dotson accepted bribes from owners and operators of automobile collision shops in exchange for referring stolen and abandoned vehicles recovered in the City of Detroit to their shops. The evidence also showed that Officer Dotson created false police reports in exchange for money from the owners and operators of the same collision shops. Owners of the vehicles were unaware that Officer Dotson was being paid by the collision shops when they agreed to have their cars fixed by the collision shops.
Five other Detroit Police Officers pleaded guilty to committing similar criminal activity while they were Officers with the Detroit Police Department. All six officers were actively employed with the Detroit Police Department at the time of the offenses.
The other five officers are: Charles Wills, James Robertson, Jamil Martin, Martin Tutt, and Anthony Careathers.
All of the Officers were charged with engaging in extortion for using their official positions as Police Officers to refer cars to certain collision shops in exchange for cash payments.
The investigation was conducted by the FBI, the U.S. Postal Inspection Service, Detroit Police Department and the following agencies from the FBI Detroit Area Corruption Task Force: Michigan State Police and U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operation Division.
The FBI Detroit Area Corruption Task Force is comprised of personnel from the Detroit Division of the FBI; Michigan State Police; Michigan Department of Attorney General; Detroit Police Department; U.S. Internal Revenue Service, Criminal Investigation Division; U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operations Division; U.S. Postal Inspection Service; U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Department of Transportation, Office of the Inspector General; U.S. Department of Homeland Security, Office of the Inspector General; U.S. Department of Education, Office of the Inspector General; and U.S. Environmental Protection Agency, Office of the Inspector General.
The case was prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier
Deputy Attorney General Jeffrey A. Rosen Delivers Remarks at Wake Forest School of LawRead the Press Release
Remarks as prepared for delivery
Good morning. Thank you Matt Martin for your kind introduction and for your leadership in the Middle District of North Carolina. We have a really incredible group of US Attorney’s across the nation, including Matt.
I also want to thank Dean Aiken and the Wake Forest School of Law for hosting this important discussion about public safety, the progress we’ve made, and impediments we face to continuing the positive trend of reducing violent crime.
At the Department of Justice, reducing violent crime is one of our top priorities. To pursue that goal, I have the good fortune every day of working closely with our law enforcement components and our prosecutors in Washington, DC and all across the country, again including Matt Martin and his team here in North Carolina.
So let me start this discussion about violent crime with this simple observation: To understand what works in combating crime, one need look no further than the highly successful efforts of state and federal law enforcement over recent decades. In the early 1990s, crime reached an all-time high. Violent crime and murder rates in particular had steadily increased over the preceding decades. Many major American cities and communities were not safe places to live or work.
In response to this troubling trend, legislatures increased penalties for gun offenders, prosecutors pursued stiff penalties for violent criminals, and the Department of Justice did its part by launching a series of nationwide initiatives to stem the tide of rising crime. For instance, in 1991, the Department created Project Triggerlock, a highly successful program that vigorously pursued firearms cases by targeting the most-violent offenders. A decade later, the Department launched Project Safe Neighborhoods or “PSN.” As a crime reduction strategy, PSN focuses federal and state resources on the most pressing violent crime problems in our communities, and each district develops comprehensive solutions to address them.
A common element of both programs – and really the hallmark of any successful crime-fighting initiative – is cooperation among all levels of law enforcement. Through such programs, federal, state, local, and tribal law enforcement partnered to identify and prosecute the offenders that were driving violent crime rates. The results were impressive.
After reaching a peak around 1993, crime steadily declined for the next 20-plus years. Violent crime was cut in half. A study published in 2009 concluded that PSN successfully reduced violent crime with case studies showing reductions as high as 42 percent in certain locations.
Unfortunately, after decades of improvement, a reversal took place, with stunning increases in violent crime in 2015 and 2016. Homicides alone increased by more than 20 percent. Concerned that we were at risk of losing ground, the incoming Trump Administration and the Justice Department snapped into action and returned to tried-and-true strategies for reducing crime.
In his first month in office, President Trump issued a series of executive orders “designed to restore safety in America.” In response, the Attorney General announced the reinvigoration of Project Safe Neighborhood as a centerpiece of the Administration’s strategy to reduce violent crime. In October 2017, Attorney General Sessions directed all 93 U.S. Attorneys to implement enhanced violent-crime reduction programs and to reinvigorate partnerships with state, local, and tribal law enforcement.
As recent data shows, the U.S. Attorney community put Attorney General Sessions’ words into action. They joined with local partners to identify and combat the most significant violent crime problems facing their districts. Since redoubling our efforts in this way, we have increased federal firearm prosecutions by over 40 percent compared to the last two years of the previous administration. The joint state-and-federal efforts have worked, and the objective statistics prove it.
The FBI recently released its annual crime statistics for 2018, and, for the second consecutive year, the number of violent crimes decreased nationwide. In 2018, the violent crime rate decreased 3.9 percent from 2017, and the rate for nearly every type of violent crime decreased as well.
The lesson from this recent history is clear: law enforcement works best when federal, state, and local partners work together to vigorously enforce the law and target violent offenders.
Unfortunately, a dangerous trend is emerging that threatens to blunt the progress we’ve made in reducing crime. Despite the obvious successes, a small but increasing number of state and local district attorneys have vowed not to enforce entire categories of core criminal offenses as part of a misguided experiment in social justice reform. From Philadelphia in the East to Dallas in the middle and Seattle in the West, a curtain of non-enforcement policies has descended on some unfortunate cities and counties.
It’s a problem Attorney General Barr highlighted in a speech to the Fraternal Order of Police in August. There, he spoke of “the emergence in some of our large cities of District Attorneys that style themselves as ‘social justice’ reformers, who spend their time undercutting the police, letting criminals off the hook, and refusing to enforce the law.”
The radical decriminalization policies these social-reform DAs have publicly announced and implemented are truly shocking when they are made transparent. Despite a decade of record-level drug overdose fatalities, whole categories of drug crimes, including several distribution offenses, are being ignored and not enforced. Likewise, criminals who commit theft below certain thresholds, such as below $500, are given a free pass. In several jurisdictions, reform DAs have effectively decriminalized prostitution, making it more difficult to fight human trafficking. If those weren’t surprising enough, social-reform DAs have announced that the categories of malicious destruction of property, and shoplifting, will go unprosecuted. The same with regard to criminal threats. Even offenders who resist arrest and assault law enforcement officials are skating prosecution under these DAs’ non-enforcement policies.
At the Justice Department, we emphasize working closely with our state and local law enforcement colleagues. But I am concerned that these social reform DAs are falling down on the job. A prosecutor’s duty is straightforward — enforce the law fairly and impartially and keep the public safe. By refusing to prosecute basic offenses, social reform DAs are failing to fulfill that vital obligation. No society can have justice when stealing has been effectively licensed, open-air drug markets are allowed to flourish, and neither victim nor police officer trust that those who break the law will be held accountable.
Tragically, at a time when the rest of the country is once again experiencing historic reductions in crime, social reform DAs risk endangering public safety, and crime rates in their communities will inevitably rise. In nearby Durham, for example, there has been a four percent increase in the violent crime rate and a 18 percent increase in the murder rate, as compared to this time last year since appointment of their social reform district attorney.
Not only will these non-prosecution strategies inevitably make communities less safe, they also undermine our constitutional system of separation of powers. It doesn’t take a law degree from a fine institution like Wake Forest to understand the principle that the legislative branch writes the law; the judicial branch interprets the law; and the executive branch enforces the law. District attorneys, of course, are part of the executive branch, responsible for enforcing the law. By refusing to prosecute broad swaths of core criminal offenses, social-reform DAs are ignoring duly-enacted laws in favor of their own personal notions of what they think the law should be.
Several of these DAs aren’t even trying to hide this power grab. Earlier this year, in an op-ed in the Washington Post, a trio of reform prosecutors openly defied the separation-of-powers principle. These prosecutors, who swore an oath to uphold the Constitution, proclaimed that they “don’t see the role of prosecutors elected by their communities through this narrow lens” and “proud[ly]” rejected “legislative decisions” they found “troubling” in light of their own personal views.
Now, with regard to these DA’s personal policy preferences, let me turn briefly to the issue of prosecutorial discretion. There is no question that prosecutors have discretion to decide what cases to prosecute and how to spend their limited resources. But these DAs are not making individualized decisions based on the facts and circumstances of particular cases. They are predetermining whole categories of offenses for non-enforcement. They are effectively legislating through inaction. And the offenses they are unilaterally striking from the books are not antiquated or rare; they are basic criminal laws directed at maintaining public safety. These DAs’ decriminalization strategies go far beyond prosecutorial discretion and fly in the face of the fundamental concept that no one part of the government exercises total control of our legal system. If you believe in the rule of law, that is a problem.
As concerning as that is, it is not the only problem. Another real tragedy of the social reform DAs’ non-prosecution strategy is its lack of respect for victims. The refusal to enforce entire categories of criminal laws ignores the often tragic harm exacted upon innocent victims.
Take the recent case of a woman, who happened to be a lawyer, who was brutally assaulted while walking her dog. The would-be attacker mistakenly thought the woman was recording him while he and his brother smoked marijuana. His response was to attack the woman, knocking her to the ground and sending her dog flying. The woman suffered a skull fracture among other injuries and was left unconscious. Bystanders bravely held the attacker down until police arrived to arrest him. The effects of the attack have been long lasting. The victim is reportedly still coping with speech and vision impairments as well as hearing loss as a result of the brain trauma she suffered.
When it came time for the violent defendant to face justice, the self-proclaimed social reform DA apparently focused on something other than the evidence and the legal elements of the crime. This DA has publicly stated that she considers it her responsibility to “represent not just the victim, but the defendant and the community.” Think about that: she says the prosecutor is to represent the defendant. In this case, rather than pursue a felony conviction, she allowed the defendant to plead guilty to a misdemeanor and recommended a suspended sentence and one year of probation. According to public reports, the victim “begged” prosecutors not to cut the deal, which she called ‘flagrant, appalling, and disgusting,’ in an e-mail to the prosecutor.
Victims deserve better. They deserve public officials who will consider the individual circumstances of their case and seek real justice in accord with the laws that are on the books.
So now let me turn to another angle that is sometimes raised to justify refusals to enforce existing laws. Some suggest that extreme non-prosecution policies are necessary to fix what they describe as a “broken” criminal justice system. But why are we to assume that the system is not working? Violent crime rates in 2018 returned to near historic lows. And, according to a recent Bureau of Justice Statistics report, national incarceration rates have likewise fallen 13 percent over the last decade to a 20-year low. And it should never be forgotten that the individuals who are in prison are there only after they were individually convicted of crimes, either by plea or after trial. While there can be individual cases that deserve further attention or redress, it is a fallacy to focus solely on the number of people in prison, as though they were rounded up en masse, which is not the case.
Some have argued that recent criminal justice reform legislation like the First Step Act represents a repudiation of historical law enforcement practices. Not so. There was wide bi-partisan support for the First Step Act. Among other things, that legislation focuses on reducing recidivism, to help prevent future crimes. The Department of Justice and our Bureau of Prisons have made implementing that legislation a priority, as Attorney General Barr and I have both emphasized
Let me give you a few illustrations: In addition to sentence reductions that have resulted in the release of more than 4,700 inmates, we have updated policies for inmates to obtain “compassionate release,” and since the Act was signed into law, 107 inmates have received compassionate release, compared to 34 in 2018. We launched a pilot program that has allowed over 260 elderly or terminally-ill inmates to transition to home confinement. We have further individualized drug-treatment plans, so about 16,000 inmates are now enrolled in recovery programs. And to reduce recidivism, we are advancing re-entry programming to help past offenders find work and relaunch their lives.
But here is the key point about these improvements from the First Step Act: It is only because of the success of the law enforcement approaches of the last several decades that we had the opportunity to consider and implement these improvements to the criminal justice system. And a key part of fighting crime and protecting victims is helping to make sure that when these prisoners are released – as many of them will be, after serving their sentences – we give them the best possible chance at not re-offending. It’s about public safety, plain and simple.
It is only because we are strong on fighting crime and protecting victims that we can take the step of trying to help the offenders as well. Keep in mind that federal prosecutions for violent crime are way up since the start of 2017. So what this shows is that we can have a system that both vigorously pursues meaningful penalties against those who commit crimes, but also ensures that offenders who demonstrate rehabilitation are given a second chance.
This kind of balance does not figure into the narrative pushed by social-reform advocates, which is often accompanied by harmful rhetoric that denigrates law enforcement and undermines the rule of law. And that is another part of the problem with regard to prosecutors who don’t want to enforce basic laws, and who denigrate what law enforcement has accomplished. When social reform DAs do that, they are sowing the seeds of mistrust by demeaning the very institutions they are supposed to lead. They are flipping the script by casting criminals as victims and police as villains. These false claims are demoralizing and foment hostility toward law enforcement.
At one leading social-reform DA’s election victory party, supporters went so far as to chant profane anti-police slogans in celebration. This divisive behavior is damaging to public safety and the public trust.
The good men and women of law enforcement put their lives on the line for modest pay to keep our communities safe. Decriminalization policies prevent them from doing their jobs, and fail to respect the risks they take to pursue violent criminals. Such policies embolden offenders who believe they can harass or even attack police with impunity.
Unfortunately, we’ve already begun to see examples of this. In one major city, officers are being pelted by plastic buckets and doused with water in a string of incidents that display a total lack of respect. Even more concerning, according to recent FBI analysis, “[d]ata has shown an increase in ambushes on our nation’s law enforcement officers.”
I am deeply concerned when I hear that some police departments have suffered harms to morale and officers are leaving the force as a consequence of these DAs’ peculiar policies. Moreover, several social reform DAs have ousted large numbers of career prosecutors as part of their first acts upon taking office. Those cast aside include experienced former leaders with years of service to their communities. To ensure that qualified men and women continue to answer the call to serve, we must ensure that such actions are not based on false premises about what works and what doesn’t.
Finally, let me address one other aspect of the non-enforcement policy problem. Some defenders of reform DAs claim that the non-prosecution strategies merely reflect the will of the communities that elected them. If that were so, one wonders why those communities’ legislators would not simply change the laws to reflect their constituents’ views. Indeed, one reason greater transparency about these non-enforcement policies is warranted is that it is far from clear that the public knows and wants prosecutors to tolerate crimes like burglary and theft without enforcement.
Do you think Americans really want prosecutors who won’t enforce whole categories of laws? It can be hard to overlook that some of these social reform DAs were elected in low-turnout primaries backed by unusual funding from out-of-state ideological advocates. But elections are up to voters, so I do not mean to address any individual jurisdiction or any particular DA; my question is what kind of system will we have if our laws are simply to be ignored? And I am especially focused on the problem that non-enforcement policies present to the goal of continuing to reduce violent crime and make our communities safer.
That is why it is important to bring attention to the impact radical decriminalization policies have on victims and public safety. We have achieved important crime reductions nationwide since the beginning of 2017, but that can vary in individual cities or counties. So now is not the time to retreat from what works.
The Department of Justice will continue to do what works. But more than three quarters of all law enforcement resources nationwide are state and local, so the federal government lacks the ability to step in and fully fill the hole created by social reform DAs’ non-prosecution strategies. To sustain our momentum at reducing crime, state, local, and federal partners must work hand in hand to fight violent crime. I am pleased to say that cooperation is occurring in most of America. I hope we will have strong partnerships everywhere.
Those of us who work in the Department of Justice know that it is a privilege to be entrusted with the awesome and humbling responsibility of enforcing the law. We understand that along with that responsibility comes an obligation to faithfully and vigorously defend the rule of law. I hope that some of you who are here today will feel the call to public service. As lawyers, public or private, all of us have a duty to promote the rule of law. That is the reason for my visit. Thanks again to Dean Aiken and the Wake Forest Law community for the opportunity to speak here today.
Cranston Admits to Possessing Child PornographyRead the Press Release
PROVIDENCE – A Cranston man today admitted in federal court to possessing nearly 1,500 videos and more than 240 images of child pornography.
Justin Mierisch, formerly of Smithfield, was arrested in September 2018, after an investigation by the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force determined that since at least April 28, 2015, and continuing through September 17, 2018, Mierisch possessed hundreds of images and more than 1,500 videos of minors engaged in sexually explicit conduct.
According to court documents and information presented to the Court, the ICAC investigation determined that Mierisch possessed images of child pornography while living in Smithfield and while living at his present residence in Cranston.
On September 17, 2018, members of the ICAC Task Force executed a court-authorized search of Mierisch’s Cranston residence and seized Mierisch’s electronic storage devices. A forensic audit of Mierisch’s property revealed 1,477 videos and 242 images of child pornography.
Appearing today before U.S. District Court Judge John J. McConnell, Jr., Mierisch pleaded guilty to possession of child pornography, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
Mierisch is scheduled to be sentenced on February 4, 2020.
This Project Safe Childhood case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Convicted Felon Charged with Discharging A Firearm Near Fond Du Lac SchoolRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging SHELBY GENE BOSWELL, 28, a convicted felon, with possessing and discharging a firearm in a school zone.[1] BOSWELL will make his initial appearance today at 2:00 pm before Magistrate Judge Elizabeth Cowan Wright in U.S. District Court in St. Paul, Minnesota.
According to the indictment and documents filed in court, on October 18, 2019, BOSWELL knowingly and with reckless disregard for the safety of others, discharged a firearm on the grounds of Fond du Lac Head Start which is within a distance of 1,000 feet of the grounds of Fond du Lac Ojibwe High School. Because he has prior felony convictions in Beltrami County, Carlton County, and in U.S. District Court for the District of Minnesota, BOSWELL is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fond du Lac Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorneys Andrew R. Winter and Bradley M. Endicott are prosecuting the case.
Defendant Information:
SHELBY GENE BOSWELL, 28
Hugo, Minn.
Charges:
- Felon in possession of a firearm, 1 count
- Possession of a firearm in a school zone, 1 count
- Discharge of a firearm in a school zone, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Convicted Child Sexual Abuser Pleads Guilty to Illegal ReentryRead the Press Release
ALEXANDRIA, Va. – An illegal alien from El Salvador, who recently was convicted in state court of taking indecent liberties with a child, pleaded guilty today to illegally reentering the United States after he previously was deported in 2004.
“Carrero Alas illegally entered the United States, was deported at taxpayer expense, returned illegally a second time and recently was convicted of a sex offense against a minor who was in his care,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to make these cases a priority and will work closely with our local and state partners to not only promote the rule of law, but also protect the most vulnerable members of our community.”
According to court documents, Oscar Saul Carrero Alas, 37, a citizen of El Salvador, was removed from the United States in October 2004, after having illegally entered the country by crossing the Rio Grande River. Carrero Alas reentered the United States, again without permission, and he subsequently was arrested in Prince William County in January 2018 for violations of state law. In June 2019, Carrero Alas was convicted of taking indecent liberties with a child by a person in a custodial or supervisory relationship, possession of cocaine, and obscene exhibition, all in violation of Virginia law.
Carrero Alas pleaded guilty to illegal reentry after removal and faces a maximum penalty of two years in prison when sentenced on January 17, 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 Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea. Assistant U.S. Attorney Natasha Smalky and Special Assistant U.S. Attorney Michael P. Grady 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. 1:19-cr-318.
Concord Man Sentenced to 80 Months for Drug Trafficking ChargesRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Bernard Lindsay, 41, of Concord, was sentenced yesterday to 80 months in federal prison for possession of cocaine, fentanyl, and methamphetamine with intent to distribute.
According to trial exhibits and witness testimony during the two-day jury trial, on April 16, 2018, the New Hampshire Department of Corrections, Office of Probation and Parole, conducted a home visit at the defendant’s residence in Concord, New Hampshire. In the defendant’s home, officers found a plastic case containing over 16 grams of methamphetamine, over 23 grams of fentanyl, and over 34 grams of cocaine. From the defendant’s person, officers recovered a large amount of money. In addition, officers recovered drug paraphernalia and other evidence of drug distribution, including a known cutting agent, throughout the residence. The Concord Police Department responded to the parole officers’ request for assistance, and continued the investigation by obtaining search warrants for the defendant’s home, car and cellular phones. At trial, the government introduced evidence of the defendant’s ongoing drug trafficking activities recovered from his cell phones. The jury returned guilty verdicts on Wednesday, April 17, 2019.
“Drug dealers should understand that they face long federal prison terms if they continue to do business in New Hampshire,” said U.S. Attorney Murray. “Drug trafficking has caused severe damage in communities throughout our state. In order to stop this destructive activity, we are committed to working closely with the Concord Police Department, DEA, NHDOC and all of our law enforcement partners to identify, prosecute, and incarcerate those who traffic in illegal drugs.”
“DEA is committed to bring to justice those that distribute cocaine, fentanyl and methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Lindsay accountable for his crimes but serves as a warning that DEA and its local, state and federal partners will do everything in our power to keep these highly addictive drugs off the streets of New Hampshire.”
“This case demonstrates an ongoing collaborative team effort by law enforcement partners at the local, state, and federal level to remove a dangerous drug dealer from our community,” said Lieutenant Sean Ford on behalf of Concord Police Department. “Mr. Lindsey’s arrest and prosecution is a big step forward in making our communities safer and holding those that deal dangerous drugs accountable.”
This matter was investigated by the Concord Police Department and the New Hampshire Department of Corrections, Office of Probation and Parole, with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorneys Cam T. Le and Georgiana L. Konesky.
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Child Pornographer Sentenced to 25 Years in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Ryan Wade Alexander, age 34, of Richland, Washington, was sentenced after having pleaded guilty to production and distribution of child pornography. United States District Judge Salvador Mendoza, Jr., sentenced Alexander to a 25-year term of imprisonment, to be followed by a life term of court supervision after he is released from federal prison. Judge Mendoza also required Alexander to register as a sex offender upon completion of his prison sentence.
Beginning in 2017, officers and detectives with the Richland and Kennewick Police Departments joined agents from the United States Department of Homeland Security Investigations (“HSI”) to coordinate on investigations into a ring of adult men who were drugging and engaging in sexual activity with teenage boys in the Tri-Cities, as well as producing child pornography of the boys. Judge Mendoza previously sentenced Zayne Barbre, another defendant in the same group of adults, to 28 years and a lifetime of supervision.
Through an extensive electronics-based investigation, a Richland Police Department detective learned that Alexander had manipulated his way into the lives of several teenage boys in an effort to seduce and sexually violate them. The investigation revealed that Alexander started his grooming process by meeting boys on various online platforms, and then teaching them how to use and sell marijuana. Shortly thereafter, Alexander began exchanging explicit sexual texts with the boys, which led to Alexander sexually assaulting several minor boys and obtaining pornographic images of them. Alexander obtained child pornography images of one minor, and then pretended to be that minor to induce a different minor to take and send child pornography of himself to Alexander. He also threatened and tried to extort a minor when the minor’s mother confiscated marijuana that Alexander had given the minor. Alexander engaged in all of this conduct in the Tri-Cities after fleeing from Oregon, where state authorities had previously charged entirely separate child pornography conduct against him.
When a Richland Police Department detective conducted a sophisticated forensic examination of Alexander’s digital devices, he found hundreds of images of child pornography, including sexual images of children that depicted violence, sadomasochism, toddlers, and infants.
During the proceedings, Judge Mendoza described Alexander’s conduct as “egregious, manipulative, dangerous” and that of “a monster.”
United States Attorney William D. Hyslop said “The sentence imposed sends a strong message to anyone who may try to exploit children for sexual gratification. Prosecuting those who produce and distribute pornographic images of children is a priority of the United States Attorney’s Office for the Eastern District of Washington. Such crimes will be actively investigated by federal, state and local law enforcement officers. I commend the outstanding investigative efforts and close partnership demonstrated by HSI, the Richland Police Department and the Kennewick Police Department in this case.”
“This investigation highlights the work HSI and our law enforcement partners are doing each day to protect the community from dangerous criminals,” said Eben Roberts, Acting Special Agent in Charge of HSI Seattle. “Child predators and those preying on our community should know we are committed to exposing them and their exploitation. They may think they are safe from justice, but they are not.”
This case was pursued as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the United States 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, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The PSC Initiative has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Richland and Kennewick Police Departments and Homeland Security Investigations, along with the Southeast Regional Internet Crimes Against Children (“ICAC”) Task Force, which is located in Richland, Washington. Victim services were provided by the Support, Advocacy, and Resource Center (“SARC”) in the Tri-Cities. The case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.